Glyphosate China Monthly Report 2011.pdf

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 DEA's 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 China
Will be held during 18 - 19 March, Shanghai - Production and Market of Paraquat in China
Welcome to join with us. - Outlook for China Glyphosate Industry 2009-2014
Click here for Event Details. - The Survey of 2,4-D in China
- IDAN Survey in China

Dynamic Database - ValoTracer CCM newsletters related to Glyphosate:
- Herbicides China News
- Crop Protection China News
- Insecticides China News
- Fungicides China News
Online & real-time consulting system
CCM trade analysis related to Glyphosate:
Coming Reports from CCM: - Glyphosate
- Global Commercial Opportunities Derived from - Clomazone
Glyphosate Industry (To be launched in Apr. 2011) - Paraquat
- Global Chlorpyrifos Survey - Fluroxpyr
- Dicamba
Ready 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

Headlines

Editor Note
Welcome to Glyphosate China Monthly Report 1101, ■ Chemchina acquires 60% share of Makhteshim-Agan, which would
the first issue of the third volume. Glyphosate China accelerate its subsidiaries glyphosate business exploitation in overseas
Monthly Report collects the breaking news and raises market.
the hottest topics occurred in China’s glyphosate
industry, help you reveal mysteries in glyphosate and ■ Nantong Jiangshan acquires government subsidiary and may enjoy
relative industries. positive profit.

Entering the new year 2011, Chinese glyphosate has ■ EU formally cancels anti-dumping measures on Chinese glyphosate
been 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 DEA's little use in
stagnant overseas demand. Chinese glyphosate.

After many years’ attempt and endeavor, Chinese ■ Domestic glyphosate 41% IPA dominates Chinese market, thanks to
companies’ overseas merging in agrochemical many advantages over other formulations.
businesses has achieved great progress. ChemChina
has signed agreement to acquire 60% share of ■ Phosphorus resource determines global glyphosate distribution and
Makhteshim-Agan, one of the global top 10 pesticide redistribution
suppliers. After the acquisition, ChemChina could
integrate its agrochemical business globally, and ■ AEA route to remain the dominance in future 3 years, thanks to its
glyphosate 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 in
not only help ChemChina for its overseas market January, reflecting the stagnant market.
exploitation in agrochemical business, but also set
a good example of the overseas acquisition and ■ Glyphosate export price uptrend continues in November 2010
merging 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 the
EU market seems a good news, but there are Main companies mentioned in this issue
many challenges for Chinese companies’ market
exploitation there. Chinese companies should
overcome difficulties to seize the high-end market in
EU and gain relatively higher profit.

CCM International Limited II www.cnchemicals.com


■ Company Dynamics
Chemchina acquires 60% share of Makhteshim-Agan

C hina National Chemical Corporation
(ChemChina)’s acquisition of
Makhteshim-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, refined
8, 2011, after the approval of MAI's Audit overseas merging. In the past years, petroleum products, agrochemicals,
Committee and Board of Directors, it some Chinese companies attempted to rubber products, and chemical
signed an agreement with ChemChina acquire overseas agrochemical producers equipments. ChemChina’s agrochemicals
Agrochemical Corporation, a subsidiary but failed. In 2007, ChemChina gave up activities are centered in its subsidiary
of ChemChina, to carry out a merger, taking over Australia's Nufarm because ChemChina Agrochemical Corporation,
whereby all the holdings of the public of the failure of some agreement, and which holds six subsidiaries including
share 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 and
After 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 subsidiary
ChemChina will cost USD1.44 billion for Hubei Sanonda Co., Ltd. have glyphosate
the deal, of which USD1.272 billion will After the transaction, ChemChina can technical production lines with capacity
be 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 its
the 7% shares from MAI’s current parent subsidiary members. According to CCM MAI is a leading global manufacturer
company, 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 in
Under the deal, Koor will retain 40% than 5,000 tonnes of glyphosate technical 2009, MAI ranks the seventh in global
shares of MAI and ChemChina will from China annually. agrochemical companies and the fourth in
arrange a seven-year non-recourse loan Europe, with a global share of over 5% in
of USD960 million to Koor, extending the As to MAI, the transaction will also help crop protection market. But MAI has only
deal size to USD2.4 billion. The loan is for its market exploitation in China, a registered two pesticides namely ametryn
taken on mortgaging Koor's 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 profit

