Phosphorus Chemicals: Resources Rule, Divergence Widens

Published: May 6, 2026 15:09

Save

2025 annual reports show that companies with captive phosphate rock (BATIAN, Chuanjinnuo, Xingfa) posted profit growth of 122%-158%, while those relying on purchased raw materials (LiuGuo Chemical lost RMB 456 million, Lubei Chemical profit fell 85%) struggled. The pattern of "who owns mines, owns profits" is entrenched.

Raw material costs surged: sulfur price reached RMB 6,167/t in April, up 51% from January, pushing wet-process phosphoric acid above RMB 9,000/t. Yellow phosphorus rose 24%, and thermal-process phosphoric acid showed price inversion. New energy demand is strong: Hunan Yuneng sold 1.137 million tonnes of LFP cathode in 2025 (+60%), and LFP price averaged RMB 57,727/t in April (+6%).

Companies accelerated phosphate mine expansion: Yuntianhua added 4 Mt/a mining rights; Xingfa holds 625 Mt reserves. New capacities will be concentrated from H2 2026. In new energy deployment, Xingfa locked orders with BYD, Hunan Yuneng enjoys 15-20% cost advantage, and Yuntianhua partnered with Easpring.

Outlook: phosphoric acid supported by costs near-term; yellow phosphorus to fluctuate. Risks include geopolitics, capacity oversupply, and downstream cost tolerance limit (cell price near RMB 0.35/Wh).

Note: If you have any additions or corrections to the details mentioned in this article, please feel free to contact us at any time. Contact information is as follows:

Tel: 021-20707860 (or add WeChat 13585549799) Yang Chaoxing, thank you!

Solid-state Battery

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or to learn more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

1 hour ago

【SMM Analysis】Cobalt market diverges: Metal choppy, Intermediate steady awaiting upside, Sulfate stabilizes

1 hour ago

[Lithium Battery: Uncovered Losses Exceed One-Third Of Share Capital, NCM Company Initiates Rescue Measures]

Recently, Tianli Lithium Energy issued an announcement regarding uncovered losses reaching one-third of the total paid-in share capital. As of December 31, 2025, Tianli Lithium Energy's undistributed profit was -830 million yuan, with paid-in share capital of 119 million yuan, and the amount of uncovered losses exceeded one-third of the total paid-in share capital. Tianli Lithium Energy stated that the main reasons for the loss in 2025 were due to fluctuations in lithium carbonate prices and the volatile adjustment in the lithium iron phosphate industry, which led to insufficient operating rates for some of the company's production facilities, low capacity utilization, and high allocation of fixed costs per unit of product.

1 hour ago

[Lithium Battery: Xiaomi Establishes Battery Company In Beijing]

On April 30, Beijing Xiaomi Jingxu Technology Co., Ltd. officially completed its industrial and commercial registration and was established. The company is under the Xiaomi Group system, wholly owned by Xiaomi Intelligent Technology Co., Ltd., and indirectly wholly controlled by Xiaomi Communications Co., Ltd. Its core business covers battery manufacturing, production of battery parts and accessories, and battery sales. It also includes key new energy sectors such as electric motor manufacturing, electric motor production, motor and its control system research and development, and generator and generator set manufacturing.

1 hour ago