Hubei Xingfa intended to keep the phosphate-base water treatment project on track

On Dec.11th, 2012, Dequest AG (Dequest) announced that its cooperation with Hubei Xingfa Chemicals Group Co., Ltd. (Hubei Xingfa) came to an end. Meanwhile, Hubei Xingfa also posted a decision about the liquidation of its joint venture with Dequest AG—Hubei Fuxing Chemical Co., Ltd. (Fuxing Chemical) on Dec.13th, 2012, according to CCM’s January issue of Phosphorus Industry China Monthly Report.

With a 45:55 of capital shares, Hubei Xingfa and Dequest AG set up Fuxing Chemical on May 20th, 2011, aiming to jointly develop product of phosphates and PCl3. Since the establishment of Fuxing Chemical (more details about Fuxing Chemical please see page11 issue1, Vol.1: Hubei Xingfa cooperates with Dequest to develop phosphate chemicals), Hubei Xingfa set about developing the 30,000t/a phosphate-base water treatment chemicals project.  

Although Hubei Xingfa ascribed Dequest's quit to the market movement across China and overseas' phosphate industry, it could still be speculated that the bankruptcy of Dequest's parent company—Thermphos International B.V.might drive Dequest's quit partly. Nonetheless, Hubei Xingfa indicated that the quit of Dequest didn't mean the end of the phosphate-base water treatment chemicals project. It intended to keep the phosphate-base water treatment project on track.

 
According to Hubei Xingfa, it completed the feasibility study, environmental impact assessment and safety evaluation for the project. Although the project was in pre-development phase, there's USD2.78 million of investment thrown at the project by now.

However, it is noteworthy that the guidance from government does not always lead to a perfect result. Hubei Province, as the largest production province of phosphate fertilizer (accounting for 31.56% of China's total output in 2012), correspondingly has a huge demand for phosphorus ore. If Yichang City continues to tighten the supply of phosphorus resources as well as Hubei Government's move at the beginning of 2011, it is bound to trigger a rising in the price of the local phosphorus ore.

Yichang City, the centre of Hubei Province's phosphorus industry, recently reminded local phosphorus firms to focus on resources integration and industry development, which was ever highlighted by Hubei Government one year ago.
 
On Dec. 23rd 2012, Yichang City passed a discussion paper regarding the overall development plan for local phosphorus industry in 2012-2020. In accordance with the plan, Yichang City is to further strengthen integration for local phosphorus resources and propose a scientific and reasonable yield for local phosphorus ore exploration during the planning period.
 
It is speculated that Yichang City expected to beat back the continuously rising output of local phosphorus ore, not merely setting targets or in response to Hubei Province's integration strategy for phosphorus industry.

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.

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

Leading Phosphorus Enterprises Rushing Area of Fluorine Through Alliance

For the first time, China’s two leading phosphorus enterprises decided to step into the business of phosphorus-fluorine integration through a strong alliance, according to CCM International’s April issue of Phosphorus Industry China Monthly Report.

On Apr. 5th, 2012, Hubei Xingfa Chemicals Group Co., Ltd. (Hubei Xingfa) and Wengfu (Group) Co., Ltd. (Wengfu Group) launched their third cooperation since they signed a framework cooperation agreement in Nov. 2011 (the details see page 8 issue 5, Vol.1: Hubei Xingfa joints hands with Wengfu for complementary advantage). As China’s two leading phosphorus enterprises, they would jointly develop and utilize accompanying resources (fluorine resources) in phosphorus ore. 

 

In accordance with the announcement issued by Hubei Xingfa, it will combine Wengfu Group to set up a 51:49 joint venture named Hubei Wengfu Lantian Chemical Co., Ltd. (Wengfu Lantian), through their respective holding subsidiary. With the investment of USD15.85 million in total, Wengfu Lantian will be mainly dedicated to the production and sales of fluorine products. Nevertheless, Wengfu Group and Hubei Xingfa are still negotiating the details of this cooperation.

Since the concept of phosphorus-fluorine integration was put forward in China, both phosphorus enterprises and fluorine enterprises have been keeping keen eyes on the accompanying resources in phosphorus ore. Also the China Government encourages relative projects out of effective resources utilization. Meanwhile, there are already some enterprises involved in this business—recovering fluorine resources from phosphorus ore to produce fluorine chemicals.

