Entry Criteria for Phosphate and Ammonium Production to be Launched

CCM has launched a newsletter, entitled Phosphorus Industry China Monthly Report. One of the news in Phosphorus Industry China Monthly Report is that Ministry of Industry and Information Technology (MIIT) is going to promulgate the Entry Criteria for Phosphate and Ammonium Production (the Entry Criteria) in the remainder of 2011.

The factories to remove or new entrants are not allowed to build new wet process phosphoric acid (WPA), monoammonium phosphate (MAP) and diammonium phosphate (DAP) projects or make any expansions within three years, according to the Entry Criteria. Besides, existing compound fertilizer production plants have to relocate if they are located in county-level ecological protection areas, scenic areas, nature reserves, cultural heritage protection areas, etc., The factories to remove or  new entrants should have their own phosphorus ore and sulfur ore resources, fluoride recovering devices and ardealite utilization matching projects.

The Entry Criteria also sets requirements on energy consumption and environmental protection for new entrants and existing companies. The implement of the Entry Criteria will certainly drive companies to pay more attention to phosphorus resource, energy consumption and environmental protection.

By the end of 2010, there were 466 phosphate fertilizer producers in China, with the total production capacity of over 21.00 million tonnes per year and the output of 17.01 million tonnes (100%P2O5) in 2010, while the apparent consumption volume was only 14.75 million tonnes (100%P2O5). That is to say, China's phosphate fertilizer industry is facing overcapacity.

The most important is that many phosphate fertilizer producers that have to relocate their plants have no phosphorus ore resource of their own. To sustain long-term development, phosphate fertilizer producers will pay more attention to phosphorus ore resource.

If you are interested in CCM’s Phosphorus Industry China Monthly Report, please feel free to contact us at econtact@cnchemicals.com.

(Guangzhou China, September 28, 2011)

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