Origin of Yellow Phosphorus Attracting Clariant to Yunnan

CCM has released its new report on Yellow phosphorus- Global Consumption of Phosphorus Pentoxide in 2010 through an in-depth analysis of the global phosphorus market from the aspects of reserves, exploitation and trade of phosphorus ore, policies, demand and production of phosphorus pentoxide. The report mainly presents the situation of phosphorus consumption in major countries and makes a forecast of the production and consumption of phosphorus pentoxide to the next five years.

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Guangzhou, Guangdong -- (SBWire) -- 04/25/2011 -- In the year of 2009, Clariant announced to establish a joint venture with Kunming Gaoheng Huagong Chemical Industry Co., Ltd. and Panchem International Trading and Industrial Co. in Kunming, Yunnan province, which is to secure supply and meet the growing demand for phosphorus pentoxide since Yunnan is abundant in yellow phosphorus. Clariant planned to set up a state-of-the-art plant of phosphorous pentoxide.

The great demand for phosphorus pentoxide comes from its application in pigments, additives and medicine, etc. In pigments, it is used for organic pigments, pigment preparations and dyes used in coatings, printing, plastics, and other specialty application. For additives, it is used in plastics, coatings, printing inks, cosmetics, agriculture and adhesives.

According to the report, China’s high-grade phosphorus ores will be exhausted in 2013 ~ 2014, and the remaining ores with actual economic value can only be exploited for another 40 years with present exploitation speed. Yellow phosphorus is the second largest consumer of phosphorus ore, an irreplaceable and non-renewable resource and closely related to people’s life, which constitutes about 15% of phosphorus ore consumption in China. Chinese phosphorus resources is concentrated in Yunnan, Guizhou, Hubei, Sichuan and Hunan.

Except the force from the downstream demand, there is another reason why Clariant built its phosphorus pentoxide plant in China.

Phosphorus ores is an irreplaceable and nonrenewable resource. China has set some limitation on the export of yellow phosphorus to control overcapacity and secure domestic supply.

This report is target for those decision-makers to:
-Gain an overall knowledge of the domestic and global market of phosphorus pentoxide
-Make wise strategies in production and purchasing and avoid potential risks
-Know clearly the demand and overcapacity
-Forecast on the future in advance and keep abreast of competitors

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