Summary:
The China phosphorus industry,
particularly the Phosphorus Industry in China, maintains a tight supply-demand
balance, with the Phosphoric acid price in China remaining elevated. According
to CCM market intelligence, this trend is underpinned by the sustained growth
in phosphorus chemicals consumption, notably in the Phosphate production
sector. CCM reports indicate that despite incremental production capacities,
the China Phosphorus Industry faces challenges in reversing the tight
supply-demand dynamics.
Demand Side: Continual Growth in
Phosphorus Ore Consumption
In recent years, China has witnessed a
consistent increase in phosphorus ore consumption. Notably, during the first
three quarters of 2024, the apparent consumption of phosphorus ore grew by
9.54% year-on-year, with the monthly consumption in September reaching a
five-year high. This growth is primarily attributed to the steady rise in
phosphate fertilizer production and sales, coupled with the rapid surge in
demand from the new energy sector. CCM market insights reveal that these
factors have significantly contributed to the positive trajectory of the China
phosphorus chemical industry.
Supply Side: Limited Capacity
Addition to Alleviate Tight Supply-Demand Dynamics
While China's phosphorus ore
production has been increasing annually, the lead time for new capacities is
substantial, and the overall supply increase is limited. Furthermore, imports
of phosphorus ore are minimal, failing to provide an effective supplement.
Consequently, domestic phosphorus ore supply growth remains constrained in the
short to medium term, making it challenging to reverse the tight supply-demand
situation, as highlighted in CCM research.
Downstream Demand for Phosphorus
Ore: Rapid Growth in New Energy Sector
In the phosphate fertilizer sector,
the recovery in compound fertilizer demand has driven steady growth in
monoammonium phosphate and diammonium phosphate production. Meanwhile, in the
new energy sector, the substantial year-on-year increase in new energy vehicle
production and sales has led to a continuous rise in demand for wet-process
phosphoric acid and lithium iron phosphate, making it one of the
fastest-growing downstream areas for phosphorus ore, according to CCM reports.
Cost and Profit Margin: Sustained
High Profitability
Despite relatively stable mining costs
for phosphorus ore, the high price maintenance has kept the profit margins at
elevated levels. This has created substantial profit opportunities for China's
phosphorus ore enterprises, as analyzed by CCM data.
In conclusion, the China phosphorus
ore industry faces a tight supply-demand balance, with prices remaining high.
Looking ahead, with the sustained development of the new energy sector, the
China phosphorus chemicals market is poised for broader growth prospects. CCM
market intelligence continues to monitor these trends, providing valuable
insights and analysis to stakeholders in the industry.
About CCM:
CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of content solutions, from price and trade analysis to industry newsletters and customized market research reports. CCM is a brand of Kcomber Inc.
For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.