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Glyphosate China Monthly Report, from a global perspective, will keep track of latest dynamics, hotspots and competitiveness analysis, and forecasts on market trends of China’s glyphosate industry.

Glyphosate China Monthly Report, from a global perspective, will keep track of latest dynamics, hotspots and competitiveness analysis, and forecasts on market trends of China’s glyphosate industry.

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    Glyphosate China Monthly Report 2011.pdf Glyphosate China Monthly Report 2011.pdf Document Transcript

    • Glyphosate China Monthly Report Vol. 3 Issue 01 , 2011 Copyright © CCM International Limited
    • Glyphosate China Monthly Report Vol. 3 Issue 01 Publication date: 20 January, 2011 Content ■ Company Dynamics Chemchina acquires 60% share of Makhteshim-Agan .................................................................... 1 Nantong Jiangshan: Government subsidy aids profit .................................................................... 1 ■ Global Dynamics EU cancels anti-dumping measures on Chinese glyphosate ...........................................................2 ■ Market Analysis High cost and unstable supply result in Chinese DEAs little use in glyphosate ............................ 3 Domestic glyphosate 41% IPA dominates Chinese market .............................................................3 Phosphorus resource determines global glyphosate distribution and redistribution ....................4 AEA route to remain dominance in future 3 years .......................................................................... 5 ■ Price Analysis Glyphosate price keeps stable in January 2011 ............................................................................... 5 ■ Registratioin Glyphosate 41% IPA dominates China’s glyphosate registration ....................................................6 ■ Export Analysis Glyphosate export price uptrend continues in November 2010 ..................................................... 7 - MIPA Survey in China China Crop Protection Summit 2011 - Future Prospect of Genetically Modified Crops - Glycine Survey in ChinaWill be held during 18 - 19 March, Shanghai - Production and Market of Paraquat in ChinaWelcome to join with us. - Outlook for China Glyphosate Industry 2009-2014Click here for Event Details. - The Survey of 2,4-D in China - IDAN Survey in ChinaDynamic Database - ValoTracer CCM newsletters related to Glyphosate: - Herbicides China News - Crop Protection China News - Insecticides China News - Fungicides China NewsOnline & real-time consulting system CCM trade analysis related to Glyphosate:Coming Reports from CCM: - Glyphosate- Global Commercial Opportunities Derived from - ClomazoneGlyphosate Industry (To be launched in Apr. 2011) - Paraquat- Global Chlorpyrifos Survey - Fluroxpyr - DicambaReady Market Reports: - 2,4 D-Production and Market of Chlorpyrifos in China - ……-Survey of Pesticide Industry in China –Edition 2- Nicosulfuron Survey in China
    • Glyphosate China Monthly Report Vol. 3 Issue 01, 2010 HeadlinesEditor NoteWelcome to Glyphosate China Monthly Report 1101, ■ Chemchina acquires 60% share of Makhteshim-Agan, which wouldthe first issue of the third volume. Glyphosate China accelerate its subsidiaries glyphosate business exploitation in overseasMonthly Report collects the breaking news and raises market.the hottest topics occurred in China’s glyphosateindustry, help you reveal mysteries in glyphosate and ■ Nantong Jiangshan acquires government subsidiary and may enjoyrelative industries. positive profit.Entering the new year 2011, Chinese glyphosate has ■ EU formally cancels anti-dumping measures on Chinese glyphosatebeen undergoing the gloomy market for over two in December 2010.years, and the glyphosate price remains undervalued,resulting from the severe surplus capacity and ■ High cost and unstable supply result in domestic DEAs little use instagnant overseas demand. Chinese glyphosate.After many years’ attempt and endeavor, Chinese ■ Domestic glyphosate 41% IPA dominates Chinese market, thanks tocompanies’ overseas merging in agrochemical many advantages over other formulations.businesses has achieved great progress. ChemChinahas signed agreement to acquire 60% share of ■ Phosphorus resource determines global glyphosate distribution andMakhteshim-Agan, one of the global top 10 pesticide redistributionsuppliers. After the acquisition, ChemChina couldintegrate its agrochemical business globally, and ■ AEA route to remain the dominance in future 3 years, thanks to itsglyphosate products produced by its subsidiaries production cost advantage.could be sold in overseas market via Makhteshim-Agan sales network. The successful acquisition will ■ Prices of glyphosate products experienced slight fluctuation innot only help ChemChina for its overseas market