Fears were eased about price drop of yellow phosphorus in Oct.

Keyword: yellow phosphorus, consumption, estimation, price
Publish time: 9th November, 2012      Source: CCM
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  Some yellow phosphorus purchasers from Jiangsu Province agreed that the time for receiving the goods was much later in late Sept. than at other times with the upcoming China's National Day, especially the goods from Guizhou Province.


  In accordance with the consumption estimation of yellow phosphorus, only 40.66% of yellow phosphorus was processed in their original production areas, while 59.34% needed to be transported to other regions of China. In this case, the price of yellow phosphorus in production areas easily fluctuated when transportation was disturbed, particularly for Guizhou Province. Guizhou Province produces 15.83% of yellow phosphorus in China, while it only consumes 1.58% of yellow phosphorus.


  In the meantime, the price changes at the end of Sept. 2012 showed the relationship between transportation and price. According to the data from CCM's price monitor, the price cut of yellow phosphorus mainly emerged in Guizhou Province — among 12 producers in Guizhou that CCM concerned, four of them cut the prices of yellow phosphorus in Sept. 2012, with a decrease of USD16/t to USD32/t.


  As the date for the convocation of China's 18th Party Congress was announced at the end of Sept. 2012, the fears were eased about the drop in the price of yellow phosphorus in Oct. caused by transportation problem.


  In mid-Sept., some yellow phosphorus producers cut price because most of them were worried about the transportation problem in the period of 18th Party Congress. Before the announcement of timing for the congress, Chinese people predicted that the 18th Party Congress would be held in Oct. "The period of 18th Party Congress plus China's National Day (1st Oct. to 7th Oct.) means that the transportation of yellow phosphorus may be delayed", one yellow phosphorus producer said.


  These yellow phosphorus producers expressed that some regions would do their best to strengthen the regulation of land transportation as to highly hazardous chemicals like yellow phosphorus during the holidays or some important days (such as the 18th Party Congress and the previous 2008 Beijing Olympic Games). No doubt, transportation delay would give rise to slow shipments of yellow phosphorus. In the meantime, once the inventory of yellow phosphorus increased, the price of yellow phosphorus might face the declining trend.


  Fortunately, the 18th Party Congress is to be held in Nov. rather than Oct. The transportation of yellow phosphorus won't be disturbed in mid and late Oct. at least, as the period of strict transportation regulation would be delayed to Nov. 2012.


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  Market data: Export of Guanidine phosphate;

  Market data: Producer of Guanidine phosphate;

  Market data: Production of Calcium hydrogen phosphate;

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