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From a global perspective, Herbicides China News provides you with the latest occurrences, exclusive analysis on the market trend as well as professional reviews on competitiveness of companies, ...

From a global perspective, Herbicides China News provides you with the latest occurrences, exclusive analysis on the market trend as well as professional reviews on competitiveness of companies, products and relative industries in China’s herbicide industry.

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  • 1. Herbicides China NewsVol.4 Issue 01 2011 Publications date: 14 Jan. 2011 Copyright © CCM International Limited
  • 2. Herbicides China News Vol.4 Issue 01 2011 Content ■ Overview .................................................................................................. 1 2010 top 10 events in Chinese herbicide industry ........................................................................................... 1 Overview of Chinese herbicide industry in 2010 .............................................................................................2 China’s seven self-developed herbicides in the past ten years ........................................................................4 ■ Survey & Interview .................................................................................. 5 Brief survey of crop protection in Leizhou Peninsula ..................................................................................... 5 ■ Company Dynamics ................................................................................. 6 Lier Chemical purchases Jiangsu Kuaida ........................................................................................................6 Nantong Jiangshan sells Nantong Jiangtian’s share ....................................................................................... 7 Henan Yingtai constructs acetochlor quietly ...................................................................................................8 Fengshan Group consolidates leading trifluralin position ..............................................................................8 ■ Market Analysis ....................................................................................... 9 Dicamba attracts pursuers’ interest .................................................................................................................9 Metolachlor threatens acetochlor in China.................................................................................................... 10 ■ Supply & Demand ................................................................................... 11 Anhui Fengle expands tribenuron-methyl production ...................................................................................11 Hubei Huida suspends bispyribac-sodium production ..................................................................................11 All self-produced metamitron are exported in China .................................................................................... 12 Good Harvest-Weien to pursue 2,4-D ........................................................................................................... 13 ■ Price Analysis ......................................................................................... 13 - Price Review .......................................................................................................13 Monthly market prices of main crops in China, Jan. 2011 ............................................................................ 13 Monthly ex-factory prices of key raw materials, Jan. 2011 ........................................................................... 14 Monthly ex-factory prices of main herbicides, Jan. 2011 .............................................................................. 14 Monthly Shanghai port prices and FOB Shanghai of main herbicides, Jan. 2011 .........................................15 - Pricing ................................................................................................................ 15 Overview of Chinese glyphosate price in 2010 ...............................................................................................15 ■ News in Brief .......................................................................................... 16 Chinese herbicide technical output increases in Nov.2010 ........................................................................... 16 UN not to ask anti-dumping tax against Chinese glyphosate in 2011 ........................................................... 16 Fujian Sannongs relocation ........................................................................................................................... 