As a result of the tough downstream market
and intensifying competition from substitutes, yellow phosphorus is expected to
suffer increased risks of sales stalling in China, according to Phosphorus
Industry China Monthly Report issued by CCM in July.
Most
yellow phosphorus is used to make thermal-process phosphoric acid, which is
then processed into various types of phosphate products.
Adding
to already tough market conditions, in June the government of Guiyang announced
plans to ban the production and sale of detergent with phosphorus, which will
put further downward pressure on sales volumes of phosphoric acid
and yellow phosphorus.
The
yellow phosphorus market could see ongoing contraction in the face of
intensifying competition from substitutes over the next several years.
Most
phosphoric acid producers say domestic sales of thermal-process phosphoric acid
are quite weak. Hubei Xingfa and Jiangyin Chengxing both indicated that thermal-process
phosphoric acid sales suffered in June 2013, and expect poor sales
to continue. Some yellow phosphorus producers also attribute poor sales to
competition from purified wet-process phosphoric acid.
Some
phosphoric acid purchasers in Sichuan Province report purified wet-process
phosphoric acid prices as much as USD32.47/t cheaper than thermal-process
phosphoric acid—a significant price advantage.
In
2013, two purified wet-process phosphoric acid plants
(one in Sichuan Province and another in Fujian Province) owned by Wengfu Group
Co., Ltd. (Wengfu Group) maintained a stable production. These two plants have
a total capacity of 250,000t/a for producing purified wet-process phosphoric
acid. Some yellow phosphorus producers located in Sichuan Province complained
that Wengfu Group's cheaper phosphoric acid is pulling down their sales.
And
with ever-increasing attention on saving energy, Chinese phosphoric acid
producers have been trying to reduce dependence on yellow phosphorus. Hubei
Xingfa and Guizhou Kailin have both launched purified wet-process phosphoric
acid projects.
Domestic
consumption of yellow phosphorus has held steady at around 800,000 tonnes
annually, but that volume could come under pressure from shrinking demand and
intensifying competition from substitutes.
Editor's
Note
Headlines
of Phosphorus Industry China Monthly Report 1307
Phosphorus
Ore
Half-hydrate
wet phosphoric acid technology innovation in China
Hubei
Xingfa applies for issuing new debts to replace maturing debts
Yellow
Phosphorus
Yellow
phosphorus to foresee increased risk of sales stalling
Phosphate
Fertilizer
Chinese
phosphate fertilizer industry goes through a hard time in H1 2013
No
positive note leave to China's phosphate fertilizer market in June
Fine
Phosphate Chemicals
The
US to continue imposing anti-dumping duties on Chinese sodium hexametaphosphate
Jiangsu
Yoke's TCPP & BDP production project obtains government recordation
Global
Insight
Weakening
phosphate fertilizer trade continues
Brief
news
Sichuan
makes progress on phosphorus resource exploration
Inner
Mongolia to develop phosphorus chemical industry
Supply
& Demand
Market
review of prime phosphate chemical in June 2013
Import
& Export
International
trade of phosphate chemicals in May 2013
Price
Update
Price
monitoring of some phosphate chemicals in June 2013
Phosphorus
Industry China Monthly Report, issued by CCM on 15th,
keeps providing the latest company dynamics related to China’s phosphorus
industry, and market analysis on supply and demand, import and export as well
as global insight.
CCM is dedicated to market research in China
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