Success in pilot production would drive the process of Zhijin Project

Once the construction process of phosphate concentrates is sped up, the first phase of Zhijin Project may be completed soon. 

Zhijin Project, as one cooperation project between Guizhou Government and Wengfu Group and China National Offshore Oil Corporation launched in Oct. 2011, is supposed to be the biggest investment among China's current on-going phosphorus projects in recent years—amounting to USD2.16 billion. In addition to huge investment and projects about rare earth elements recovery from phosphorus ore, Zhijin Project also focuses on developing and making use of phosphorus resources in Zhijin County Guizhou Province.

Zhijin Region holds 1.49 billion tonnes of phosphorus ore reserves, approaching half the reserves of Guizhou Province. Furthermore, phosphorus mine in Zhijin Region is the last largest untapped phosphate metallogenetic belt in Guizhou Province up to now. With the advance of Zhijin Project, especially projects concerning the recovery of rare earth elements from phosphorus ore, the value of phosphorus ore in Zhijing Region will correspondingly grow.

For China's overall phosphorus industry, Zhijin Project means increasing supply in phosphorus ore and types of phosphorus intermediate chemicals. While for Wengfu Group - an investor and a technology supplier, the success of Zhijin Project can be seen as an opportunity to show its technical superiority in China to some extent.

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.

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

Failed to develop lithium iron phosphate in succession

As China's two well-known phosphorus companies -Jiangsu Chengxing Phoshorus-Chemcials Co., Ltd. (Jiangsu Chengxing) and Liuguo Chemical Industry Co., Ltd. (Liuguo Chemical) failed to develop lithium iron phosphate in succession, competitors should be cautious about choosing their business for expansion.

                                                  

On Nov. 11th, Jiangsu Chengxing, known as China's top phosphate chemical producer, announced that it plans to withdraw capital from its holding subsidiary — Jiangyin Tiancheng New Energy Technology Co., Ltd. (Tiancheng New Energy), amounting to USD2.97 million investment. Jiangsu Chengxing's move is mainly affected by mediocre development of lithium iron phosphate since the establishment of Tiancheng New Energy.

  

With a registered capital of USD10.62 million, Tiancheng New Energy was formed by Jiangsu Chengxing in April 2010. Thereinto, Jiangsu Chengxing accounts for 28% stakes. In accordance with the initial scheme, Tiancheng New Energy should get into the mass production of lithium iron phosphate. 

 

In addition to Jiangsu Chengxing, Liuguo Chemical, as a listed company specializing in producing phosphate fertilizers (DAP, MAP and types of compound fertilizers), also takes a hit in extension of lithium iron phosphate.

 

On June 18th, 2010, Liuguo Chemical and Sichuan University signed a two-year technical service contract. According to the contract, Sichuan University should develop production technology of lithium iron phosphate to achieve mass production. However, the target of mass production was not realized till expiration of contract. Nonetheless, Liuguo Chemical expressed that they would not give up the development of lithium iron phosphate. The cooperation with Sichuan University is still in progress, as noted by one insider from the company.

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.

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 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

China’s Export of STPP to Benefit from India’s Anti-dumping Ruling

India's abolishment of imposed anti-dumping duties on STPP (Sodium Tripoly Phosphate) originating in China is to reopen an entry to India’s STPP market for China's enterprises, according to CCM International’s June issue of Phosphorus Industry China Monthly Report.

 

On May 14th, 2012, China's Ministry of Commerce (MOC) issued that India decided to abolish imposed anti-dumping duties on STPP originating in China, according to India's Ministry of Commerce and Industry Administration of Anti-dumping (MCIAA).

 

The anti-dumping investigation application was originally filed by India's Tata Chemicals Ltd. (Tata Chemicals) in 2009. Then in 2010, India decided to impose a six-month provisional anti-dumping duty on China's STPP. Tata Chemicals is a prime producer of STPP in India. From April to Dec. 2008, India imported USD43.38 million worth of STPP from China, accounting for 94% of the total imports. Tata Chemicals and several STPP producers complained that a good deal of cheaper STPP imported from China deeply blocked the development of local STPP producers.

