Ammonium Phosphate Demand Is Stable, Export Picks Up

By Zhang Yuqing, China National Chemical Information Centre

1. Production and consumption

China produced 20.85 million tons of ammonium phosphate in 2014. Diammonium phosphate (DAP) output was down a bit, and mono-ammonium phosphate (MAP) output increased 18%, compared with the previous year.
In 2014, the average ex-factory price of DAP was lower, the sales volume was higher and inventory levels were lower than in 2013; and the overall capacity utilization rate was 79.2%. The output of MAP was much higher than in 2013, and the MAP capacity utilization rate was 65.8%.
The five biggest producers of DAP in 2014, in descending order of output, were Yuntianhua Group Co., Ltd., Guizhou Kailin (Group) Co., Ltd., Guizhou Wengfu Group, Hubei Yihua Chemical Industry Co., Ltd. and Yunnan Xiangfeng Group. They accounted for 64% of the country’s DAP output. The five biggest producers of MAP, in descending order of output, were Yuntianhua Group Co., Ltd., Hubei Xinyangfeng Fertilizer Co., Ltd., Hubei Xiangyun (Group) Chemical Co., Ltd., Anhui Sierte Fertilizer Industry Co., Ltd. and SinoChem Fuling Chongqing Chemical Industry Co. Ltd. They accounted for 43% of the country’s MAP output.
China consumes 8.5-9.0 million tons of MAP annually. More than 90% of that is used in the production of compound fertilizers. Pushed by good market sales and a slight increase of compound fertilizer consumption, the MAP consumption remained at a high level of around 9.0 million tons in 2014. The demand for DAP floats in the range of 7.0-8.0 million tons. It is expected that annual consumption of DAP will remain around 8.0 million tons during 2015-2019.

2. Import and export

China first became a net exporter of phosphate fertilizers in 2007. With the gradual aggravation of DAP capacity surplus and the emergence of large phosphate compound fertilizer enterprises with both domestic and overseas markets as targets, such as Yunnan Yuntianhua International Chemical Co., Ltd., Wengfu Group and Kailin Group, China’s net export volume of DAP will increase further in the future. The volume of ammonium phosphate exported in 2014 was much higher than in 2013. The amount of DAP exported was 4.882 million tons, an increase of 27.8% over the previous year. The amount of MAP exported was 2.325 million tons, an increase of 227.9%. The export tariff policy for chemical fertilizers is being adjusted drastically this year. The overall export tariff rate is to be lower, so the export volume of phosphate fertilizers will increase this year.
In 2014, China sold MAP mainly to Brazil, Australia, India, Argentina and the United States. The amount exported to Brazil was 1.096 million tons, 47% of the total. The amount exported to Australia was 209 kt, accounting for 9%. DAP was sold mainly to India, Pakistan, Vietnam, the United States, Thailand, Japan and the Philippines. The amount exported to India was 1.563 million tons, accounting for 32% of the total export amount. The amount exported to Pakistan was 809 kt, accounting for 17%. The amount exported to Vietnam was 691 kt, accounting for 14%. The amount exported to the United States was 282 kt, accounting for 6%.
Around 220 producers and traders exported MAP in 2014. The biggest exporter was Yunnan Yuntianhua United Commerce Co., Ltd., shipping out 276 kt, 11.9% of the total. Guizhou Wengfu Phosphorus Chemical Import & Export Co., Ltd. was second, exporting 256 kt, or 11.0%. Around 139 producers and traders exported DAP in 2014. The biggest was Guizhou Kailin Chemical Fertilizer Co., Ltd., exporting 787 kt, 16.1% of the total.

3. Prospect

With the adjusted tariff policy, ammonium phosphate export will grow. The main changes will appear in the volumes exported to India and South America. Dissemination of new types of fertilizers in China will inhibit growth of the amount of mono-element fertilizers used, and the consumption of ammonium phosphate here will be stable.