Phosphorus chemical industry is an important chemical raw material industry, its products include phosphate fertilizers, pesticides, phosphate, phosphoric acid, etc., which are widely used in agriculture, food, detergents, electronics and other fields. At present, the phosphorus chemical industry is transforming from the traditional fertilizer field to the field of new energy materials, especially the demand for lithium iron phosphate and other lithium battery materials, which has brought new growth points to the phosphorus chemical industry.
1. Overview of phosphorus chemical industry
Phosphorus chemical industry is an important branch of the chemical industry, which uses phosphate rock as raw material to process the phosphorus elements in the ore into various phosphorus chemical products through chemical methods. Phosphorus chemical industry is of great significance to the national economy and national security, and all kinds of phosphorus chemical products can be seen in industry, agriculture, national defense and military industry, scientific research and daily life of residents. Phosphoric acid is the most important basic product of phosphorus chemical industry, and it is also an important intermediate throughout the phosphorus chemical industry chain.
Source: Compiled by China Business Industry Research Institute
Since the 80s of the 20th century, the domestic Yunnan, Guizhou, Sichuan and Hubei regions have benefited from the advantages of resources and energy, and the phosphorus chemical industry has achieved rapid development. At present, the mainland has established a relatively complete phosphorus chemical production system, the upstream of the industry is mainly raw materials, including phosphate rock, sulfuric acid and coke energy, etc., the midstream is for the preparation of various organic and inorganic substances containing phosphorus, and the downstream is the application field of phosphate products.
Source: Compiled by China Business Industry Research Institute
Second, the development policy of the phosphorus chemical industry
In recent years, in order to realize the efficient and high-value utilization of phosphorus resources, enhance the competitive advantage of the whole industry chain, and promote the green and sustainable development of the domestic phosphorus chemical industry, the relevant departments of the mainland government have successively issued industrial policies such as the "14th Five-Year Plan" for industrial green development, the implementation plan for accelerating the comprehensive utilization of industrial resources, and the implementation plan for promoting the efficient and high-value utilization of phosphorus resources. The release of the policy provides a clear and broad market prospect for the development of the phosphorus chemical industry and provides a good production and operation environment for enterprises.
Third, the development status of the phosphorus chemical industry
1. Phosphate rock
Phosphate rock is a non-renewable mineral resource, which is an important economic mineral and strategic non-metallic mineral resource in the mainland. After years of development, the high-grade mineral resources in the mainland have been continuously consumed, the overall taste of phosphate rock has declined significantly, and the mining difficulty has increased. According to the "2024-2029 China Phosphorus Chemical Industry Market Development Status and Potential Analysis Research Report" released by the China Business Industry Research Institute, the average annual output of domestic phosphate rock has been stable at about 100 million tons in the past three years, and the output of phosphate rock will reach 105 million tons in 2023, with an average annual compound growth rate of 3.07% in the past five years. Analysts at the China Business Industry Research Institute predict that China's phosphate rock production will reach 109 million tons in 2024.
Data source: National Bureau of Statistics, China Business Industry Research Institute
2. Phosphate fertilizer yield
Phosphate fertilizer is the largest product in the phosphorus chemical industry, and the consumption of phosphate rock by phosphate fertilizer enterprises also ranks first in the industry. According to the "2024-2029 China Phosphorus Chemical Industry Market Development Status and Potential Analysis Research Report" released by the China Business Industry Research Institute, the total output of phosphate fertilizer in China in 2023 will increase by 6.1% over the previous year to 16.151 million tons. Analysts at the China Business Industry Research Institute predict that China's total phosphate fertilizer output will reach 16.163 million tons in 2024.
Data source: China Phosphate Compound Fertilizer Industry Association and China Commercial Industry Research Institute
3. Phosphate fertilizer market structure
From the perspective of market structure, among the various products of phosphate fertilizer in mainland China, the output of high-concentration phosphate fertilizer is 15.608 million tons, accounting for 96.64% of the total output of phosphate fertilizer. High-concentration phosphate fertilizers include monoammonium phosphate, diammonium phosphate, NPK compound fertilizer, heavy superphosphate, nitrogen and phosphorus, etc., with output of 7.332 million tons, 6.622 million tons, 1.246 million tons, 358,000 tons, and 50,000 tons in 2023, accounting for 45.4%, 41.0%, 7.7%, 2.2%, and 0.3% respectively. The output of low-concentration phosphate fertilizer was 543,000 tons, accounting for 3.4% of the total phosphate fertilizer output.