O 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 tonnes
announced its estimated positive profit market price of glyphosate, one of the of glyphosate technical and 3,960 tonnes
in the fiscal year 2010. The expected major business in Nantong Jiangshan. formulations in the first eleven months
positive profit is attributed to the local this year, indicating the operation rate of
government’s subsidiary with amount Because of China’s severe surplus supply about 60%.
totaled USD21.4 million (RMB140 and stagnant overseas demand, Chinese
million). 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 Jiangshan
The positive profit in 2010 will make glyphosate manufacturers suffered low is very low and this production line with
Nantong Jiangshan avoid the warning operation rate and profit deficit. capacity of 30,000t/a had suffered great
from China Securities Regulatory loss, which directly resulted in huge loss
Commission (Note from CCM: According According to Nantong Jiangshan’s in major business.
to Chinese Securities Law, listed company company’s Annual Report 2009 and
with negative profit for consecutive Semi-Annual Report 2010, glyphosate Now Nantong Jiangshan is endeavoring
two years should be marked as special business has taken up about 50% of the to raise money to relieve its cash flow
treatment 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% in
producer of glyphosate technical with the Semi-Annual Report 2010. On 4 January, 2011, Nantong Jiangshan

CCM International Limited 1 www.cnchemicals.com


announced that it had decided to transfer stockholder Nantong Industries Holding Sinochem International would offer
19.65% shares of its subsidiary Nantong Group Co., Ltd. a consignment loan with amount of
Jiangtian Chemicals Company (Nantong USD45.5 million (RMB300 million) to
Jiangtian) 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 glyphosate

O n December 16, 2010, the European
Union (EU) announced on its official
website 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 of
had 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 total
originated 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 glyphosate
an end. The final judgment will promote different periods. The long time anti- manufacturers will face two major
Chinese exporters' enthusiasm about dumping war between EU and Chinese difficulties as before in extending
exploiting EU market, but there are still glyphosate exporters has experienced ups glyphosate business in the EU
many challenges for Chinese exporters. and downs. market. For one thing, it is hard for
Chinese enterprises to compete with
The final judgment is based on EU’s one In the former times of EU’s temporary multinationals and local enterprises that
year 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 by
Association appealed expiry review the good news, because of anxiety about For another, too high certification
for anti-dumping duties on Chinese the resumed anti-dumping duties later. fees, such as cost on impurity content
glyphosate to the European Commission, The final judgment, which ends the anti- identification and environmental risk
and then European Commission resumed dumping process on Chinese glyphosate test, are obstacles on Chinese producers'
investigation. No proof on Chinese in EU market, will promote Chinese way to compete in EU market. EU has
glyphosate's dumping actions has been manufacturers’ enthusiasm for exploiting been stringent in glyphosate quality
found after one-year investigation, and EU market. Now market share of Chinese and formulated high requirements
the complainant withdrew the petition glyphosate in EU is very small and has for imported glyphosate, such as GLP
in September 2010. In October 2010, great potential to increase in the future. certification.
some Chinese glyphosate manufacturers
such as Jiangsu Good Harvest-Weien According to CCM’s import/export
Agrochemical Co., Ltd. had received
the pre-notification of European TABLE 1: EU’s anti-dumping investigation into Chinese glyphosate, 1995-2010
Commission’ final judgment on anti-
dumping dispute. Time EU’s action
1995 Initiated anti-dumping investigation
The final judgment of sunset review
Feb. 1998 Levied 24% anti-dumping duties
would draw the 15-year dispute of
2000 Levied 48% anti-dumping duties
the dumping charge on Chinese
glyphosate 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 review
enterprises against dumped imports Feb. 2010 Extended suspension of anti-dumping duties for one year
from the countries who are not Dec. 2010 Formally terminated anti-dumping duties
members of the EU, EU initiated Source: CCM international
anti-dumping investigation into the



■ Market Analysis

High cost and unstable supply result in Chinese DEA's little use in glyphosate

T hough domestic DEA capacity and
quality could satisfy DEA route
glyphosate 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 when
small 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 Dow
the higher cost and unstable supply of domestic DEA in glyphosate production Chemical said one main reason for the
domestic DEA. is the price disadvantage." Said Mr. Xu. little use of domestic DEA in glyphosate
is the unstable supply. "As the raw
CCM International’s former According to CCM International’s DEA material EO is controlled by China
investigations have shown that the main import analysis, price of imported DEA National Petroleum Corporation or China
reason for the little use of domestic DEA (importer’s price) is about USD1,200/t Petroleum & Chemical Corporation, EA
in glyphosate production might be its (RMB8,000/t), only two thirds of China’s producers should apply for the use of EO
poor quality. But recent interviews with homemade DEA. from the two state owned giants, resulting
some professionals in DEA market have in the unstable production of EA."
revealed that domestic DEA, after many Mr. Xu expressed that there are three
years’ improvement, can satisfy domestic main reasons accounting for the "The domestic DEA quality is not the key
glyphosate 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, but
without significant difference. Chinese China’s EO production is controlled by According to Tan, Jiangsu Yinyan
glyphosate produced from domestic DEA state-owned China National Petroleum Specialty Chemical Co., Ltd., the only
is acceptable in overseas countries." Said Corporation and China Petroleum Chinese company producing both DEA
Mr. Xu Qingwei, area sales manager of & Chemical Corporation. Secondly, and glyphosate technical, sometimes uses
Fushun Jiahua Chemicals Co., Ltd., an EA overseas companies have more advanced imported DEA alternatively to produce
producer with capacity of 20,000t/a and technology and hence higher yield glyphosate.