16 New herbicide products in 2011 ..................................................................................................................... 16 Chinachem to purchase MA Industries ......................................................................................................... 16 China Crop Protection Fenoxaprop-P-ethyl in China - MIPA Survey in China Summit 2011 Will be - Survey of Amide Herbicides in - IDAN Survey in China held during 18 - 19 March, China Shanghai - Corn Herbicides Survey in China CCM newsletters related to Welcome to join with us. Herbicides: Click here for Event Details. Ready Market Reports: - Crop Protection China News - Survey of Pesticide Industry in - Insecticides China News Dynamic Database - China –Edition 2 (Launched in - Fungicides China News ValoTracer Sep. 2010) - Glyphosate China Monthly - Outlook for China Glyphosate Report Industry 2009-2014 - Future Prospect of Genetically CCM trade analysis related to Online & real-time consulting Modified Crops Herbicides: system - Production and Market of - Glyphosate Paraquat in China - Clomazone Coming Reports from CCM: - Nicosulfuron Survey in China - Paraquat - Global Commercial - The Survey of 2,4-D in China - Fluroxpyr Opportunities Derived from - Nicosulfuron Survey in China - Dicamba Glyphosate Industry - Glycine Survey in China - 2,4 D - Production and Market of - Glycine Survey in China - …… CCM International Limited www.cnchemicals.com
  • 3. Herbicides China News Vol.4 Issue 01 2011 Welcome to Jan. 2011 issue of Headlines of Herbicides China News 1101 Herbicides China News published by CCM International, a ■ Top 10 events in Chinese ■ Fengshan Group constructs professional consulting company herbicide industry during 2010 two production lines of 5,000t/a who has been extensively and are listed in this issue. trifluralin and 300t/a prodiamine. intently focusing on dynamics of China’s herbicide industry. ■ With hard work and sound ■ Dicamba development is driven regulations, theres no doubt that by GM technology in the world. At the opening of 2011, we Chinese herbicide industry is turn around to review Chinese going towards brilliant direction. ■ Domestic metolachlor threatens herbicide industry in 2010 and but can’t substitute acetochlor in find that the situation of Chinese ■ During the past ten years (2000 the short term. herbicide industry is not so awful - 2010), China has developed 7 as we thought before. In the past herbicides. ■ Anhui Fengle is constructing a one year, some aggressive events new 300t/a tribenuron-methyl inspired our confidence such ■ According to CCM production line with confidence as Lier Chemical’s successful Internationals survey, herbicide is on future market. acquisition, Jiangsu Huifeng’s not popular as expected in Leizhou getting listed, the recovery of Peninsula, owing to large planting ■ Hubei Huida has suspended its glyphosate market, etc. areas of sugarcane with low profit. bispyribac-sodium production for the Chinese Spring Festival in Meanwhile, warm winds blow ■ Lier Chemical’s acquisition of Feb.2011. into 2011. Nanjing Redsun’s Jiangsu Kuaida was approved on reorganization, rebounding Dec. 30th 2010. ■ All metamitron products in herbicide prices, Chinese China are exported to overseas government’s Twelve-Fifth ■ Nantong Jiangshan sold market by only one domestic Plan and so forth all imply the Nantong Jiangtian’s 19.65% share manufacturer, Hebei Wanquan. recovery of agrochemical market to Nantong Industries. in China. ■ Good Harvest-Weien plans ■ According to one intelligence to construct a 10,000t/a 2,4-D But it is always necessary gained from locally official website production line. to have a careful attitude of Puyang City, Henan Province, towards potential risks such Henan Yingtai is planning a ■ The prices of Chinese glyphosate as overcapacity and vicious 10,000t/a acetochlor production products in 2010 witnessed competitiveness, because the way line. stagnant situation. to innovation of Chinese pesticide industry is so long and rugged. In addition, in Dec. 2010, CCM International visited Leizhou Peninsula to inspect the local situation of agriculture and crop protection market. Hope the information obtained from the practical interview could bring you new and inspiring feeling. And the improvements on the issue in 2011 are always waiting for your kindly comments. Your suggestions are highly appreciated at econtact@ cnchemicals.com. Main companies mentioned in this issue CCM International Limited www.cnchemicals.com
