Summary
In March 2026, China’s phosphorus chemical industry witnessed sharp price fluctuations and accelerated industrial upgrading. The monthly average ex-factory price of yellow phosphorus rose to 3,656.58 yuan/tonne, swinging sharply within the month amid supply-demand shifts, geopolitical tensions and trade policies. Meanwhile, a series of key projects progressed across overseas expansion, phosphogypsum treatment, phosphate rock capacity expansion and green recycling, reflecting the industry’s simultaneous advancement in market volatility, global layout, green transformation and resource security.
1. Market Trends: Wide Volatility of Yellow Phosphorus Prices Driven by Multiple Factors
In March 2026, China’s yellow phosphorus market trended upward first, then downward and finally stabilized, with an average ex-factory price of 3,656.58 yuan/tonne, continuing a gradual monthly rise from November 2025 to February 2026.
In early March, the yellow phosphorus market surged strongly due to three combined drivers: the U.S. ban on phosphorus product exports tightened global supply expectations, ongoing conflicts in the Middle East boosted market risk aversion, and some domestic producers adopted speculative strategies.
In late March, the market cooled rapidly and prices dropped sharply as downstream buyers turned highly cautious. The correction stemmed from restored supply as producers resumed production after maintenance, combined with weak downstream acceptance of high prices and widespread purchasing suspension. After hitting a periodic low, the market rebounded rationally as supply and demand rebalanced, keeping the monthly average price on an upward track.
2. Industrial Layout: Accelerated Domestic and Overseas Projects by Leading Enterprises
In March 2026, leading phosphorus chemical enterprises pressed ahead with key projects at home and abroad to enhance their global competitiveness and optimize their industrial chains.
On March 13, Sinopec Nanjing Engineering Co., Ltd. completed the setup of the FEED design project team for the Zhanatas Chemical Complex in Kazakhstan, marking a key breakthrough in its global layout of sulfur and phosphorus chemicals. As the technical center for sulfuric acid and phosphate fertilizer design in China, the company is currently advancing 19 sulfur and phosphorus chemical projects worldwide. It has achieved major progress in core technologies such as acid production from phosphogypsum and large-scale sulfur-based acid production, while standardized design has shortened project cycles by roughly 12%. It is steadily implementing key initiatives including phosphorus-fluorine comprehensive utilization and phosphogypsum resource utilization, supporting the overseas export of domestic sulfur and phosphorus chemical technologies.
On March 10, Hunan Hengguang Technology announced that its 100,000 t/a phosphorus chemical production line in Laos, part of a 300,000 t/a chemical project, entered trial production. The project, located in Khammouane Province, Laos, consists of phosphorus chemicals and sulfur-based sulfuric acid units, representing a key step in the company’s overseas capacity expansion.
3. Green Development: Tackling Solid Waste Challenges via Circular Economy
Phosphogypsum utilization remains a core bottleneck for the sustainable development of the global phosphorus chemical industry. Xiangfeng Group has addressed this challenge through technological innovation and built a 4 million t/a phosphogypsum harmless treatment system, transforming industrial solid waste into high-value renewable resources. This achievement aligns with Yunnan Province’s target of raising the annual comprehensive utilization rate of newly generated phosphogypsum to above 80% by 2027.
The group has also built a closed-loop circular system: industrial wastewater is fully recycled, 100,000 tonnes of CO₂ are utilized annually to produce high-value products, a 39,000 ㎡ rooftop photovoltaic system is operational, and waste heat recovery is widely applied. Its green development model provides a replicable example for the industry’s low-carbon transition.
4. Resource Security: Upstream Capacity Expansion to Consolidate the Industrial Foundation
Phosphate rock is the core raw material for the phosphorus chemical chain. On February 10, 2026, the environmental impact assessment of the 2 million t/a phosphate ore mining and beneficiation expansion project of Leibo Huarui Mining Co., Ltd. was published for public comment.
Located in Leibo County, Liangshan, Sichuan, the project covers 94,820 ㎡ with a total investment of 900 million yuan. It is designed to produce 2 million t/a of mined ore and 1.5 million t/a of beneficiated ore, with a service life of 14 years. Upon completion, it will supply 500,000 t/a of crude phosphate ore and 970,200 t/a of phosphate concentrate (31.00% P₂O₅, MgO ≤1.0%), strengthening domestic phosphate rock supply and supporting the stable development of the midstream industry.
Industry Conclusion and Outlook
March 2026 highlights that the phosphorus chemical industry is at a critical stage of cyclical adjustment and transformation. Short-term yellow phosphorus prices will likely remain volatile due to global policies, geopolitics and supply-demand dynamics, requiring market participants to manage risks prudently.
In the long run, the industry will advance in three core directions:First, the global supply chain will continue to restructure, with faster overseas expansion by resource-and-capability-ready enterprises.Second, green and low-carbon development will become a mandatory industry standard, with phosphogypsum recycling and clean energy application turning into core competitiveness.Third, integrated industrial chains will prevail, as full-line layout helps smooth cyclical fluctuations and reduce costs.
Enterprises with advantages in resource reserves, R&D, green production and global layout will lead the high-quality, sustainable and globalized development of the phosphorus chemical industry.
Source from Phosphorus Industry China Monthly Report 202603
This is a snapshot of key trends in China’s phosphorus chemical industry for March 2026. Our full monthly report includes weekly price trends for yellow phosphorus, phosphoric acid, ammonium phosphate and more, complete overseas trade data, detailed corporate project updates, supply-demand balance sheets and in-depth chain analysis—empowering you to spot market turning points and optimize procurement & investment decisions. Subscribe now to access full core data and exclusive insights for smarter business moves!
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