High purified phosphoric acid investment looms in China

Although the falling export and increasing output pushed up the domestic supply of phosphate fertilizer as well as other prime phosphorus products, China still witnesed a rising sales in phosphate fertilizer in 2012. According to the data from China Petroleum and Chemical Industry Federation (CPCIF), 98.1% of China's produced phosphate fertilizer was sold. It meant that there're only 347,897 tonnes of inventories in China by the end of Nov. 2012, nearly 105,831 tonnes less compared to that of the same period of last year.

Thanks to the newly launched capacity of phosphate fertilizer, the production of major phosphate fertilizer products continue to rise in 2012. By the end of Nov., China  has cumulatively produced 14,096,171 tonnes of DAP and 13,183,284 tonnes of MAP, increasing by 17.42% and 24.4% year on year respectively. The output of phosphate fertilizer (calculated by 100% P2O5) reached 18.77 million tonnes in the first eleven months of 2012, up 32.34% year on year. 
 
As well as phosphate fertilizer, yellow phosphorus also saw an increase in production—the total output amounts to 759,313 tonnes by the end of Nov. 2012, increasing by 10.46% year-on-year. However, the rising yield mainly resulted from China's weak economy in 2012, which provide yellow phosphorus manufacturing with sufficient supply of electricity, to ensure stable production.
 
The booming production of phosphate fertilizer and yellow phosphorus jointly promoted the production of phosphorus ore. China exploited 87.04 million tonnes of phosphorus ore from Jan. to Nov. of 2012, 13.08 million tonnes more compared with that of the same period of last year.

High purified phosphoric acid investment looms in China. With the maturity of the phosphorus industry in traditional area in China, phosphorus enterprises have to find new ways to drive their development. Before 2012, the investment in phosphorus industry was mainly concentrated in phosphate fertilizer industry. While in 2012, phosphorus enterprises started to look to high purified phosphoric acid.

New capacity of DAP launched between 2011 and 2012

Comparison of China's fertilizer firms' performace in prime business between the first ten months of 2011 and that of 2012

Data Source:China Petroleum and Chemical Industry Federation

Domestic supply of major phosphorus products in China, 2010-2012, tonne

Phosphorus Industry China Monthly Report is a monthly publication released by CCM. It offers timely update and close follow up of China’s various kind of Phosphorus market dynamics, analyze the market data and trends. Major columns include market dynamic, company dynamic, raw material supply, price update, import & export analysis, consumption trend & competitiveness.

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China's first Agricultural Insurance Regulations issued

Investment in agricultural industry has been hot in recent years, and modern agriculture is also considered to be a potential investment field. Based on the current situation of China's modern agricultural industry, it's suggested that more capital and highly advanced management are needed for building some famous brands and increasing the industrial concentration.

On 12 Nov., 2012, China's first law for agricultural insurance, Agricultural Insurance Regulations (Regulations), was formally issued after the soliciting of public opinions for half a year. Besides, the Regulations shall be effective as of March 1, 2013, according to an announcement published by the Legislative Affairs Office of the State Council (LAOSC).

Agricultural insurances can be divided into planting industry insurance, breeding insurance and forest insurance basing on agriculture category. Among which, planting industry insurance refers to the business of providing insurance to grain crops and industrial crops. That is to say, rice, wheat, soybean, sorghum, corn, cotton, tobacco, tea, mulberry, sugarcane, herbs, vegetables, etc. are underwritten by the insurance.

The Regulations mainly aims to regulate agricultural insurance activities, protect the lawful rights and interests of the parties to the contract for agricultural insurance, enhance the capability to withstand risks during agricultural production and help agricultural insurance develop well.

Crop Protection China News is a monthly publication released by CCM. It offers timely update and close follow-up of China’s various kind of crop market dynamics, analyze the market data and trends. And the major columns include companies' current dynamics and market situation, a close watch of government policies and regional dynamics. If you want to know more about Crop Protection China News, you can contact us.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606     Email: econtact@cnchemicals.com