Over 80% of China’s phosphorus reserves and more than 30% of P₂O₅ are concentrated in five provinces: Yunnan, Guizhou, Sichuan, Hubei, and Hunan. A significant portion of high-grade phosphate resources is found in the Yunhe and Guijin regions. Among these, Yunnan stands out as the province with the highest phosphate pentoxide reserves in the country, making it a key player in China’s phosphate industry.
According to data from the Yunnan Phosphorus Chemical Industry Association, there are nearly 100 ordinary calcium companies operating in Yunnan, mostly located in areas rich in phosphate resources, with good transportation infrastructure and strong industrial development. Out of these, 27 companies have joined the SPS marketing consortium, which has an annual production capacity of 3.8 million tons—accounting for 85% of the province’s total calcium output. However, since last year, a large-scale consolidation of phosphate rock resources has occurred, with major enterprises taking control of the supply. This has led to a widespread issue where smaller fertilizer companies struggle to access raw materials.
Many small and medium-sized calcium smelters are unable to secure enough phosphate rock, despite having the capital to do so. Recently, reporters found that this challenge remains unresolved. At Yunnan Xiangfeng Fertilizer Co., Ltd., the company's manager revealed that they can only use about 25% of available ore to produce qualified products. With the peak season for fertilizer sales approaching, they are unable to meet customer demand for first-class products (pure calcium with over 16% effective phosphorus content), causing serious concerns.
Although the calcium marketing consortium has submitted a request for unified mineral procurement to the provincial government, and the Economic Commission has approved the plan, implementation has been delayed. As a result, companies are forced to seek alternative sources, such as private suppliers. However, the quality and quantity of these ores are uncertain, leading to further complications. Previously, the company could produce 20,000 tons of calcium sulfate per month, but now it has dropped to just half that amount.
Another company, Lu Liang Longhai Chemical, also faces similar issues. Their manager explained that the available phosphate rock is of lower quality and does not meet the standards required for producing high-quality calcium products. This makes it difficult to maintain competitive pricing. The price of quality phosphate rock has soared, and the market supply is limited. Because they cannot acquire the necessary raw materials, their entire production has come to a standstill, causing severe financial strain.
The company hopes that relevant authorities will intervene to prevent state-owned enterprises from monopolizing phosphate mining, allowing other companies to participate and ensure a fairer distribution of resources. Meanwhile, the general calcium marketing consortium has urged SMEs to "close" with larger companies. While cooperation with big firms may temporarily ease the supply problem, it doesn't address deeper issues like internal management, personnel, and logistics. Railway transportation, in particular, is a major obstacle, as companies often struggle to secure train cars, creating uncertainty for customers and causing significant losses.
When asked about the challenges of mineral procurement, Director Wang from the Heavy Industry Department of the Yunnan Provincial Economic Commission noted that the annual demand for phosphate rock in the province is around 14 million tons, but local mines can only supply about 12 million tons. This leaves a gap of 2 million tons. Due to ongoing resource integration efforts, many small mines are currently inactive. The integration process in areas where ordinary calcium companies operate is still incomplete and is expected to be completed by June. In the future, the government plans to implement a coordinated approach to ensure stable ore supply across the province.
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