Morocco's production capacity in phosphate products is expected to rise

Although the prime phosphorus production countries in Africa currently focus on exploitation of phosphate rock, it still shows an alluring prospect in phosphate fertilizer industry, according to CCM’s January issue of Phosphorus Industry China Monthly Report.
 
Morocco-based phosphate producer—Office Chérifien des Phosphates (OCP), accounting for nearly the entire phosphate products production locally, is strengthening its production capacity. In accordance with the development strategy of OCP, its production capacity in phosphate rock and phosphate fertilizer would reach 50,000,000t/ and 9,000,000t/a in 2020, respectively.
 
Thanks to OCP's promotion in the production of phosphate rock and phosphate fertilizer, it is bound to raise Morocco's share in global phosphate exports, especially in phosphate fertilizer exports.
 
Morocco, located in Northwestern Africa, generally plays the most important role in phosphate rock areas (accounting for 50% of global exports in 2010). From 1995, Morocco maintains an annual export level of more than 10 million tonnes of phosphorus ore. Meanwhile, the export of DAP in Morocco also reaches 1.87 million in 2010, accounting for 11.91% of global exports.

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

In 2012, China's entire phosphate industry appears moderate

In 2012, the entire phosphate industry appears moderate in China, without dramatic ups and downs as contrast with that of 2011. Through attaching quota system to phosphorus ore export and imposing a high export tariff on phosphate fertilizer, China kept a control on exporting phosphorus resources from 2009, out of protecting natural resources. Under the market pressure in 2012, however, China has to loosen the export of phosphate fertilizer to relieve the pressures created by current over capacity according to CCM’s January issue of Phosphorus Industry China Monthly Report.

Nonetheless, there're still some noteworthy events in 2012. We picked up hot topics in phosphorus industry in 2012 as follows: As well as most chemical commodities in China, domestic phosphorus products also behaved poorly in terms of price in 2012—both in upstream phosphorus feedstock and downstream phosphate chemicals.
 
Phosphorus ore Subjected to the sluggish performance of downstream firms, China's phosphorus ore market saw a weak rising in price in 2012 as compared to that in 2011. From Feb. to mid-April, phosphorus ore in each production provinces saw the first price rising in 2012. The rise in Hubei, Yunnan, Guizhou and Sichuan Provinces were around USD7.95/t, USD9.54/t, USD10.33/t and USD4.77/t, respectively. Since then, prices of phosphorus ore behaved steadily in Hubei Province by the end of 2012. As for prices in other three provinces, they saw a slight fluctuation but within a range of no more than USD6/t since May of 2012.
 
However, apart from the continuous rising throughout 2011, the price of phosphorus ore in Guizhou Province drop a little instead in H2 2012, because of lower tolerance from downstream industry.
 
Yellow phosphorus   Generally speaking, yellow phosphorus received poor performance in terms of price in 2012. From Feb. of 2012, the price of yellow phosphorus kept uptrend as driven by rising phosphorus ore price. However, the reduction of production cost and the depressing demand from downstream industry jointly brought a downtrend in the price of yellow phosphorus from April to Aug. of 2012. Although the price of yellow phosphorus rebounded from early Sept., it was still far lower compared to that in the early 2012.

Unfortunately, the booming production and sales didn't bring more profits for phosphate fertilizer manufacturers in 2012. Instead, China's phosphate fertilizer firms performed worse in 2012 than they did in 2011, especially as contrasted with nitrogen fertilizer industry, potash fertilizer and even compound fertilizer industry.  
 
Overall, China's phosphate fertilizer firms saw a visible weakening in profitability in 2012. With a 15.9% of year-on-year growth in revenue but a 26% year-on-year decline in profits, China's phosphate fertilizer manufacturing generated USD10.82 billion of revenue and USD345.15 million of gross profits in prime business during the first ten months of 2012.

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