In recent years, the phosphate Market has been in a low state. Due to the high cost of regular phosphate production enterprises, the output of industrial grade phosphate gradually declined, and more by-product phosphate products also increased, while large domestic enterprises gradually turned to food grade phosphate products with higher profit margin.
Market overview of Sodium Tripolyphosphate and Sodium Hexametaphosphate
The overall market of sodium tripolyphosphate is weak. In recent years, due to the limited demand and with the promotion and implementation of the ban on phosphorus, the use of sodium tripolyphosphate in washing industry in the domestic market is very few, which leads to the reduction of sodium tripolyphosphate production and the increase of idle production capacity; the enthusiasm of manufacturers in the field is not high, the production is basically concentrated in the southwest region, and some enterprises choose to use small factories for processing in order to reduce costs. It is reported that in recent years, with the increase of by-product pentasodium in Shandong, Jiangsu and other places, it has replaced some high price phosphate products produced by orthophosphoric ACID.
In the past six years, the overall operation of sodium phosphate market was weak and stable. Due to the limited domestic demand for sodium hexametaphosphate, the downstream procurement is mostly supported by rigid demand, so the business enthusiasm is not high. In addition, the output of by-product sodium hexametaphosphate in Shandong, Jiangsu, Sichuan and other parts of the country has increased, and the price advantage is relatively large, and the shipment situation is acceptable. At present, it has a place in the market. Sodium hexametaphosphate has a wide range of downstream industries. According to Longzhong information, at present, sodium hexametaphosphate can be used in mineral processing, softened water, refractory, surfactant, Detergent and other chemical applications; food additives and other food applications have little change in demand because of its wide application.
Market analysis and future trend
In the first half of 2020, the price was high, but it began to decline gradually in the middle of the year, and there was almost no change in the market after entering the fourth quarter. The main reason is that in 2019, due to a series of problems such as environmental protection, the start-up is reduced, which makes the pentasodium market show a tight supply situation, leading to the price rise of phosphate. Coupled with the epidemic situation in early 2020, the price is difficult to fall. However, with the recovery and stability of the market, the price of penta sodium and hexa sodium began to decline in 2020, and then kept stable all the way. By 2021, although the raw materials had experienced a sharp rise, it had little impact on it.
Since 2020, although the main production mode of sodium tripolyphosphate and sodium hexametaphosphate is still the traditional mode of phosphate rock yellow phosphorus phosphoric acid sodium tripolyphosphate / sodium hexametaphosphate, considering the meager profits of industrial grade in recent years, the market has been gradually occupied by by by-products, the influence of yellow phosphorus and phosphoric acid is not as important as before, and the downstream demand is more affected. However, from the perspective of downstream demand, at present, the domestic market is close to saturation, the export sector accounts for a large share and the demand is relatively stable, and large domestic manufacturers are also very rare. Although there is little room for market development in the future, the possibility of further reduction is relatively small. It is expected that in recent years, the market will mainly focus on rigid demand, fluctuate slightly and run smoothly. Through the market research, Longzhong information learned that the willingness and action of phosphate industry in China to develop food grade phosphate products has increased.
