The trend of unilateral rising of phosphate rock in China has been established. The global mining of phosphate rock causes the grade of phosphate rock to decrease year by year. The overall grade of China's phosphate rock is low, and the average phosphorus rock grade needs to increase by 0.1 to 0.2 tons for each 1% decline in grade. The cost of ore flotation, mining costs and resource taxes have multiplied; the increase in the integration of mineral fertilizers in the phosphate fertilizer industry has led to a significant reduction in the export of phosphate rock, and it is expected that China will have a shortage of phosphate ore after 2014.
China's phosphate ore reserves account for 5.7% of the world's total, ranking second in the world, with an average grade of approximately 17%, of which the Grade I phosphate rock (above 30%) accounts for only 16.7%, and the Indian market phosphate rock price is 210 USD/ton (68%). -70% BPL), equivalent to the domestic standard of 1,432 yuan/ton, which is about 1.5 times higher than the Hubei market price. China's phosphate ore is "rich but not rich". High-grade phosphate ore is very scarce and the price difference between domestic and foreign countries is huge. Although it is difficult to be in line with international standards in the short term, the medium and long-term price increase is a high probability and leading companies in the industry will benefit as a result.
