Global phosphate fertilizer market to maintain steady in the rest of 2013

Unlike China's, the phosphate fertilizer export outlook of Morocco, headquarter for the OCP Group SA (OCP), is brighter in price as well as in inventory. Although FOB prices of OCP's DAP exports to Europe suffered a decrease of around USD10/t to USD15/t in early Sept., the FOB price of OCP's DAP small-lot exports to Europe still held at about USD440/t. Furthermore, after scaling back production to meet a weaker demand, OCP has announced that its phosphate fertilizer inventory has cleared out. Meanwhile, OCP's strategy of setting phosphate fertilizer prices according to nutrient content may draw further attention from importers in Latin America, especially from smaller traders. The result of OCP's production control may also have its drawbacks, however. From Jan. to Aug., in Latin America's MAP market, OCP's market share fell to 46%, while Russia's increased to 31% and China's also increased significantly, due to a low export prices strategy.

In addition, according to statistics from The Fertilizer Institute (TFI) in Aug., the market performance of MAP in the US was slightly better than the bleak situation of DAP. In order to cater to the relatively lower demand for MAP than for DAP, some Chinese fertilizer manufacturers have turned to producing MAP from DAP.

In China, the approaching end of the fertilizer export window (May 16–Oct. 15) and a consequent reflux of inventory in ports may further exacerbate the oversupply. It has been reported that FOB prices of China's 64% DAP have decreased to USD368/t–USD380/t in Sept.

India, the world's largest phosphate fertilizer importer, saw a 30%–40% decrease YoY in its DAP import volume from China from May to Sept.

The main reasons for that were cuts in India's government subsidies for the purchasing of fertilizer, the ongoing depreciation of the INR and a high phosphate fertilizer inventory in the beginning of 2013. However, on Sept. 19 the exchange rate of USD/INR improved to 61.835 from a historical low of 68.85 on Aug. 26, which may slightly extend the profit margin of Indian phosphate fertilizer importers, and stimulate imports from China and Saudi Arabia. It would seem that some international phosphate fertilizer suppliers are trying to maintain the CFR price of DAP exported to India above USD400/t, rather than let it decline further after the closing of China's phosphate fertilizer export window.

Latin American, including Brazilian phosphate fertilizers faced a dimmer outlook. The CFR price of Brazilian DAP hovered around USD420/t in Sept., and the correspondent FOB price reached USD385/t in the Tampa port.

Pakistan is expected to be one of the most active phosphate fertilizer importers in Oct. The country is still in need of 100,000–150,000 tonnes of DAP, and its CFR price is currently quoted at USD400/t–USD410/t.

Source: Phosphorus Industry China Monthly Report, issued by CCM in October.

Table of Contents of Phosphorus Industry China Monthly Report 1310:

Editor's Note

Headline

Phosphorus Ore

Xingfa Group and Wengfu Group set up new phosphorus R&D centers

Yellow Phosphorus

Yuntianhua's profits and revenue down in H1 2013

Fine Phosphate Chemicals

Yuntianhua launches another reorganisation to peel off its glass fibre assets

Ten organophosphorus pesticides to be banned, effective Nov. 2013

Global Insight

Global phosphate fertilizer market to maintain steady in the rest of 2013

Brief News

Kunming Niumi to launch a microporous membrane program

Gansu Jingtianfu launches a phosphogypsum comprehensive ultilization program

Supply & Demand

Market review of prime phosphate chemicals in Sept. 2013

Import & Export

International trade of phosphate chemicals in Aug. 2013

Price Update

Price monitoring of some phosphate chemicals in Sept. 2013

Phosphorus Industry China Monthly Report, issued by CCM on 15^th, 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.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

China’s DAP sees limited upside for price

When entering August, China’s Phosphate Price Index still remained at a low level, which seems to last for long, even in the planting season, according to CCM International’s August issue of Phosphorus Industry China Monthly Report.

