Chuanfa Lomon announced on the evening of August 2 that the company intends to issue shares to Chuanfa Mining and Sichuan Salt to purchase 80% and 20% of the shares of Tianrui Mining held by it, respectively. After the completion of this transaction, Tianrui Mining will Became its wholly-owned subsidiary.
The announcement shows that Tianrui Mining is committed to the exploitation and sales of phosphate resources. It is a large-scale phosphate ore production enterprise integrating mining, beneficiation, concentrate transportation, processing and sales, with a production scale of 2.5 million tons/year; at the same time supporting facilities The 2 million tons/year beneficiation device is currently the largest phosphate raw ore and phosphate concentrate production enterprise in Mabian area. Tianrui Mining's products are mainly used to manufacture phosphate products, and some are used to extract yellow phosphorus, red phosphorus, and phosphoric acid. The main downstream customer groups are ammonium phosphate companies and calcium hydrogen phosphate companies.
Chuanfa Lomon said that the acquisition of Tianrui Mining will help improve the company's phosphorus chemical industry chain and reduce the adverse impact of the price increase of purchased phosphorus ore on the profitability of listed companies, which is in line with the company's development strategy of integrated mineralization.
According to the data of "Mobei Market", the price of phosphoric acid in East China in June this year was about 6,800 yuan/ton, and in August it was about 7,685 yuan/ton, an increase of 13%, and it is still showing a continuous upward trend.
The industry is generally optimistic about the phosphorus chemical industry chain to maintain a high boom. According to the analysis of Chuancai Securities, the following factors promote the industry's positive factors:
The new energy vehicle market is booming, and lithium iron phosphate further promotes the demand for phosphorus chemical products
Benefiting from the booming new energy vehicle market, domestic investment demand for lithium iron phosphate is strong. In the first half of 2021, the newly launched domestic lithium iron phosphate cathode material project has a production capacity of nearly 1.5 million tons per year, with a total investment of more than 40 billion yuan, and the output of lithium iron phosphate also accounts for more than 50% of the total output of power batteries. On July 27th, Musk said that in the future, Tesla’s battery composition will change, and 2/3 of lithium iron phosphate batteries will be used. It is estimated that the demand for lithium iron phosphate in China will exceed 2 million tons in 2025, with an annual growth rate of over 50%, which will further increase the demand for industrial monoammonium phosphate, industrial grade phosphoric acid and phosphate rock.
The autumn chemical fertilizer market is coming soon, and the domestic demand for phosphate fertilizer continues to release. The current phosphate fertilizer market is relatively prosperous
Affected by the upcoming domestic autumn fertilizer market, downstream purchases and stocking are strong, corporate and social inventories are at historically low levels, spot supplies are tight, and the superimposed epidemic has impacted overseas production capacity, and the export situation of phosphate fertilizers continues to improve. According to Wind data, the total export volume of monoammonium phosphate from January to June 2021 was 1.895 million tons, a year-on-year increase of 53.29%; the total export volume of diammonium phosphate was 2,189,200 tons, a year-on-year increase of 38.77%. The downstream market demand for phosphate fertilizers in the phosphate chemical industry is expected to continue to be released.
Power cuts in Yunnan, yellow phosphorus prices remain high
Affected by the power curtailment in Yunnan, the supply of yellow phosphorus continued to be limited, and the price remained high. According to data from Baichuan, as of July 28, the domestic reference price of yellow phosphorus was 24,101 yuan/ton, an increase of 26.5% from the 19,045 yuan/ton at the beginning of the month. Rising prices of raw materials support the high-level operation of the phosphorus chemical industry, which is beneficial to the continuous improvement of the performance of my country's phosphorus chemical enterprises.
Source: Mobile Public Account
