The Future of Yellow Phosphorus in China

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CCM Data & Primary Intelligence In China, there are xxx phosphorus ore manufacturers with total output of xxx tonnes in 2009. Top manufacturers are controlled by government and they are usually involved in various phosphate industries, instead of solely exploiting ores. Phosphate fertilizer is the largest consumption area of phosphorus ore in China with huge demand from agriculture. Production and consumption Capacity and output Overcapacity has emerged as an obvious problem in Chinese yellow phosphorus industry in recent years. Chinese yellow phosphorus capacity is about xxxxt/a in Sep.2010, over double size of the global demand, which is only about xxx-xxx tonnes every year. The global financial crisis broken out late in 2008 had impacted most yellow phosphorus’ downstream industries and brought down the demand for yellow phosphorus. And the operating rate of domestic yellow phosphorus industry declined in late 2008. What’s more, the specific high export duty levied on China’s yellow phosphorus further lowers down the demand for China’s yellow phosphorus in 2008. These two factors led to a large yellow phosphorus inventory of about xxxx tonnes by the end of 2008, which resulted in operating rate decline of China’s yellow phosphorus in the early 2009. The recovery of economy in the world, especially in China stimulates almost all the industries and drives up the operating rate of yellow phosphorus industry in 2009. In 2010, along with the gradually enhancing stimulation efforts and vanishing effects of financial crisis, the demand for yellow phosphorus is further stable, and the average operating rate in active producers is higher than that in 2009. Geographical distribution China’s yellow phosphorous production is highly concentrated in such locations as Yunnan, Guizhou, Sichuan and Hubei, whose total capacity constitutes over xx% of national total in 2010. Reasons for the production concentration in location is that these areas have abundant phosphorus ore reserves and relatively low electricity cost. Character of CCM' Report: The aim of this report is to provide powerful assistance to the strategy group and the management team in making correct decision as how to penetrate the ever-increasing China market and how to catch the maximum commercial opportunities. The report is formulated independently by CCM’s professional market researchers, based on the first-hand and primary data which are analyzed by scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and presented in a logic way. Sample pages:

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