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 leading province in terms of phosphorus pentoxide reserves, making it a crucial player in the country's phosphate industry. According to data from the Yunnan Phosphorus Chemical Industry Association, there are nearly 100 ordinary calcium companies operating in the region, primarily located in areas with abundant phosphate resources, good transportation infrastructure, and strong industrial economies.
Among them, 27 companies have joined the SPS marketing consortium, with an annual production capacity of 3.8 million tons, accounting for 85% of the province’s total calcium output. However, starting from last year, a large-scale consolidation of phosphate rock resources has taken place in Yunnan. As a result, major enterprises now control most of the phosphate rock supply, creating challenges for smaller companies that struggle to secure raw materials.
Many small and medium-sized calcium producers are unable to purchase sufficient phosphate rock, even though they have the capital. This has led to production bottlenecks and financial strain. Recently, during an on-site visit, reporters found that these issues remain unresolved.
At Yunnan Xiangfeng Fertilizer Co., Ltd., the company’s manager expressed concern over limited access to raw materials. Currently, they can only use about 25% of the available ore to produce qualified products. With the peak season for fertilizer sales approaching, the demand for high-quality products—such as pure calcium with over 16% effective phosphorus content—cannot be met, causing anxiety among staff.
Although the SPS marketing consortium has submitted a proposal to the provincial government for unified mineral purchases, and the Yunnan Provincial Economic Commission has approved it, the implementation is still pending. In the meantime, companies are forced to seek alternative sources, including private suppliers, which often leads to inconsistent quality and quantity of phosphate rock. Some companies previously produced up to 20,000 tons of calcium sulfate per month, but now their output has dropped by half.
Lu Liang Longhai Chemical also faces similar difficulties. The company’s representative explained that the current supply of phosphate rock is insufficient to meet the required quality standards for calcium production, making it hard to maintain product quality and pricing. The price of high-quality phosphate rock has surged, and the market supply is limited. Without access to necessary raw materials, the company is struggling financially and hopes that relevant authorities will prevent state-owned enterprises from monopolizing phosphate mining, allowing other companies to participate fairly.
The general marketing consortium has urged SMEs to "join" larger enterprises, suggesting that collaboration could help secure better access to phosphate rock. While this may temporarily ease supply issues, it does not resolve deeper problems related to company structure, personnel management, and logistics. Railway transportation is particularly challenging, as companies often face delays in getting wagons, causing uncertainty for customers and significant losses in sales.
Regarding the issue of mineral shortages, Director Wang of the Heavy Industry Department at the Yunnan Provincial Economic Commission confirmed that the annual demand for phosphate rock in Yunnan is approximately 14 million tons, but local mines can only supply around 12 million tons, leaving a gap of 2 million tons. Due to ongoing resource integration efforts, some small mines are no longer operational. The integration process in areas where many small calcium companies operate is expected to be completed by June, after which the supply of phosphate rock should return to normal.
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