Overcapacity of Yellow Phosphorus in China

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Publish time: 27th January, 2011      Source: CCM
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      According CCM's latest report - Chinese Market of Yellow Phosphorus Future Report, the domestic capacity of yellow phosphorus is about 2,000,000 tonnes in 2010, but the capacity was only less than 900,000 tonnes last year, with the operating rate below 50%. Over-capacity has become the biggest problem in Chinese yellow phosphorus market. From 2005, the major provinces of yellow phosphorus production such as Yunnan, Guizhou, began to eliminate outmodedyellow phosphorus production capacity, and the elimination had been popularized nationwide in 2009. However, the capacity has not decreased obviously up to now. Firstly, many small yellow phosphorus manufactories has been closed in theprocess of eliminating outmoded production capacity, but a lot of them achieve the standards for admittance into the industry by expanding or reconstructing previous production facilities. Secondly, some big manufactories continue to produce yellow phosphorus after the expansion and technical reformation of their partially unqualified facilities. Therefore, the over-capacity of yellow phosphorus has not been resolved until now.

    

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