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Analysis on the Status Quo of China's Food Grade Phosphate Market

Analysis on the Status Quo of China's Food Grade Phosphate Market

Analysis on the Status Quo of China's Food Grade Phosphate Market

  1. Current Situation of Phosphate Market

  (1) Phosphate

  After years of strategic layout and product structure adjustment, my country's phosphate industry has gradually formed a rational layout where primary products (yellow phosphorus and phosphoric acid) are close to the origin of raw materials—the coastal areas focus on developing phosphorus derivatives and fine phosphorus chemical products. 94% of my country's yellow phosphorus production capacity has been concentrated in Yunnan, Guizhou, Sichuan, Hubei and other areas with abundant energy and low energy prices, ensuring the low cost of yellow phosphorus in my country, thus effectively supporting my country's huge phosphate industry. .

  At present, my country has become one of the largest phosphate countries in the world in terms of production capacity, and has established a complete industrial system from mining to basic raw material production, and then to the production of various commonly used inorganic phosphates. The production of fine phosphate products and the production of organophosphorus products have also made great progress and technological progress. my country's phosphate products can basically meet domestic needs, and there are also exports. The basic products and key varieties of phosphate production such as yellow phosphorus, industrial phosphoric acid, industrial and food grade sodium tripolyphosphate, feed grade calcium hydrogen phosphate, Industrial grade sodium phosphate and other products have always occupied the top two positions in world trade. my country's phosphate products also play an important role in world trade, and have obvious advantages in terms of product quality and cost.

  In recent years, under the stimulation of foreign investors, there has been a trend of blind expansion of phosphate enterprises in my country. For example, Yunnan Nanlin Group put 50,000 tons of industrial sodium tripolyphosphate into production in the early stage, and Sichuan Tianyuan Co., Ltd. also expanded the production capacity of sodium tripolyphosphate to 200,000 tons on the basis of the current scale of 40,000 tons. Chongqing Chuandong Chemical Group also wants to expand production capacity, and most of the eastern enterprises have also implemented capacity expansion. While the production capacity of enterprises has been expanded on a large scale, the domestic market demand has not expanded simultaneously. The remaining products only seek foreign markets. In 2006, the export of phosphoric acid among the main phosphate products in my country

  580,000 tons, an increase of 25% over the same period in 2005; exports of sodium tripolyphosphate were about 500,000 tons, an increase of 12% over the same period of the previous year.

  The cyclical characteristics of the phosphate industry are relatively obvious. The overall production capacity of my country's phosphate industry is overcapacity, especially the primary products dominated by industrial grades are unbalanced in supply and demand, and competition is inevitable. The current phosphate export situation is more optimistic than worrying, because yellow phosphorus, the main raw material used in the industry, is of strategic significance. With the continuous transformation of the domestic phosphate industry structure, the future development of phosphate enterprises will gradually shift to high value-added.

  (2) Food grade phosphate

  Food-grade phosphates are mainly used as nutritional enhancers and quality improvers in function. The types of edible phosphates generally include sodium phosphate, potassium phosphate and calcium phosphate, which are widely used in dairy processing, food preservation, brewing and fermentation and other food industries and beverage industries. . The largest market for sodium phosphate is meat, poultry and seafood, with sodium tripolyphosphate as the main product. The second largest market is baked goods, where sodium phosphate is used as a leavening agent in frozen and refrigerated doughs, frozen pre-baked pastries, premixes and yeast products. Sodium acid pyrophosphate and sodium aluminum phosphate are the two major sodium phosphate products in this market. Sodium phosphate is also used in dairy and related products.

  The global edible phosphate market demand is about 500 million US dollars, and the annual growth rate is 2%; in recent years, the research and development of phosphate food additives in my country has been relatively active. In 2002, the national production capacity of food phosphate reached 5 10,000 tons/year, the actual annual output is about 30,000 tons/year, and 11 varieties of food phosphates are used, which is far behind developed countries. It can be seen that the domestic development of food-grade phosphate has broad market potential.

  By 2008, the macroeconomic environment at home and abroad has changed greatly, and the phosphorus chemical industry has also experienced ups and downs. From January to September 2008, under the background of the high prosperity of the phosphorus chemical industry, the prices of phosphate rock and phosphorus chemical products rose sharply. Demand has fallen rapidly. Affected by shrinking exports and sluggish domestic demand, phosphate enterprises have generally been in a downturn recently.

  At present, the operating rates of enterprises in major domestic phosphate producing areas such as Yunnan, Guizhou, and Hubei are generally not high, mainly due to the sluggish demand in both domestic and foreign markets, and overcapacity is the root cause. The scarcity of phosphorus resources makes relevant companies unbearable to give up this "cake". In addition, the profitability of the industry continues to improve, which hinders the industry's pace of eliminating outdated production capacity. The psychology of wait and see and luck control many companies. The potential production capacity will be released at any time, which has created the embarrassing situation of the current tepid market.

  With the continuous development of the phosphate industry, high value-added products will become the products guided by the national government. At present, the country has now raised the production approval threshold for industrial-grade phosphate products, guiding the transformation of phosphates towards refinement and high added value. .


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