Global phosphate demand, we expect the global phosphorous chemical industry supply and demand tense situation would continue until 2013, current Arab unrest will make the phosphorite supply drop, simultaneously stimulating phosphate rock and sulphur prices. Domestic phosphate rock price also rising slightly.

North Africa phosphorite is expected to decline supply. The world's largest exporter of phosphate rock, Tunisia, Morocco outbreak parade Egypt and several other Middle East north African country situation is volatile, and will lead to international phosphate rock reduction in supply. Africa and the Middle East accounts for 30% of global output phosphate rock, and exports are accounted for nearly 80%. Mid-february Morocco phosphorite fob price rises 2-5 dollars/tonne to 135-145 usd/ton.

International sulfur follow international oil prices. The Middle East tensions and international oil price soaring high cases, sulphur prices will remain high. India has by 2 months sulfur cif early 197 dollars/tonne rise to 218 dollars a ton.

International phosphate demand. Recent international phosphate source nervous, India purchasing impeded, face strong demand, India's government has decided that from April 1, ammonium by two guiding price $450 / ton rise to $580 / ton. We expect in the second quarter of India, South America with rich demand is expected to exceed expectations.

Vietnam imposed export tariffs yellow phosphorus, raising phosphorite export tariff rate. Vietnam plans to impose 15 per cent of yellow phosphorus exports export tariffs to protect natural resources and limit environmental harmful enterprise's expansion, Vietnam currently yellow phosphorus yield in 3 tons/year, mainly for export, According to variety, phosphorite export taxes already in 2010 November by 7% rise to 10%, 15%.

Domestic demand, phosphate rock phosphate fertilizer price rise. Early yunnan phosphorite prices 50-70 yuan/ton, other area followed rise. After that hubei area phosphate rock price rise 20 yuan/ton, partial enterprise has appeared rised psychology, rising expectations formation. We expect phosphorite is in long-term price channels.

Domestic phosphorous chemical industry expected to be in third quarter earnings upgrades. In the second quarter of domestic demand into the off-season, phosphate, domestic exports increased with three phosphorous chemical will substantially benefit global phosphorous chemical boom.