Based on phosphorus ore, phosphorus industry is a large industry which covers yellow phosphorus, phosphate acid, phosphate fertilizers, phosphate feed, fine phosphate chemicals, etc.

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2. Phosphorus Industry China Monthly Report
Background
B ased on phosphorus ore, phosphorus industry is a large industry which covers yellow phosphorus,
phosphate acid, phosphate fertilizers, phosphate feed, fine phosphate chemicals, etc.
Phosphorus ore
China has been a net phosphorus ore exporter as China is the second largest holder of phosphorus ore resource
of the world, following Morocco. Thanks to the elimination of special export tax and the strong recovery, China’s
phosphorus ore export volume and price FIGURE 1: China’s phosphorus ore export situation, 2008~May 2011
both witness rebound after the financial
300,000 400
crisis.
250,000 350
During the 12th Five-Year-Plan (2011- 200,000 300
Volume, tonne
Price, USD/t
2015), Chinese government will encourage
150,000 250
to exploit low grade phosphorus ore by
levying lower resource tax on low grade 100,000 200
ore, which will drive exploiting technology
50,000 150
innovation and reduce resource waste.
This is beneficial for the development 0 100
of phosphorus industry. However, the
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government will continue implementing
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export quota system for phosphorus ore.
Volume Average price
Yellow phosphorus Source: China's Customs, CCM International
In 2010, output of China’s yellow FIGURE 2: China’s yellow phosphorus export situation, 2008~May 2011
phosphorus broke historical high level,
touching 957,994 tonnes, increasing by 12,000 8,750
10.6% year on year. The strong growth 10,000 7,750
is primarily driven by the booming 6,750
Volume, tonne
downstream industries. 8,000
Price, USD/t
5,750
6,000
On Jul. 5th, 2011, the World Trade 4,750
4,000
Organization (WTO) ruled that China's 3,750
export restriction on yellow phosphorus 2,000 2,750
is illegal. Though China has eliminated
0 1,750
the special export tax and only levies
20% tax on export yellow phosphorus
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in 2011, the export volume of yellow
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phosphorus only accounted to 6,340 Volum e Average price
tonnes as of May in 2011, halved as
compared with that in the same period Source: China's Customs, CCM International
last year. In line with the soaring price
of phosphorus ore, the average export price of yellow phosphorus in May 2011 increased by 24.7% over that in
previous May.
Phosphate fertilizers
Phosphate fertilizers are important for China to modernize its agriculture industry. In 2010, China totally produced
17.01 million tonnes (100% P2O5) phosphate fertilizers, increasing by 20.2% year-on-year.
Though the output witnessed fast growth, China’s phosphate fertilizer industry has been overcapacity. On March
25, 2011, Ministry of Industry and Information Technology (MIIT) promulgated the exposure draft of the Entry
Criteria for Phosphate and Ammonium Production which rules that in principal, it would not allow to build
new wet process phosphoric acid (WPA), monoammonium phosphate (MAP) and diammonium phosphate
(DAP) projects or expansions within three years. Meanwhile, it will weed out some inefficient capacity by higher
environmental requirement.
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3. Phosphorus Industry China Monthly Report
To develop more healthy, phosphate fertilizers industry will see integration within industry. Phosphorus ore
resource will draw more attention. Distribution channel building will enhance competitiveness. Hence, more and
more mergers and acquisitions will emerge.
Fine phosphate chemicals
Phosphorus trichloride (PCl3), as the raw material of glyphosate which is one of the important herbicide in China,
its dynamic will heavily impact the production of glyphosate.
China currently is the largest producer of sodium tripolyphosphate (STPP) in the world, over 60% of STPP
produced in China is exported. Hence, the changes within China’s STPP will impact the world’s STPP.
As compared with other flame retardants, phosphorus flame retardant is of many advantages. Hence, phosphorus
flame retardant will witness fast development in the coming years, which is counted as one of breakthrough points
of China’s fine phosphate chemicals.
Column
PCl3, STPP and main phosphate fertilizers, etc., and
• Policy & legislation find out the factors impacting the price fluctuation.
Predict the price trend.
Present the latest policies and legislations released
in China and abroad related to phosphorus industry, • Technology innovation
such as industry 12th Five-Year-Plan, industrial Entry
Criteria, tax adjustments and other policies impacting Report the technology improvement within industry.
the development of phosphorus industry. Analyze influences of technology improvements on
China’s phosphorus industry, including cost reduction,
• Company dynamic quality improvement and efficiency increase.
Report the latest news about • Supply & Demand
companies within China’s
phosphorus industry, such as Cover the supply and demand
new launch, company expansion, dynamics of main phosphate
merger & acquisition, cooperation, chemicals, including the rough
etc. Find out stories behind import and export data analysis
the news, including company of P2O5, STPP, PCl3, PCl5,
development strategy, related dicalcium phosphate, etc..
policy, global market situation, Analyze the factors influencing
etc. the supply and demand of these
products.
• Industry dynamic
• Global insights
Introduce the development trend of phosphorus
industry and dig out the investment opportunity within Report the industry dynamic of the world which will
the industry. impact China’s phosphorus industry.
• Price update
Update prices of phosphorus ore, yellow phosphorus,
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4. Phosphorus Industry China Monthly Report
Methodology Why to subscribe?
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• Trace the industrial trend for you business
The sources of desk research are various, including decision.
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industry statistics, association, seminars as well as • Master the current industry environment
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• Telephone interview • Get the changes in related industry policy
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CCM will interview events related party to gain first- risks.
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CCM will set questionnaire on events to collect experts’ Who need it?
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• • Investors focusing on phosphorus
CCM carries out face-to-face interviews with industry
industry.
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relative issues. • Government and independent corporations
interested in China phosphorus relative
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6. Journalist: Jack Lin
Editor: Joyce Zhu
Chief Editor: Norman Lai, Hongxiang Du
Publisher: CCM International Limited
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