In August, the average monthly price of yellow phosphorus rose 4% month-over-month and 22% year-over-year, keeping costs for phosphorus-based flame retardants under sustained pressure. However, due to weak downstream demand, industry-wide oversupply, and difficulties in passing on cost increases, price hikes for flame retardants were limited, squeezing profit margins. In September, stockpiling ahead of the two major holidays may drive yellow phosphorus prices higher still, and cost support remains strong. Until end-user demand shows a noticeable recovery, the phosphorus-based flame retardant market is expected to maintain a pattern of “high costs, weak demand, and tight profit margins,” with profit recovery still contingent on a revival in consumption.
2026-09-07
