Increase in phosphate rock prices will affect domestic phosphate fertilizer market prices

Recently, domestic phosphate rock prices have been rising. According to relevant data, the prices of phosphate ore in Guizhou, Hubei, Yunnan and Sichuan have generally risen by 5%-10%.

Zhong Jianzhi, a research fellow in the chemical industry of China Investment Advisors, pointed out that the recent increase in the domestic price of phosphate ore has been affected by the rise in the price of international phosphate ore. On the other hand, there are relatively few phosphate ore producers in China, and phosphate rock has started. The supply of stone is limited. On the international front, as Morocco is the world’s largest exporter of phosphate rock, and recent turmoil in Middle East and North Africa countries such as Morocco, Morocco, and Egypt, the supply of international phosphate ore has decreased, resulting in International phosphate rock prices have risen.

The "Investment Analysis and Forecast Report of China's Phosphate Fertilizer Industry 2010-2015" released by the China Investment Advisor shows that the world's phosphate rock reserves are mainly distributed in Africa, China, the United States, the Middle East, and Russia. Among them, the largest reserves of phosphorus rock in Morocco, China's largest economic reserves.

On the domestic front, due to factors such as climate and transportation, the mining of phosphate ore in China was greatly limited in the earlier period. Mines in some areas have even stopped mining, and domestic phosphate rock companies have relatively small stocks. After the Spring Festival, most of the domestic phosphate rock production enterprises have not started yet. The market supply of phosphate rock in China is limited. This is also the reason for the recent increase in domestic phosphate rock prices.

Chang Jizhi believes that because most of China's phosphate ore is used for the production of phosphate fertilizer, the increase in the price of phosphate ore will increase the production cost of phosphate fertilizer enterprises that do not have phosphate resources downstream, which will affect the domestic level to some extent. Phosphate fertilizer market prices. According to relevant data, at present, about 80% of China's phosphate ore consumption demand comes from the phosphate fertilizer market. In the production of phosphate fertilizer, phosphate rock accounts for about 25%-50% of the production cost of phosphate fertilizer.