Why you should keep close track to China’s phosphorus market

  • Conference information

    Free Webinar: Why you should keep close track to China’s phosphorus market

    How China is affecting the world market and how to react as a market player


    Date: April 19, 2018

    Time: 17:00 - 17:30 (GMT+8)

    Register here


    The international demand for phosphate rock is increasing steadily, which is hearing up the competition. The results are higher prices and mounting competition, which is threatening the supply of phosphate rock. The global phosphate rock demand is rising due to a growing world population and associated food demand, which is increasing the demand for phosphate fertilizer. Major applications for phosphorus are in agricultural and pharmaceutical segments.


    China is home to the world's second largest reserves of phosphate rock, while the country is also a major producer of yellow phosphorus, phosphoric acid, phosphate fertilizers and fine phosphorus chemicals. Hence, the country is one of the most important players in the market and developments there should be tracked closely to be ahead of competition.


    For the past two years, China has maintained such high export tariffs on phosphate fertilizer that trade was plumming significantly. Furthermore,  the demand for yellow phosphorus increases slowly in recent years, and the de-capacity continues to be boosted by the supply-side structural reform. How will the supply-demand pattern change under this background?


    In China, production and exports of the leading phosphate products are declining as a result of unprofitable economics and more stringent environmental regulations.


    China's exports of phosphate rock were increasing during 2015 to 2017, after the Chinese government adjusted the export tariff of phosphate rock from 35% to 15%. Meanwhile, the exports of yellow phosphorus were decreasing.


    The ex-works prices of monoammonium phosphate (MAP), diammonium phosphate (DAP) and yellow phosphorus increased in H2 2017.

    The global output of phosphate rock was in an upward trend during 2010–2016, growing at a CAGR of 6.69%. China's output of phosphate rock was growing at annual growth rates of above 10% from 2011 to 2015. In 2016, the output of phosphate rock increased only by 1.66% year on year due to oversupply in the market. Global phosphate rock reserves are primarily distributed in Morocco and Western Sahara. In China, most of the phosphate rock reserves are distributed in Hubei, Yunnan, Guizhou, Hunan, and Sichuan provinces.

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