Market Review of China Phosphorus Chemical Industry in 2013 & 2014

Date: 2015-05

– The output of China’s phosphorus ore in 2014 was 120 million tonnes, up 10.99% YoY.
– The output of phosphorus fertilizer increased in the same period and reached 16.70 million tonnes, only 0.12% higher YoY.
– As the upstream raw material of fine phosphorus chemicals, the output of yellow phosphorus reached 921,540 tonnes in 2014, 5.86% higher YoY.

In 2014, both the export volume of phosphorus ore and yellow phosphorus decreased in some extent. While that of DAP and MAP increased largely, thanks for the relax of export tariff policy.

– In 2014, the whole phosphorus chemical industry was gloomy, and the prices of the products, involved in the whole industry chain, declined in general.
– The price of phosphorus ore showed a downtrend since Jan. 2013 on the whole. The whole phosphorus ore market was gloomy especially after H2 2013. Though the price had some fluctuation in H2 2014, it was still at a very low level, and the whole situation was worse than that of 2013. The weak downstream demand in China and stable demand in international market should be responsible for this.
– The same with phosphorus ore’s market situation, the market of yellow phosphorus was also a downturn in 2014. Hit by wet-process phosphoric acid and weak downstream demand, the price stayed low. It is predicted that the bad market won’t change better in a short time.
– The market of phosphate fertilizer was also bad in 2014, however, it is optimistic for phosphate fertilizer market in 2015 for the increasing demand from India market and the relax export tariff policy.

On the whole, there is no much sign to show that the market will change better in 2015 for the whole phosphorus industry, while phosphate fertilizers industry may be an exception because of the demand recovery demand from India, limited international capacity expansion and relax export tariff policy.

Policies pertaining to tariff over phosphate fertilizers in 2014 and the adjustment of transportation expenses have greatly affected the phosphate fertilizer market. The ad valorem collection has been applied to phosphorus ore resource taxing in Hubei Province as a pilot programme since Jan. 2013, and will be inevitably implemented nationwide in the future.

In recent years, low concentration, low utilization and environmental pollution are the top three problems haunting phosphorus chemical industry, which would desire solutions urgently. From the enterprise stand point, integration as well as embracing diversification and refinement is the trend. Because phosphorus resources is vital in the enterprises’ development, penetrating into the upstream industry and incorporating it into their own value chain will align well with their long-term development objective.

On the technology side, technology enhanced utilization rate of low-concentration phosphorus ore and made substantial progress. Besides, it would cause no phosphogypsum pollution when implementing this technology.

In this report, the whole Chinese phosphorus chemical industry had been descripted from the following aspect:
– Market review (output and price)
– Policies dynamics
– Market dynamics
– Technical progress
– Export review
– Outlook in 2015


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