China’s Yellow Phosphorus Offers Soared Amid Supply-Demand Imbalance
In the last week of February, the Yellow Phosphorus in the Chinese domestic market observed an enormous surge of 7% on a week-on-week basis, due to the contradiction in the supply-demand outlook in the domestic market. This market development came as a long-term impact of the ‘dual control on energy consumption policy’ imposed by the Chinese authorities to curb carbon emission during the third quarter of 2021. Therefore, in response, it intensified the uptrend in the producer's quotations of Yellow Phosphorus in the Chinese domestic market. Currently, the demand outlook of the Yellow Phosphorus observed a significant boost as the market sentiments rebounded after a weeklong Lunar New Year holiday’s in China. The supply outlook further worsened the situation, as the inventories levels were running low despite the lower operational rates at the production facilities in China. Yunnan province in China has an important position in the production of Yellow Phosphorus, with a cumulative...