According to industry data, the price of yellow phosphorus reached 31,250 yuan per ton last week, up 17.92% month-on-month. On the supply side, Sichuan Province introduced a power curtailment policy, and some enterprises' installations were suspended. Yellow phosphorus enterprises in Mabian and Mianyang in Sichuan were all shut down due to the impact of power restrictions, and yellow phosphorus enterprises in Ya'an were operating with reduced load; some enterprises in Yunnan Province were under maintenance.

    In 2021, the national effective yellow phosphorus production capacity is 1.4345 million tons respectively. Among them, Yunnan, Sichuan and Guizhou are the top three provinces in terms of production capacity, accounting for 46%, 23% and 19% respectively. According to industry media reports, as of August 19, the Sichuan yellow phosphorus plant was almost completely shut down, and the yellow phosphorus inventory was also at a low level, even out of stock, affecting more than 20% of the national yellow phosphorus production capacity. Institutional analysis pointed out that benefiting from the high prosperity of new energy vehicles, the gradual release of demand in the energy storage field and the increase in the market share of lithium iron phosphate power batteries, the demand for lithium iron phosphate batteries has grown rapidly, driving the vigorous development of phosphorus chemical companies. It is expected that in 2025 the global demand for iron phosphate will reach 3.09 million tons, and the domestic demand will reach 1.98 million tons.