According to the data on July 15, 2021, the average price of yellow phosphorus has seen a continuous increase since May. Below are the average prices of yellow phosphorus this year in China:
Mid May: 17733 RMB/ton
Early July: 19350 RMB/ton
Mid July: 23333 RMB/ton
The price saw an increase by 20.59% in just half a month in July. The main reason is the power restriction in Yunnan province of China.
The production capacity of yellow phosphorus in China is mainly concentrated in Yunnan, Guizhou Yunnan and Sichuan. In 2020, the proportion of yellow phosphorus production capacity in Yunnan, Guizhou and Sichuan was 42%, 14% and 21% respectively.
The power limit in Yunnan has a great impact on the supply of yellow phosphorus, which leads to the rise of yellow phosphorus price from mid May. Therefore, the limit of electricity usage in Yunnan province of China has a great impact on the supply of yellow phosphorus.
The dry season in Yunnan is from December to May of the next year. This year, the dry season seems to be longer, mainly because of the drought and less rain in Yunnan since May and the serious overdraft of main reservoirs. Since May 10, Yunnan Province's local and state power enterprises have started emergency peak load shifting and power rationing. As a result, the price of yellow phosphorus began to rise sharply from the middle of May.
In late May, the price of yellow phosphorus rose rapidly. Affected by drought, lack of water and power restriction in Yunnan, the operating power of yellow phosphorus enterprises in some areas was less than 20%. Recently, power rationing has not been alleviated, but has become more and more serious.
Generally speaking, July is the wet season in the yellow phosphorus production area. Enterprises in the production area are willing to start work, and the quotation of yellow phosphorus will continue to decline. However, this year's situation is different. Affected by atmospheric control activities, all yellow phosphorus plants in Guizhou were shut down in the first week of July. In the second week of July, yellow phosphorus plants in some areas of Yunnan and Mabian of Sichuan stopped production, and the domestic supply of yellow phosphorus decreased sharply.
According to the sample statistics of Zhuo Chuang information, the daily production of yellow phosphorus in Yunnan is about 500 tons, which is more than 400 tons less than the normal level in June, and about 45% less than the previous period. The daily production of yellow phosphorus in Sichuan is more than 600 tons, which is nearly 100 tons less than the normal level in the previous period, The total output of yellow phosphorus in the second week of July was 7800 tons, 24 tons less than that in the last week of June, a decrease of about 24%. Overall, the spot supply of yellow phosphorus decreased significantly.
Yellow phosphorus, which is widely used in the production of fertilizer, medicine, pesticide and alloy, is an important chemical raw material.
Due to the continuous price increase of yellow phosphorus, the corresponding price of phosphoric acid also has been on an increase. As yellow phosphorus is also needed for chemical fertilizer and the demand for chemical fertilizer in this season is relatively large, therefore, the price is very high.
By July 16, 2021, the price of MAP fertilizer (Monoammonium Phosphate) has been increased by nearly 2000 RMB since the increase this year.
Our partner factory Shifang Zhixin Chemical Co., Ltd (Shifang Chuanteng Chemical Industry Co., Ltd) is a professioal factory in China for phosphate related chemicals. If you have any question or inquiry for phosphate chemicals both food grade and industrial grade, please feel free to contact us at firstname.lastname@example.org.
SAPP- Sodium Acid Pyrophosphate
STPP- Sodium Tripolyphosphate
MSP- Monosodium Phosphate
SHMP- Sodium Hexametaphosphate