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Home > Industry Information > Tax Rebate Policy Boosts Phosphate Industry Boom

Tax Rebate Policy Boosts Phosphate Industry Boom

2021-06-06

Tax Rebate Policy Boosts Phosphate Industry Boom

Recently, the Ministry of Finance announced that it will adjust the export tax rebate rate for some products, in which the export tax rebate rate for Sodium Tripolyphosphate was raised to 13%. There was no export tax rebate.

In addition, under the influence of factors such as limited mining of ore in winter, the prices of Phosphate rock and yellow phosphorus in the upper reaches have rebounded, and the average increase rate in recent months was nearly 5%, which also provided cost support for downstream sodium tripolyphosphate. The industry expects that the current domestic phosphorus chemical market is constrained by the overcapacity situation, and the overall market conditions are relatively weak. The Ministry of Finance’s encouragement of export policies will help boost market demand and improve the industry's economic prosperity.

The notice shows that since January 1, 2015, industrial-grade and food-grade sodium tripolyphosphate will implement a 13% export tax rebate rate, and Food Grade sodium hexametaphosphate will implement a 9% export tax rebate rate. The increase in export tax rebates has indirectly reduced the company's production costs, which is conducive to strengthening the international competitiveness of China's sodium phosphate salt and helping to launch the market. It is understood that related companies have also actively formulated sales strategies for 2015, and will increase the proportion of export shares in the later period. The industry expects that this measure will ease the domestic overcapacity and improve the operating environment of the industry.

From the perspective of industry fundamentals, positive signs have emerged in the upstream sector in terms of the phosphate ore-yellow phosphorus-phosphate-sodium tripolyphosphate industrial chain. Affected by the winter weather, ore mining is limited in some areas, coupled with the start of the winter storage market, the price of phosphate rock steadily rose. It is understood that in Guizhou and other places, due to the winter season, part of the mining and transportation will be affected by the weather, and the construction of mines in the future will show a downward trend. In addition, the export policy for phosphate fertilizers landed, and the window of the busy season was cancelled. The export demand is expected to improve, and the enthusiasm for ore preparation for downstream fertilizer enterprises has improved.

In respect of yellow phosphorus, the market broke the stable situation in December 2014 and achieved a full upward trend with the latest offer at 14,775 yuan/ton. At present, the supply of goods on the floor is lower than in previous years, and there are no large stocks of stocks in the later period. Most of the company's orders have already been placed in the middle or late January, and the follow-up market is still on a slight upward trend. In addition, the downstream food-grade phosphoric acid is in peak demand season, which also brings some support to the market.

For sodium tripolyphosphate itself, the latest situation shows that the overall market is at a low level, industrial-grade offer is 5500-6000 yuan per ton, and food grade is between 6500-7000 yuan. At present, the operation of enterprise equipment is relatively stable, and most of them are produced on demand.

Overall, the Ministry of Finance’s export tax rebate policy shows that the government attaches great importance to this product and encourages its export volume while reducing its cost. In addition, the rise in prices of upstream phosphate rock and yellow phosphorus has also brought cost support to sodium tripolyphosphate.

As for listed companies, Chengxing Group is a leader in fine phosphorous chemicals, and its phosphoric acid and phosphate production capacity rank the top of the market, among which sodium tripolyphosphate production capacity is close to 100,000 tons. In addition, the company also has 1.1 million tons of phosphate mining capacity, as well as hydropower and thermal power supply for yellow phosphorus production, and the industrial chain is relatively complete. Six Kingdoms Chemicals is a large-scale ammonium phosphate and fine phosphorus chemical company in China. Currently, it has formed three major production bases in Anhui, Jiangxi, and Hubei. It has a production capacity of 1.2 million tons of diammonium phosphate and 150,000 tons of monoammonium. At the same time, the company's 280,000-ton synthetic ammonia project has been put into production, significantly increasing the self-sufficiency rate of phosphate fertilizer raw materials, and ensuring a steady increase in the production load. It is worth noting that in 2015, the new policy on tariffs for phosphate fertilizers has been introduced. The window of the busy season will be cancelled, and the overall tax cost will be reduced, which will help increase the company's export volume.


Sodium Tripolyphosphate, Na5P3O10, Molecular weight 367.86, white powder; Melting point 622 °C. free soluble in water, aqueous solution appears acid. It has got salient chelating capacity to metal ions of Ca and Mg etc. and can soften hard water to make suspension into solution, alkalinity, without causticity. It is an inorganic compound with formula Na5P3O10, is the sodium salt of the polyphosphate penta-anion, which is the conjugate base of triphosphoric acid.Sodium tripolyphosphate is produced by heating stoichiometric mixture of disodium phosphate, Na2HPO4, and monosodium phosphate, NaH2PO4, under carefully controlled conditions.
It has different bulk density, i.e. low density 0.35-0.6g/cm 3 , medium density 0.6-0.8g/cm3 and high density 0.8-1.0g/cm3. This product has two crystalline forms, namely phase I (high temperature phase) and phase II (low temperature phase). The chemical properties of the two phases are the same, and the difference between them lies in the thermostability, hygroscopicity, solubility and hydration heat when dissolving.
It can be used as one of the main auxiliaries for synthetic detergent, synergist for soap; water softener, tanning agent for leather making, auxiliary for dyeing; As an effective dispersion agent for suspensions of coatings, kaolin, magnesium oxide, calcium carbonate and drilling mud etc.
As an oil contamination resistance agent in paper production; As in foodstuff industry it is used as quality improver in the process of canned food, fruit juice drinks, foodstuffs from milk or soybeans. It may tender the meat in canned ham and soften the skin of horse bean in canned horse bean. It may also serves as a softener or densifier in foodstuff industry.

Sodium Tripolyphosphate, Stpp Food Grade, Washing Powder Stpp, Detergents Preservatives
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