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

[Automotive: 100,000 Units! BYD Secures Major New Energy Vehicle Order]

On May 9, BYD signed a strategic cooperation agreement for Flash Charging China with CAR Inc., along with a framework agreement for the procurement of 100,000 vehicles. According to the agreement, BYD and CAR Inc. will conduct in-depth cooperation around the "Flash Charging China Strategy," planning to install BYD flash charging piles at eligible CAR Inc. service locations nationwide. This will establish an extensive, efficient, and convenient charging service network, jointly enhancing the user travel experience. At the same time, the framework agreement for the procurement of 100,000 vehicles signed by the two parties will further consolidate BYD's core position in the new energy vehicle fleet of CAR Inc. and assist CAR Inc. in continuously expanding its scale of green mobility capacity.

1 hour ago

[Cobalt & Lithium: Huayou Cobalt Advances Acquisition Of Atlantic Lithium]

On May 10, Huayou Cobalt disclosed the latest developments regarding its subsidiary's transfer of related rights and obligations and the acquisition of equity in Atlantic Lithium Limited. The core content of this rights and obligations transfer includes obtaining the right to acquire a 22.5% stake in Atlantic Lithium's Singapore subsidiary. It also involves securing an offtake right for no less than 50% of the products from the Ewoyaa Lithium Project and assuming related obligations for project development. If both the "Contract Novation Agreement" and the transaction to acquire 100% of Atlantic Lithium are completed, Huayou Cobalt will indirectly hold an 87% interest in the Ewoyaa Lithium Project.

1 hour ago

May 9, 2026 18:42

In April 2026, Chile's lithium carbonate exports were 29,500 mt, and lithium sulfate exports were 12,100 mt.

[Chile's Lithium Carbonate Exports Totaled 29,500 mt in April 2026, While Lithium Sulfate Exports Totaled 12,100 mt] According to Chilean customs export data, Chile's total lithium carbonate exports in April 2026 were 29,500 mt, up 3.40% MoM and up 35.63% YoY. Among them, exports to China were 22,956 mt, up 21.29% MoM and up 47.67% YoY; exports to South Korea were 3,489 mt, down 45.34% MoM but up 32.47% YoY; exports to Japan were 1,160 mt, down 10.74% MoM but up 48.05% YoY. In April 2026, Chile's total lithium sulfate exports were 12,100 mt, all exported to China, down 26.85% MoM but up 33.57% YoY.

May 9, 2026 18:42