Friday, August 3, 2012

Latest Update in China’s Phosphorus Market

In June 2012, Chinese Government continues to release conservative macroeconomic policy to lighten enterprises’ pressure and stimulate economic growth—reducing the retail price of electricity for China’s industrial producers. Thus, yellow phosphorus producers, as the major electricity consumer in China, could benefit from the macroeconomic policy. What kind of influence will the macroeconomic policy make on domestic yellow phosphorus industry?
As for the entire China’s phosphorus industry in June 2012, they generally face falling price either because of the reduction in cost of raw material or the sluggish demand. Will the price continue to keep falling in July?

In addition, China is to encounter tight supply in phosphorus ore under the influence of climate - continuous rainfall in Sichuan and Guizhou. How to response the bad weather?

All answers can be found in CCM International’s Phosphorus Industry China Monthly Report, which provides you the latest information on company dynamic, industry dynamic, factors impacting the price fluctuation, technology improvement, supply & demand of China's phosphorus industry.

Headline news in the July issue of Phosphorus Industry China Monthly Report:
-Wengfu Group continues to expand mining areas for its current phosphorus mine to prevent tight supply.
-With ever-increasing concerns on rare earth resources, the technology of separating rare earth elements from phosphorus ore is expected to add value to phosphorus resources.
-The auction of 20% shares in JSC Apatit is becoming fierce in Russia.
-Although Kaiyang Government will provide subsidy for local yellow phosphorus producers to encourage local production of yellow phosphorus, it’s to face challenge from other yellow phosphorus production areas.
-Declined export guarantee money for DAP is conductive to relieving the financial pressure of China’s DAP traders based on reduced export cost.
-China BlueChemical is expected to rank among the forefront of phosphate industry in China via expanding scale of business and recourses.
-With the coming of export peak season and decreasing supply in the US, China is to contribute more force to global DAP market.
-The effect of China’s phosphate fertilizer reserve stratagem is at a transition, from ensuring supply in off season to relieve enterprises’ sale pressure in off season
.… …

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