Guangzhou, Guangdong -- (SBWIRE) -- 08/26/2011 -- In the remainder of 2011, Ministry of Industry and Information Technology (MIIT) is to promulgate the Entry Criteria for Phosphate and Ammonium Production (the Entry Criteria), according to CCM’s first issue of Phosphorus Industry China Monthly Report.

On March 25th, 2011, MIIT promulgated the exposure draft of the Entry Criteria and stopped asking for opinions on April 30, 2011.

According to the Entry Criteria, in principle, the factories to remove and new entrants are not allowed to build new wet process phosphoric acid (WPA), monoammonium phosphate (MAP) and diammonium phosphate (DAP) projects or expansions within three years. Besides, if the existing compound fertilizer production plants are located in county-level ecological protection areas, scenic areas, nature reserves, cultural heritage protection areas, etc., they have to relocate. The factories to remove and new entrants should have their own phosphorus ore and sulfur ore resources, fluoride recovering devices and ardealite utilization matching projects.

Besides the requirements on plant distribution and matching devices, the Entry Criteria also sets requirements on energy consumption and environmental protection for new entrants and existing companies. The implement of the Entry Criteria will certainly drive companies pay more attention to phosphorus resource, energy consumption and environmental protection.

By the end of 2010, there were 466 phosphate fertilizer producers in China, with the total production capacity of over 21.00 million tonnes per year and the output of 17.01 million tonnes (100%P2O5) in 2010; while the apparent consumption volume was only 14.75 million tonnes (100%P2O5). That is to say, China's phosphate fertilizer industry is facing overcapacity.

The most important is that many phosphate fertilizer producers that have to relocate their plants have no phosphorus ore resource of their own. To sustain longterm development, phosphate fertilizer producers will pay more attention to phosphorus ore resource.
(Guangzhou China, August 24, 2011)

Source: Phosphorus Industry China Monthly Report
http://www.cnchemicals.com/Newsletter/PhosphorusIndustryChinaMonthlyReport.shtml

Content of Phosphorus Industry China Monthly Report 1108:
MIIT to promulgate Entry Criteria for Phosphate and Ammonium Production
Yellow phosphorus export still sluggish without special export tariff
NDRC regulates phosphate industry development
China continues to eliminate yellow phosphorus inefficient production capacity
Import & export analysis of some phosphate chemicals
Phosphate fertilizer industry to see industrial integration
China encourages low grade phosphorus ore exploitation
Leibo County strengthens phosphorus chemical industry development
Wengfu extends product portfolio
Hubei Xingfa cooperates with Dequest to develop phosphate chemicals
Large phosphorus ore exploiters benefit from policy switch
Price monitor of some phosphate chemicals

Phosphorus Industry China Monthly Report, a monthly publication issued by CCM International on 15th of every month, provides you the latest information on company dynamic, industry dynamic, factors impacting the price fluctuation, technology improvement, supply & demand of China's phosphorus industry.

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