Data source: China Phosphate Compound Fertilizer Industry Association and China Commercial Industry Research Institute
4. Phosphate fertilizer production in various regions
From the perspective of regional development, the top five provinces in terms of phosphate fertilizer production in 2023 are Hubei, Yunnan, Guizhou, Sichuan and Anhui, with outputs of 6.16 million tons, 4.13 million tons, 2.08 million tons, 1.14 million tons and 670,000 tons, accounting for 38.1%, 25.6%, 12.9%, 7.1% and 4.1% of the total domestic output, respectively.
5. Phosphorus-containing pesticides
In the phosphorus chemical industry, glyphosate is a very important product. Glyphosate is a non-selective, conductive herbicide that is widely used in agriculture, especially in combination with glyphosate-tolerant genetically modified crops. According to the "2024-2029 China Phosphorus Chemical Industry Market Development Status and Potential Analysis Research Report" released by the China Business Industry Research Institute, China's nominal glyphosate production capacity and output will be 810,000 tons and 530,000 tons in 2023, a decrease compared with 2022. Analysts at the China Business Industry Research Institute predict that China's glyphosate production will reach 580,000 tons in 2024.
Data source: China Commercial Industry Research Institute
6. Lithium iron phosphate battery
Lithium iron phosphate batteries have been widely used in the field of energy storage and new energy vehicles due to their cost-effectiveness, long cycle life and good safety. With the continuous prosperity of the new energy industry, especially the share of pure electric vehicles in the global automobile market is gradually rising, the loading volume of lithium iron phosphate batteries continues to rise. According to the "2024-2029 China Lithium Iron Phosphate Industry Prospect Forecast and Market Research Report" released by the China Business Industry Research Institute, the cumulative loading volume of China's lithium iron phosphate batteries in 2023 will be 261.0GWh, accounting for 67.3% of the total installed capacity of power batteries, with a cumulative year-on-year increase of 42.1%. Analysts at the China Business Industry Research Institute predict that the cumulative loading capacity of lithium iron phosphate batteries in China will reach 370.6GWh in 2024.
Data source: China Commercial Industry Research Institute
7. Listed phosphorus chemical company
On the whole, the market concentration of China's phosphorus chemical industry is relatively high, especially in the field of monoammonium phosphate and diammonium phosphate, and large enterprises such as Yuntianhua and Xingfa Group occupy a dominant position in the market. From the perspective of the operation of listed companies, the top companies in China's phosphorus chemical industry in terms of revenue in 2023 include Yuntianhua, Xingfa Group, Hubei Yihua, Hebang Biotechnology, Chuanfa Long Python, Liuguo Chemical, etc., which occupy an important position in the production and supply of phosphorus chemical products.
Fourth, the key enterprises in the phosphorus chemical industry
1. Cloudy
Yuntianhua Co., Ltd. is a large-scale integrated chemical enterprise in China, founded in 1997 and headquartered in Kunming, Yunnan Province. Yuntianhua is a comprehensive chemical enterprise with phosphorus industry as the core, covering phosphate mining and dressing, total phosphorus chemical industry chain, fluorine chemical industry chain and new materials, trade logistics, etc. In 2023, Yuntianhua will produce 4,595,400 tons of ammonium phosphate, 1,574,600 tons of compound fertilizer, 2,569,800 tons of urea, 29,900 tons of yellow phosphorus, 105,300 tons of polyoxymethylene, and 564,500 tons of feed-grade dicalcium phosphate.
From the perspective of operation, in 2023, Yuntianhua will achieve a total operating income of 69.060 billion yuan, a year-on-year decrease of 8.30%, and a net profit attributable to the parent company of 4.522 billion yuan, a year-on-year decrease of 24.90%. In the first quarter of 2024, Yuntianhua achieved revenue of 13.857 billion yuan, a year-on-year decrease of 12.77%, and net profit attributable to shareholders of listed companies of 1.459 billion yuan, a year-on-year decrease of 7.18%.
From the perspective of main business, in 2023, Yuntianhua's fertilizer business will achieve revenue of 26.53 billion yuan, accounting for 38.42%, phosphorus chemical business will achieve revenue of 2.764 billion yuan, accounting for 4.00%, and phosphate mining and dressing business will achieve revenue of 779.8 million yuan, accounting for 1.13%.
