- 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
Table of Contents
2. Market review
- 2-1. Phosphorus ore output kept rising, with a higher growth rate than its downstream industries'
- 2-2. Price of the industry chain showed an overall decline
3. Policies dynamics
- 3-1. Phosphate fertilizer policies in 2014
- 3-2. Phosphorus ore resource tax levied by ad valorem collection will be promoted nationwide
- 3-3. Perform standard of electricity price in humid and dry period in Yunnan Province
- 3-4. New tariff policy for phosphate fertilizers in 2014
4. Market dynamics
- 4-1. 2013
- 4-1-1. Low-concentration problem come out, the living space of small enterprise becomes narrower
- 4-1-2. Low and middle-grade phosphorus ore utilization increased for the improved flotation and mining capability
- 4-1-3. Integration and large enterprises develop towards diversification
- 4-1-4. Strengthen environment protection scrucity, imporve industry entry threshold
- 4-2. 2014
- 4-2-1. Yunnan Province was approved to establish national phosphorus chemicals quality supervision test center
- 4-2-2. Two new phosphorus ore resources were found
- 4-2-3. Export of phosphate fertilizer increased sharply
- 4-2-4. Railway freight raised again
5. Technical progress
- 5-1. Separation and concentration technology of low-grade phosphorus ore got breakthrough in Guizhou
- 5-2. Silicone and phosphorus industry in Xingshan County
- 5-3. Iodine recycle project in Kailin Group had been put into production
- 5-4. Project of low-grade phosphorus ore and high-concentration compound fertilizer facilities was completed
6. Export review
7. Outlook in 2015
- 7-1. Phosphate fertilizer
- 7-1-1. Supply and demand
- 7-1-2. Chinese phosphate fertilizer industry will be in recovery in 2015
- 7-2. Phosphorus ore
List of Tables:
- Table 2.1-1: Output of phosphorus ore in China, 2013 and 2014, 000' tonne
- Table 2.1-2: Output of yellow phosphorus in China, 2013 and 2014, tonne
- Table 3.1-1: Major policies for phosphorus chemical policies in China, 2013
- Table 3.1-2: Major policies for phosphorus chemical policies in China, 2014
- Table 7.1.1-1: Part of phosphate fertilizer capacity limitation, 2013-2014
List of Figures:
- Figure 2.1-1: Output of phosphate fertilizer and phosphorus ore, 2010-2015
- Figure 2.1-2: Output of yellow phosphorus in China, 2010-2014
- Figure 2.1-3: DAP output in China, H1 2011-H1 2014
- Figure 2.1-4: MAP output in China, H1 2011-H1 2014
- Figure 2.2-1: Ex-works price of phosphorus ore in China, Jan. 2013-Feb. 2015
- Figure 2.2-2: Ex-works price of yellow phosphorus in China, Jan. 2013-Feb. 2015
- Figure 2.2-3: Ex-works price of DAP 64% and MAP 55% powder in China, Jan. 2013-June 2014
- Figure 2.2-4: Downstream products of yellow phosphorus in China
- Figure 6-1: Export of phosphorus ore, yellow phosphorus, MAP and DAP by volume, 2012-2014, tonne
- Figure 6-2: Total export volume structure of yellow phosphorus, MAP, DAP, phosphoric acid, superphosphate and triple superphosphate, by destination, 2013
- Figure 6-3: Export price of phosphorus ore in China, Jan. 2013-Dec. 2014, USD/t
- Figure 6-4: Export price of yellow phosphorus in China, Jan. 2013-Dec. 2014, USD/kg
- Figure 6-5: Export price of DAP and MAP in China, Jan. 2013-Dec. 2014
- Figure 7.1.1-1: Global phosphate fertilizer capacity distribution (converted to P2O5), million tonnes, 2014
- Figure 7.1.1-2: Operation rate of DAP and MAP in China, 2013 and 2014