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China Phosphorus And Phosphorus Chemical Industry Report, 2012-2014

NEW YORK, Nov. 21, 2012 /PRNewswire/ -- announces that a new market research report is available in its catalogue: China Phosphorus and Phosphorus Chemical Industry Report, 2012-2014

In recent years, China's output of phosphorite has presented rapid growth. In 2011, China's phosphorite output hit 81.224 million tons, ranking No. 1 in the world. But the phosphorite features low grade, and the high-grade ores (>30%) only accounts for 9% of the total. In the context of declining ore grade, the production costs of Chinese phosphorite mining enterprises will show a rising trend. But the price of China's phosphorite has been lower than the international level, because the major producing areas restrict the resource outflow and 35% export tariff is levied.

The demand for phosphorite is mainly from phosphate fertilizer and primary phosphate products which characterize low added value. In 2011, 71.0% of China's total output of phosphorite was used for the production of phosphate fertilizer, and 13.0% and 6.0% were applied in manufacturing yellow phosphorus and feed respectively. Now the total capacity of phosphate fertilizer surpasses 21 million tons (P205), while the domestic demand only reaches around 12 million tons. Moreover, a large number of phosphate fertilizer plants still wait to be put into operation, when a serious oversupply will emerge.

China's phosphorus chemical industry keeps being transferred to upstream and high value-added downstream sectors (mainly high-end phosphide and phosphate). As China adopts thermal phosphoric acid process to produce high-end phosphide and phosphate and the policies concerning phosphorus chemical industry support the integrated superior companies, electricity, self-sufficiency of phosphorite and so forth will determine the production costs and competitive edges of a company. Hubei Xingfa Chemicals Group Co., Ltd. is one of the leaders in the integrated development of phosphorus chemical.

Now Hubei Xingfa Chemicals Group boasts phosphorite reserve of 220 million tons and annual capacity of 5 million tons. In 2011, the gross margin of the company's phosphorite registered 80.9%, much higher than its consolidated gross margin of 13.8%. Moreover, the company also owns phosphorite which is still in exploration phase (estimated reserves of 150 million tons). With respect to the phosphorus chemical, the company possesses a wide range of fine phosphorus chemical products, with annual capacity exceeding 1 million tons. Additionally, the company will continue to promote the industrial grade phosphorus chemical products to transform to food and electronic grade ones, and inorganic phosphorus chemical to organophosphorus chemical, and focus on the development of compound phosphate, organophosphorus flame retardant, water treatment agent and organophosphorus extracting agent.

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