High phosphorus prices challenge the bottom line of the phosphate industry

Affected by many factors, since late October, the market price of yellow phosphorus, the raw material of phosphate, has rapidly increased from the original 12,000 yuan (t price, the same below) to nearly 16,000 yuan. While the market price of phosphate products increased during the same period, the margin was limited. Coupled with the overall rise in other raw and auxiliary materials, fuel power, and transportation costs, many companies in the industry have been overwhelmed and the loss has rapidly expanded. High phosphorus prices are challenging the bottom line of the phosphate industry.
The steep increase in cost pressures estimates that the phosphate base product phosphoric acid is calculated as 275 kg of yellow phosphorus per ton of product consumed. The cost of this material alone is 4,400 yuan. In addition, the manufacturing cost is 300 yuan, and the manufacturing cost is 4,700 yuan, which is higher than the market price. This is already upside down in production and sales. If we add operating expenses, management fees, and financial expenses, the loss will be even greater.
An important product of the phosphate industry, sodium tripolyphosphate, in addition to the high price of yellow phosphorus, but also the reality of the price of as high as 1800 yuan soda ash and 800 yuan of white coal. The sodium tripolyphosphate product is equivalent to 270 kg of yellow phosphorus, 755 kg of soda ash and 400 kg of white coal. The cost of main materials has reached 6,000 yuan, and the production cost of 600 yuan is also spent. The manufacturing cost is as high as 6,600 yuan, and now The market price is about 6,000 yuan for industrial grade and 6,500 yuan for food grade, which is obviously unprofitable. Other products such as sodium hexa-sulfite, sodium pyrophosphate, etc., are also less profitable.
According to reports, in the current situation where the price of yellow phosphorus is high, in addition to the companies that have phosphate rocks and self-produced yellow phosphorus in Yunnan, Guizhou, Sichuan, and Hubei Provinces, other related companies face steep cost pressures, and most of them are in the east and the east. The companies in the industry are in a state of loss, and the threat of survival has further manifested.
If it is not easy to raise the price of high-phosphorus phosphorus, in accordance with market logic, downstream products should have raised the ex-factory price. However, due to the serious imbalance between supply and demand, the price of phosphate will be weak.
Last year, a hot market for phosphate triggered a large area of ​​rising investment fever. Currently, in the major phosphate producing areas, the expansion of energy is strong. There are tens of thousands of tons of new equipment in related companies. For example, Yunnan Nanfang Group's 50,000 tons of industrial sodium tripolyphosphate project has recently been put into operation. Sichuan Tianyuan Co., Ltd. will base the tripolyphosphate on the basis of the current scale of 40,000 tons. Sodium production capacity has been gradually expanded to 200,000 tons. In addition, due to the low barriers to entry in the industry, some small phosphate companies are springing up like mushrooms.
However, the market demand is not optimistic, and the unfavorable factors are increasing day by day. In the domestic market, the demand for sodium tripolyphosphate has been shrinking due to the gradual implementation of phosphorus and phosphorus bans in the detergent industry. In the southeastern part of the country, due to the pollution caused by blue-green algae in Taihu Lake in the spring of this year, a large-scale ban on phosphorus was triggered. Although the famous Shanghai White Cat, Zhejiang Naes and other large detergent companies in the area, the use of phosphorus products is increasing. cut back.
In the international market, the original export price is lower than the domestic sales by more than 5%. In addition, the export products of the industry no longer enjoy 13% of the export tax rebates, and the profit per ton of products is generally reduced by more than 500 yuan. Therefore, in addition to individual advantageous enterprises, Most manufacturers no longer easily export products. At the same time, due to the large-scale export of such products in recent years, there has been a strong call for anti-dumping in the world, and a large appreciation of the renminbi has also weakened its competitiveness.
According to authoritative sources in the industry, nearly two-thirds of China's phosphate production capacity is currently in serious excess, and it is very difficult to raise market prices.
Division of labor and integration is the way out In recent years, driven by the interests, the disorderly competition of phosphate companies has caused a great waste of phosphorus resources. In response to the current situation of rising costs and difficult prices, the experts suggest that the phosphate industry should do a good job of division of labor, that is, in the phosphate mineral production areas, related companies should actively use low-grade phosphate rock resources to promote the wet-process phosphoric acid process and continue processing and production of tripolyphosphate. Sodium, sodium pyrophosphate, sodium hexametaphosphate and other primary phosphate products. This not only maximizes the energy used to process yellow phosphorus, but also increases the price advantage of the product. The eastern enterprises should use yellow phosphorus to produce food grade, pharmaceutical grade, electronic grade and yellow phosphorus derivative products to increase their added value.
At the same time, the development trend of the phosphate industry is the effective integration of resources such as mineral resources, technical resources, market resources and management. For example, through continuous restructuring and integration, Hubei Xingfa Group has become a joint-stock company integrating mining, power station, yellow phosphorus and phosphate processing. It is not affected by the market price of yellow phosphorus, and has a variety of finished products with stable profitability. Strong anti-risk ability; while Jiangsu Chengxing uses its advantage in the east coast, has a huge phosphoric acid market, and has a smooth access to the sea. Although it lacks phosphorite resources, it has invested in capital and invested in important phosphate deposits in Yunnan. Plant construction, the formation of phosphorus integrated production of raw materials, and then processed in the market hinterland, the cost is much lower than the average cost of the industry, the profit rate is clearly higher than the average enterprise, at the same time, or domestic sales or foreign trade, both sources, there is no shortage of food, but also There is no credit for the sale. The business models of these two companies are worth learning from other related companies.

China Construction Pump Machinery,Cement Portable Concrete Pump manufacturers, welcome Hydraulic Concrete Pump,Cement Portable Pump purchasers from worldwide to visit our site.The horizontal feeder has large capacity, high volume utilization, convenient installation and adjustment, compact structure, light weight, easy operation and convenient transfer; small terrain restriction, easy for process layout.

Concrete Pump

Construction Pump Machinery,Cement Portable Concrete Pump,Hydraulic Concrete Pump,Cement Portable Pump

Shandong Zeyu Heavy Industry Science and Technology Co.,Ltd. , https://www.sdmobileconcretebatchingplant.com