January, reflecting the stagnant market.exploitation in agrochemical business, but also seta good example of the overseas acquisition and ■ Glyphosate export price uptrend continues in November 2010merging for Chinese company. ■ Glyphosate 41% IPA dominates China’s glyphosate registration,Presently, China encounters stalled increase of reflecting the its promising market.glyphosate export, the formal termination of anti-dumping measures on China’s glyphosate in theEU market seems a good news, but there are Main companies mentioned in this issuemany challenges for Chinese companies’ marketexploitation there. Chinese companies shouldovercome difficulties to seize the high-end market inEU and gain relatively higher profit.CCM International Limited II www.cnchemicals.com
    • Glyphosate China Monthly Report Vol. 3 Issue 01, 2010■ Company Dynamics Chemchina acquires 60% share of Makhteshim-AganC hina National Chemical Corporation (ChemChina)’s acquisition ofMakhteshim-Agan Industries Ltd. (MAI) The deal is China’s largest overseas acquisition case in agrochemical field, and this successful transaction will ChemChina, China’s largest chemical corporation fully owned by the Chinese government, operates in six major fields:has achieved great progress. On January help Chinese companies carry out more basic chemicals, special chemicals, refined8, 2011, after the approval of MAIs Audit overseas merging. In the past years, petroleum products, agrochemicals,Committee and Board of Directors, it some Chinese companies attempted to rubber products, and chemicalsigned an agreement with ChemChina acquire overseas agrochemical producers equipments. ChemChina’s agrochemicalsAgrochemical Corporation, a subsidiary but failed. In 2007, ChemChina gave up activities are centered in its subsidiaryof ChemChina, to carry out a merger, taking over Australias Nufarm because ChemChina Agrochemical Corporation,whereby all the holdings of the public of the failure of some agreement, and which holds six subsidiaries includingshare of MAI (53% of the total) and another Chinese state-owned giant Sanonda Group, Cangzhou Dahua Group,7% share of MAI’s current controlling Sinochem Corporation had also failed to Shandong Dacheng Chemicals Group,shareholder Koor Industries Ltd. (Koor) acquire Nufarm in 2009. Jiangsu Anpon Electrochemical Co.,would be purchased. Ltd., Jiangsu Huaihe Chemical Co., Ltd. The transaction would help ChemChina and Jiamusi Heilong Agricultural andAfter the transaction, MAI would become establish overseas network in Industrial Chemical Co., Ltd.a private company under joint ownership agrochemicals business, including Jiangsu Anpon Electrochemical Co., Ltd.of ChemChina (60%) and Koor (40%). glyphosate. and Sanonda Group’s listed subsidiaryChemChina will cost USD1.44 billion for Hubei Sanonda Co., Ltd. have glyphosatethe deal, of which USD1.272 billion will After the transaction, ChemChina can technical production lines with capacitybe used for buying the 53% public share take advantages of MAI’s sales network of 10,000t/a and 20,000t/a respectively.of MAI and USD168 million for buying to sell glyphosate produced by itsthe 7% shares from MAI’s current parent subsidiary members. According to CCM MAI is a leading global manufacturercompany, Koor. international’s in-depth glyphosate export and distributor of generic crop protection analysis report, MAI has imported more products. With sales of USD2.2 billion inUnder the deal, Koor will retain 40% than 5,000 tonnes of glyphosate technical 2009, MAI ranks the seventh in globalshares of MAI and ChemChina will from China annually. agrochemical companies and the fourth inarrange a seven-year non-recourse loan Europe, with a global share of over 5% inof USD960 million to Koor, extending the As to MAI, the transaction will also help crop protection market. But MAI has onlydeal size to USD2.4 billion. The loan is for its market exploitation in China, a registered two pesticides namely ametryntaken on mortgaging Koors 40% stake in large and expanding agrochemical market and trifluralin in China.MAI, which could be repaid either by cash in the world.or through selling shares of MAI. Nantong Jiangshan: Government subsidy aids profitO n January 11, 2011, Nantong Jiangshan Agrochemical &Chemicals Co., Ltd. (Nantong Jiangshan) capacity of 70,000t/a, has encountered continuous profit loss in the past six quarters, due to the gloomy undervalued According to CCM International’s monthly export analysis report, Nantong Jiangshan has exported 33,526 tonnesannounced its estimated positive profit market price of glyphosate, one of the of glyphosate technical and 3,960 tonnesin the fiscal year 2010. The expected major business in Nantong Jiangshan. formulations in the first eleven monthspositive profit is attributed to the local this year, indicating the operation rate ofgovernment’s subsidiary with amount Because of China’s severe