Domestic glyphosate 41% IPA dominates Chinese market

A 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 an
administrative regulation to ban the registration and production ■ 41% IPA vs. other formulations
of glyphosate formulation with AI content (calculated by
glyphosate 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 salt
formulation used in China before, would withdraw the market liquid, potassium salt liquid, soluble powder and soluble
gradually in the following two years (Chinese pesticides has two granule, with a variety of grades, but the most popular
years’ quality guarantee period). The exit of glyphosate 10% SL formulations registered is glyphosate 41% IPA.
has left large market for other glyphosate formulations that can
meet the new AI content requirement (glyphosate acid content Compared with other formulations, glyphosate 41% IPA has the
should be not less than 30%). following advantages:

Glyphosate 41% IPA is expected to be the most popular 1) Peasants’ familiarity. Monsanto’s well-known brand
formulation in the future. In 2009 and 2010, most producers ‘Roundup’ has built very good reputation in China with its
who 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 and
also considered glyphosate 41% IPA as the first choice. spraying method of ‘Roundup’. Thus, homemade glyphosate
Many domestic glyphosate producers devote their energy 41% IPA, the similar weed control effect and spraying technique
in glyphosate 41% IPA promotion in the past two years. It's as Roundup, is very acceptable by Chinese peasants.
estimated that the proportion of domestic glyphosate 41% IPA
in China’s total glyphosate consumption volume will exceed 2) Convenient usage. Compared with SP or WSG



41% IPA is relatively lower than the world’s famous
formulations, 41%IPA is easier to be used.
brand Roundup. But with the technology improvement
of domestic glyphosate 41% IPA, the gap of weed efficacy
3)High weeding efficacy. Many researches have shown that
between domestic glyphosate 41% IPA and Roundup is
glyphosate IPA formulation has the highest efficacy among the
being shortened. It’s reported by many companies that
existing formulations when used in the same dosage.
domestic glyphosate 41% IPA formulations have no
significant differences in many compulsory indices when
4)Low technological requirement and guaranteed quality.
compared with Roundup.
Processing technology of glyphosate 41% IPA is relatively low
and can be grasped by most producers. Its actual effect is mainly
As the domestic glyphosate 41% IPA has price advantage
determined by the performance of added adjuvant. But glyphosate
over imported Roundup, coupled with the increasing
WSG formulation, with higher AI content than 41% IPA, requires high
promotion of domestic glyphosate 41% IPA, many
processing 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 redistribution

W hen regarding to the question
why China is the world’s largest
production 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 years
many people may consider China has the largest production area of glyphosate if China keeps exploring phosphorus
low manpower cost, low environmental technical, could consume more than resource at such a high rate in the future
expenditure cost as well as good 130,000 tonnes of yellow phosphorus, years.
chemical industry foundations. In fact, which constitutes 14~15% of China’s total
the accessibility of some nonrenewable output. Fortunately, Chinas has banned the
resource for producing some irreplaceable export tax rebate and levied high export
raw materials, is a very important factor As a kind of non-renewable resource, tax of yellow phosphorus and phosphate
determining global pesticide distribution. phosphorous resource has been well ores, which has slowed down the export
As 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. Exploitation
global glyphosate distribution and in those countries has slowed down and Pesticide production is being moved
redistribution. 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 produce
out a survey on evaluating the importance downstream agrochemicals is very high Only a few countries own a large amount
of factors determining the destination and less competitive in the global market. of phosphorus resource, and the possible
area to which future glyphosate technical regions of new glyphosate technical
capacity may be transferred. More than China, the second largest reserve of production base, if there is, would be in
70% of the respondents who are all phosphorus resource, has the highest the regions or countries near by these
specialists in glyphosate industry have exploitation speed of phosphorus countries. However, the glyphosate
chosen the phosphorus resource as the resource in the world and exported the technical capacity transfer is also
most important factor. largest amount of phosphate ores and restricted by other factors such as cost,
its downstream products including available manpower, foundation of basic
Glyphosate, the most widely used glyphosate. chemical industry, etc.
pesticide in the world with annual global
consumption volume of about 650,000 In the 2010 Symposium for China’s Detailed research about the global
tonnes presently, is an organophosphorus Glyphosate Industry held in Hangzhou phosphorus distribution and in-depth
pesticide, and its development is in May, Professor Zhang Yibin from analysis of the possibility of glyphosate
highly depended upon the upstream Shanghai Pesticide Research Institute capacity transfer among countries, please
raw material, phosphorus trichloride. has put forwards that limited phosphorus pay attention to CCM International’s
The abundant phosphorus resource is resource will become a main threat unique report “Opportunities Derived
one 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, or
its downstream products including Academician’s research that China’s high the future issues in Glyphosate China
glyphosate. grade phosphate ore (note from CCM: Monthly Report.
high grade phosphate ore means that



