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Phosphorus Industry China Monthly Report 1603


News provided by

Reportlinker

Apr 27, 2016, 03:38 ET

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NEW YORK, April 27, 2016 /PRNewswire/ -- In March 2016, China's phosphorus chemical market continues to be depressed. Operating rates and market prices of most phosphorus chemicals linger at low levels. Influenced by such depressed market conditions, market price of sodium tripolyphosphate begin to rebound after reaching the bottom.

- Phosphorus ore

Market conditions remain quite stable. Some ore manufacturers in Sichuan and Yunnan Province began to resume production at the end of the month. However, considering that it is hard to improve the depressed phosphorus chemical industry in the short term, CCM believes that China's phosphorus ore market will remain sluggish due to the lack of supports.

- Phosphoric acid

Market conditions continue to be depressed. Quotations from manufacturers from Yunnan and Jiangsu provinces drop by USD4.59-15.29/t (RMB30-100/t). Nevertheless, some manufacturers in Guizhou Province resume production at the end of the month.

- Yellow phosphorus

Market conditions for yellow phosphorus become more depressed slightly. Influenced by the stagnant phosphoric acid market, yellow phosphorus price fell by USD15.29/t (RMB100/t) and manufacturers that planned to resume production in March put off their production resumption plans to April.

- MAP

Downstream compound fertilizer manufacturers have MAP in inventory they purchase products according to how much they really need. As a result, the trading market is stagnant. Currently, many manufacturers have no intention to resume production in the short term as the market price of MAP is too low.

- DAP

Quotations for DAP are quite stable. As the traditional spring ploughing period comes in April, the trading market begins to get improvement gradually. Yet, many manufacturers still have no faith in the future market.

It is worth noting that Kunming Chuanjinnuo was listed on GME, becoming another newly listed phosphorus chemical company from Yunnan Province. Kunming Chuanjinnuo is focused on the graded utilization of wet-process phosphoric acid. Its main products include wet-process raw phosphoric acid, fertilizer grade calcium hydrophosphate, triple superphosphate, feed grade calcium hydrophosphate, feed grade calcium dihydrophosphate, etc.Since Oct. 2015, both demand and market price of DAP kept dropping in the international market and this has dragged down the market price of DAP in China's market recently in 2016. Many domestic manufacturers hold pessimistic attitudes towards the future market in 2016 in consideration of lacking supporting factors.

In March 2016, Kunming Chuanjinnuo was listed on GME, becoming yet another newly listed phosphorus chemical company from Yunnan Province. Meanwhile, the company also planned to build projects which include facilities for the flotation of mid and low grade phosphorus ore and purification of wet-process phosphoric acid with raised capital. CCM believes that this will help the company save energy and reduce emissions as well as improving its industry chain.

In March 2016, Bluesea Group signed an agreement with Zhejiang Netsun: Bluesea Group will sell its products on Zhejiang Netsun's e-commerce platform. As China's phosphorus chemical industry is depressed, many domestic companies choose to cooperate with e-commerce platforms in order to expand their sales channels. However, according to CCM, the development of e-commerce for the phosphorus chemical industry still faces many challenges.

In March 2016, Jiangsu Yoke revealed that the company is stably moving on to acquire the 100% of Zhejiang Huafei's stock share. The acquisition will facilitate Jiangsu Yoke to edge in the electronic chemical field, which will on the one hand accelerate industrialization of its R&D achievements and expanding of industry chain, and on the other hand share the high growth dividend of emerging market and further improve the company's performance.

In March 2016, Phosphate Group claimed that the company has contributed a VAT of USD110.88 million (RMB725 million) to the state during the 12th Five-year Plan period, achieving a significant growth compared to the 11th period. CCM believes that this can be mainly attributed to Phosphate Group's vigorously adjusting its industrial structure to build its ore-chemicals and ore-fertilizers integrated industry chain.
In early March 2016, at the 2016 China National Controlled Release Fertilizer Promotion Meeting that was held in Shandong Province, the Chinese government vowed to continue to promote controlled release fertilizers. As a leading company in the industry, Kingenta will be given preference in resources distribution and support, and its performance is expected to continue to increase.

During the Two Sessions in March 2016, Wan Lianbu, chairman of the board of Kingenta, proposed the comprehensive utilization of phosphorus ore resources, export of high value-added phosphorus chemicals, and maximal protection of China's phosphorus ore resources while attaining high economic benefits, according to CCM.

In March, 2016, a research group from Guizhou Provincial Commission of Economy and Information Technology did an investigation among phosphorus chemical enterprises in Fuquan City, Guizhou Province. CCM believes that the comprehensive utilization of phosphogypsum will be the local development emphasis in light of requirements of saving energy, improving efficiency, and protecting environment.
In Feb. 2016, China's STPP market was still depressed. Both transaction volume and companies' operating rates dropped markedly. However, under the influence of the improved supply-demand relationship, the bottomed out market price of STPP rebounded at the end of the month. CCM predicts that in the coming one to three months, China's STPP market will recover slowly and market price of STPP is expected to continue to grow slightly.

In Feb. 2016, China's yellow phosphorus market remained stable in general. Operating rates increased to some extent in some production areas while market price continued to be relatively low.
Read the full report: http://www.reportlinker.com/p03762645-summary/view-report.html

About Reportlinker
ReportLinker is an award-winning market research solution. Reportlinker finds and organizes the latest industry data so you get all the market research you need - instantly, in one place.

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