surplus supply about 60%.totaled USD21.4 million (RMB140 and stagnant overseas demand, Chinesemillion). glyphosate price had kept in the low It’s reported that operation rate of AEA level in the whole year 2010, and many route glyphosate in Nantong JiangshanThe positive profit in 2010 will make glyphosate manufacturers suffered low is very low and this production line withNantong Jiangshan avoid the warning operation rate and profit deficit. capacity of 30,000t/a had suffered greatfrom China Securities Regulatory loss, which directly resulted in huge lossCommission (Note from CCM: According According to Nantong Jiangshan’s in major business.to Chinese Securities Law, listed company company’s Annual Report 2009 andwith negative profit for consecutive Semi-Annual Report 2010, glyphosate Now Nantong Jiangshan is endeavoringtwo years should be marked as special business has taken up about 50% of the to raise money to relieve its cash flowtreatment in the Stock Exchange). total revenue. But profit rate of glyphosate pressure and expand investment in some technical is very low. The company has constructing projects.Nantong Jiangshan, the second largest reported a gross profit margin of 1.91% inproducer of glyphosate technical with the Semi-Annual Report 2010. On 4 January, 2011, Nantong Jiangshan CCM International Limited 1 www.cnchemicals.com
    • Glyphosate China Monthly Report Vol. 3 Issue 01, 2010announced that it had decided to transfer stockholder Nantong Industries Holding Sinochem International would offer19.65% shares of its subsidiary Nantong Group Co., Ltd. a consignment loan with amount ofJiangtian Chemicals Company (Nantong USD45.5 million (RMB300 million) toJiangtian) with value of USD4.41 million On 11 January 2011, Nantong Jiangshan Nantong Jiangshan.(RMB29.44 million) to its second largest announced that its largest stakeholder■ Global Dynamics EU cancels anti-dumping measures on Chinese glyphosateO n December 16, 2010, the European Union (EU) announced on its officialwebsite that European Commission imports of glyphosate originated from China in 1995. Some Chinese glyphosate producers such as Wynca and Good analysis, China had directly exported about 2,500 tonnes of glyphosate technical and about 4,000 tonnes ofhad decided to terminate anti-dumping Harvest-Weien have actively responded glyphosate formulations to EU in 2009,measures on glyphosate products to the case and appealed against EU’s only constituting 1.31% of China’s totaloriginated from China since December anti-dumping duties levied on Chinese export volume of glyphosate AI in 2009.13, 2010, indicating that the over 15- glyphosate, from then on, different anti-year anti-dumping dispute has drawn to dumping rate have been imposed in However, Chinese glyphosatean end. The final judgment will promote different periods. The long time anti- manufacturers will face two majorChinese exporters enthusiasm about dumping war between EU and Chinese difficulties as before in extendingexploiting EU market, but there are still glyphosate exporters has experienced ups glyphosate business in the EUmany challenges for Chinese exporters. and downs. market. For one thing, it is hard for Chinese enterprises to compete withThe final judgment is based on EU’s one In the former times of EU’s temporary multinationals and local enterprises thatyear investigation during September 2009 cancellation of anti-dumping, many have existing various sales channels,to September 2010. On 29 September Chinese glyphosate producers expressed especially Monsanto.2009, the European Glyphosate that they had not been encouraged byAssociation appealed expiry review the good news, because of anxiety about For another, too high certificationfor anti-dumping duties on Chinese the resumed anti-dumping duties later. fees, such as cost on impurity contentglyphosate to the European Commission, The final judgment, which ends the anti- identification and environmental riskand then European Commission resumed dumping process on Chinese glyphosate test, are obstacles on Chinese producersinvestigation. No proof on Chinese in EU market, will promote Chinese way to compete in EU market. EU hasglyphosates dumping actions has been manufacturers’ enthusiasm for exploiting been stringent in glyphosate qualityfound after one-year investigation, and EU market. Now market share of Chinese and formulated high requirementsthe complainant withdrew the petition glyphosate in EU is very small and has for imported glyphosate, such as GLPin September 2010. In October 2010, great potential to increase in the future. certification.some Chinese glyphosate manufacturerssuch as Jiangsu Good Harvest-Weien According to CCM’s import/exportAgrochemical Co., Ltd. had receivedthe pre-notification of European TABLE 1: EU’s anti-dumping investigation into Chinese glyphosate, 1995-2010Commission’ final judgment on anti-dumping dispute. Time EU’s action 1995 Initiated anti-dumping investigationThe final judgment of sunset review Feb. 1998 Levied 24% anti-dumping dutieswould draw the 15-year dispute of 2000 Levied 48% anti-dumping dutiesthe dumping charge on Chineseglyphosate to an end. 24 Sept. 2004 Levied 29.9% anti-dumping duties May 2009 Temporarily cancelled anti-dumping duties for 9 months.For the sake of protecting EU Sept. 2009 Initiated expiry reviewenterprises against dumped imports Feb. 2010 Extended suspension of anti-dumping duties for one yearfrom the countries who are not Dec. 2010 Formally terminated anti-dumping dutiesmembers of the EU, EU initiated Source: CCM internationalanti-dumping investigation into the CCM International Limited 2 www.cnchemicals.com
