中国磷化工月报

Welcome to CCM International's new issue of Phosphorus Industry China Monthly Report in July 2012.

In June, Chinese Government continues to release conservative macroeconomic policy to lighten enterprises' pressure and stimulate economic growth—reducing the retail price of electricity for China's industrial producers. Thus, yellow phosphorus producer, as one major electricity consumer in China, could benefit from the macroeconomic policy.

As for the entire China's phosphorus industry in June, they generally face falling price either because of the reduction in cost of raw material or because of the sluggish demand. In addition, China is to encounter tight supply in phosphorus ore under the influence of climate—continuous rainfall in Sichuan and Guizhou.

In addition, in line with China's negative growth in electricity consumption of June in several provinces, the future prospect for domestic economy is not optimistic.

Average exchange rate in June 2012, USD:RMB=1:6.32