Yellow Phosphorus Price Probably to Keep Uptrend

Price of yellow phosphorus is expected to keep uptrend in the remainder of 2011, primarily thanks to the continuously increasing demand, impacted production and increasing production cost, according to CCM’s October issue of Phosphorus Industry China Monthly Report.

In line with the booming downstream, China's demand for yellow phosphorus kept stable increase during 2005-2010. During this period, the apparent consumption volume of yellow phosphorus increased by CAGR of 5.5% in China and it grows even faster in 2011. As of August in 2011, China's yellow phosphorus apparent consumption volume has touched 475,758 tonnes, increasing by 6.4% year-on-year as compared with that in the corresponding period last year.

Generally speaking, there is a negative correlation between yellow phosphorus price and its supply.

In history, the period of January and April every year is the slack season for yellow phosphorus production in China, due to the higher electricity price as the power shortage during this period in Yunnan Province producing near 50% of China's yellow phosphorus. Accordingly, yellow phosphorus price sees raising during this period every year. While in the wet season during May and November every year, the electricity price in Yunnan Province is relatively low and the production of yellow phosphorus is booming in this period. As a result, price of yellow phosphorus turns down.

Difference emerges in 2011. In the regular wet season, the main yellow phosphorus production provinces in China suffer serious drought which causes wide electric power shortage. As the direct result of the power shortage, yellow phosphorus production is impacted. The output volume in August turned down. As compared with that in July, the output decreased by 12.5% to 80,534 tonnes in August.

Government indicated that the power shortage situation will sustain throughout the winter this year.

In the meanwhile, yellow phosphorus also sees raising in production cost, especially the increasing price of phosphorus ore. Since January 2010, price of phosphorus ore has kept in high level and seen fluctuating increase. The phosphorus ore price was obviously increasing in June 2011 when Hubei Province and China Petroleum and Chemical Industry Federation (CPCIF) promulgated their integrating guidelines of phosphorus ore resource.

In the coming future, phosphorus ore price is expected to keep the uptrend with the deep industry integration.

Source: Phosphorus Industry China Monthly Report

http://www.cnchemicals.com/Newsletter/PhosphorusIndustryChinaMonthlyReport.shtml

Content of Phosphorus Industry China Monthly Report 1110:

Phosphorus ore

Industry Dynamic: Zhongxiang City develops its phosphorus industry in an orderly way  

Globle Sight: Iraq becomes the second largest phosphate region in the world 

Comapny Dynamic: Kailin Group innovates technology to strengthen production efficiency 

Policy & Legislation:  Ministry of Commerce releases 2nd export quota for phosphorus ore in 2011

Yellow phosphorus

Industry Dynamic: Yellow phosphorus price probably to keep uptrend

Phosphate fertilizer

Policy & Legislation: New Discharge Standard of Water Pollutants for Phosphate Fertilizer Industry to be implemented  

Industry Dynamic: Extending application of phosphogypsum

Company Dynamic: Shindoo invests on slow release compound fertilizer    

Policy & Legislation: Entry Criteria for Phosphate and Ammonium Industry takes effect in September

Fine phosphate chemicals

Industry Dynamic: Hubei Accelerates Development of Fine Phosphate Chemical Industry

Import & export

International trade situation of phosphate chemicals in August

Price Update

Price monitor of some phosphate chemicals

Phosphorus Industry China Monthly Report, a monthly publication issued by CCM International on 15^th of every month, provides you the latest information on company dynamic, industry dynamic, factors impacting the price fluctuation, technology improvement, supply & demand of China's phosphorus industry.

(Guangzhou China, October 17, 2011)

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