    • Glyphosate China Monthly Report Vol. 3 Issue 01, 2010■ Market Analysis High cost and unstable supply result in Chinese DEAs little use in glyphosateT hough domestic DEA capacity and quality could satisfy DEA routeglyphosate technical production, only a TEA being its major product. "Some newly launched EA production lines use equipments with the world’s than domestic manufacturers. Thirdly, overseas producers have deliberate strategy to purchase raw materials whensmall amount of domestic DEA has been advanced level." Mr. Xu added. its price is low.’used in China’s glyphosate production.The main reasons accounting for this are "The main reason for the little use of Mr. Tan, area sales manager from Dowthe higher cost and unstable supply of domestic DEA in glyphosate production Chemical said one main reason for thedomestic DEA. is the price disadvantage." Said Mr. Xu. little use of domestic DEA in glyphosate is the unstable supply. "As the rawCCM International’s former According to CCM International’s DEA material EO is controlled by Chinainvestigations have shown that the main import analysis, price of imported DEA National Petroleum Corporation or Chinareason for the little use of domestic DEA (importer’s price) is about USD1,200/t Petroleum & Chemical Corporation, EAin glyphosate production might be its (RMB8,000/t), only two thirds of China’s producers should apply for the use of EOpoor quality. But recent interviews with homemade DEA. from the two state owned giants, resultingsome professionals in DEA market have in the unstable production of EA."revealed that domestic DEA, after many Mr. Xu expressed that there are threeyears’ improvement, can satisfy domestic main reasons accounting for the "The domestic DEA quality is not the keyglyphosate production. lower price of imported DEA. ‘Firstly, reason for the little use in glyphosate, overseas producers usually have both though it is relatively poorer than"Glyphosate technical produced by EO production lines and EA production imported product." Tan added.imported DEA and homemade DEA are lines, which could enjoy lower cost, butwithout significant difference. Chinese China’s EO production is controlled by According to Tan, Jiangsu Yinyanglyphosate produced from domestic DEA state-owned China National Petroleum Specialty Chemical Co., Ltd., the onlyis acceptable in overseas countries." Said Corporation and China Petroleum Chinese company producing both DEAMr. Xu Qingwei, area sales manager of & Chemical Corporation. Secondly, and glyphosate technical, sometimes usesFushun Jiahua Chemicals Co., Ltd., an EA overseas companies have more advanced imported DEA alternatively to produceproducer with capacity of 20,000t/a and technology and hence higher yield glyphosate. Domestic glyphosate 41% IPA dominates Chinese marketA s glyphosate 10% SL is gradually withdrawing Chinese market, domestic glyphosate 41% IPA with excellent effect,which has been effectively promoted in 2009 and 2010, has 60% in 2011, which is five times more than that in 2008. In fact, based on domestic glyphosate 41% IPA’s advantages,become the first choice for Chinese peasants. the dominance of homemade glyphosate 41% IPA in China is an inexorable trend.In February 2009, Chinese government issued anadministrative regulation to ban the registration and production ■ 41% IPA vs. other formulationsof glyphosate formulation with AI content (calculated byglyphosate acid technical) lower than 30% since January 1, Many glyphosate formulations have been registered in China,2010, and glyphosate 10% SL, the most popular glyphosate including IPA salt liquid, ammonia salt liquid, sodium saltformulation used in China before, would withdraw the market liquid, potassium salt liquid, soluble powder and solublegradually in the following two years (Chinese pesticides has two granule, with a variety of grades, but the most popularyears’ quality guarantee period). The exit of glyphosate 10% SL formulations registered is glyphosate 41% IPA.has left large market for other glyphosate formulations that canmeet the new AI content requirement (glyphosate acid content Compared with other formulations, glyphosate 41% IPA has