Phosphorus chemical industry chain is expected to continue

According to the rapid development of the “Tenth Five-Year Plan” and “Eleventh Five-Year Plan”, China’s phosphor chemical industry has developed from primary phosphorus processing consisting mainly of phosphate and yellow phosphorus to phosphate fertilizer, deep processing of yellow phosphorus, phosphoric acid and phosphoric acid. A comprehensive industry of salt fine chemicals. At present, the output of yellow phosphorus in China accounts for more than 75% of the world; the output of phosphoric acid, sodium tripolyphosphate and feed-grade phosphate rank first in the world; the export of phosphate fertilizers and bulk phosphates accounts for 60% of the world's total trade volume. the above.

Although China's phosphate rock resources are rich, but the grade is not high, with an average of about 16.95% (P2O5). At present, China's richer than 30% grade does not exceed 1.4 billion tons. Most of the phosphate ores must be enriched after beneficiation in order to meet the demand for phosphoric acid and high-concentration phosphate compound fertilizer production. China's phosphate resources are mainly concentrated in five provinces of Yunnan, Guizhou, Sichuan, Hubei, and Hunan, accounting for 74.5% of the country's total reserves, and rich mines with grades greater than 30% are almost entirely concentrated in these five provinces.

Since 2005, China's phosphate fertilizer production has surpassed that of the United States and has become the world's largest producer of phosphate fertilizers. According to statistics from the China Phosphate Fertilizer Industry Association, China's total phosphate production in 2009 reached 14.797 million tons (P2O5), an increase of 800,000 tons year-on-year, and both production and consumption ranked first in the world. There were more than 1,500 phosphate and compound fertilizer enterprises above designated size. The production of phosphate fertilizer has a low threshold. By the end of 2010, China's phosphate fertilizer production capacity will exceed 21.5 million tons, while the demand will be around 12 million tons. Excess production capacity needs to be digested by exports.

The core of the phosphorus chemical industry is the phosphoric acid manufacturing process. Phosphoric acid products are divided into agricultural grades, feed grades, food grades, pharmaceutical grades, electronic grades, and semiconductor grades according to their purity. Product processing difficulty and added value also increase. In China, the wet-process phosphoric acid process is mainly used for the production of phosphate fertilizer because the purity of the produced phosphoric acid is low, and the thermal-process phosphoric acid is used for the processing of phosphoric acid refining and industrial phosphate.

In 2011, due to the limited mining in some areas, domestic phosphate rock supply has emerged tense; and due to rising domestic transportation costs and increasing demand for foreign phosphate fertilizers, the price of phosphate rock has continued to rise, and 28% of the phosphate rock has been developed. The price has risen to 460 yuan / ton, but there is still a big gap between the price of international phosphate rock that is homogenous with the same period, only 1/3 of it. With the supply of domestic phosphate rock tight and the demand for phosphate fertilizer increasing at home and abroad, China's phosphorus chemical industry is expected to maintain its economy in the second half of the year.

Investors are advised to pay attention to companies with abundant reserves of phosphate ore and integration of "mine-electricity-phosphorus-transportation". If the cost is passed smoothly, phosphate fertilizer-dominated enterprises and fine-phosphorus chemical companies will increase the price of phosphate ore in the long term. According to the company's future development trend and current valuation, Yuntianhua, Hubei Yihua and Xindu Chemicals are recommended; Xingfa Group and Sirte are cautiously recommended; Chengxing and Liuguo Chemical are temporarily given a neutral rating; ST Lubei is temporarily unavailable. Rating.