Huatai Securities: It is expected that the yellow phosphorus industry will improve, and downstream industries such as phosphoric acid may also benefit from this trend.

Huatai Securities research report stated that benefiting from the growth in demand for downstream phosphoric acid and terminal new energy positive electrode materials, electronic grade phosphoric acid, and refined phosphate salts, it is expected that the demand for yellow phosphorus will improve. In addition, with high prices of sulfur and sulfuric acid, the cost competitiveness of thermal phosphoric acid over wet phosphoric acid is gradually becoming more prominent, which may further boost the demand for thermal process phosphoric acid and yellow phosphorus. On the supply side, due to high energy consumption and restrictions on safety and environmental protection, domestic new capacity for yellow phosphorus is strictly controlled, and under the dual carbon policy, existing high-energy-consuming capacity may face pressure to clear out. It is expected that the prosperity of yellow phosphorus may rise under the favorable supply and demand situation, and downstream phosphoric acid and other prosperities may also be driven. Companies with reserves of yellow phosphorus production capacity and leading integrated enterprises in phosphate ore-yellow phosphorus-phosphoric acid may benefit.