theshould be not less than 30%). following advantages:Glyphosate 41% IPA is expected to be the most popular 1) Peasants’ familiarity. Monsanto’s well-known brandformulation in the future. In 2009 and 2010, most producers ‘Roundup’ has built very good reputation in China with itswho registered glyphosate 10% SL before had changed their excellent weed control competence and convenient usage,registrations to glyphosate 41% IPA, and new applications and Chinese peasants are very familiar with the function andalso considered glyphosate 41% IPA as the first choice. spraying method of ‘Roundup’. Thus, homemade glyphosateMany domestic glyphosate producers devote their energy 41% IPA, the similar weed control effect and spraying techniquein glyphosate 41% IPA promotion in the past two years. Its as Roundup, is very acceptable by Chinese peasants.estimated that the proportion of domestic glyphosate 41% IPAin China’s total glyphosate consumption volume will exceed 2) Convenient usage. Compared with SP or WSG CCM International Limited 3 www.cnchemicals.com
    • Glyphosate China Monthly Report Vol. 3 Issue 01, 2010 41% IPA is relatively lower than the world’s famousformulations, 41%IPA is easier to be used. brand Roundup. But with the technology improvement of domestic glyphosate 41% IPA, the gap of weed efficacy3)High weeding efficacy. Many researches have shown that between domestic glyphosate 41% IPA and Roundup isglyphosate IPA formulation has the highest efficacy among the being shortened. It’s reported by many companies thatexisting formulations when used in the same dosage. domestic glyphosate 41% IPA formulations have no significant differences in many compulsory indices when4)Low technological requirement and guaranteed quality. compared with Roundup.Processing technology of glyphosate 41% IPA is relatively lowand can be grasped by most producers. Its actual effect is mainly As the domestic glyphosate 41% IPA has price advantagedetermined by the performance of added adjuvant. But glyphosate over imported Roundup, coupled with the increasingWSG formulation, with higher AI content than 41% IPA, requires high promotion of domestic glyphosate 41% IPA, manyprocessing technology, and its quality can’t be as stable as 41% IPA. Chinese peasants choose to buy homemade product in a low price and without no significant efficacy inferiority.■ Domestic glyphosate 41% IPA vs. Roundup It’s a fact that consumption volume of Roundup in China is decreasing year by year in recent 5 years.Frankly, the comprehensive weeding efficacy of domestic glyphosate Phosphorus resource determines global glyphosate distribution and redistributionW hen regarding to the question why China is the world’s largestproduction base of agrochemicals, To produce a tonne of glyphosate technical, about 1.2~1.5 tonnes of phosphorus trichloride is needed. China, the content of converted phosphorus pentoxide in the phosphate ore is higher than 30%) will be used up within 20 yearsmany people may consider China has the largest production area of glyphosate if China keeps exploring phosphoruslow manpower cost, low environmental technical, could consume more than resource at such a high rate in the futureexpenditure cost as well as good 130,000 tonnes of yellow phosphorus, years.chemical industry foundations. In fact, which constitutes 14~15% of China’s totalthe accessibility of some nonrenewable output. Fortunately, Chinas has banned theresource for producing some irreplaceable export tax rebate and levied high exportraw materials, is a very important factor As a kind of non-renewable resource, tax of yellow phosphorus and phosphatedetermining global pesticide distribution. phosphorous resource has been well ores, which has slowed down the exportAs to the glyphosate industry, the key protected in other countries that are also of low added-value phosphorus products.resource phosphorus has determined rich in phosphorus reserves. Exploitationglobal glyphosate distribution and in those countries has slowed down and Pesticide production is being movedredistribution. phosphorus ores output saw a downtrend toward the raw material or resource in recent years. So the cost of importing productive areas in the world.Recently, CCM International has carried phosphorus resource to produceout a survey on evaluating the importance downstream agrochemicals is very high Only a few countries own a large amountof factors determining the destination and less competitive in the global market. of phosphorus resource, and the possiblearea to which future glyphosate technical regions of new glyphosate technicalcapacity may be transferred. More than China, the second largest reserve of production base, if there is, would be in70% of the respondents who are all phosphorus resource, has the highest the regions or countries near by thesespecialists in glyphosate industry have exploitation speed of phosphorus