AEA route to remain dominance in future 3 years

A EA route to produce glyphosate,
the first route developed and solely
adopted 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’s
production 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 route
Three 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 raw
China’s glyphosate technical production, t) lower than IDAN and DEA route.” said material synthesis technology or IDA
with designed capacity proportion of Gavin Yin. route glyphosate synthesis technology,
60%, 18% and 22% separately in 2010. the raw material cost advantages in
With the increasing consideration in “Furthermore, the price of glycine, key AEA route will disappear. And if China
glyphosate industry integration, the raw material in AEA route glyphosate, implements stricter environment
development trend of the three routes is the least sensitive to the change of discharges regulations, the gap of
is an interesting topic and hot issue at primary energies petroleum and natural environmental expenditure between AEA
present. gas prices. The cost advantages in AEA route and IDA route will be broadened.
route will be larger in the period of
According to CCM’s latest research, which petroleum’s price uptrend.” Gavin Yin Nevertheless, CCM International predicts
is a part of CCM International’s unique said. that AEA route will still dominate China’s
report “Opportunities Derived From market in the future three years. Now
Global Glyphosate Industry”, AEA route With over two decades’ development, three of China’s top five glyphosate
will still dominate the market in the short China’s AEA route glyphosate have manufacturers, including Zhejiang
or 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 total
Generally, cost and quality determine a route. capacity over 230,000/t (capacity in their
product’s comprehensive competiveness subsidiaries are also included). These
and its development trend. Although Though AEA route glyphosate has companies have strongly comprehensive
the highest glyphosate AI content could disadvantage in waste water treatment competitiveness and are unlikely
be achieved in AEA route (max. 95%) is compared with IDAN or IDA route, the to be phased out during the market
inferior 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 recycling
produced by AEA route is widely accepted can completely offset the higher waste More details and in-depth analysis about
by most overseas countries. So the water treatment expenditure. In fact, comparisons in different route and
factor of glyphosate product quality is the waste water treatment technology in their development trends, please pay
not an important factor regarding to AEA route has achieved great progress. attention to CCM International’s report
competitiveness and development trend The membrane filtration technology, Opportunities Derived from Global
in 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 2011

I n mid January 2011, average ex-works
quotation of the Chinese glyphosate
technical 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 will
t), down 1.29% over the previous month. countries at present, as the corresponding keep stable and the low operating rate
Glyphosate formulations see small period before had been the peak season of will continue in the following month, as
fluctuation, 62% IPA and 75.7% WSG glyphosate demand and hence the price the glyphosate transaction will decrease
enjoy slight increase whereas 10% SL and uptrend. and the more production lines will be
41% IPA see small decrease. suspended during this period due to the
Affected by the downstream glyphosate, Chinese Spring Festival Vacation. In
The prices of glyphosate products are key raw materials also keep relatively the long term, Chinese glyphosate will
still undervalued, and the operating rate stable in January 2011. DEA price and see significant increase compared with
of glyphosate technical in China is very glycine price maintain the same as the current level because of the increasing
low (less than 30%). It’s investigated by previous month, whereas IDAN price sees cost in manpower and environmental
CCM International that many glyphosate slight increase because of the relatively expenditure.
technical manufacturers have stocks and tight supply of natural gas in the cold