According to China Agricultural Means of Production Association (CAMPA), China’s DAP plants were operating around 80%-85% of capacity in July. In view of current low exports and slack domestic consumption, it could be foreseen that Chinese DAP producers’ inventory might remain at a high level for poor shipments. Consequently, domestic supply of DAP won’t be tight even in the planting season.

In terms of the supply of raw materials, the price of phosphorus ore saw a little slide in July. Phosphate fertilizer producers mentioned that the enquiry from upstream phosphorus mining enterprises was increasing, leading several phosphorus mining enterprises to cut price. However, it’s difficult to judge whether the price of phosphorus ore is to rebound, out of the consideration of the supply of phosphorus ore in fertilization season. Also, DAP producers indicated that the current price of DAP was quite close to cost, especially for those producers without phosphorus resources.

In addition, there’s a question for DAP producers: whether the price of phosphorus ore would rise in the season of peak demand.

Relatively speaking, China’s farmers are weak in purchasing power. Therefore, they are apt to decrease the consumption in DAP if the price rises to an unacceptable level. Previous market situation of DAP in China witnessed such situation. From 2010 to H1 2011, the market price of DAP was driven by rising phosphorus ore, which gradually outpaced China’s farmer’s purchasing power. Thus it saw a trend of decline in H2 2011. (Note: Previous market price of DAP in China could see page 5 issue 6 Vol.2: China publishes first wholesale price index for DAP).

  

Apparently, low tolerance for high price of consumers was bound to be the prime reason why DAP producers or distributors couldn’t easily pass on the cost.

Source: Phosphorus Industry China Monthly Report 1208

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

Headlines of Phosphorus Industry China Monthly Report 1208

Phosphorus Ore

Company Dynamics: Phosphorus mining business to bring huge profits for Sichuan Hebang

Company Dynamics: Growing uncertainty to surround China Baoan’s new investment plan 

Company Dynamics: Guizhou Government makes up development scheme for Kailin Group 

Yellow Phosphorus

Policy & Legislation: Irreplaceability of yellow phosphorus to last for long in China 

Phosphate Fertilizer

Policy & Legislation: China to further heighten utilization of phosphogypsum 

Company Dynamics: Liuguo Chemical fails to make more profit in H1 2012  

Policy & Legislation: Hubei Government to curb local capacity expansion of fertilizer

Industry Dynamics: China’s DAP sees limited upside for price

Fine Phosphate Chemical

Industry Dynamics: Phosphorus investment rising in Leibo County  

Company Dynamics: Hubei Xingfa to invest new phosphate chemicals project

Import & Export

International trade situation of phosphate chemicals in H1 2012

Price Update

Price monitor of some phosphate chemicals in July 2012

… …

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, Aug.15, 2012)

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1181.html

China to Become Main Force for Global DAP Market from June

Although China is weaker than the US in pricing power for DAP in the international market (Note: According to the previous situation, China’s DAP producers or DAP traders were apt to follow the contract price set by the US-based Phosphate Chemicals Export Association, Inc. (PCEA) and India’s purchasers), China is still to become the main force in global DAP market from June to September, 2012, according to CCM International’s July issue of Phosphorus Industry China Monthly Report.

China and the US are the top two exporters of DAP worldwide—accounting for 70% of the international market; while India is the biggest importer of DAP in the world. In 2011, China and the US respectively exported 4.02 million tonnes and 3.97 million tonnes of DAP. Amongst the exports, most were exported to India, respectively reaching 2.103 million tonnes and 2.41 tonnes.

 

In general, China’s DAP producers and traders would export proper export volumes of DAP according to the export policy each year —increasing export volumes in low export tax season (the details of China’s export tariff for DAP in recent three years could be seen in page 6 issue 1, Vol.2: CTCSC continues to restrain export of phosphate fertilizer, and in page 6 issue 2, Vol.1: Export tariff curbs urea and DAP export in H1 2011).

 

Therefore, with the opening of the window for DAP’s low tariff in China from June to September of 2012, China is bound to export large amounts of DAP during this period. Based on the export situation during the previous year, nearly 64% of total was exported (Note: There’s no change in the definition of peak season and slack season between 2011 and 2012).