  • 4. Herbicides China News Vol.4 Issue 01 2011■ Overview 2010 top 10 events in Chinese herbicide industry1 . On 31 January, Chinese government proclaimed 2010 No.1 Document of the Central Committee formally, attaching much importance again to three agricultural issues (agriculture, rural areas and farmers) in China. The document has listed the objects for agricultural development in 2010, including accelerating rural urbanization of counties, increasing agricultural input and subsidies, industrializing GM crops, etc.No.1 Document is issued by Central Committee ofCommunist Party of China and the State Council every year,aiming to make guidance on agricultural development, etc.That means more attention to agriculture could indirectlyboost Chinese herbicide development in 2010.2. In Feb. 2010, Zhejiang Wynca Chemical Group Co.,Ltd. (Zhejiang Wynca) held the Formal Operation PressConference for new subsidiary namely Wynca SunshineAgric Products&Trading Company Limited (WyncaSunshine) in Kumasi, Ghana, indicating that Zhejiang 4. On 22nd June 2010, the Ministry of Finance and StateWynca started marching into West Africa market. Taxation Administration jointly promulgated The Note about Abolishment of Export Rebate of Some Commodities,Wynca Sunshine was registered in Ghana and has two showing that the export rebate on some commodities,subsidiaries, namely Sunshine Agric Manufacturing in including steel products, nonferrous metal, silver powder,Ghana and Sunshine Agricole in Cote dlvoire, focusing on alcohol and corn flour, pesticide, medicine and chemicalthe manufacture of farming tools and sales of pesticides. products, as well as plastic, rubber and glass products, would be abolished on 15th July 2010.3. Jiangsu Changqing Agrochemical Co. Ltd. (JiangsuChangqing) got listed on 16th April 2010. During this IPO, According to the note, the export rebate on glyphosateJiangsu Changqing issued 25 million shares on the base techncial products with two ECCN (Export Controlof 73.92 million shares to raise approximately USD180 Classification Numbers: 29310000411 and 29310000412)million. What’s more, the capital raised from the IPO is would be abolished, indicating that domestic glyphosatebeing invested into the company’s 5 key projects, including industry will suffer more pressure from intense competitionthree herbicide projects, namely 1,200t/a fomesafen in the short term, but will develop toward healthy directiontechnical project, 300t/a nicosulfuron technical project and in the future with the government regulation.500t/a clethodim technical project. 5. In Oct. Lianhe Chemical Technology Co., Ltd. (Lianhe As the leading fomesafen manufacturer with capacity of Chemical) announced that two IPO projects were launched,1,200t/a in China, Jiangsu Changqing’s competitiveness namely 2,500t/a halogenated aromatic nitriles projectin herbicide business will be enhanced greatly after these and the construction of research centre for advancedthree projects launched. And the construction of these technology, marking Lianhe Chemical’s IPO constructionsthree projects is ongoing at present. have been finished completely. Two months before the two IPO projects are lunched, the company started operating another IPO project normally, 600t/a cyhalofop-butyl project. 6. Jiangsu Huifeng Agrochemical Co., Ltd. (Jiangsu Huifeng) got listed in China’s A -share market on Nov. 9th 2010. With unit price for per share of USD7.3, Jiangsu Huifeng raised approximately USD0.18 billion by issuing 25 million shares this time. CCM International Limited 1 www.cnchemicals.com
  • 5. Herbicides China News Vol.4 Issue 01 2011 It’s also reportedly said in the prospectus that the capital 8. On 19th Sept. 2010, a directory document namedof USD95 million raised from the IPO would be invested Pesticide Industry Policy was formally promulgated byinto the company’s 6 key projects. Among them, 3 projects Chinese government. The policy is made to accelerate thebelong to the constructions of technical productions, reorganization and maintain sustainable developmentincluding 3,000t/a prochloraz technical, of pesticide industry by relocating into chemical parks,1,000t/a epoxiconazole technical and 10,000t/a controlling overcapacity, integrating production resource,bromoxynil octanoate technical. pushing environmental protection, developing new technology and enhancing the government supervision,Jiangsu Huifeng, an appointed pesticide producer and etc. In terms of herbicide industry, with achievement of thefounded in 1989, is well-known in home agrochemical policy, the recovering pesticide industry will directly drivemarket with the globally largest prochloraz capacity herbicide industry to boom.of 3,800t/a, and is the No.1 bromoxynil octanoatemanufacturer in China meanwhile. In past three years, 9. At 5:40 a.m. on Dec. 8th, an accidental blast happenedJiangsu Huifeng achieved so excellent performance that the in Shandong Zhongshi Chemical Company (Shandongcompany’s net profit witnessed continuous growth year by Zhongshi)’s plant located in Yanggu County, Shandongyear. Province. Until about 18 o’ clock on Dec. 9th, the tragic fire was