Yellow phosphorus to foresee increased risk of sales stalling

As a result of the tough downstream market and intensifying competition from substitutes, yellow phosphorus is expected to suffer increased risks of sales stalling in China, according to Phosphorus Industry China Monthly Report issued by CCM in July.

 

Most yellow phosphorus is used to make thermal-process phosphoric acid, which is then processed into various types of phosphate products.

 

Adding to already tough market conditions, in June the government of Guiyang announced plans to ban the production and sale of detergent with phosphorus, which will put further downward pressure on sales volumes of phosphoric acid and yellow phosphorus.

The yellow phosphorus market could see ongoing contraction in the face of intensifying competition from substitutes over the next several years. 

 

Most phosphoric acid producers say domestic sales of thermal-process phosphoric acid are quite weak. Hubei Xingfa and Jiangyin Chengxing both indicated that thermal-process phosphoric acid sales suffered in June 2013, and expect poor sales to continue. Some yellow phosphorus producers also attribute poor sales to competition from purified wet-process phosphoric acid.

 

Some phosphoric acid purchasers in Sichuan Province report purified wet-process phosphoric acid prices as much as USD32.47/t cheaper than thermal-process phosphoric acid—a significant price advantage.

 

In 2013, two purified wet-process phosphoric acid plants (one in Sichuan Province and another in Fujian Province) owned by Wengfu Group Co., Ltd. (Wengfu Group) maintained a stable production. These two plants have a total capacity of 250,000t/a for producing purified wet-process phosphoric acid. Some yellow phosphorus producers located in Sichuan Province complained that Wengfu Group's cheaper phosphoric acid is pulling down their sales.

 

And with ever-increasing attention on saving energy, Chinese phosphoric acid producers have been trying to reduce dependence on yellow phosphorus. Hubei Xingfa and Guizhou Kailin have both launched purified wet-process phosphoric acid projects.

Domestic consumption of yellow phosphorus has held steady at around 800,000 tonnes annually, but that volume could come under pressure from shrinking demand and intensifying competition from substitutes.

Table of Contents of Phosphorus Industry China Monthly Report 1307:

Editor's Note

Headlines of Phosphorus Industry China Monthly Report 1307

Phosphorus Ore

Half-hydrate wet phosphoric acid technology innovation in China

Hubei Xingfa applies for issuing new debts to replace maturing debts

Yellow Phosphorus

Yellow phosphorus to foresee increased risk of sales stalling

Phosphate Fertilizer

Chinese phosphate fertilizer industry goes through a hard time in H1 2013

No positive note leave to China's phosphate fertilizer market in June

Fine Phosphate Chemicals

The US to continue imposing anti-dumping duties on Chinese sodium hexametaphosphate

Jiangsu Yoke's TCPP & BDP production project obtains government recordation

Global Insight

Weakening phosphate fertilizer trade continues

Brief news

Sichuan makes progress on phosphorus resource exploration

Inner Mongolia to develop phosphorus chemical industry

Supply & Demand

Market review of prime phosphate chemical in June 2013

Import & Export

International trade of phosphate chemicals in May 2013

Price Update

Price monitoring of some phosphate chemicals in June 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.

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Domestic phosphorus products behaved poorly in terms of price in 2012

In 2012, the entire phosphate industry appears moderate in China, without dramatic ups and downs as contrast with that of 2011. Nonetheless, there're still some noteworthy events in 2012. We picked up five prime hot topics in phosphorus industry in 2012 as follows:

Price of phosphorus ore in China, 2012

Note:Hubei, 29.5% grade, free on boat; Weng'an & Kaiyang, 30% grade, free on truck; Yunnan & Sichuan, 28% grade, ex-work price

Ex-work price fluctuation of technical grade STPP in China, 2012

Ex-work price fluctuation of food grade phosphoric acid in China, 2012

Ex-work price fluctuation of technical grade phosphoric acid in China, 2012

Ex-work price fluctuation of yellow phosphorus in China, 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

Increasing Electricity Price Pressures Yellow Phosphorus Industry

The December issue of Phosphorus Industry China Monthly Report has been published by CCM International on December 15^th , 2011. The top story is that yellow phosphorus industry is going to be hit by the increasing electricity price.

The electricity price in China has been increased in different degrees in different regions since December 1^st , 2011. The average price of electricity will rise by 0.47p/kWh nationwide, up 6.8% compared with that in 2010. For yellow phosphorus producers, it means the cost of production is to rise by USD66.14/t at least.

What’s worse, electricity prices in Guizhou Province and Yunnan Province are estimated to rise by 0.79p/kWh and 2p/kWh respectively during the dry season (Dec., Jan.–Apr.) each year, both with more than 10% increase compared with other seasons. That is to say, the four major yellow phosphorus production provinces (Hubei, Yunnan, Sichuan, Guizhou) will experience the pressure of increasing electricity price in different degrees.

