How does the Chinese feed-grade DCP market structure affect calcium hydrogen phosphate dihydrate availability?

How does the Chinese feed-grade DCP market structure affect calcium hydrogen phosphate dihydrate availability?
China's feed-grade calcium hydrogen phosphate (DCP) market is undergoing structural consolidation. Since 2011, national industrial policy has banned new DCP production lines and classified capacities below 30,000 tons/year as obsolete. This drove capacity down from 2016-2017 as smaller, less efficient plants exited under environmental pressure. Post-2018 recovery concentrated among resource-advantaged producers. In 2025, output reached 2.59 million tons (+18% YoY), but operating rates remained low at 52.3%, indicating significant idle capacity. A major shift occurred when Sichuan Lomon's subsidiary acquired Tianbao Animal Nutrition, adding 450,000 tons/year of feed-grade DCP capacity, further raising industry concentration. This consolidation supports price stability and improves supply reliability for downstream buyers, though regional cost disparities persist—provinces with cheaper phosphate rock and sulfuric acid maintain competitive edges.