How is the phosphorus trichloride market impacted by yellow phosphorus supply and downstream demand shifts?

How is the phosphorus trichloride market impacted by yellow phosphorus supply and downstream demand shifts?
Phosphorus trichloride (PCl3) remains the largest single consumer of yellow phosphorus in China, accounting for roughly 31% of off-pesticide demand in 2025, alongside thermal phosphoric acid at 33%. Domestic yellow phosphorus output rose 17.6% in 2025 to 1.0 million tons, with capacity flat at 1.48 million tons, lifting operating rates to 67.6%. Early 2026 saw output up 21% year-on-year. PCl3 demand is closely tied to glyphosate, water treatment chemicals, and lithium battery electrolytes via hexafluorophosphate. With sulfur prices high, thermal phosphoric acid gained competitiveness, further tightening yellow phosphorus availability. Environmental restrictions on 'three phosphorus' industries and energy controls continue to cap capacity growth, keeping PCl3 feedstock costs volatile and supporting price floors.