countries. However, the glyphosatechosen the phosphorus resource as the resource in the world and exported the technical capacity transfer is alsomost important factor. largest amount of phosphate ores and restricted by other factors such as cost, its downstream products including available manpower, foundation of basicGlyphosate, the most widely used glyphosate. chemical industry, etc.pesticide in the world with annual globalconsumption volume of about 650,000 In the 2010 Symposium for China’s Detailed research about the globaltonnes presently, is an organophosphorus Glyphosate Industry held in Hangzhou phosphorus distribution and in-depthpesticide, and its development is in May, Professor Zhang Yibin from analysis of the possibility of glyphosatehighly depended upon the upstream Shanghai Pesticide Research Institute capacity transfer among countries, pleaseraw material, phosphorus trichloride. has put forwards that limited phosphorus pay attention to CCM International’sThe abundant phosphorus resource is resource will become a main threat unique report “Opportunities Derivedone important reason for China’s large to China’s glyphosate industry in from Global Glyphosate Industry”amount export of phosphate ore and the long run. He quotes a Chinese which is to be finished in April 2011, orits downstream products including Academician’s research that China’s high the future issues in Glyphosate Chinaglyphosate. grade phosphate ore (note from CCM: Monthly Report. high grade phosphate ore means that CCM International Limited 4 www.cnchemicals.com
    • Glyphosate China Monthly Report Vol. 3 Issue 01, 2010 AEA route to remain dominance in future 3 yearsA EA route to produce glyphosate, the first route developed and solelyadopted in China, will keep its dominance in CCM International who is taking charge of this research, the production cost of AEA route is about USD300/t environmental expenditure between AEA route and IDA route is being shortened.in the short term due to its lowest (RMB2,000/t) lower than IDAN route It should be noticed that AEA route’sproduction cost. or DEA route at present. “Taking the by- cost advantage is not absolute in the long product recycle into consideration, the run. If the production cost in IDA routeThree routes, namely AEA route, DEA total production cost by adopting AEA or IDAN route significantly decreases,route and IDAN route are all operated in route could be USD450/t (RMB3,000/ resulting from the improvement of rawChina’s glyphosate technical production, t) lower than IDAN and DEA route.” said material synthesis technology or IDAwith designed capacity proportion of Gavin Yin. route glyphosate synthesis technology,60%, 18% and 22% separately in 2010. the raw material cost advantages inWith the increasing consideration in “Furthermore, the price of glycine, key AEA route will disappear. And if Chinaglyphosate industry integration, the raw material in AEA route glyphosate, implements stricter environmentdevelopment trend of the three routes is the least sensitive to the change of discharges regulations, the gap ofis an interesting topic and hot issue at primary energies petroleum and natural environmental expenditure between AEApresent. gas prices. The cost advantages in AEA route and IDA route will be broadened. route will be larger in the period ofAccording to CCM’s latest research, which petroleum’s price uptrend.” Gavin Yin Nevertheless, CCM International predictsis a part of CCM International’s unique said. that AEA route will still dominate China’sreport “Opportunities Derived From market in the future three years. NowGlobal Glyphosate Industry”, AEA route With over two decades’ development, three of China’s top five glyphosatewill still dominate the market in the short China’s AEA route glyphosate have manufacturers, including Zhejiangor medium term (less than three years) in achieved great progress, and the yields Wynca, Sichuan Fuhua Group Co., Ltd.the future. in many synthesis steps have made and Zhejiang Jinfanda Biochemical achievement, and it’s the most mature Co., Ltd., adopt AEA route with totalGenerally, cost and quality determine a route. capacity over 230,000/t (capacity in theirproduct’s comprehensive competiveness subsidiaries are also included). Theseand its development trend. Although Though AEA route glyphosate has companies have strongly comprehensivethe highest glyphosate AI content could disadvantage in waste water treatment competitiveness and are unlikelybe achieved in AEA route (max. 95%) is compared with IDAN or IDA route, the to be phased out during the marketinferior to that in DEA or IDAN route advantages in lower raw material cost competition.