basically put out. It’s reportedly said that seven victims7. Released by official website, http://www.cninfo.com.cn/, suffered from the accident, and are under stable conditionat 6:30 on Dec. 2nd, Nanjing Redsun decided to suspend at present. Moreover, the residents around the plant hadstock trade from the same day, primarily because China evacuated to safety zone.Securities Regulatory Commission (CSRC) will conductexamination for Nanjing Redsun’s assets reorganization With acetochlor capacity of 10,000t/a, Shandong Zhongshirecently. After four days, the examination was finished and was listed in top 20 amide herbicide manufacturers inNanjing Redsun’s share resumed, signaling that Nanjing China. Hence, negative influence from the fire accident mayRedsun’s reorganization is drawing to an end. force local government to reinforce regulation on pesticide production in China.According to Nanjing Redsun’s original plan, three brothercompanies will be integrated into Nanjing Redsun, namely 10. By the end of 2010, it’s reportedly said that EU will notNanjing Redsun Biochemical Co., Ltd., Anhui Guoxing resume anti-dumping tax against Chinese glyphosate inBiochemical Co., Ltd. and Nanjing Redsun International 2011 after the anti-dumping application cancelled by TheTrade Co., Ltd. Coupled with share acquirement, three European Glyphosate Association in Sept. 2010. Beforebrothers’ assets and Nanjing NFP Group’s some pesticide the cancellation, Chinese glyphosate manufacturers had toresource will be injected into Nanjing Redsun. pay 29.9% anti-dumping tax to EU for Chinese glyphosate technical exported to EU. Overview of Chinese herbicide industry in 2010I n 2010, both Chinese herbicide pursuers and the government made great effort to rescue the stagnant With brilliant performance in Q3 2010, Hebei Veyong overturned deficit resulted from weak performance in environment. Getting listed in capital market, integrations between industrial enterprises, relocations herbicide industry though it didn’t the first half of 2010. The company’s into industrial park and investment take effect at once. With hard work net profit witnessed sharp growth of into upstream or downstream and sound regulations, there is no about 1,500% year on year to USD1.4 productions and so forth are underway doubt that Chinese herbicide industry million. Following nice performance continuously in 2010. is going towards brilliant direction. in Q3 2010, it is estimated that Hubei Veyong will continue to achieve All these actions accord with■ Manufacturers earning money in Q4 2010, based on development trend of ChineseBy reviewing Chinese listed pesticide, implying that these wise the whole recovering pesticide marketagrochemical enterprises’ performance enterprises can witness nice prospect in China and the company’s soundin 2010, it’s not difficult to realize in the future, further signaling that the operation.that most of them witnessed poor reorganization in Chinese pesticidebusiness performance this year. But a industry is ongoing quietly. In fact, no mater how the performancefew fortunate Chinese enterprises are is in 2010, almost all Chinesepatronized by good luck, such as Hebei agrochemical enterprises have make ■ PoliciesVeyong Bio-chemical Co., Ltd. (Hebei great efforts to shake off the gloom Aiming to accelerate the industrialVeyong). resulted from the financial crisis and reorganization, Chinese government tried hard to adapt to the intense also achieved many effective CCM International Limited 2 www.cnchemicals.com
  • 6. Herbicides China News Vol.4 Issue 01 2011regulations in 2010, like the Figure 1: Price trend of three main herbicides in China, 2009 & 2010abolishment of glyphosate technicalexport rebate, price upregulation 4,000of some energy such as electricityand natural gas, No.1 Document of 3,600the Central Committee inclining on Monthly average price: USD/tagriculture, etc. 3,200Among them, the formal issue ofPesticide Industry Policy on 19th 2,800Sept. 2010 indicates that Chinesepesticide industry has already started 2,400innovation trip. Although the futureis unknown at present, the gradually 2,000recovering market signals that there is Jan. March May July Sept. Nov. Jan. March May July Sept. Nov.a hopeful prospect. 