Phosphate Ore Production Hit a Record High in October, New Energy Demand Drives Transformation of Phosphorus Chemical Industry

SMM October 31 News:
Highlights: In October 2025, the phosphorus chemical industry operated against a backdrop of subdued traditional agricultural demand and robust new energy demand. The industry-wide production of phosphate ore (converted to 30% P₂O₅ equivalent) climbed to a record high of approximately 14 million mt, while the consumption index for the new energy sector rose to 6.2, with strong demand for products like LFP being the primary driver.

I. Phosphorus Chemical Market Analysis
In October, phosphate ore production (converted to 30% P₂O₅ equivalent) continued to break records, reaching around 14 million mt. The consumption index for the new energy sector was 6.2, up from 6.1 MoM. The main reasons were weak demand from traditional industries and robust demand from the new energy sector, with industries such as iron phosphate, LFP, and LiPF6 maintaining a positive trend.

Prices of some phosphorus chemical products showed stable to slightly weak increases. The primary reasons were, first, rising sulphur prices driving up sulphuric acid costs, which increased production costs for phosphorus chemicals; second, strong demand during the peak season in the downstream new energy sector, which kept prices of purified wet process phosphoric acid and industrial-grade MAP firm. However, as it is currently the off-season for agricultural fertilizer use, the extent of price increases for phosphorus chemical products was limited.

II. Phosphorus Chemical Industry Developments
[Phosphate Ore: Hebang Bio's Phosphate Ore Project Progressing as Scheduled]
On October 17, 2025, Hebang Bio (603077) responded to investor inquiries, stating that the company's phosphate ore project is progressing as planned, and construction progress will be disclosed in periodic reports.

[Solid-State Battery: Xingfa Group's Sulphide Electrolyte Additive Phosphorus Pentasulphide is Expected to Commence Production in 2026]
On October 21, 2025, Xingfa Group (600141) responded to investor inquiries, indicating that its ultra-pure yellow phosphorus and phosphorus pentasulphide project is expected to achieve synchronized production commencement in 2026, with an ultra-pure yellow phosphorus capacity of 30,000 mt/year.

[Phosphate Ore: Hubei Yihua Possesses Certain Phosphate Ore Capacity]
On October 27, 2025, Hubei Yihua (000422) responded to investor inquiries, stating that its controlling shareholder, Yihua Group, possesses certain phosphate ore capacity. Investor inquiry: Despite this, the phosphate ore self-sufficiency rate ranking is relatively low, and the gross profit margin for phosphorus chemicals is only 16%, significantly lower than Yuntianhua's (600096) 35%. Does the company have plans to improve its phosphate ore self-sufficiency rate to enhance core competitiveness?

[SD Lomon: Wholly-Owned Subsidiary Collaborates with Fulin Precision Machining to Build a 175,000 mt/Year High-Density LFP Project and Establish a Joint Venture]
SD Lomon announced that its wholly-owned subsidiary, Deyang SD Lomon, signed an Investment Cooperation Agreement with Jiangxi Shenghua, a controlled subsidiary of Fulin Precision Machining, to jointly establish a joint venture, Fulin Lomon New Material Co., Ltd., with a registered capital of 660 million yuan, to carry out a 175,000 mt/year LFP project. The total project investment is expected to be 1.961 billion yuan, funded by the joint venture's own and self-raised funds. This investment aims to optimize the capacity layout of the lithium battery materials industry and achieve optimal performance and cost for end-use products.