Relatively speaking, the current supply of DAP in Russian Federation and the US was tighter than that in the previous year.

 

Firstly, the yield of DAP in Russian Federation and the US decreased relatively. During the first quarter of 2012, the US-based and Russia-based DAP producers—The Mosaic Company and PhosAgro both cut their production.

 

Secondly, the US was seeing a surge in domestic consumption of DAP, which will weaken its international supply ability. According to the data from The Fertilizer Institute (TFI), the strong demand for DAP in the US led to a low inventory in May 2012, which has decreased by 27% month on month to 251,000 tonnes.

 

Contrary to Russian Federation and the US, China is expected to contribute more force to the international market of DAP. In 2012, there’re nearly more productivity excess of DAP in China, because of the release of 1,000,000t/a new capacity during the first half of 2012.

As for the international demand for DAP, it mainly depends on the prime purchaser—India which consumes over 50% of the exported DAP worldwide.

 

It’s predicted that India’s import volume of DAP won’t be less than that of last year, and is expected to remain around 7 million tonnes according to the previous data.

Source: Phosphorus Industry China Monthly Report 1207

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

Content of Phosphorus Industry China Monthly Report 1207:

Phosphorus Ore

Company Dynamics: Wengfu Group strives for improvement of self-sufficiency

Industry Dynamics: Rare earth accompanying resources to boost value of phosphorus ore  

Global Sight: Battle for phosphorus resources grows in Russia

Yellow Phosphorus

Policy & Legislation: Kaiyang's subsidy for yellow phosphorus producer to face challenge 

Phosphate Fertilizer

Policy & Legislation: Declined export guarantee money for DAP to relieve traders' pressure

Company Dynamics: China BlueChemical to rank among forefront of phosphate industry 

International Market Dynamics: China to become main force for global DAP market from June

Policy & Legislation: Role of phosphate fertilizer reserve stratagem is changing

Fine Phosphate Chemical

Industry Dynamics: APP attracts investment from medium phosphorus enterprises   

Company Dynamics: Hubei Xingfa appreciates development of food-grade 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.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1137.html

Entry Criteria for Phosphate and Ammonium Production to be Launched

CCM has launched a newsletter, entitled Phosphorus Industry China Monthly Report. One of the news in Phosphorus Industry China Monthly Report is that Ministry of Industry and Information Technology (MIIT) is going to promulgate the Entry Criteria for Phosphate and Ammonium Production (the Entry Criteria) in the remainder of 2011.

The factories to remove or new entrants are not allowed to build new wet process phosphoric acid (WPA), monoammonium phosphate (MAP) and diammonium phosphate (DAP) projects or make any expansions within three years, according to the Entry Criteria. Besides, existing compound fertilizer production plants have to relocate if they are located in county-level ecological protection areas, scenic areas, nature reserves, cultural heritage protection areas, etc., The factories to remove or  new entrants should have their own phosphorus ore and sulfur ore resources, fluoride recovering devices and ardealite utilization matching projects.

The Entry Criteria also sets requirements on energy consumption and environmental protection for new entrants and existing companies. The implement of the Entry Criteria will certainly drive companies to pay more attention to phosphorus resource, energy consumption and environmental protection.

By the end of 2010, there were 466 phosphate fertilizer producers in China, with the total production capacity of over 21.00 million tonnes per year and the output of 17.01 million tonnes (100%P2O5) in 2010, while the apparent consumption volume was only 14.75 million tonnes (100%P2O5). That is to say, China's phosphate fertilizer industry is facing overcapacity.

The most important is that many phosphate fertilizer producers that have to relocate their plants have no phosphorus ore resource of their own. To sustain long-term development, phosphate fertilizer producers will pay more attention to phosphorus ore resource.

If you are interested in CCM’s Phosphorus Industry China Monthly Report, please feel free to contact us at econtact@cnchemicals.com.

