After a lengthy stretch of stable prices, phosphoric acid prices started to climb in 2005. In the first quarter of 2008 merchant-grade phosphoric acid prices passed the US$ 1,400 / t P2O5 mark with OCP settling some contracts at US$ 1,425 to 1,450 / t P2O5 for Western Europe. It has been understood that the prices have been agreed for a short term period on quarterly basis.
Additional contracts have been signed at US$ 1,700 / t P2O5 for same period. It is understood that offers are on the Indian market which are as high as US$ 1,900 / t P2O5. Initial settlements with EC customers by OCP are reported in US$ 2,075 to 2,150 / t P2O5 cfr West European ports. The purified phosphoric acid market is matured. The ongoing competition for P2O5 caused by the current trend in demand for solid fertilizers changed this stability. Supply issues of purified phosphoric acid and further downstream product will become an issue during this year.