Investigate the demand for phosphoric acid both domestically and internationally, (its uses and downstream demands), as well as the companies involved in the phosphoric acid industry

Shiniu Chemicals (a small enterprise): 25,000 tons of phosphoric acid, 15,000 tons of feed-grade calcium hydrogen phosphate, and 10,000 tons of NPK 15-15-15 sulfur-based compound fertilizer

Recently, phosphoric acid – an intermediate product that plays a linking role in the phosphate industry – has seen its domestic market price remain stable due to the combined influence of various factors from both upstream and downstream sectors. The price has stayed around 6,000 yuan per ton, fluctuating within a narrow range of 100 yuan above or below this level, creating a rather confusing situation. 　　——The price of yellow phosphorus remains high, while phosphate inventories have dropped to record lows. Affected by the successive increases in phosphate rock prices, electricity costs, logistics expenses, and labor costs, the manufacturing costs of yellow phosphorus in China have kept rising, which in turn has pushed up its ex-factory prices and led to high levels for yellow phosphorus. In the main production areas of yellow phosphorus in China, such as Yunnan, Guizhou, Sichuan, and Hubei, even though it is still the wet season conducive to yellow phosphorus production and most manufacturers benefit from lower electricity prices during this period, the rising costs of various components have prevented a drop in yellow phosphorus prices as has been the case in previous wet seasons; the current market price remains high at 16,500 yuan. 　　Such high prices for raw materials increase the cost of phosphate production directly. Based on the average consumption figures by industry, 3.6 tons of phosphoric acid can be produced from each ton of yellow phosphorus. The cost of yellow phosphorus alone for producing one ton of phosphoric acid amounts to 4,538 yuan. When additional costs such as those for water, electricity, and steam, packaging expenses, other manufacturing costs, and high logistics fees are taken into account, it is extremely rare for any company to be able to make a profit on each unit of product, given the current market price of phosphoric acid at 6,000 yuan per ton. Therefore, with current high prices for yellow phosphorus, phosphate producers clearly do not dare to increase production or inventory levels; instead, they base their production on orders, generally producing according to demand, in order to avoid the risk of inventory depreciation. 　　——Expansion downstream is difficult, and there is insufficient momentum for phosphate consumption. The market capacity for phosphoric acid has not seen effective expansion in recent years, one of the main reasons being the continuous decline in the production of sodium tripolyphosphate at the downstream end. As the nationwide ban on phosphorus continues to expand, sodium tripolyphosphate, which is used in detergents as a key ingredient, is now hardly used at all; the market for it has shrunk significantly. In 2002, the production volume of sodium tripolyphosphate reached its peak at 940,000 tons; by 2005 it had dropped to 740,000 tons, and in recent years it has further fallen to around 200,000 tons. 　　In the industry, phosphoric acid is primarily used in the production of refractory materials and as a component in phosphating solutions for the electroplating industry; however, its annual growth rate is very limited. The use of such phosphating solutions for cleaning metal surfaces prior to electroplating has also decreased due to the stagnation in related industries. **Figures released by the Ministry of Commerce show that from January to July this year, nationwide car sales declined by more than 12% on a year-on-year basis. In the automotive industry, the electroplating of thin metal sheets has always been a major user of phosphating solutions; such a significant decline represents a considerable blow to the phosphate market as well.

After purification, phosphoric acid can be sold directly as a product, or it can also serve as a raw material for food-grade, pharmaceutical-grade, and electronic-grade phosphate products. Its most common use is in the production of dozens of food additives such as food-grade sodium tripolyphosphate, sodium pyrophosphate, sodium hexametaphosphate, and sodium acid pyrophosphate. However, at present, aside from adding additives according to the categories listed in the **Hygienic Standards for the Use of Food Additives** as revised in 2011, using the minimum amounts specified by the standards has become the most common conservative approach in the food processing industry; this clearly also affects the demand for edible phosphoric acid.

This post was last edited by dyh633 on 2011-11-4 at 12:10. A chemical plant in Hubei: a project for producing 680,000 tons of phosphorus-based fertilizers, 1 million tons of high-concentration phosphorus compounds, superphosphate, 700,000 tons of ammonium phosphate, as well as 15,000 tons of purified phosphoric acid and 10,000 tons of industrial ammonium phosphate

A company in Anhui produces 1 million tons of compound fertilizer, along with approximately 200,000 tons of actual phosphatic ammonium fertilizer. New members are encouraged to speak, in order to increase engagement; charm +1 point.

A company in Sichuan has built a new facility for producing 200,000 tons of phosphoric acid