The third is the low inventory of distributors. Given the continuously decreasing prices of phosphate fertilizers in 2013, fertilizer distributors maintained their inventory at low levels. This is an incentive for fertilizer manufacturers to develop Off-Season Reserves, since the demand for the first high season of 2014 (beginning in March) will be higher than the demand for the same period in 2013, when distributors' warehouses were fuller. There is, however, a number of phosphate fertilizer producers unwilling to develop Off-Season Reserves due to continually decreasing prices. Between improving their relationship with local governments in order to enjoy privileges, and not participating in the Off-season Reserves to avoid large potential losses, some manufacturers, especially small ones, are likely to choose the latter. Given the absolute surplus of phosphate fertilizers, the fluctuation of prices between off-season and high season will not be substantial. In addition, in an industry already crippled by overcapacity, the Off-Season Reserves end up providing a respite to manufacturers still operating obsolete production lines. This can only be damaging to the fertilizer business as a whole, since it aggravates the surplus and hinders the overall technological development of the industry. Some specialists have suggested replacing the Off-Season Reserves with more effective governmental subsidy mechanisms. Upon the whole, most of the eligible manufacturers are quite eager to undertake the 2013/2014 Off-Season Reserves.
MOFCOM launches the 2014 phosphorus ore export quota application procedure A brief analysis of different production methods of phosphoric acid Phosphorus enterprises have mixed feelings on Off-Season Reserves for 2013/2014 Shindoo starts production in two plants and aims to go into phosphorus mining India postpones sunset review of anti-dumping duties on Chinese phosphoric acid imports Wengfu-Dazhou and Blue Sword Chemical set up JV to produce fine phosphorus chemicals Traditional phosphorus exporting countries under pressure from MENA competitors WUT and Hubei Yihua co-develop advanced phosphogypsum-based cementing materials Brazil stops probing into China's sodium acid pyrophosphate International trade of phosphate chemicals in Sept. 2013 Market review of prime phosphate chemicals in Oct. 2013 Price monitoring of some phosphate chemicals in Oct. 2013
Phosphorus Industry China Monthly Report
, issued by CCM on 15
, keeps providing the latest company dynamics related to China
s phosphorus industry, and market analysis on supply and demand, import and export as well as global insight.
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals, CCM offers Market Data,