In addition, most downstream purchasers, such as producers of phosphoric acid, STPP and POCl3, have also felt the great pressure caused by the current yellow phosphorus price and the poor sales performance. It seems hard for them to transfer the increased cost to depressed downstream industry in the short term.

It is believed that the increasing electricity price will give pressure to domestic yellow phosphorus industry. This dry season will be a tough period for most yellow phosphorus enterprises, as well as downstream purchasers of yellow phosphorus.

Headline News of Phosphorus Industry China Monthly Report 1112:

-Thanks to the technology advantage on recycling phosphorus resource, Wengfu Group successfully absorbs investment overseas.

-Major policies in 2011 promote the sustainable development of phosphorus industry.

-More and more recycling projects regarding yellow phosphorus waste emerge in China.

-Yellow phosphorus industry is going to be hit by the increasing electricity price.

-Phosphate fertilizer industry in Hubei Province is to be integrated in the light of the latest issued proposal.

-Winter storage of phosphate fertilizer is not optimistic this year in China.

-Sales of single superphosphate are suffering pressures.

-Liuguo Chemical horizontally merges with Guixi Fertilizer to strengthen its scope effect.

-Hubei Xingfa and Wengfu Group commence cooperation on developing downstream deep processing fine phosphorus products.

-The industrial application of purification technology of wet-process phosphoric acid is emerging in China.

-The average export price of phosphorus products is soaring in Oct. 2011.

-Increase in electricity price pushes up the price of yellow phosphorus, while those of other phosphorus keep stable in general.

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_c_908.html

Increasing Electricity Price to Exert Cost Pressure on Yellow Phosphorus

Yellow phosphorus industry is going to be hit by the increasing electricity price. On Nov. 30th, National Development and Reform Commission (NDRC) announced the raise in the electricity price. It is estimated that the average price of electricity is to rise by 0.47p/kWh nationwide, up 6.8% compared with that of 2010. In accordance with the new scheme of electricity price, the adjustment is varied from region to region.  And the new scheme has taken effect since Dec.1st, 2011, according to CCM’s December issue of Phosphorus Industry China Monthly Report.

For yellow phosphorus producers, it means the cost of production is to rise by USD66.14/t at least. In addition to the national increase, electricity prices in Guizhou Province and Yunnan Province will rise by 0.79p/kWh and 2p/kWh respectively when the dry season (Dec., Jan.–Apr.) approaches each year, both whose increase is above 10% compared with that of level period (other seasons). That is to say, four prime production provinces (Hubei, Yunnan, Sichuan, Guizhou) will experience the pressure of increasing electricity price in different degrees.

Meanwhile, most of the downstream purchasers such as producers of phosphoric acid, STPP and POCl3, have expressed the huge pressure causing by the present price of yellow phosphorus and the poor sales recently. While for those yellow phosphorus producers, it seems hard for them to transfer the increased cost to depressed downstream industry in the short term.

Given this contradiction, it is believed that this dry season will be a tough period for most yellow phosphorus enterprises holding low self-sufficiency rate of electricity, as well as downstream purchasers of yellow phosphorus.

Source: Phosphorus Industry China Monthly Report 1112

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

Content of Phosphorus Industry China Monthly Report 1112:

Phosphorus ore

Company Dynamics: Wengfu Group's recycling technologies draw investment overseas    

Policy & Legislation: Policies guide future development of phosphorus industry  

Yellow phosphorus 

Industry Dynamics: Utilization regarding yellow phosphorus waste grows in China 

Industry Dynamics: Increasing electricity price to exert cost pressure on yellow phosphorus   

Phosphate Fertilizer

Policy & Legislation: Integration policy extends to downstream phosphorus products in Hubei  

Industry Dynamics: Winter storage of phosphate fertilizer not optimistic in China 

Industry Dynamics: Single superphosphate encountering dilemma in China    

Company Dynamics: Liuguo Chemcial to strengthen scope effect  

Fine phosphate chemicals

Company Dynamics: Hubei Xingfa joins hands with Wengfu for complementary advantage 

Industry Dynamics: Purification of wet-process phosphoric acid emerges in China 

Import & export

International trade situation of phosphate chemicals in October

Price Update

Price monitor of some phosphate chemicals in November

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, December 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.

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_893.html

Thailand’s Floods to Disrupt China's Phosphoric Acid Export Volume

The latest issue of Phosphorus Industry China Monthly Report has been published by CCM on November 15, 2011. It indicates that China’s export volume of phosphoric acid will keep declining in the remainder of 2011, due to the flood damage in Thailand.

China has rich resource in phosphoric acid and it exports over 450,000 tonnes of food grade phosphoric acid annually since 2009. Generally speaking, China exports 10% of total export food grade phosphoric acid to Thailand annually. By Sept. 2011, Thailand has purchased 48,598 tonnes of food grade phosphoric acid from China, down by 3.12% compared with that at  the same period of last year.