2009 2010 95% Glyphosate technical 42% Paraquat technical 92% Acetochlor technicalWhat’s more, external conditionsfor Chinese herbicide are turning Source: CCM Internationalbetter. Currently, EU decided not toxicity, low pollution, etc. grasped export volume.to resume anti-dumping tax against lots of Chinese manufacturers’ interestChinese glyphosate. As for glyphosate in 2010, such as cyhalofop-butyl, ■ Registrationmanufacturers in China, it’s clodinafop-propargyl, glufosinate- Chinese government’s strictundoubtedly a good news. ammonium, clethodim, mesotrione regulations on glyphosate registration and so on. resulted in its declining registration■ Price number in 2010. According to theAlthough many efforts on pesticide On the contrary, the capacity regulation implemented since 2008,were made, on the whole, the prices expansion of traditional herbicides large part of temporary pesticideof herbicide products in China still like glyphosate and paraquat was registrations have turned to be morestayed at low level in 2010 over 2009. not achieved too much, though these formal; the registration now can onlyAs usual, most prices of herbicides varieties are still positioned on the top be renewed every five years instead ofin 2010 are subject to the market of popular herbicides in China. one year. Thus, the extended renewaldisciplines, increasing during peak time leads to dropping registrationsales season. ■ Consumption & market number in China directly. On the base of stably increasingFor example, impacted by severe consumption, the consumption Compared with that in 2009, thefinancial crisis in 2009, the prices of structure of herbicide in China record high of 299 registrations inglyphosate, paraquat and acetochlor hasn’t greatly changed in 2010. But, 2010 (the number of registrations inall witnessed sharp drop during 2009, abnormal climate in the first half Jan. and April) is less than a half ofand the price downturn still continued of 2010 led to serious agricultural 783 registrations in April 2009.in 2010. However, with recovery disasters, which impacted on totalof herbicide industry in China, the demand of herbicide in China. ■ Prospect in 2011prices of these three main herbicides Walking into 2011, Chinese herbicidementioned above rose apparently at In addition, some governmental industry will not only recover furtherthe end of 2010. policies also impacted on herbicide from gloom casted by the financial market in 2010. For instance, the stop crisis, but also encounter huger■ Production & Expansion production of 10% glyphosate SL from challenges, with pesticide industrialCompared with that in 2009, the 2010 on is resulted from governmental development ongoing in China.capacity expansion of herbicide regulation.production lines in China has slowed Whatever, there are many unknowndown in 2010, threatened by domestic In terms of China’s herbicide export, factors in Chinese herbicide industry,overcapacity and overseas small the situation didn’t change too much and those manufacturers who desiredemand. But Jiangsu, Shandong and in 2010, because recovering global to pursue more profit in intenseZhejiang are still the main herbicide market supported herbicide export competition should continue beingproduction areas in China. demand. What’s more, Southeast careful and working hard to occupy Asian and America are the main one living place.In terms of herbicide varieties with destinations of China’s herbicides,capacity expansion, small breed with glyphosate enjoying the largest In addition, it will undoubtedlyherbicides with excellent effect, low CCM International Limited 3 www.cnchemicals.com
  • 7. Herbicides China News Vol.4 Issue 01 2011take the pesticide industry a long time to achieve theindustrial reorganization. Thus, in coming 2011, herbicideeven pesticide industry will still creep on the way ofreorganization. China’s seven self-developed herbicides in the past ten yearsD uring the past ten years (2000 - 2010), China has developed 32 pesticides, including seven Table 1: Registration situation of pyribambenz-propyl and ZJ0702, 2011 patent herbicides which has gained Registration Product Content Company registrations. Supported by Chinese number government, accumulative sales LS20042529 10% SC Pyribambenz- value of these 32 pesticides exceeded LS20031547 10% EC propyl USD0.29 billion. LS20031544 technical Shandong Qiaochang LS20031546 10% EC Chemical Co., Ltd.As for herbicides, seven varieties are ZJ0702 LS20042530 10% SCincluded, they are monosulfuran, LS20031545 technicalmonosulfuran-ester, pyribambenz- Source: CCM Internationalpropyl, ZJ0702, H9201,methiopyrsulfuron and HW-02. Institute and Chinese Academy of Co., Ltd. (LS20060229 for 10% WP, Science. Although both two herbicides LS20060244 for 95% technical, both■ Monosulfuran & Monosulfuran- acquired registrations in 2003, all expired).ester have expired.Registered by Tianjin Green ■ HW-02Agrochemical S&T Co., Ltd. and ■ H9201 Registered as lawn herbicide bydeveloped by Nankai University, Generally, H9201 is specially applied Shandong Qiaochang Chemicalmonosulfuran (PD20070368 for 10% to controlling grassy and broadleaf Co., Ltd. in 2007 (LS20071694WP, PD20070369 for 90% technical) weeds in carrot field. Developed by for 30% EC), HW-02 can controland monosulfuran-ester (LS20041086 Nankai University in 2003, H9201 dicotyledonous weeds effectively andfor 10%WP, LS20041087 