Phosphorus Chemicals: How Resource Advantage Turns into Industry Advantage

After more than 50 years of construction and development, China has become a major producer, exporter and consumer of phosphorus chemical products in the world. However, the consumption of phosphorus resources in China (phosphorus accounted for 67.6%, feed hydrogen phosphate accounted for 5.2%, yellow phosphorus accounted for 16%) is basically in the primary and secondary consumption phase of phosphate rock, the overall level of science and technology behind the developed countries in the world 10 In the past 20 years, there are also considerable gaps in per capita consumption, product types, and quality. The "Eleventh Five-Year Plan for Development of China Phosphorus Chemical Industry" approved at the China International Phosphorus Chemical Industry Development Summit Forum in late April proposed to rationally develop and utilize resources, optimize the layout of the mining industry, strengthen independent innovation and technological progress, and promote the phosphating industry. sustainable development. China's phosphate resources are relatively abundant. How to turn this resource advantage into an industrial advantage has become a subject of concern and exploration in the industry.
China has become a world-leading producer of phosphorus chemicals According to Zhao Xiuyun, a senior engineer at the China National Chemical Information Center, the world's phosphorous chemical industry has undergone great changes in recent years, and its product structure and layout have been adjusted to become international, large-scale and refined. And the direction of specialization.
Due to excessive market competition and lower capital return rate, some international phosphorus chemical manufacturers such as Hearst in Germany, Rhodia in France, Albright Wilson in the United Kingdom, etc. have been operating since the 1990s. Exit the phosphorus chemical industry. At present, the world’s supply of ordinary phosphorus chemical products mainly comes from China. Since the reform and opening up, China's phosphorous and phosphorus products industry has developed rapidly. The main products yellow phosphorus, phosphoric acid and sodium tripolyphosphate all rank first in the world, occupying 2/3 of the world's market share and becoming a truly world-wide Phosphorus chemical production countries.
In this sense, the competition in the world's phosphorus chemical industry is actually the competition between China's phosphorus chemical companies.
The development of China's phosphorus chemical industry faces the following situation:
First, the ups and downs of the phosphorus and phosphorus products industry are closely related to the domestic political and economic situation and are inseparable from the power supply and resource allocation.
The more relaxed domestic macroeconomic policies, the faster the pace of development of various industries, the tighter the supply of electricity, and the higher the energy consumption of the phosphorus chemical industry, which will be limited by the supply of electricity, with a consequent reduction in yellow phosphorus production, a shortage of market supply, and downstream Phosphorus chemical products are also scarce, and corporate profits will be better.
Conversely, once domestic macroeconomic policies are tightened, the development of various industries will be constrained, and electricity supply will be surplus. The power supply of the high-energy-consumption phosphorus chemical industry will be guaranteed. As a result, the scale of yellow phosphorus production will expand, the market will oversupply, and the downstream The product market is fiercely competitive and corporate profits are falling.
In March of this year, the production of yellow phosphorus was generally followed by the dry period of the supply of yellow phosphorus. The output of yellow phosphorus decreased and the price rose. However, this year did not rise and fell, from the original 11,500 ~ 12,000 yuan / ton to 10,500 yuan / ton, resulting in a sharp drop in downstream product prices, lack of market demand, most buyers take a wait-and-see attitude. From the perspective of market changes, the production of phosphorus and phosphorus products has entered a period of decline from high prices to low prices and low production and operation period. It is expected that after the yellow phosphorus production area enters the flood season in the second half of the year, the power supply will turn for the better. Phosphorus chemical industry will experience serious surplus of products and fierce market competition. The industry will face big reshuffling, big polarization, and big restructuring. As long as the power supply improves, the supply of phosphate rock is sufficient. When the company is ready to start production, it is the beginning of the market war for phosphorus chemical products. Enterprises with competitive advantages will emerge and become the vanguard of leading the development of the industry.
