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Phosphorus Industry China Monthly Report
Background
B
ased on phosphorus ore, phosphorus industry is a large industry which covers yellow phosphorus, phosphate acid, phosphate fertilizers, phosphate feed, fine phosphate chemicals, etc.
Phosphorus ore
Yellow phosphorus
350
200,000
300
150,000
250
100,000
200
50,000
150
0
100
Price, USD/t
250,000
Ja n. M 08 ar M .08 ay .0 Ju 8 l.0 Se 8 p. No 08 v Ja .08 n. M 09 ar M .09 ay .0 Ju 9 l.0 Se 9 p. No 09 v. Ja 09 n. M 10 ar . M 10 ay .1 Ju 0 l. Se 10 p. No 10 v. Ja 10 n. M 11 ar . M 11 ay .1 1
During the 12th Five-Year-Plan (20112015), Chinese government will encourage to exploit low grade phosphorus ore by levying lower resource tax on low grade ore, which will drive exploiting technology innovation and reduce resource waste. This is beneficial for the development of phosphorus industry. However, the government will continue implementing export quota system for phosphorus ore.
Volume, tonne
China has been a net phosphorus ore exporter as China is the second largest holder of phosphorus ore resource of the world, following Morocco. Thanks to the elimination of special export tax and the strong recovery, China’s phosphorus ore export volume and price FIGURE 1: China’s phosphorus ore export situation, 2008~May 2011 both witness rebound after the financial 300,000 400 crisis.
Volume
Average price
Source: China's Customs, CCM International
5,750
6,000
Price, USD/t
Volume, tonne
In 2010, output of China’s yellow FIGURE 2: China’s yellow phosphorus export situation, 2008~May 2011 phosphorus broke historical high level, 12,000 8,750 touching 957,994 tonnes, increasing by 10.6% year on year. The strong growth 7,750 10,000 is primarily driven by the booming 6,750 8,000 downstream industries.
Ja n. 0 A 8 pr .0 8 Ju l.0 8 O ct .0 Ja 8 n. 0 A 9 pr .0 9 Ju l.0 9 O ct .0 Ja 9 n. 1 A 0 pr .1 0 Ju l.1 0 O ct .1 Ja 0 n. 1 A 1 pr .1 1
4,750 On Jul. 5th, 2011, the World Trade 4,000 Organization (WTO) ruled that China's 3,750 export restriction on yellow phosphorus 2,000 2,750 is illegal. Though China has eliminated 0 1,750 the special export tax and only levies 20% tax on export yellow phosphorus in 2011, the export volume of yellow phosphorus only accounted to 6,340 Volum e Average price tonnes as of May in 2011, halved as Source: China's Customs, CCM International compared with that in the same period last year. In line with the soaring price of phosphorus ore, the average export price of yellow phosphorus in May 2011 increased by 24.7% over that in previous May.
Phosphate fertilizers Phosphate fertilizers are important for China to modernize its agriculture industry. In 2010, China totally produced 17.01 million tonnes (100% P2O5) phosphate fertilizers, increasing by 20.2% year-on-year. Though the output witnessed fast growth, China’s phosphate fertilizer industry has been overcapacity. On March 25, 2011, Ministry of Industry and Information Technology (MIIT) promulgated the exposure draft of the Entry Criteria for Phosphate and Ammonium Production which rules that in principal, it would not allow to build new wet process phosphoric acid (WPA), monoammonium phosphate (MAP) and diammonium phosphate (DAP) projects or expansions within three years. Meanwhile, it will weed out some inefficient capacity by higher environmental requirement.
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Phosphorus Industry China Monthly Report
To develop more healthy, phosphate fertilizers industry will see integration within industry. Phosphorus ore resource will draw more attention. Distribution channel building will enhance competitiveness. Hence, more and more mergers and acquisitions will emerge. Fine phosphate chemicals Phosphorus trichloride (PCl3), as the raw material of glyphosate which is one of the important herbicide in China, its dynamic will heavily impact the production of glyphosate. China currently is the largest producer of sodium tripolyphosphate (STPP) in the world, over 60% of STPP produced in China is exported. Hence, the changes within China’s STPP will impact the world’s STPP. As compared with other flame retardants, phosphorus flame retardant is of many advantages. Hence, phosphorus flame retardant will witness fast development in the coming years, which is counted as one of breakthrough points of China’s fine phosphate chemicals.
Column •
Policy & legislation
Present the latest policies and legislations released in China and abroad related to phosphorus industry, such as industry 12th Five-Year-Plan, industrial Entry Criteria, tax adjustments and other policies impacting the development of phosphorus industry. •
Company dynamic
PCl3, STPP and main phosphate fertilizers, etc., and find out the factors impacting the price fluctuation. Predict the price trend. •
Report the technology improvement within industry. Analyze influences of technology improvements on China’s phosphorus industry, including cost reduction, quality improvement and efficiency increase.
Report the latest news about companies within China’s phosphorus industry, such as new launch, company expansion, merger & acquisition, cooperation, etc. Find out stories behind the news, including company development strategy, related policy, global market situation, etc. •
•
Supply & Demand Cover the supply and demand dynamics of main phosphate chemicals, including the rough import and export data analysis of P2O5, STPP, PCl3, PCl5, dicalcium phosphate, etc.. Analyze the factors influencing the supply and demand of these products.
Industry dynamic •
Introduce the development trend of phosphorus industry and dig out the investment opportunity within the industry. •
Technology innovation
Global insights
Report the industry dynamic of the world which will impact China’s phosphorus industry.
Price update Update prices of phosphorus ore, yellow phosphorus,
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Why to subscribe?
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Questionnaire
Who need it?
CCM will set questionnaire on events to collect experts’ views and opinions. • • Face-to-face interview • CCM carries out face-to-face interviews with industry insiders to make in-depth analysis & comment on relative issues. •
Trace the industrial trend for you business decision. Capture the opportunities for investment. Master the current industry environment in China. Get the changes in related industry policy in time to avoid the potential business risks. Know the insiders’ opinions about the latest policies and events.
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Experts consultancy
CCM has established long-term business relationships with experts in each industry via payment or information offering, and they would contribute stories or comments to CCM in return.
Producers, traders and end users within phosphorus industry. Investors focusing on phosphorus industry. Government and independent corporations interested in China phosphorus relative industries
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Phosphorus Industry China Monthly Report
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