Welcome to CCM's new issue of Phosphorus Industry China Monthly Report in May 2013.
In April 2013, China's manufacturing continued to remain on the downside. According to the data issued by the National Bureau of Statistics of China (NBSC), China's PPI saw a 2.6% year-on-year decline in April, which is the lowest level since Nov. 2012, indicating the lack of intrinsic motivation for manufacturing growth.
As well as manufacturing, China's phosphate fertilizer industry is also encountering downward pressure. On April 15th, the China Petroleum and Chemical Industry Federation (CPCIF) issued the domestic chemical industrial operation status for the first two months of 2013. The phosphate fertilizer industrial data showed that China's phosphate fertilizer industry was encountering high stock, decreasing revenue and profits and an increasing tax burden.
In April, it's also noteworthy that China's RMB kept rising strongly against the US dollar, despite the signs of a weakening economy in China. At the beginning of May, China's RMB had risen to a new record high—below 6.2 against the US dollar, which is historically the highest level. If the rise of the RMB can't be reversed, China's phosphorus product export firms are bound to be dragged down because of the profit squeeze caused by the appreciation of the RMB.
Average exchange rate in April 2013, USD:RMB=1:6.25
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