(max. 97%), Chinese glyphosate technical and higher gain in by-product recyclingproduced by AEA route is widely accepted can completely offset the higher waste More details and in-depth analysis aboutby most overseas countries. So the water treatment expenditure. In fact, comparisons in different route andfactor of glyphosate product quality is the waste water treatment technology in their development trends, please paynot an important factor regarding to AEA route has achieved great progress. attention to CCM International’s reportcompetitiveness and development trend The membrane filtration technology, Opportunities Derived from Globalin the future. which has lower cost than the traditional Glyphosate Industry to be published in evaporation technology, has been April 2011.According to Gavin Yin, senior researcher introduced in AEA route, and gap of■ Price Analysis Glyphosate price keeps stable in January 2011I n mid January 2011, average ex-works quotation of the Chinese glyphosatetechnical is USD3,493/t (RMB23,000/ could supply products on the instant. The low price of glyphosate products also reflects the stagnant market in overseas season at present. It’s predicted that glyphosate price willt), down 1.29% over the previous month. countries at present, as the corresponding keep stable and the low operating rateGlyphosate formulations see small period before had been the peak season of will continue in the following month, asfluctuation, 62% IPA and 75.7% WSG glyphosate demand and hence the price the glyphosate transaction will decreaseenjoy slight increase whereas 10% SL and uptrend. and the more production lines will be41% IPA see small decrease. suspended during this period due to the Affected by the downstream glyphosate, Chinese Spring Festival Vacation. InThe prices of glyphosate products are key raw materials also keep relatively the long term, Chinese glyphosate willstill undervalued, and the operating rate stable in January 2011. DEA price and see significant increase compared withof glyphosate technical in China is very glycine price maintain the same as the current level because of the increasinglow (less than 30%). It’s investigated by previous month, whereas IDAN price sees cost in manpower and environmentalCCM International that many glyphosate slight increase because of the relatively expenditure.technical manufacturers have stocks and tight supply of natural gas in the cold CCM International Limited 5 www.cnchemicals.com
    • Glyphosate China Monthly Report Vol. 3 Issue 01, 2010 TABLE 2: Price of glyphosate products and key raw materials, January 2011 Jan. 2011 Dec. 2010 Price change Products USD/t RMB/t USD/t RMB/t MoM Yellow phosphorus 2,227 14,700 2,269 15,100 -2.65% DEA 1,970 13,000 1,954 13,000 0 Glycine 1,899 12,500 1,878 12,500 0 IDAN 1,914 12,600 1,833 12,200 3.28% 10% SL 661 4,350 676 4,500 -3.33% 41% IPA 1,853 12,200 1,848 12,300 -0.81% Glyphosate formulation 62% IPA 2,248 14,800 2,208 14,700 0.68% 50% SP 2,293 15,100 2,298 15,300 -1.31% 75.7% WSG 3,676 24,200 3,605 24,000 0.83% Glyphosate technical (95%) 3,493 23,000 3,500 23,300 -1.29% PMIDA 2,066 13,600 2,028 13,500 0.74% Note: 1) Prices are monitored on January 14, 2011. 2) Price change is computed by RMB quotation. Source: CCM International■ Registratioin Glyphosate 41% IPA dominates China’s glyphosate registrationA s of 17 January 2011, there are 128 active registrations ofglyphosate technical, 464 of glyphosate glyphosate technical. The 127 registrants are mainly from registration. Among the 367 SL registrations, more than 310 are glyphosate 41% IPA. The second largestsingle formulations and 25 of mixed Jiangsu, Zhejiang and Shandong SL formulations are 33% glyphosateformulations. provinces, which are also the main ammonia salt, constituting about 5% of production areas of Chinese glyphosate. total glyphosate SL formulations.■ Glyphosate technicalThe 128 glyphosate technical registrations As China has banned the registration andare held by 127 companies including ■ Glyphosate single formulation production of glyphosate formulations6 foreign companies, namely Nufarm, 313 companies hold 464 single with AI content lower than 30% sineMonsanto, Syngenta, Agrolex, Excel, formulation registrations in China. 2010, many glyphosate producersMalaysia Crop Care. Zhejiang Wynca The 464 registrations consist of three changed their registrations to meet theChemical Industrial Group Co., Ltd. owns formulation types, namely SL (soluble requirement in 2009, and most of themtwo registrations, namely 95% glyphosate liquid salt, including IPA salt and chose to register glyphosate 41% IPA astechnical and 95.5% glyphosate ammonia other liquid forms of glyphosate salt), the substitution, indicating glyphosatesalt technical. The 128 registrations SP (soluble powder), and WSG (water 41% IPA will be the dominant promisingconsist of 124 registrations of glyphosate soluble granule), and the proportion of glyphosate formulation in China.acid technical and 4 registrations of three types are 79.26%, 12.53% and 8.21%glyphosate ammonia salt technical. The separately. There are mainly three contents ofpopular grade of glyphosate technical glyphosate soluble powder, namely 50%,registered in China is 95%, and Excel has As to the SL formulations, 41% 30%, 65%, and glyphosate 50% SP takesregistered the highest grade with 97% glyphosate IPA dominates the up 51.72% of the soluble powder.CCM International Limited 6 www.cnchemicals.com
