With the dual support of rising raw material costs and rising demand, China’s phosphate fertilizer market ushered in a boom.
According to the latest data of Longzhong information, on February 18, the transaction price of monoammonium phosphate was 2900-2950 yuan / ton, up about 50-100 yuan / ton compared with that before the Spring Festival. Compared with the same period last year, monoammonium phosphate increased by 34.88%. Monoammonium phosphate is one of the main varieties of phosphate fertilizer.
Li Lingxin, an analyst of Longzhong information phosphate fertilizer industry, told the interface news reporter that the recent rise in the price of phosphate fertilizer market is mainly driven by multiple factors such as cost and the gradual recovery of the market after the festival.
According to Li Lingxin’s analysis, at present, the self raised price of sulfur particles in the Yangtze River port in the raw materials upstream of phosphate fertilizer is 2500 yuan / ton, up 45 yuan per ton compared with that before the Spring Festival, which is at a historical high.
She also mentioned that the tight supply of phosphate rock has led to stable prices. The average price of phosphorus ore in the Chinese market is nearly 700 yuan year-on-year.
At the same time, the market gradually recovered after the festival, and the overall operating rate of downstream compound fertilizer also boosted the price of phosphate fertilizer.
Li Lingxin told the interface news reporter that before the Spring Festival, most large downstream compound fertilizer enterprises have prepared raw materials for spring fertilizer production. After the festival, small and medium-sized enterprises have also followed up the purchase of raw materials. Phosphate fertilizer enterprises have received a large amount of orders in advance, which can be implemented until around the middle of March.
For the future trend of phosphate fertilizer, Li Lingxin said that with the end of fertilizer production in spring in the second quarter, the export policy of additional fertilizer is still uncertain, and the price is expected to decline steadily. In the third quarter, with the arrival of the peak season of high phosphate fertilizer demand in autumn, the price of phosphate fertilizer is expected to rise again.
According to the Research Report of Anxin securities, the phosphorus chemical industry can be mainly divided into upstream phosphorus ore, midstream phosphoric acid and yellow phosphorus, and downstream phosphorus chemical products. Among them, agrochemical industry is the largest application industry of phosphorus chemical products, which can be mainly used for phosphorus fertilizer, organophosphorus pesticide agrochemical, etc.
Benefiting from the increased demand for lithium iron phosphate in the new energy vehicle industry, the prosperity of the phosphorus chemical industry chain has been greatly improved.
According to the data of business agency, as of February 17, the average price of lithium iron phosphate was 140000 yuan / ton, up 268.42% from the beginning of last year.
A number of leading enterprises in the phosphorus chemical industry have extended downstream and cut into the track of iron phosphate and lithium iron phosphate, including Yunnan Yuntianhua Co.Ltd(600096) (600096. SH), Hubei Xingfa Chemicals Group Co.Ltd(600141) (600141. SH) and Hubei Yihua Chemical Industry Co.Ltd(000422) (000422. SZ).
As of the first half of last year, Yunnan Yuntianhua Co.Ltd(600096) basic phosphate fertilizer had a total capacity of 5.55 million tons / year, making it one of the largest phosphate fertilizer manufacturers in China. Hubei Xingfa Chemicals Group Co.Ltd(600141) has a phosphate rock production capacity of 4.15 million tons / year, ranking in the forefront of the industry.
Last October, Yunnan Yuntianhua Co.Ltd(600096) announced the construction of a new material precursor and supporting project for 500000 T / a iron phosphate battery. In the same month, Hubei Yihua Chemical Industry Co.Ltd(000422) announced that it planned to cooperate with Contemporary Amperex Technology Co.Limited(300750) (300750. SZ) to jointly build and operate 300000 t / a iron phosphate and other projects.
Hubei Xingfa Chemicals Group Co.Ltd(600141) signed an agreement with Zhejiang Huayou Cobalt Co.Ltd(603799) (603799. SH) in November last year and plans to invest in 500000 T / a iron phosphate, 500000 T / a lithium iron phosphate and related supporting projects.
