中国磷化工月报

Although China entered the traditional busy season of chemical products in Sept. 2014, which is also the last crucial sales period in 2014, its phosphorus chemical industrial market was still weak and the prices were stalemated. All these just reflected that overcapacity in China’s phosphorus chemical industry is serious and the industry still suffers a downturn where the de-capacity and de-stocking co-exist in 2014. 

CCM reviews the situation of China’s phosphorus chemical industry in Q1-Q3 2014. In this period, the operating rates of phosphorus ore enterprises and yellow phosphorus enterprises were low and even the export volumes of these two phosphorus products also suffered significant decline. However, phosphate fertilizers made a recovery in its export. For instance, in Jan.-July 2014, China’s export volume of phosphorus ore was down by 23.5% year on year, while in the same period, China’s DAP export volume was up by 48.85% over 2013 year on year.

Besides, according to statistics from the semi-annual reports released by China’s listed phosphorus chemical enterprises, in H1 2014, most China’s listed phosphorus chemical enterprises encountered losses. In this issue, CCM took China’s four leading phosphorus chemical enterprises as examples and analyzed their business conditions in H1 2012–H1 2014 through their overall performance, profit, assets, debt risk and key projects under construction. These four leading phosphorus chemical enterprises are Hubei Xingfa, Jiangsu Chengxing, Anhui Liuguo and Yuntianhua Group.    

In terms of the fine phosphorus chemical industry, in mid-Aug. 2014, Anhui Huaxing increased capital to its subsidiary Anhui Huajian, which will accelerate the construction of Anhui Huajian’s PCl₃ project so as to drive the company to improve its industrial chain. What’s more, CCM also specially noticed that Zhejiang Wansheng, China’s second flame retardant company will be listed in Sept. 2014, is an outstanding enterprise in China’s organic phosphorus flame retardant industry. It will be a strong rival to Jiangsu Yoke when it is listed.

The RMB/USD exchange rate in this issue is USD1.00=RMB6.1680 on 1 Sept., 2014, sourced from the People's Bank of China.

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