Phosphorus Industry China Monthly Report 1511 (12 issues per year)

Date: 2015-12

“In Nov. 201 5, some rivers in Sichuan, Yunnan, Guizhou provinces and other regions has already entered low-flow period, leading increased electricity prices. Meanwhile, China’s phosphorus chemical industry was depressed. Market price of phosphorus ore was quite stable, failing to support the domestic yellow phosphorus market. The overall market price of yellow phosphorus in China dropped by 1 6.75% year on year and some manufacturers chose to reduction production or suspend production.

As for the domestic phosphate fertilizer market, the 1 6th Homemade High Analysis Phosphate Fertilizer & Compound Fertilizer
Trade Fair was held in Xi’an City, Shaanxi Province on 6-8 Nov., 201 5, marking the beginning of the winter storage. However, as of
the end of November, the winter storage was making slow progress, many manufacturers still have not released their winter storage
strategies yet and downstream distributors were holding a wait-and-see attitude towards the market.

In Jan.-Sept. 201 5, China has exported over 5.50 million tonnes of phosphate fertilizers, basically fulfilling the international demand.
Besides, market price in the international market showed a downward trend. So it is predicted that in Nov. and Dec. 201 5, China’s export volume and export price of phosphate fertilizer may continue to fall.

Regarding enterprises, some phosphorus chemical enterprises have already been transforming and upgrading their business and
as well as exploring new market channels. For example:

– On 28 Oct., 201 5, under the big environment of Internet Plus, Yuxi City held a meeting and planned to launch China’s first internet
platform (an e-commerce platform) of the phosphorus chemical industry, ZHONGLINEX.COM, on 1 8 Nov. 201 5;

– On 3 Nov., 201 5, Prayon, a Belgian phosphate leading company, and Pulead, a Chinese Li-ion battery cathode material
manufacturer, jointly established a joint venture for the manufacture and sale of LFP to seek new profit growth points”


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