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

Phosphorus Ore Resource Draws Wide Attention

China Agriculture Investment Bimonthly Report is a bimonthly newsletter that CCM newly-released recently. The newsletter indicates that phosphorus ore resource draws phosphate fertilizer producers' wide attention.

With the exhausting phosphorus ore resource, phosphate fertilizer producers are to acquire phosphorus ore resource to sustain long-term development, driven by the strict entry criteria for phosphate and ammonium production.

China is the second largest phosphorus ore reserves country in the world, only next to Morocco. Among the proven phosphorus ore reserves of 16.786 billion tonnes, only about 4.1 billion tonnes with actual economic value can be exploited technically in China, capturing 24% of the total reserves. In addition, only 52% of China's phosphorus ore reserves with actual economic value can be exploited under current technology.

China exploited 68.07 million tonnes of phosphorus ore in 2010, increasing by 18.5% over last year, but China totally consumed 67.17 million tonnes of phosphorus ore in the same year, soaring by 17.2% year on year.

Driven by the soaring demand and exhausting resource, phosphorus ore price has seen an uptrend with fluctuation during 2008 to 2010, which brought many risks to phosphate fertilizer producers. And only the phosphate fertilizer producers holding ample phosphorus ore resource can avoid the risk of phosphorus ore price fluctuation.

Besides being beneficial for long-term development, phosphorus ore resource is essential for factory removal and new entrants. On March 25, 2011, Ministry of Industry and Information Technology (MIIT) promulgated the exposure draft of the Entry Criteria for Phosphate and Ammonium Production (the Entry Criteria), which requires that the factories to remove and new entrants should have their own phosphorus ore and sulfur ore resources. 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. 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.

For more information about China Agriculture Investment Bimonthly Report, please feel free to contact us at econtact@cnchemicals.com.

 (Guangzhou China, September 27, 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.

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