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

Common.Time.minsAgo

South Korea separates EV and battery ownership

The Ministry of Land, Infrastructure and Transport announced on May 11 that the 8th Mobility Innovation Committee approved 16 agenda items, including demonstrations for an “EV battery subscription service” and “vehicle operation in Gwangju’s autonomous driving demonstration city.” South Korean consumers will be able to purchase only the vehicle body of an electric vehicle and lease the expensive battery separately. In addition, 200 autonomous vehicles to be deployed in Gwangju’s autonomous driving demonstration city will be eligible to apply for temporary operation permits without undergoing the self-certification process.

Common.Time.minsAgo

KOTRA supports K-battery firms’ entry into Chinese market

According to the government on May 10, KOTRA will hold the Korea-China Secondary Battery Export Consultation and Online Business Meeting in Shenzhen, China, from May 13 to June 19. The event is linked to the China International Battery Fair (CIBF 2026), which will be held in Shenzhen.

Common.Time.minsAgo

WCP narrows Q1 operating loss by 32.6% YoY to KRW 20.5 billion

WCP announced on May 11 that it posted consolidated revenue of KRW 42.8 billion, an operating loss of KRW 20.5 billion and a net loss of KRW 48.4 billion for the first quarter of this year. Revenue increased 26.5% year on year, while the operating loss narrowed by 32.6%. However, the net loss widened by 45.4%. Compared with the previous quarter, revenue rose 57.9%, while the operating loss narrowed by 49% and the net loss decreased by 11.4%.

Common.Time.minsAgo