2. Xingfa Group
Hubei Xingfa Chemical Group Co., Ltd., as a leading enterprise in the domestic phosphorus chemical industry, has always focused on the main line of fine phosphorus chemical development, actively explored the integrated development of phosphorus, silicon, sulfur, salt and fluorine, and constantly improved the upstream and downstream integrated industrial chain At present, it is accelerating the transformation and upgrading to a technology-based green chemical new material enterprise.
From the perspective of operation, in 2023, Xingfa Group will achieve a total operating income of 28.105 billion yuan, a year-on-year decrease of 7.28%, and a net profit attributable to the parent company of 1.379 billion yuan, a year-on-year decrease of 76.44%. In the first quarter of 2024, the operating income was 6.888 billion yuan, a year-on-year increase of 4.82%, and the net profit attributable to the parent company was 382 million yuan, a year-on-year decrease of 15.07%.
From the perspective of main business, in 2023, Xingfa Group's main business includes specialty chemicals, glyphosate series products, fertilizers, organic silicon products, mining and dressing, etc., and will achieve revenue of 5.028 billion yuan, 4.283 billion yuan, 3.606 billion yuan, 2.144 billion yuan, and 1.603 billion yuan in 2023, accounting for 17.89%, 15.24%, 12.83%, 7.63%, and 5.70% respectively.
3. Yihua, Hubei
Hubei Yihua Chemical Co., Ltd. was listed on the Shenzhen Stock Exchange in 1996 (stock code 000422) and is located in the fields of urea, phosphate fertilizer, chlor-alkali and fine chemicals. Hubei Yihua products mainly include urea 1.56 million tons/year (supporting synthetic ammonia 900,000 tons/year), diammonium phosphate 1.26 million tons/year, polyvinyl chloride 840,000 tons/year (supporting calcium carbide 1.05 million tons/year), caustic soda 680,000 tons/year, synthetic ammonia 460,000 tons/year, pentaerythritol 60,000 tons/year, insurance powder 100,000 tons/year, TMP 20,000 tons/year, TPO 01,000 tons/year, etc., fertilizer production capacity ranks third in the country, polyvinyl chloride production capacity ranks fifth in the country, pentaerythritol production capacity ranks second in the world, No. 1 in Asia.
From the perspective of operation, in 2023, Hubei Yihua will achieve operating income of 17.042 billion yuan, a year-on-year decrease of 17.72%, and net profit attributable to the parent company of 453 million yuan, a year-on-year decrease of 79.06%. In the first quarter of 2024, Hubei Yihua achieved an operating income of 4.198 billion yuan, a year-on-year decrease of 11.03%, and a net profit of 137 million yuan, a year-on-year decrease of 37.84%.
In terms of products, in 2023, Hubei Yihua's main business revenue will be 4.566 billion yuan from diammonium phosphate, accounting for 26.79% of operating income, 4.518 billion yuan from polyvinyl chloride, accounting for 26.51% of operating income, 3.191 billion yuan from urea, accounting for 18.72% of operating income, 1.708 billion yuan from chlor-alkali products, accounting for 10.02% of operating income, and 1.694 billion yuan from fine chemical products, accounting for 9.94% of operating income.
4. Hebang Biotech
Sichuan Hebang Biotechnology Co., Ltd. was established in 2002 and is located in Leshan City, Sichuan Province, and was listed on the Shanghai Stock Exchange in 2012. Since its listing, Hebang Biotech has achieved high-growth development by relying on its own salt ore with 98 million tons of reserves, rich phosphate rock and natural gas supply advantages from natural gas producing areas in southwest China. The products involved in Hebang Biotech have developed from a single soda ash and ammonium chloride business to: soda ash, ammonium chloride, diglyphosate, glyphosate, glass, methionine, biological pesticides, oil and gas energy supply.
From the perspective of operation, in 2023, the operating income of Hebang Biotechnology will be about 8.824 billion yuan, a year-on-year decrease of 32.33%, and the net profit attributable to shareholders of listed companies will be about 1.283 billion yuan, a year-on-year decrease of 66.29%. In the first quarter of 2024, the company achieved a total operating income of 1.999 billion yuan, a year-on-year decrease of 16.51%, and a net profit attributable to the parent company of 29.7926 million yuan, a year-on-year decrease of 92.49%.
From the perspective of main business, in 2023, Hebang Biotech's bialkali products will achieve revenue of 3.499 billion yuan, accounting for 39.65%, and diglyphosate/glyphosate will achieve revenue of 1.400 billion yuan, accounting for 15.86%.
