Phosphates are mainly divided into feed grade calcium phosphate and industrial phosphate, among which industrial phosphate is widely used in the food processing industry. According to anions, they can be divided into orthophosphate and polyphosphate, with widely used polyphosphates including Sodium Tripolyphosphate, sodium pyrophosphate, and Sodium Hexametaphosphate. Sodium hexametaphosphate can be used as a food quality improver, pH regulator, metal ion chelating agent, adhesive, and expansion agent in the food industry; Widely used in industries such as washing and Water Treatment, metallurgy, metal anti-corrosion, mineral processing, and fiber.
As the overall domestic demand for sodium hexametaphosphate in China shrinks significantly, the importance of continuously increasing the proportion of exports continues to grow. On March 16, 2020, the Ministry of Finance and the State Administration of Taxation jointly issued the Announcement on Increasing the Export Tax Refund Rate of Some Products (No. 15 of 2020), which to some extent promotes the export of sodium hexametaphosphate in China.
In recent years, the overall production capacity operating rate of sodium hexametaphosphate (SHMP) in China has been relatively low, and against the backdrop of continuous decline in production capacity, the overall output has also shown a downward trend. Data shows that in 2021, the production capacity and output of sodium hexametaphosphate (SHMP) in China were 319000 tons and 152000 tons, respectively, with an annual operating utilization rate of only about 46%.
The production of sodium hexametaphosphate tends to decline, mainly due to environmental protection and high pressure. On the one hand, some domestic units have limited production and long-term shutdown, and on the other hand, downstream industry demand has decreased. In addition, low-end supply disrupts the market, and high-end product sales pressure is high, resulting in a decline in production volume.
In terms of the overall provincial and municipal distribution of sodium hexametaphosphate in China, the supply side has been decreasing year by year in the past five years. However, due to the abundant phosphate mineral resources and complete upstream supporting facilities in the southwestern region of China, the production capacity of sodium hexametaphosphate and other sodium phosphate salts in China is mainly distributed in this region, with Sichuan and Chongqing being the main production provinces, and Hubei Province in the central region also having a high proportion of production capacity.
The overall production capacity of sodium hexametaphosphate in China is relatively scattered, with nearly 20 enterprises exceeding 10000 tons. Xingfa Group, Sichuan Qimingxing, Chuandong Chemical, and Changzhou Lishi Yueyang are among the top companies in terms of production capacity. According to the bulletin of Xingfa Group, its production capacity ranks first in the world, with a fine phosphate production capacity of 200000 tons. Its main products include sodium tripolyphosphate, sodium hexametaphosphate, sodium ACID pyrophosphate, sodium hypophosphate, etc. According to public information, Xingfa Group's production capacity of sodium hexametaphosphate in 2019 was about 40000 tons. Overall, the production and sales of fine phosphate were 189100 tons and 191000 tons in 2021, respectively, with a slight increase in sales compared to 2020.
