What are the key cost drivers and competitive dynamics for Chinese TSP producers?

What are the key cost drivers and competitive dynamics for Chinese TSP producers?
TSP production uses wet-process phosphoric acid to decompose phosphate rock, yielding calcium dihydrogen phosphate with no calcium sulfate byproduct. Key raw materials are phosphate rock, sulfur, and ammonia. In 2024, Yuntianhua saw input costs decline significantly: sulfur fell from RMB 1,269 to 1,187/tonne, coal from 1,132 to 989/tonne, and ammonia from 3,602 to 3,206/tonne year-on-year. This cost relief boosted phosphate fertilizer gross margins to 37.93%. Producers in Yunnan benefit from proximity to phosphate mines within 120 km, while coastal plants like Chuan Jinnuo's Fangchenggang facility, 20 km from port, offer logistics advantages for exports. The flexible production capability to switch between feed-grade phosphates, industrial phosphoric acid, and TSP allows companies to optimize product mix based on market conditions. Global TSP trade remains concentrated among China, Morocco, and Russia, with China's export competitiveness tied to both production costs and domestic price levels.