At present, China’s chemical production capacity is in general running not high while stocks are at low side, the relatively short supply may further boost up market price. Phosphorite and electric power-associated business enterprises will appear to benefit from the rising price of yellow phosphorus. Yellow phosphorus factories in China’s major yellow phosphorus production areas of Yunnan, Guizhou and Sichuan have escalated their selling price successively in just 1 month. There has been a price rise of Yuan500-600 per ton in this week, which is obviously a bigger rise over the previous price rise of Yuan100-200 per ton. The ex-works price of factories in the above provinces is generally at above Yuan14,500 per ton, nearly 10 percent up over last month and nearly 30 percent up year on year.


The market price of organophosphorus pesticide, which is a product of the yellow phosphorus industry chain, has been affected and has continued to rise due to the price escalation of yellow phosphorus. Glufosinate is an organophosphorus broad-spectrum foliar applied herbicide , its total volume of production could not meet the market needs due to environmental pressure and the export demand since November 2016. Its price has started to rise and stays at high side. The price of glufosinate has risen from Yuan120,000 per ton to Yuan165,000 or even up to Yuan170,000 per ton at the moment, which stays stable up to date.


The price of another organophosphorus herbicide – glyphosate , has started to pick up in July after continued price fall. The environmental compliance inspection conducted since this April has not caused substantial impact to glyphosate market. Glyphosate downstream sourcing situation remained normal in May, where factories still maintained stocks while price has declined. Since July, the price of glyphosate has bounded back to Yuan21,000 per ton, as a result of the price rise of glycine. At present, China’s glyphosate production mostly adopts glycine and IDA processes, for which yellow phosphorus is used as the major raw material. It is said that production of 1 ton of glyphosate consumes about 300 kg of yellow phosphorus. With the price rise of yellow phosphorus, the cost of production of 1 ton of glyphosate increases Yuan200 versus the cost a month ago.


The price fluctuation of yellow phosphorus also causes an impact to organophosphorus insecticide , of which chlorpyrifos stays constantly at the high price of Yuan38,500 per ton; dipterex rises currently to the price of Yuan14,000 per ton; DDVP has been on the rise continuously having reached the high price of Yuan20,000 per ton.