Phosphorus Industry China Monthly Report 1704

Yunnan Yuntianhua Co., Ltd.;GuizhouKailin Holdings Group Co., Ltd.;Jiangsu Chengxing Phosph-Chemicals Co., Ltd.;Sinochem Group Co., Ltd.;Hubei Yihua Chemical Industry Co., Ltd.In April 2017, China's phosphate fertiliser market came into the slack season and producers enlarged their export volumes. CCM is of the opinion that China's phosphate fertiliser exports will not grew intensively and domestic market will remain depressed, with slightly dropping prices.
At the end of March 2017, China's major compound fertilisers companies published their 2016 financial reports in succession, revealing a general decrease of profit or even deficit.
In April 2017, Yunnan Wengfu-Yuntianhua held a foundation stone laying ceremony in Kunming for its HF from fluosilicic acid production project. This ceremony represents the beginning of cooperation between Yunan Yuntianhua and Wengfu Group, which will accelerate the comprehensive utilisation of fluosilicic acid and promote sustainable development within the industry.
At the end of March 2017, Hubei Yihua announced its 2016 financial report, revealing a loss of USD181.26 million (RMB1.25 billion) in total in a sluggish fertiliser market.
At the end of March 2017, both Sinofert and Yunnan Yuntianhua released their financial reports, revealing huge deficits in 2016. The fertiliser industry remained depressed last year, with fertiliser producers experiencing significant decreases in profit or even losses, and companies which were mainly engaged in the production of a single fertiliser, such as Sinofert and Yunnan Yuntianhua, suffered the most.
At late March 2017, Hubei Xingfa and Jiangsu Chengxing announced their 2016 financial report, revealing net profit growths of 32.02% and 235.02% respectively.
In April 2017, new tax cuts measures were approved at the State Council's executive meeting to abolish the VAT rate of 13% and expand the range of small companies with limited profits which can enjoy income tax preference. In this context, VAT rates of products such as fertilisers and natural gas are to decline to 11% from 13%.
In April 2017, phosphorus ore mining activities within conservation areas in Weng'an County were halted in order to preserve ancient animal fossils for scientific research.
In March, 2017, China's phosphorus ore market remained stable. The price of phosphorus ore will keep steady in a short run due to sluggish demand of downstream yellow phosphorus and phosphate fertiliser market.
In March, 2017, China's phosphoric acid market remained stable with barely changed prices. The demand for phosphoric acid in April and May were sluggish in last few years and operating rates of major producers keep steady this year, so the balance of supply and demand will continue. Since changes of upstream yellow phosphorus production and price are not obvious, CCM is of the opinion that no great changes will be seen in phosphoric acid market in a short term.