Phosphate companies work hard to change to survive

In less than two months, phosphate companies have experienced two days of ice and fire. The market price of raw material yellow phosphorus at the end of August remained at nearly 30,000 yuan, and the supply was tight. Unexpectedly, after entering September, the price plunged all the way until the current 16,000 yuan was considered a breather. Can the price of yellow phosphorus and phosphate be able to pick up in the short term? In the face of the deep decline in the price of yellow phosphorus, how will its downstream phosphate enterprises face it?

“The factors that promote the rise of yellow phosphorus in a short-term concentration and jointly play a role, which is the fundamental reason for the sharp increase in the price of yellow phosphorus.” On the one hand, there is a serious shortage of production supply, on the other hand, the market demand is growing strongly, and this imbalance between supply and demand It is rare, and I believe that the probability of reappearing in the future will be very small.

“Like the original profit of more than 10,000 yuan per ton of yellow phosphorus, it is obviously a huge profit, which is against the law of value, so it cannot last. But now the market is going from one extreme to the other, and the price of yellow phosphorus falls so quickly. At the cost price, even some enterprises have re-occurred losses, which also reflects the company's own many shortcomings." Gao Baoqing, director of the Phosphorus Chemical Branch of China Inorganic Salt Industry Association, believes that various factors supporting the firm price of yellow phosphorus have disappeared or are The disappearance is the reason why the price of yellow phosphorus and its downstream phosphate products continues to fall. In addition, at the end of the year, yellow phosphorus companies are under pressure to pay for electricity and raw materials such as phosphate rock, and they have sold yellow phosphorus at a reduced price. This relatively concentrated selling of inventories has accelerated their prices.

Most phosphate companies are bearish on the future trend of yellow phosphorus prices. They said that due to the large inventory of yellow phosphorus in the country and the demand has reached the off-season, foreign markets are generally affected by the financial crisis and orders are scarce. Therefore, the market price of yellow phosphorus and phosphate will not be available from the end of this year to early next year. A big rebound.

Affected by the deep decline in the price of yellow phosphorus, the prices of downstream phosphate enterprises have also entered a rapidly declining track. When the price of yellow phosphorus rose in the early period, many enterprises could not afford it and fell into a loss. Some enterprises that were still in good working condition gritted their teeth into high-priced yellow phosphorus raw materials. They did not expect that the price would drop sharply in a few days and pull them into the market. A deep valley of losses. As a result, the loss of phosphate companies has continued to expand, and companies that limit production and stop production have also increased.

Experts from the China Inorganic Salt Industry Association believe that market volatility will bring a new round of reshuffle to phosphate companies. If you do not want to be eliminated, you must work hard to find your own market position, speed up product structure adjustment, extend the industrial chain, and improve marketing and service levels.