(Guangzhou China, September 28, 2011)

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.
Please visit http://www.cnchemicals.com for more information or contact econtact@cnchemicals.com

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Export Volume of Urea and DAP Is Excepted to Decline

CCM’s September issue of Phosphorus Industry China Monthly Report has come out recently. The top story is export volume of urea, and DAP is expected to keep downturn in the rest of 2011.

The export tariffs of urea and DAP/MAP have been effective since Jan. 1^st , 2011. The export tariff adjustments resulted in the decrease of urea and DAP exportation. In H1 2011, China totally exported 4.75 million tonnes of fertilizers: DAP accounted for 642,000 tonnes and urea was 688,000 tonnes. Compared with that in the same period last year, DAP and urea export volume decreased by 14.1% and 55.8% respectively.

Based on the export tariff, the declining export trigger prices and the raising production cost, as well as RMB appreciation (has appreciated 3.6% from Jan. 1^st  to Aug. 31^st ), jointly erode the profits from urea and DAP/MAP export. Many enterprises, especially that without cost advantage (e.g. with own phosphorus resource), even lost in exporting urea and DAP/MAP. As a result, the export of urea and DAP fell in H1 2011.

In the rest of 2011, the export volume of urea and DAP is expected to keep downturn, with the raising production cost.

Headline news of September issue of Phosphorus Industry China Monthly Report:

-Hubei Yihua adds investment on phosphorus ore exploitation to optimize its industry layout.

-Investment on phosphorus ore is upsurging in the worldwide.

-Integration of Phosphorus-fluorine industry is in favor of the development of phosphorus industry and fluorine industry.

-World is less and less depending on China's yellow phosphorus.

-China's yellow phosphorus industry pushes clean production technology for energy conservation and emission reduction.

-Shandong Kingenta cooperates with Weng'an government to develop upstream phosphate chemical products.

-China's export tariff adjustments for urea and phosphate fertilizers curb urea and DAP export volume in H1 2011.

-Brazil's phosphate fertilizer industry draws large mining companies' attention.

-Yoke Technology is accelerating upstream expansion.

-Double Dragons holds ground breaking ceremony for its TCP production line in Weng'an County, Guizhou Province.

If you are interested in CCM’s Phosphorus Industry China Monthly Report, please feel free to contact us at econtact@cnchemicals.com.

(Guangzhou China, September 16, 2011)

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.
Please visit http://www.cnchemicals.com for more information or contact econtact@cnchemicals.com

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Export Tariff Curbs Urea and DAP Export in H1 2011

China's export tariff adjustments for urea and phosphate fertilizers curb urea and DAP export volume in H1 2011, according to CCM’s first issue of Phosphorus Industry China Monthly Report.

In H1 2011, China totally exported 4.75 million tonnes of fertilizers: DAP accounted for 642,000 tonnes and urea was 688,000 tonnes. As compared with that in the same period last year, DAP and urea export volume decreased by 14.1% and 55.8%, respectively. However, the other types of fertilizers, such as concentrated superphosphate and ammonium sulfate, saw fast growing in the export volume in the same period. In H1 2011, the export volume of these two types of fertilizers reached 935,000 tonnes and 883,000 tonnes respectively, surging by 112.4% and 59.5% year on year.

The enormous contrast is primarily attributed to the export tariff adjustments for urea and DAP/MAP in 2011.

To guarantee the supply in domestic market, China's government adjusted the export tariffs of urea and DAP/MAP, having been effective since Jan. 1st, 2011. The new export tariff regulation maintains the tariff rate for urea and DAP/MAP, while it shortens the period of slack season and prolongs the period of peak season for urea and DAP/MAP export. Meanwhile, it turns down the export trigger prices of urea and DAP/MAP.

Based on the export tariff, the declining export trigger prices and the raising production cost, as well as RMB appreciation (has appreciated 3.6% from Jan. 1st to Aug. 31st), jointly erode the profits from urea and DAP/MAP export. Many enterprises, especially that without cost advantage (e.g. with own phosphorus resource), even lost in exporting urea and DAP/MAP. As a result, the export of urea and DAP fell in H1 2011.