As China’s second largest importer of food grade phosphoric acid, Thailand imports over 60,000 tonnes of food grade phosphoric acid each year since 2008. The country imported more and more food grade phosphoric acid from China between 2008 and 2011. In 2010, over 95% of Thailand’s total import volume was from China.

However, according to China’s export data, the food grade phosphoric acid exported to Thailand has confronted a serious recession in Sept. 2011, down by 89.17% compared with that at the same period of last year, because of the impact of Thailand’s flood damage.

According to Thai government’s official warnings, it is predicted that the flood will last for at least one month. That means China’s export volume of phosphoric acid will keep declining in the remainder of 2011.

You might discover more details in Phosphorus Industry China Monthly Report 1111 with the following headline news:

-The new Provisional Regulations on Resource Tax doesn't revise the phosphate resource tax in temporary.

-Luxi Chemical innovates production equipment to address the present situation that the grade of phosphorus ore is lowering.

-Recently, Government promulgates a series of schemes to regulate the phosphate rock resource in terms of export and domestic resource utilization.

-The depressed demand of yellow phosphorus hits the price of yellow phosphorus in Oct., 2011.

-Malong Industry transfers its phosphorus chemical business to Yuntianhua.

-Hubei Yihua intends to further strengthen its profitability by expanding the capacity of DAP.

-Shandong Kingenta speeds up the perfection of phosphate fertilizer industry layout nationwide.

-Phosphate fertilizer enterprises are encountering the pressure on sales.

-Zhijin region initiates the construction of another large phosphate industrial base in Oct.

-The total export volume of food grade phosphoric acid in China is to reduce as a result of the flood in Thailand.

-The export volumes of most phosphorus products are decreasing in Sep., 2011.

-The prices of phosphorus products appear a slight cut except phosphorus ore in Oct.

(Guangzhou China, November 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.

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_c_827.html

Thailand's Flooding to Push down China's Export Volume of Phosphoric Acid

In the remainder of 2011, the China's export volume of phosphoric acid is to reduce due to the recent flood in Thailand as estimated, according to CCM’s November issue of Phosphorus Industry China Monthly Report.

At the end of Nov.8th, the impact of flood damage in Thailand has spread to over seven large industrial estates. According to the official warnings, it is predicted that the flood will last for at least one month. This flood is the worst in Thailand in decades that began in July 2011. It is threatening many manufacturing chains which need a long-term to recover.

In accordance with the export data of China, the food grade phosphoric acid exported to Thailand has confronted a serious recession in Sep., decreasing by 89.17% compared with the same period of last year.

Thailand is the second largest importer of food grade phosphoric acid for China. It has imported over 60,000 tonnes of food grade phosphoric acid each year since 2008. During 2008-2011, Thailand imported more and more food grade phosphoric acid from China. In 2010, over 95% of its total import volume was from China.

For China, it has exported over 450,000 tonnes of food grade phosphoric acid annually since 2009. The export food grade phosphoric acid is sold to over 20 countries. And about nearly 50% of that is supplied to the five prime purchasers—South Korea, Thailand, Japan, Indonesia and Taiwan. Overall, the export destination is relatively scattered.

Basically, China exports 10% of total export food grade phosphoric acid to Thailand annually. By Sep. 2011, Thailand has purchased 48,598 tonnes of food grade phosphoric acid from China, decreasing by 3.12% compared with the same period of last year.

According to the past import data of Thailand, it is impossible to achieve this amount in the remainder three months of this year, as the Thailand flooding has hit most of its manufacturing. 

Source: Phosphorus Industry China Monthly Report 1111

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

Content of Phosphorus Industry China Monthly Report 1111:

Phosphorus ore

Policy & Legislation: Resource tax modification excludes phosphorus ore in temporary   

Technology & Application: Low-grade phosphorus ore sees headway in direct utilization 

Policy & Legislation: Government enhances management of phosphate rock resource  

Yellow phosphorus 

Industry Dynamic: Depressed demand hits yellow phosphorus 

Company Dynamic: Malong Industry transfers business to Yuntianhua 

Phosphate Fertilizer

Company Dynamic: Hubei Yihua to strengthen profitability by DAP expansion  

Company Dynamic: Shandong Kingenta continues to expand layout in Yunnan   

Industry Dynamic: Domestic phosphate fertilizer industry calls for loosening export policy    

Fine phosphate chemicals

Company Dynamic: Zhijin fine phosphate chemical project to commence  

Global Insight:  Thailand's flooding to hit China's export volume of phosphoric acid   

Import & export

International trade situation of phosphate chemicals in September

Price Update 

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.

(Guangzhou China, November 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.

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_821.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