In accordance with India's ruling released in Sept. 2010, China's four exporters (see the following figure) will be taxed from USD294/t to USD357/t. As for other Chinese exporters, they will be levied tax of USD671/t based on the volume of the dumped exports.

 

However, because Tata Chemicals and other India's chemicals companies currently have stopped the production of STPP, these enterprises suggested that MCIAA should cancel the anti-dumping duty on STPP imported from China. Thus India decided to abolish the imposed anti-dumping duty on STPP in China on Feb. 10th 2012.

According to the final ruling, China's relative enterprises could lodge an appeal on customs to China's court. It means that the enterprise involved in the event is expected to obtain a rebate.

 

Furthermore, India's ruling regarding canceling imposed anti-dumping duty on STPP originating in China is positive to China's STPP export market.

 

Since the anti-dumping duty was imposed on China's STPP, China's export of STPP to India declined year by year. From 2009 to 2011, the export volume of STPP to India was 56,466 tonnes, 33,305 tonnes and 10,050 tonnes, respectively accounting for 10.12%, 8.82% and 3.23% of total export volume. Correspondingly, if China's STTP export to India can be back to the level in 2009, China's STPP export volume will increase significantly in the future.

Source: Phosphorus Industry China Monthly Report 1206

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

Content of Phosphorus Industry China Monthly Report 1206:

Phosphorus Ore

Company Dynamics: Phosphorus asset injection to improve Yuntianhua’s profit

Goverment Guidance: Hubei issues phosphorus ore production goal of 2012  

Cooperation & Exchange: Wengfu and OCP to seek for win-win partnership 

Policy & Legislation:Compensation fees for phosphorus mine abolished in Yunnan Province

Yellow Phosphorus

Industrial Dynamics: China’s yellow phosphorus price shows seasonal decline 

Phosphate Fertilizer

Company Dynamics: Batian to push its phosphate business expansion in Guizhou

Economical Data: China publishes first wholesale price index for DAP

Fine Phosphate Chemical

Policy & Legislation: China’s export of STPP to benefit from India’s anti-dumping ruling

New Project: Wengfu Zijin Project to put into operation

Company Dynamics: Competitor’s exit to benefit Yoke Technology in short time

… …

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, June 20, 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_1108.html

Hubei Xingfa Cooperates with Dequest to Develop Phosphate Chemicals

CCM has launched a newsletter, entitled Phosphorus Industry China Monthly Report, which provides you the latest information on company dynamic, industry dynamic, factors impacting the price fluctuation, technology improvement, supply & demand of China's phosphorus industry.

One of the news in Phosphorus Industry China Monthly Report is that Hubei Xingfa cooperates with Dequest to develop phosphate chemicals.

Hubei Xingfa Chemicals Group Co., Ltd. (Hubei Xingfa), one of China's largest phosphate chemical producers, is to develop fine phosphate chemicals through cooperating with Dequest AG, the world's leading company of phosphonate based antiscalants. A new joint venture company named Hubei Fuxing Chemical Co., Ltd. (Fuxing Chemical) will be set up based on their cooperation.

Fuxing Chemical will bring into the production technology of PCl3 and phosphates from Dequest. Hubei Xingfa shall offer yellow phosphorus, chlorine and other infrastructure in preferential price. While Dequest, as the exclusive distributor of the joint venture, will wholly take charge of the international sales of PCl3 and phosphates, with the brand of Dequest. And Hubei Xingfa will take charge of the sales of HCl, the byproduct of PCl3.

The cooperation between Hubei Xingfa and Dequest will last 30 years. For Hubei Xingfa, the cooperation helps to extend its product portfolio and to capture the advanced technology from Dequest. For Dequest, the establishment of an efficient local production plant by using advanced technology will help Dequest enlarge its market share in Asian region, with reliable and consistent product quality.

Their cooperation is regarded as an important milestone for both companies targeting to expand their business activities in the fast developing Asian market.

The above is extracted from CCM’s Phosphorus Industry China Monthly Report. If you are interested in phosphorus industry, 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

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