In the rest of 2011, the export volume of urea and DAP is expected to keep downturn, with the raising production cost.

(Guangzhou China, September 16, 2011)

Source: Phosphorus Industry China Monthly Report

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

Content of Phosphorus Industry China Monthly Report 1109:

-Phosphorus ore

Global Insight: Investment on phosphorus ore upsurging worldwide

Industry Dynamic: Phosphorus-fluorine integrated industry emerging in China 

Company Dynamic: Hubei Yihua strengthens phosphorus ore exploitation

-Yellow phosphorus

Global Insight: World less depends on China's yellow phosphorus

Policy & Legislation: China's yellow phosphorus industry to promote clean production technology 

-Phosphate fertilizer

Policy & Legislation: Export tariff curbs urea and DAP export in H1 2011

Global Insight: Brazil's phosphate fertilizer industry attracts investment

Company Dynamic: Shandong Kingenta to develop phosphate chemicals in Weng'An County

-Fine phosphate chemicals

Company Dynamic: Double Dragons to develop TCP

Company Dynamic: Yoke Technology accelerates upstream extension 

-Import & export

International trade situation of phosphate chemicals in July

-Price Update

Price monitor of some phosphate chemicals in August

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.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.
Please visit http://www.cnchemicals.com for more information or contact econtact@cnchemicals.com

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

MIIT to Promulgate Entry Criteria for Phosphate and Ammonium Production

In the remainder of 2011, Ministry of Industry and Information Technology (MIIT) is to promulgate the Entry Criteria for Phosphate and Ammonium Production (the Entry Criteria), according to CCM’s first issue of Phosphorus Industry China Monthly Report.

On March 25th, 2011, MIIT promulgated the exposure draft of the Entry Criteria and stopped asking for opinions on April 30, 2011.

According to the Entry Criteria, in principle, the factories to remove and new entrants are not allowed to build new wet process phosphoric acid (WPA), monoammonium phosphate (MAP) and diammonium phosphate (DAP) projects or expansions within three years. Besides, if the existing compound fertilizer production plants are located in county-level ecological protection areas, scenic areas, nature reserves, cultural heritage protection areas, etc., they have to relocate. The factories to remove and new entrants should have their own phosphorus ore and sulfur ore resources, fluoride recovering devices and ardealite utilization matching projects.

Besides the requirements on plant distribution and matching devices, the Entry Criteria also sets requirements on energy consumption and environmental protection for new entrants and existing companies. The implement of the Entry Criteria will certainly drive companies pay more attention to phosphorus resource, energy consumption and environmental protection.

By the end of 2010, there were 466 phosphate fertilizer producers in China, with the total production capacity of over 21.00 million tonnes per year and the output of 17.01 million tonnes (100%P2O5) in 2010; while the apparent consumption volume was only 14.75 million tonnes (100%P2O5). That is to say, China's phosphate fertilizer industry is facing overcapacity.

The most important is that many phosphate fertilizer producers that have to relocate their plants have no phosphorus ore resource of their own. To sustain longterm development, phosphate fertilizer producers will pay more attention to phosphorus ore resource.

(Guangzhou China, August 24, 2011)

Source: Phosphorus Industry China Monthly Report

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

Content of Phosphorus Industry China Monthly Report 1108:

MIIT to promulgate Entry Criteria for Phosphate and Ammonium Production

Yellow phosphorus export still sluggish without special export tariff

NDRC regulates phosphate industry development

China continues to eliminate yellow phosphorus inefficient production capacity

Import & export analysis of some phosphate chemicals

Phosphate fertilizer industry to see industrial integration

China encourages low grade phosphorus ore exploitation

Leibo County strengthens phosphorus chemical industry development

Wengfu extends product portfolio

Hubei Xingfa cooperates with Dequest to develop phosphate chemicals

Large phosphorus ore exploiters benefit from policy switch

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.

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.
Please visit http://www.cnchemicals.com for more information or contact econtact@cnchemicals.com

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China