Tuesday, February 19, 2013

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.

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

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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