    • Glyphosate China Monthly Report Vol. 3 Issue 01, 2010 As to the glyphosate soluble granule, ■ Glyphosate mixed formulation glyphosate formulation can heightenthere are a variety of contents including glyphosate’s control effect and shorten77.7%, 75.7%, 88.8%, 70%, 68% etc., There are 25 active glyphosate mixed the time to onset. Now the mixedwith glyphosate ammonia salt being the formulation registrations in China glyphosate is becoming a popular methodregistered AI. The solid glyphosate with at present, which are owned by 22 to solve the problem of weed’s increasinghigh AI content has the advantage of companies. MCPA-sodium is the popular resistance to glyphosate.convenient application and transport, but herbicide to be mixed with glyphosate.its actual effect is lower than glyphosate Dicamba, acetochlor, etc. are also usedIPA when compared at the same dosage. to mix with glyphosate. The mixed■ Export Analysis Glyphosate export price uptrend continues in November 2010■ Export volume 2010, with total import volume of 7,882 and 15 tonnes respectively.China has exported 12,647 tonnes of tonnes, taking up 62.33% of China’sglyphosate technical and 21,715 tonnes total export this month. Australia, ■ Manufacturersof glyphosate formulations in November Nigeria, Vietnam, Thailand and These glyphosate products exported in2010, maintaining the same level as the Indonesia are the top five importers November 2010 were manufactured byprevious month. Glyphosate technical of Chinese glyphosate formulations. more than 22 producers. According toexport suffered sharp decrease while Total export volume of glyphosate CCM International’s analysis, Zhejiangglyphosate formulation enjoyed great formulations to the five countries Wynca Chemical Industrial Group Co.,increase compared with the corresponding was 14,411 tonnes in November 2010, Ltd., Nantong Jiangshan Agrochemicalperiod of last year, indicating the constituting 66.37% of the total. & Chemicals Co., Ltd., Jiangsu Taicangincreasing acceptance of Chinese Pesticide Factory Co., Ltd. and Sichuanglyphosate formulations and increasing In November 2010, China has exported Fuhua Group Co., Ltd. were the topproportion of glyphosate formulations PMIDA to three countries namely four exporters of Chinese glyphosateexports. Argentina, India and Brazil, with technical in November 2010, with total volume of 2,007 tonnes, 900 tonnes volume of over 6,800 tonnes.■ Export PriceChina has exported 12,647 tonnes of TABLE 3: Export volume of glyphosate products, November 2010glyphosate technical and 21,715 tonnes Export Volume, tonne Changeof glyphosate formulations in November Product2010, maintaining the same level as the Nov. 2010 Oct. 2010 Nov. 2009 MoM YoYprevious month. Glyphosate technicalexport suffered sharp decrease while Technical 12,647 13,351 19,112 -5.27% -33.83%glyphosate formulation enjoyed greatincrease compared with the corresponding PMIDA 2,922 3,294 3,281 -11.29% -10.94%period of last year, indicating theincreasing acceptance of Chinese Formulation 21,715 17,636 14,409 23.13% 50.70%glyphosate formulations and increasingproportion of glyphosate formulations Note: Volume of formulation is the total of 41% IPA, 62% IPA and 75.7% WSG Source: CCM International’s Glyphosate Export Analysis Reportexports. TABLE 4: Export prices of glyphosate products, November 2010■ DestinationAccording to CCM International’s Export Price, USD/kg ChangeGlyphosate Export Analysis Report, 30 Productcountries (or regions) have imported Nov. 2010 Oct. 2010 Nov. 2009 MoM YoYChinese glyphosate technical and 54countries (or regions) have imported Technical 3.13 3.11 2.83 0.64% 10.60%Chinese glyphosate formulations inNovember 2010. PMIDA 1.83 1.89 1.69 -3.17% 8.28%Argentina, Indonesia, Australia and Formulation 1.89 1.85 1.60 2.16% 18.13%Malaysia are the top four importers of Note: Price is the average round valueChinese glyphosate technical in November Source: CCM International’s Glyphosate Export Analysis Report CCM International Limited 7 www.cnchemicals.com
    • Glyphosate China Monthly Report Vol. 3 Issue 01, 2010 FIGURE 1: Destinations of Chinese glyphosate technical, November 2010 Others, 20.12% Argentina, 19.10% S. Africa, 5.38% Uruguay, 5.69% Indonesia, 16.88% Guatemala, 6.48% Australia, 16.65% Malaysia, 9.70% Source: CCM InternationalCCM International Limited 8 www.cnchemicals.com
    • CCM International LimitedAddress: 17th Floor, Huihua Commercial & Trade Building, No.80 Xianlie Zhong Road Guangzhou, 510070, P.R.ChinaTel: +86-20-37616606Fax: +86-20-37616968Email: econtact@cnchemicals.comWebsite: www.cnchemicals.com