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The estimated current total world capacity for elemental phosphorus (P4) is approximately 1.5 million metric tons per year. China accounts for the largest share at about two-thirds. China has greatly increased its capacity during the past decade, primarily with a large number of small plants, many of which are believed to be idle at present. Kazakhstan and the United States account for about 13% and 8% of world capacity, respectively. Western Europe accounts for about 6%, with Russia at about 4% and India with the remainder. There has been significant rationalization in this industry during the past ten years, largely because of the diminishing use of sodium phosphates in home laundry detergent powders. The development of capacity to produce technical-grade phosphoric acid from wet agricultural acid has also resulted in the loss of market share for thermal acid produced from elemental phosphorus. Monsanto in the United States, Thermphos in the Netherlands and Kazphosphate in Kazakhstan are the primary producers of yellow phosphorus worldwide.
The following pie chart shows world capacity for elemental phosphorus in 2004:

Consolidation and withdrawal of some producers have left the industry split among a few large players and many small-scale Chinese producers. Major producers expect the market to improve with the exit of smaller Chinese phosphorus producers. Increased focus is being given to specialty phosphorus products and companies are realigning their strategies to include specialty phosphorus compounds in their plans.
Thermal phosphoric acid is the primary end-use market for elemental phosphorus and accounts for about 60% of world phosphorus consumption.
Demand for elemental phosphorus had declined sharply over the past decade because of environmental restrictions on the use of phosphates (particularly as a builder in laundry detergents) and competition from less costly purified wet-process phosphoric acid. The decline in elemental phosphorus demand resulted in capacity decreases in both Europe and North America and, in concert with high electric power costs, caused Japan to cease yellow phosphorus production entirely. Capacity in the former USSR fell, primarily because of economic, production and infrastructure difficulties. In contrast, China’s elemental phosphorus production was rapidly increasing, and its exports of elemental phosphorus and its derivatives impacted the industry in other parts of the world. With the advent of power shortages in 2004, China’s position somewhat eased although it is continuing to dominate the market.
In contrast to the decline in acid demand, demand for the major phosphorus chemicals (phosphorus trichloride, phosphorus pentasulfide, phosphorus pentoxide and sodium hypophosphite) has increased over the past five years and some additional growth is anticipated. Phosphorus trichloride (PCl3) has become the leading end use for elemental phosphorus, with about two-thirds of PCl3 used to manufacture glyphosate-based herbicides.
Consumption of these chemicals in the United States, Western Europe and Japan, including captive use, amounted to about 173 thousand metric tons (P4 basis) in 2004. Phosphorus chlorides represent the largest consumption sector at about 122 thousand metric tons P4, followed by phosphorus sulfides at about 30 thousand metric tons (P4).
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