Thursday, September 1, 2011

China Continues to Eliminate Yellow Phosphorus Inefficient Production Capacity

China will continue to eliminate yellow phosphorus inefficient capacity in 2011, which helps to upgrade domestic yellow phosphorus industry, according to CCM’s newly-released Phosphorus Industry China Monthly Report.

In May 2011, Guizhou and Sichuan Province announced their goals of eliminating inefficient capacity of yellow phosphorus in 2011. According to the announcement, the two provinces are to eliminate yellow phosphorus production capacity of 59,500 tonnes and 10,000 tonnes respectively.

To restrict its chaotic development of yellow phosphorus in China, the government has announced the Entry Criteria for the industry in January 2009. In the past five years, Yunnan Province, the largest production area of yellow phosphorus in China, has eliminated 220,000 tonnes of yellow phosphorus inefficient production capacity.

The government has been eliminating the inefficient yellow phosphorus production capacity, which will not affect the supply of yellow phosphorus. In contrast, the elimination helps to upgrade domestic yellow phosphorus industry. By the end of 2010, China's total production capacity of yellow phosphorus still had reached about 2,000,000t/a, with the output of 957,994 tonnes in 2010.

In 2011, some yellow phosphorus producers in Yunnan, Guizhou and Hubei Province are going to launch new yellow phosphorus production lines, with total capacity of 108,500t/a which exceeds the eliminating capacity. Meanwhile, the transformer capacity of unit furnace of these new production lines are all above 20,000KVA (convert into production capacity 10,000t/a), required by the Entry Criteria.

The following highlights are covered in the first issue of Phosphorus Industry China Monthly Report:
-China encourages low grade phosphorus ore exploitation.
-Large phosphorus ore exploiters are benefited from policy switch.
-Yellow phosphorus export is still sluggish without special export tariff.
-China continues to eliminate yellow phosphorus inefficient production capacity in 2011.
-MIIT is to promulgate Entry Criteria for Phosphate and Ammonium Production in 2011.
-Phosphate fertilizer industry is to see industrial integration, with the regulation of the Development Plan of Phosphate Fertilizer Industry.
-Enjoying rich phosphorus reserve, Leibo County strengthens phosphorus chemical industry development.
-WengFu Group extends its product portfolio by cooperating with Onoda Chemical.
-Hubei Xingfa cooperates with Dequest to develop phosphate chemicals.
-Phosphorus ore and yellow phosphorus see decreased export volume with soaring prices.
-Prices of phosphate chemicals keep stable in August while see uptrend in the coming months.

If you are interested in CCM’s Phosphorus Industry China Monthly Report, please feel free to contact us at
(Guangzhou China, August 30, 2011)

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