 

For now, there are four leading phosphorus enterprises engaged in phosphorus-fluorine business in China, including Hubei Xingfa (the details regarding other three leading phosphorus enterprises which are involved in this business see page 2 issue 2, Vol. 2: Guizhou phosphorus enterprises lead phosphorus-fluorine integration). In the meantime, Do-Fluoride Chemicals Co., Ltd. (Do-Fluoride Chemical)—an listed fluorine enterprise has also cooperate with Yunnan’s phosphorus mining enterprises to develop the fluorine resources contained in phosphorus ore early in 2011.

Relatively speaking, the cooperation among domestic phosphorus giants has impressed phosphorus and fluorine industry to a greater extent than previous projects of phosphorus-fluorine integration invested by any other enterprise. After all, Hubei Xingfa has years of experience in production and marketing of fine chemical, while Wengfu Group has mastered mature technology in recovering fluorine resources from phosphorus ore.

Source: Phosphorus Industry China Monthly Report 1204

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

Content of Phosphorus Industry China Monthly Report 1204:

Phosphorus Ore

Company Dynamics: YPC to have largest flotation capacity in China  

Industry Dynamics: Leading phosphorus enterprises rushing area of fluorine through alliance

Policy & Legislation: Guiyang MIITC to set up new scheme for phosphorus mining

Yellow Phosphorus

Policy & Legislation: Energy saving in yellow phosphorus industry to surge in China

Phosphate Fertilizer

Company Dynamics: Yuntianhua to obtain injection of phosphorus business

Industry Dynamics: Increasing sulfur cost swallows Hubei Yihua’s DAP profit  

Industry Dynamics: Limited new phosphate capacity to be released in 2012

Industry Dynamics:Yunnan promotes more phosphorus cooperation with Vietnam

Fine Phosphate Chemical

Company Dynamics: Domestic STPP producers need to seek for their own future  

Company Dynamics: Hubei Xingfa increases capital investment in phosphorus business

… …

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, April 16, 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_1034.html

Large Phosphorus Ore Exploiters Benefit from Policy Switch

Phosphorus Industry China Monthly Report released by CCM shows that large phosphorus resource exploiters are to benefit from the policy switch related to phosphorus resource.

As the most important raw material of phosphate industry, phosphorus ore draws more and more attention. To protect and make effective use of phosphorus resource, Hubei Province, the second largest region on phosphate in China, has recently promulgated that provincial government will stop proving any mining exploration and exploitation rights in the phosphorus mining areas, excluding provincial geological survey fund projects.

Meanwhile, provincial government will promote the restructuring and closure of phosphorus, exploit company with the production capacity below 150,000t/a, and promote the phosphorus resource focusing on larger exploiters.

The policy switch is beneficial to the large phosphorus ore exploiters, especially that in Hubei Province, such as Hubei Xingfa Chemicals Group Co., Ltd. (Hubei Xingfa). It is reported that Hubei Xingfa will gain the exploitation right of 60.26 million tonnes phosphorus ore from Yichang Phosphorus Chemistry, which will boost its annual exploitation capacity to 4.3 million tonnes from the current 2.25 million tonnes.

The following highlights are covered in the first issue of Phosphorus Industry China Monthly Report:

-China encourages low grade phosphorus ore exploitation.

-Large phosphorus ore exploiters are benefit from policy switch.

-Yellow phosphorus export still sluggish without special export tariff.

-China continues to eliminate yellow phosphorus inefficient production capacity in 2011.

-MIIT is to promulgate Entry Criteria for Phosphate and Ammonium Production in 2011.

-Phosphate fertilizer industry is to see industrial integration, with the regulation of the Development Plan of Phosphate Fertilizer Industry.

-Enjoying rich phosphorus reserve, Leibo County strengthens phosphorus chemical industry development.

-NDRC regulates phosphate industry development in Guiding Catalog of Industrial Structure Adjustment (2011 edition).

-WengFu Group extends its product portfolio by cooperating with Onoda Chemical.

-Hubei Xingfa cooperates with Dequest to develop phosphate chemicals.

-Phosphorus ore and yellow phosphorus see decreased export volume with soaring prices.

-Prices of phosphate chemicals keep stable in August while see uptrend in the coming months.

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

(Guangzhou China, August 29, 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