Second, production costs remain high and competitiveness cannot be enhanced. The production cost of yellow phosphorus is not the same as before, and the cost mix is ​​greatly improved: First, the price of phosphate rock has doubled; second, the price of electricity has been raised; third, the logistics cost, labor cost, and management cost have greatly increased; and the average social phosphorus of the production enterprise is The production cost has reached or exceeded 10,000 yuan/ton.
Third, the competitive advantages of foreign trade exports have weakened, and it is difficult to expand market opportunities. The development of the phosphorus chemical industry is closely linked with foreign trade and exports. In recent years, due to rising prices of domestic phosphorus chemical products, customers of downstream products have adopted a series of measures, such as the development of new products to replace phosphorus chemical products and the development of supply channels in other advantageous places. Reducing usage to balance costs, etc., to deal with the high price of phosphorus chemical products; China's government also limits the export of phosphorus chemical products by eliminating export tax rebates and increasing tariffs.
Fourth, diversification has led to increased competition. Due to the low profit driving and entry barriers, many foreign, private, and power monopoly departments have started investing in the phosphorus chemical industry, eventually resulting in excess production capacity.
Scale and Intensification are the Only Choice for Phosphorus Chemical Industry Since this year, relevant departments in China have stepped up efforts to regulate the layout of energy-intensive, high-polluting, resource-based industries and their product mix. The phosphorus chemical industry is among them. In the catalog of the 2007 import and export ban on processing trade that was recently announced by the Ministry of Commerce and other three departments, yellow phosphorus (white phosphorus), red phosphorus, and other phosphorus were newly added. In this regard, relevant experts called for phosphorus chemical industry as a resource-consuming industry, which urgently needs to strengthen independent innovation and technological progress, and transfer to deep processing.
First of all, the phosphorus chemical industry should concentrate on the best allocation of resources to achieve large-scale and intensive operations. China's phosphorus chemical industry is constantly shifting from the coastal areas to resource-producing areas. Practice has proved that the development of the phosphorus chemical industry must go along the road of combining minerals, electricity, and phosphorus, that is, the development of phosphorus chemical industry must have phosphate rock resources and electric power advantages. With the incorporation of phosphate rock resources in place, having no own phosphate rock has become an important factor that restricts production costs. However, electricity is an important condition for the production of phosphorus chemical products. Even with phosphate rock, there is no comparative advantage in electricity. Phosphorus chemical products have no advantage. In addition, it is also important to have a logistics cost advantage, and away from the market is bound to increase logistics costs. Therefore, it is the general trend that the phosphorus chemical industry will shift to places with resource advantages to realize large-scale production and intensive management. All phosphorus chemical companies must reposition themselves strategically, determine their own reasonable coordinates in market competition, and formulate correct strategic measures, otherwise they will be eliminated by the market.
Second, phosphorus chemical companies must change their competitors to join forces to increase competition in the market. China's phosphorus chemical industry has a considerable share in the international market, so the market competition for international phosphorus chemical products is Chinese enterprises to Chinese companies, and it is the Chinese themselves and their own competition. Phosphorus chemical companies must strive to change competitors to join forces for competition. On the basis of mutually beneficial cooperation, creation of advantages, and realization of co-profit, they will achieve unity through the use of capital as a link, processing OEM, entrusted management, and equity exchange. All kinds of companies need to cooperate with each other and be consistent with each other, and China's phosphorus chemical industry will have a way out.
Third, the phosphorus chemical industry has strengthened independent innovation and strived to achieve refinement and serialization of its product structure. China's low-level phosphorus chemical products account for a considerable share of the international market, the development of high value-added, sophisticated phosphorus chemical products lags behind, unable to participate in the international market competition. In view of the technical blockade imposed on us by our international counterparts, we only need to increase the efficiency of science and technology, increase the intensity of independent innovation, strengthen the in-depth development of refined and serialized phosphorus chemical products, increase the high-tech content of products, and increase the added value of products, thereby increasing the The economic benefits of the company.