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 registration

A s of 17 January 2011, there
are 128 active registrations of
glyphosate 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 largest
single formulations and 25 of mixed Jiangsu, Zhejiang and Shandong SL formulations are 33% glyphosate
formulations. provinces, which are also the main ammonia salt, constituting about 5% of
production areas of Chinese glyphosate. total glyphosate SL formulations.
■ Glyphosate technical
The 128 glyphosate technical registrations As China has banned the registration and
are held by 127 companies including ■ Glyphosate single formulation production of glyphosate formulations
6 foreign companies, namely Nufarm, 313 companies hold 464 single with AI content lower than 30% sine
Monsanto, Syngenta, Agrolex, Excel, formulation registrations in China. 2010, many glyphosate producers
Malaysia Crop Care. Zhejiang Wynca The 464 registrations consist of three changed their registrations to meet the
Chemical Industrial Group Co., Ltd. owns formulation types, namely SL (soluble requirement in 2009, and most of them
two registrations, namely 95% glyphosate liquid salt, including IPA salt and chose to register glyphosate 41% IPA as
technical and 95.5% glyphosate ammonia other liquid forms of glyphosate salt), the substitution, indicating glyphosate
salt technical. The 128 registrations SP (soluble powder), and WSG (water 41% IPA will be the dominant promising
consist 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 of
popular 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 takes
registered the highest grade with 97% glyphosate IPA dominates the up 51.72% of the soluble powder.



As to the glyphosate soluble granule, ■ Glyphosate mixed formulation glyphosate formulation can heighten
there are a variety of contents including glyphosate’s control effect and shorten
77.7%, 75.7%, 88.8%, 70%, 68% etc., There are 25 active glyphosate mixed the time to onset. Now the mixed
with glyphosate ammonia salt being the formulation registrations in China glyphosate is becoming a popular method
registered AI. The solid glyphosate with at present, which are owned by 22 to solve the problem of weed’s increasing
high 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 used
IPA 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’s
glyphosate technical and 21,715 tonnes total export this month. Australia, ■ Manufacturers
of glyphosate formulations in November Nigeria, Vietnam, Thailand and These glyphosate products exported in
2010, maintaining the same level as the Indonesia are the top five importers November 2010 were manufactured by
previous month. Glyphosate technical of Chinese glyphosate formulations. more than 22 producers. According to
export suffered sharp decrease while Total export volume of glyphosate CCM International’s analysis, Zhejiang
glyphosate 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 Agrochemical
period of last year, indicating the constituting 66.37% of the total. & Chemicals Co., Ltd., Jiangsu Taicang
increasing acceptance of Chinese Pesticide Factory Co., Ltd. and Sichuan
glyphosate formulations and increasing In November 2010, China has exported Fuhua Group Co., Ltd. were the top
proportion of glyphosate formulations PMIDA to three countries namely four exporters of Chinese glyphosate
exports. 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 Price
China has exported 12,647 tonnes of TABLE 3: Export volume of glyphosate products, November 2010
glyphosate technical and 21,715 tonnes
Export Volume, tonne Change
of glyphosate formulations in November
Product
2010, maintaining the same level as the
Nov. 2010 Oct. 2010 Nov. 2009 MoM YoY
previous month. Glyphosate technical
export suffered sharp decrease while
Technical 12,647 13,351 19,112 -5.27% -33.83%
glyphosate formulation enjoyed great
increase compared with the corresponding PMIDA 2,922 3,294 3,281 -11.29% -10.94%
period of last year, indicating the
increasing acceptance of Chinese Formulation 21,715 17,636 14,409 23.13% 50.70%
glyphosate formulations and increasing
proportion 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 Report
exports.
TABLE 4: Export prices of glyphosate products, November 2010
■ Destination
According to CCM International’s Export Price, USD/kg Change
Glyphosate Export Analysis Report, 30 Product
countries (or regions) have imported Nov. 2010 Oct. 2010 Nov. 2009 MoM YoY
Chinese glyphosate technical and 54
countries (or regions) have imported Technical 3.13 3.11 2.83 0.64% 10.60%
Chinese glyphosate formulations in
November 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 value
Chinese glyphosate technical in November Source: CCM International’s Glyphosate Export Analysis Report



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 International


CCM International Limited
Address: 17th Floor, Huihua Commercial & Trade Building, No.80 Xianlie Zhong Road
Guangzhou, 510070, P.R.China

Tel: +86-20-37616606
Fax: +86-20-37616968
Email: econtact@cnchemicals.com
Website: www.cnchemicals.com

Glyphosate China Monthly Report 2011.pdf

Recommended

Recommended

More Related Content

Similar to Glyphosate China Monthly Report 2011.pdf

Similar to Glyphosate China Monthly Report 2011.pdf (20)

More from CCM Intelligence

More from CCM Intelligence (20)

Recently uploaded

Recently uploaded (20)

Glyphosate China Monthly Report 2011.pdf