First, about yellow phosphorus.
Yellow phosphorus is the main raw material of thermal phosphoric acid, and the price of thermal phosphoric acid directly determines the cost of iron phosphate. This round of yellow phosphorus rising, hot-process phosphoric acid enterprises have started to adjust prices or stop taking orders, which will inevitably lead to an increase in the cost of iron phosphate in the future. The impact of simple calculation cost has exceeded 1000 yuan/ton, which is tantamount to adding fuel to the fire for the iron orthophosphate that entered the price increase channel this year because of the shortage of supply, and the price increase expectation may be further strengthened.
Second, review the historical price increase of yellow phosphorus.
The last surge occurred in July of 20 19. At that time, affected by environmental protection, the price of yellow phosphorus soared from1.5000/ton to 25000/ton, but the high price did not last long, and soon fell back to1.7000/ton, so it did not have much impact on the iron phosphate industry. The rising speed of the price of yellow phosphorus is somewhat 20 19, and its persistence remains to be seen.
To sum up, the yellow phosphorus production capacity is mainly distributed in Yunnan, Sichuan, Guizhou, Hubei and Jiangsu, among which Yunnan is the main producing area of yellow phosphorus. In 2020, the output of yellow phosphorus in Yunnan Province accounts for about half of the national total output, and it is the main supply area, which has a great influence on the supply of yellow phosphorus and is affected by the distribution and downstream application of phosphorus resources. Since the beginning of this year, Yunnan's yellow phosphorus production capacity has been limited for many times, resulting in a sharp drop in the operating rate of the entire yellow phosphorus industry in the user country compared with previous years.