Fourth, the business strategy is internationalized and the capital structure is diversified. The development of the phosphorus chemical industry in the Chinese market alone is limited. It is necessary to develop the phosphorus chemical industry with the vision and thinking of an international operation. China has advantages in the development of phosphorus chemical industry. Some old companies in the world producing phosphorus chemicals are stripping the phosphorus chemical industry for various reasons. This provides us with a rare opportunity for development. How to speed up the process of internationalization depends not only on the export of products, but also on the way to internationalization of capital. It is necessary to cooperate with international phosphorus chemical companies through equity exchange, joint ventures, OEM, and commissioned operations. , China's phosphorus chemical brand started, the only way to have a foothold in the international community.
Saving Energy and Reducing Consumption to Realize Sustainable Development In recent years, China’s rising energy prices, tight power supply, and shortages of phosphate rock resources have led to rising production costs of yellow phosphorus and higher production costs of downstream phosphorus chemical products. In the long run, the rising trend of yellow phosphorus prices is difficult to reverse, and will have adverse effects on the downstream phosphorus chemical industry. For this reason, the relevant government departments have stepped up efforts to regulate the layout of high-energy-consumption, high-pollution, and resource-based industries and the structure of their products. Phosphorus chemicals are also urgently needed to transfer to deep processing. According to reports, since 2004, China's investment in the phosphorus chemical industry has increased, resulting in excess capacity and the industry has entered a period of downturn. Since then, large-scale phosphorous chemical companies have begun to integrate the industry with the theme of upstream access to resources. At present, this round of integration is about to end, and the industry's development trend is gradually improving.
Phosphorus chemical companies are high-energy and high-pollution enterprises. China's phosphorus chemical industry has a large space for energy conservation and consumption reduction. At present, China's social and economic development has entered a new period. It is no longer possible to focus only on the importance of not paying attention to quality and focusing only on scale expansion without paying attention to pollution control. To achieve sustainable development, we must change the mode of economic growth. We must comprehensively utilize the waste gas, waste residue, and waste water generated in the production process of phosphorus chemical industry and take the road of circular economy so as to achieve the sustainable development of the phosphorus chemical industry. Otherwise, sacrificing environmental protection and developing the economy will cause social pressure, and it will be difficult for companies to achieve healthy, stable, and sustainable development. In accordance with the development of circular economy, phosphorus chemical companies should actively adopt advanced technologies at home and abroad. While developing new products, they must pay attention to the “three wastes” management and recycling of by-products, and guide the development with the concept of recycling efficiency, so that the product chain Interconnected. In addition, we must consider the principle of resource allocation of “electrophosphorus combination and mineralization combination”, realize the integration of upstream and downstream development methods, and build a green phosphorus chemical industrial chain.
The comprehensive utilization of waste should be accelerated as a major issue. For example, the recycling of carbon monoxide, a by-product of yellow phosphorus tail gas, is a problem. Carbon monoxide is a very valuable chemical raw material and can produce important chemical products such as methanol, formaldehyde, polyformaldehyde, formic acid, methyl formate, and dimethyl carbonate. However, at present, most yellow phosphorus enterprises are short-lived due to their small size and bad use. Only a part of the company uses it as fuel or produces low-value sodium formate or calcium formate. Phosphorus production by-product of waste residue, a small amount of materials used as building materials, most of the heap. Phosphorous slag can be used for the production of silicon fertilizer. In many areas of China, there is a lack of silicon in soil, and silicon fertilizer has obvious effects on grain crops, economic crops, etc. The product has a broad market space. In addition, phosphorus slag can also be processed into insulation materials. The main component of phosphorus slag is calcium silicate. It flows from the slag outlet to a molten state and can be directly processed into bulky fibers. It is used for insulation of pipeline equipment. Its cost is much lower than that of aluminum silicate fiber, and it has better performance. The economic benefits. The utilization of phosphogypsum produced by the production of wet-process phosphoric acid is also a major issue. In recent years, a cement phosphogypsum cement process has been developed and succeeded. Phosphogypsum-based gypsum board, gypsum block, and cement additives have also made significant progress. Progressively achieved large-scale production. The development of these technologies has provided technical support for the overall improvement of the phosphorus chemical industry.

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