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Phosphorus Industry China

Lewes, DE -- (ReleaseWire) -- 06/18/2015 -- On 6 May-8 May, 2015, the 22nd Chinese Annual Conference of Phosphate Compound Fertilizer Industry was held in Chengdu City, Sichuan Province. CCM learned from the conference that China has become a major phosphate compound fertilizer production, consumption and export country after many years of development, especially because of the rapid growth over the recent decade. However, several problems are exposed at the same time, including a large but weak phosphate compound fertilizer industry, overcapacity and weak profitability. The phosphate compound fertilizer industry will experience a crucial industrial transformation period in the next three to five years. This transformation will focus on overall industrial scale control, industrial structure optimization, innovation stimulation, resource utilization, environment protection and safe production.

As for policies, from April 20, 2015, both national on-grid tariff of coal-fired power and electricity utilization price for commerce and industry were reduced. However, electricity utilization privilege for chemical fertilizer enterprises will be canceled. CCM believes that the cancel of the privilege policy is a price strategy with which China guides a reduction on chemical fertilizer utilization and leads the chemical fertilizer industry to market-oriented operation. Also, on 19 May, 2015, the Ministry of Agriculture of the People's Republic of China held a meeting on promoting and implementing the action plan for zero growth of chemical fertilizer consumption by 2020.

As for enterprises, in early May 2015, Guizhou Province released an action plan to control environmental pollution. Accordingly, the phosphorus chemical industry will focus on increasing the utilization rate of industrial waste water and phosphogypsum. On 11 May, 2015, Anhui Sierte said that its pyrite project in Xuancheng City, Anhui Province will be put into production in July.

As for technologies, the sulfuric acid project (sulfur decompose phosphogypsum to produce sulfuric acid), which is led by Sichuan Hongda, technically supported by Sichuan University and jointly conducted by Zhengzhou University, Kunming University of Science and Technology and Southwest University of Science and Technology, has taken shape. It is expected to pass the review by the Ministry of Science and Technology at the end of 2015. Besides, On 22 May, 2015, Jinhua Fulukete officially launched phosphating technology and products on metal surface with no phosphorus, fluoride and heavy metal.

The USD/RMB exchange rate in this report is USD1.00=RMB6.1165 on 4 May, 2015, sourced from the People's Bank of China. All the prices mentioned in this report will include the VAT, unless otherwise specified.

At the end of April 2015, Chinese listed phosphorus chemical companies released their 2014 full-year financial reports in succession. In order to clearly show the status quo and future development of the domestic phosphorus chemical industry, CCM conducted systematic analysis on 4 leading companies to determine the general direction of the industry.

China produces a large amount of gypsum as by-product during industrial production. However, the utilization rate is low. Solutions to increase the utilization rate include developing new utilization modes because at present, by-product gypsum is mainly used to produce construction materials. Also, the concession policy should be expanded to cover companies that do not possess the capability to further process industrial by-product gypsum.

China has become a major phosphate compound fertilizer production, consumption and export country. However there are several problems, including the large but weak phosphate compound fertilizer industry, overcapacity and weak profitability. The phosphate compound fertilizer industry will experience a crucial industrial transformation period in the next three to five years. This transformation will focus on overall industrial scale control, industrial structure optimization, innovation stimulation, resource utilization, environment protection and safe production.

From April 20, 2015, both national on-grid tariff of coal-fired power and electricity utilization price for commerce and industry were reduced. However, electricity utilization privilege for chemical fertilizer enterprises will be canceled. CCM believes that the cancel of the privilege policy is a price strategy with which China guides a reduction on chemical fertilizer utilization and leads the chemical fertilizer industry to market-oriented operation.

After years of rapid development, China has become a major phosphate compound fertilizer production, consumption and export country. However, the phosphate compound fertilizer industry has encountered many problems such as overcapacity, decreasing gross profit margin, increasing pressure from environmental protection and intensifying international market competition.

Under the environment of rising boom for phosphate compound fertilizer, the production capacity of many of Anhui Sierte's projects are being released. it will promote the company's performance to climb to a higher level.

In early May 2015, Guizhou Province released an action plan to control environmental pollution. Accordingly, the phosphorus chemical industry will focus on increasing the utilization rate of industrial waste water and phosphogypsum.

In early May 2015, Sichuan Hongda's sulfuric acid project has taken shape and it is expected to pass the review by the Ministry of Science and Technology at the end of 2015.

Pushing by favorable export tariff policies, China's export volume of DAP & MAP soared in Q1 2015.

In mid-May 2015, ex-works prices of yellow phosphorus in some areas in China have hit a bottom in the recent three years. Meanwhile, export volume of yellow phosphorus also decreased significantly year on year.

Spanning over 44 pages, "Phosphorus Industry China Monthly Report 1505 (12 issues per year)" report covers Performance analysis of four Chinese listed phosphorus chemical companies in 2014, China in urgent need of increasing gypsum utilization rate, Key points of phosphate compound fertilizer industry development: structure optimization and scale control, Electricity price reduced and electricity utilization privilege for chemical fertilizer enterprises canceled, Four major handicaps block development of Chinese phosphate compound fertilizer industry, Many projects being launched to promote growth of Anhui Sierte's performance, Phosphorus chemical enterprises in Guizhou focus on utilization of waste water and phosphogypsum, PKG phosphate project of Wuhuan Engineering ready for trail production, EuroChem builds fertilizer plant in Ongtustik Kazakstan, Phosphate manufacturer in Tunisia forced to shut down, Luxi Chemical: 100,000 t/a urea ammonium nitrate solution project put into production, Zhejiang Wansheng's 44,000 t/a phospholipids fire retardants project close to be finished, Yunnan Yuntianhua establishes new subsidiaries, MIIT releases third batch list of enterprises conforming to access conditions to yellow phosphorus industry, Yunnan Academy of Agriculture Sciences signs strategic cooperation agreement with Yunnan Yuntianhua, MOA endeavors to promote action on zero growth of chemical fertilizer consumption, Sichuan Hongda's sulfuric acid project takes shape, Jinhua Fulukete's bonderite substitute technology and relevant products gain major breakthrough, Market Data Analysis, China's export volume of DAP & MAP soars in Q1 2015, Chinese yellow phosphorus market keeps depressed in May 2015, Price Update, Price monitoring of phosphate chemicals in April 2015, Import & Export, International trade of phosphate chemicals in March 2015. The report covered companies are - Yunnan Yuntianhua Co., Ltd.; Jiangsu ChengXing Phosph-Chemicals Co., Ltd.; Anhui Liuguo Chemical Co., Ltd.; Yunnan Yuntianhua International Chemical Co., Ltd.; Hubei Xingfa Chemicals Group Co., Ltd.;


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