Chinese phosphate mines are said to be the next \"rare earths\"”

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When the news that world phosphate rock prices had risen to $200 per ton reached China, it caused the price of phosphate rock in that country, which places great emphasis on \"food security\", to soar from $30 per ton to $130 per ton. Is this round of price increases a reflection of the actual market conditions, or is it a market bubble created by speculation? Could phosphate rock see its prices soar several times over in just half a year, just like rare earths? It has always been a major concern for phosphate fertilizer manufacturers, as well as rural areas, farmers, and the agricultural sector across the country. This is also what additive manufacturers in the chemical industry are most worried about. Since last August, phosphorus ore prices have continued to rise; in particular, yellow phosphorus, which is energy-intensive, has seen its price increase by over $2,000 per ton, representing a rise of around 15% on a month-on-month basis. It has now risen to over 18,500 yuan per ton. Market analysts believe that the rise in yellow phosphorus prices and the decline in production are mainly driven by factors such as rising raw material costs and power shortages. As domestic phosphate rock prices continue to rise, power shortages in Guizhou have led to the shutdown of a large number of yellow phosphorus production plants, while Yunnan has also implemented stricter power restrictions, resulting in a shortage of yellow phosphorus supply. According to Yicai Daily, as high-quality phosphorus ores with a phosphorus content of 30% become increasingly scarce in China, various government departments at all levels have introduced policies to protect these resources in recent years. The rising prices of phosphorus ore-related products present good market opportunities for integrated phosphorus chemical enterprises that possess such resources; meanwhile, some low-quality ores with a phosphorus content of 8-10% as well as small phosphorus mining companies that do not meet the required standards will withdraw from the market. Recently, many people are worried that China’s phosphate mines could become the next rare earths Recently, China’s Ministry of Industry and Information Technology issued the \"Access Requirements for the Phosphoric Ammonium Industry,\" stipulating that, in principle, no new plants for producing wet phosphoric acid or related facilities for manufacturing monoammonium phosphate and diammonium phosphate should be built or expanded within three years ； Additionally, the China Chemical Mining Association issued the \"12th Five-Year Development Plan for the Chemical Mining Industry,\" calling for the establishment of a resource reserve system for phosphate mining sites over the next five years and for raising the barriers to entering the phosphate mining sector. These new policies have triggered panic among industry players. In addition, provinces such as Hubei have issued the \"Opinions on Further Strengthening the Development and Management of Phosphorus Ore and High-phosphorus Iron Ore Resources,\" proposing to further reduce the number of entities engaged in phosphorus ore development as well as the number of mining rights, and to shut down phosphorus ore enterprises with a production capacity of less than 150,000 tons per year. According to industry insiders, Yunnan and Guizhou are also set to introduce measures to restrict the extraction of phosphate mines in the near future. All of this indicates that China’s phosphate mines will become a hot sector in the field of \"rare earths\". To this end, various phosphorus-related companies are \"going global\" to search for new sources of phosphorus around the world. For example, Sinochem Group, the largest domestic producer of nitrogen, phosphorus, and potassium fertilizers, has officially signed a strategic cooperation framework agreement with Kazakhphos, with the goal of gaining access to the phosphorus ore resources held by Kazakhphos. In addition, Yunnan Tianhua Group, a Chinese company with six listed subsidiaries, is also seeking to acquire phosphate mining sites around the world. There is also the largest phosphate mine in Africa, purchased by the Chinese company China Baby International Investment Group, which has reserves of 570 million tons; the Pingyuanhe Phosphate Mine Company, as well as the Canadian phosphate mining company listed on the stock market. All these have attracted the interest of more than a dozen banks, funds, and listed companies. Experts predict that, with the elimination of China’s long-term financial subsidy programs aimed at supporting phosphate fertilizer use in agriculture, the price of phosphorus ore powder in China will rise from over 100 dollars to more than 200 dollars, which is the normal market price worldwide. By then, China’s phosphate fertilizer industry will, driven by the national policy of ensuring food security for 1.8 billion mu of farmland, become the next true \"rare earth\" sector.