5. Chuanfa dragon python
Sichuan Development Lomon Co., Ltd. was established in 1997 and listed on the Shenzhen Stock Exchange in 2009. As the only mineralization operation listed company platform under Sichuan Development (Holdings) Co., Ltd., Chuanfa Long Python adheres to the two-wheel drive of phosphorus chemical industry and new energy materials, adopts the "headquarters + base" model, and has formed an annual production capacity of 4.1 million tons/year of phosphate rock and 2.1 million tons/year of phosphate and fertilizer products in four places in Sichuan and Hubei provinces, and its products are exported to more than 40 countries and regions around the world, and some products have the world's largest market share.
From the perspective of operation, in 2023, Chuanfa Long Python will achieve a total operating income of 7.708 billion yuan, a year-on-year decrease of 23.10%, and a net profit attributable to the parent company of 414 million yuan, a year-on-year decrease of 61.10%. In the first quarter of 2024, the company achieved operating income of 1.672 billion yuan, a year-on-year decrease of 16.22%, and net profit attributable to the parent company of 104 million yuan, a year-on-year decrease of 31.09%.
From the perspective of main business, in 2023, Chuanfa Longpython's phosphorus chemical business will achieve revenue of 6.505 billion yuan, accounting for 84.39%.
Fifth, the development prospect of the phosphorus chemical industry
1. Policies to support the development of the industry
As an important branch of the chemical industry, the phosphorus chemical industry has been strongly supported and guided by national policies in recent years, showing a strong momentum of development. On the one hand, the state has promoted supply-side structural reform in the phosphorus chemical industry, and has raised the entry threshold of the industry by introducing strict policies to limit the production of phosphate rock, promote the elimination of backward production capacity, and promote the transformation of the industry to high-quality development. On the other hand, the government encourages the phosphorus chemical industry to achieve green and sustainable development, and has issued industrial policies such as the "14th Five-Year Plan for Industrial Green Development", aiming to promote phosphorus chemical enterprises to adopt environmental protection technologies, reduce pollution emissions, and achieve cleaner production. In addition, the release of the "Implementation Plan for Promoting the Efficient and High-value Utilization of Phosphorus Resources" clarifies the systematic planning and top-level design of the protective exploitation of phosphorus resources and the innovative development of the phosphorus chemical industry, and puts forward quantitative goals, path measures and key projects to improve the sustainable guarantee capacity and efficient and high-value utilization of phosphorus resources. With the continuous promotion of policies, the phosphorus chemical industry is expected to continue to maintain a growth momentum.
2. The demand for phosphorus chemical products in downstream industries continues to grow
The development prospects of the phosphorus chemical industry are positive at the market demand level, especially in the continuous expansion and deepening of new energy materials, phosphate fertilizers and phosphate applications, as well as the support of national policies and the promotion of internal structural adjustment of the industry, the market demand is expected to continue to grow. In the new energy industry, with the continuous prosperity of the new energy industry, especially the share of pure electric vehicles in the global automobile market is gradually rising, the demand for lithium iron phosphate batteries continues to rise, which directly drives the vigorous development of phosphorus chemical enterprises. In the field of agriculture, phosphate fertilizer, as one of the main application fields of phosphorus chemical products, has an irreplaceable position in agriculture. Although global phosphate fertilizer consumption has fluctuated in recent years, the overall demand has remained at a stable level of rigid demand.
3. Technological progress promotes the development of the industry
The key technologies of the phosphorus chemical industry include the efficient extraction technology of phosphate rock, the precise application technology of phosphate fertilizer, and the comprehensive utilization technology of phosphogypsum. Technological innovation helps to improve resource utilization, reduce production costs, enhance environmental performance, and enhance product added value. At present, the technological progress of the phosphorus chemical industry is promoting the development of the industrial structure to high-end and refinement, and promoting the upgrading of phosphorus chemical products to high-quality, specialized and serialized.
For more information, please refer to the "Research Report on Market Prospects and Investment Opportunities of China's Phosphorus Chemical Industry" released by the China Commercial Industry Research Institute, and the China Commercial Industry Research Institute also provides industrial big data, industrial intelligence, industry research reports, industry white papers, industry status certificates, feasibility study reports, industrial planning, industrial chain investment map, industrial investment guidelines, industrial chain investment investigation & promotion meeting, "15th Five-Year Plan" and other consulting services.