YYTH(SH:600096) Zhong Guo Jing Ying Bao·2025-12-11 11:04Core Viewpoint - The domestic phosphate fertilizer industry is facing severe challenges due to the continuous rise in sulfur prices, prompting Yunnan Yuntianhua to issue an initiative to stabilize supply and prices [2][3]. Group 1: Industry Challenges - Sulfur prices have surged from 1500-1800 RMB/ton at the beginning of the year to approximately 4300 RMB/ton currently, representing an increase of over 100% [2]. - As of November 20, 2025, the average sulfur price reached 2298.36 RMB/ton, up 110.51% from 2024, and has remained above the upper limit of the price range for the past five years since the third quarter [3]. - The price of sulfur at Zhenjiang Port increased from 2620 RMB/ton in mid-September to around 4000 RMB/ton recently [3]. Group 2: Company Response - Yunnan Yuntianhua's initiative emphasizes multiple measures to ensure supply and stabilize prices, leveraging its full industry chain and production capacity [2]. - The company is committed to maintaining full production capacity and absorbing cost increases without passing them onto downstream customers [3]. Group 3: Market Dynamics - The current high sulfur prices are driven by external market influences, recovering downstream demand, and a bullish sentiment within the industry [3]. - As of December 4, the mainstream granular sulfur price at Zhenjiang Port reached 4110 RMB/ton, marking a 3.79% increase from the end of November [4]. - The phosphate fertilizer market is under pressure, with losses reported for monoammonium phosphate and diammonium phosphate production [3]. Group 4: Future Outlook - Short-term expectations indicate that the sulfur spot market will likely maintain a high-level consolidation, with cautious purchasing behavior from end-users and traders [5]. - Analysts predict a potential continued upward trend in sulfur prices, with the possibility of domestic prices exceeding 5000 RMB/ton due to ongoing demand and limited supply [5].