Sluggish Phosphorus Market Expected in 2014

By CnAgri2013-11-11 14:25:37 Print Phosphorus price has slumped to the bottom since 2009 on account of market surplus.
 
China’s phosphorus production equaled to 15.45 million MT P2O5 (100%) in Jan. ~ Sept., an increase of 2.7% on the year-on-year basis. Phosphorus exports decreased 330,000 MT and NP compound fertilizer exports decreased 250,000 MT in Jan. ~ Sept., both on the year-on-year basis.
 
Domestic phosphorus supply increased 600,000 MT, in terms of P2O5 (100%), in Jan. ~ Sept., compared with the same period of last year. As the low-tax season for phosphorus exports has ended, phosphorus consumption is not likely to go up noticeably this year.
 
Phosphorus raw material price fails to prop up phosphorus price. Phosphorite production was 76.28 million MT in Jan. ~ Sept., calculating at a phosphorite grade of 30% P2O5. Phosphorite production increased 9.73% on the year-on-year basis, outrunning the growth rate of phosphorus production.
 
Sulfur production and imports registered 3.91 million MT and 7.13 million MT respectively in Jan. ~ Sept., up 510,000 MT but down 400,000 MT on the year-on-year basis. Sulfur consumption increased 110,000 MT on the year-on-year basis, suggesting a faster consumption rate than supply. But, considering the dull phosphorus market, phosphorus producers’ demand for sulfur is predicted to shrink in the next few months.
 
BOABC predicts that phosphorus price may stay low next year.

From “China Fertilizer Market Weekly Report”