for 90% was firstly registered by Nantong is safe for grassy plants. Besides thetechnical, both expired) can inhibit Jiangshan Agrochemical& Chemical use in lawn field, HW-02 can also beALS enzyme in plant cells to control Co., Ltd. in 2005, namely 20% EC used in fields of rice, wheat and corn.most annual broadleaf weeds and (LS20051935) and 95% technical Generally, HW-02 with dosage ofsome annual grassy weeds in wheat (LS20051937). But two registrations 30~40g AI per hectare can take nicefield. Comparatively, the activity of had expired and new ones havent effect on weed control.monosulfuran-ester is stronger than achieved yet.that of monosulfuran. Generally, 22.5g Aiming to drive self-developedmonosulfuran-ester AI can take nice ■ Methiopyrsulfuron pesticides to develop smoothly ineffect in one hectare field. Belonging to one new sulfonylurea China, , Chinese Alliance of Innovative herbicide, methiopyrsulfuron can Pesticide Technology was established■ Pyribambenz-propyl & ZJ0702 be applied in wheat field to control in April 2010. It’s estimated that moreBoth belonging to miazines herbicides, dicotyledonous weeds and some than ten newly developed pesticidespyribambenz-propyl and ZJ0702 monocotyledonous weeds such as will gain registrations in China in thewhich could control annual grassy barnyard grass. It was developed by next ten years.weeds and some broadleaf weeds in Hunan Research Institute of Chemicalrape field were jointly developed by Industry and registered in 2006Zhejiang Chemical Industry Research by Hunan Haili Chemical Industry Figure 3: Chemical structure of methiopyrsulfuron, 2011 Figure 2: Chemical structure of monosulfuran & monosulfuran-ester, 2011 COOCH3 NO2 CH3 SCH3 O CH3 N N COOCH3 N SO2NHCHN SO2NHCONH SO2NHCNH N N N OMe O monosulfuran monosulfuran-ester CCM International Limited 4 www.cnchemicals.com
  • 8. Herbicides China News Vol.4 Issue 01 2011■ Survey & Interview Brief survey of crop protection in Leizhou PeninsulaI n Dec. 2010, CCM International visited Leizhou Peninsula located in the south of Guangdong Province Figure 4: MCPA with SPX formulation in package of 15mL, 2010 to inspect the local situation of agriculture and crop protection, finding that sugarcane as a main economic crop in Leizhou Peninsula dominates local agriculture but consumes a relatively small volume of herbicides. So the total consumption volume of herbicides in Leizhou Peninsula is also very small.Located in South China’s tropical zone,Leizhou Peninsula abounds in tropicaleconomic crops like sugarcane, Source: CCM Internationalrubber, sisal, the primary agriculturalcrops. Especially, the planting areas of Peninsula on 5th Dec.2010 to collect cool market resulted from low profit insugarcane account for over 70% of the first-hand information and survey planting sugarcane.total. The rice and wheat, main crops local actual situation of agriculturein China, could be harvested twice and crop protection. According to the workers in the fiveor three times in one year in Leizhou stare farms we have visited, the pricePeninsula, but their plant areas are In this survey, five large state farms of sugarcane in Leizhou Peninsulavery small. which are located in south and north is relatively low, floating around of Leizhou Peninsula are chosen. We RMB300~400/t (USD45~60/t).Therefore, general herbicide such found that more tropical crop varieties Thus, application cost of sugarcaneas those applied in rice field have are planted in lower latitude areas and herbicides is set intentionally to avoidonly a few consumers in Leizhou sugarcane predominates as the largest deficit risk.Peninsula. Theoretically, non-grain crop in this area.crop herbicides such as sugarcane In addition, althougth large partherbicides could meet nice market in Surprisingly, herbicide market in of farms have achieved the reformthis area. Leizhou Peninsula is smaller than to family production responsibility other places like North China. Even if system, the local government’sAre non-grain crop herbicides really sugarcane herbicides includes 2,4-D, regulation on planting plan, such asas popular as estimated in Leizhou atrazine and MCPA which own stable the setting of hard measures, stillPeninsula? With this question, CCM market share in China, on the whole, exist, making annual net profit ofInternational arrived in Leizhou sugarcane herbicides also witnesses contractors so small, which is also responsible for the small consumption Figure 5: Pineapple field in south of Leizhou Peninsula, 2010 volume of herbicides in this area, one officer in one of the five farms indicated. On the whole, with regard to sales situation of herbicides in Leizhou Peninsula, traditional herbicides applied in sugarcane fields like MCPA, atrazine and 2,4-D appear more frequently on the storage rack than glyphosate and paraquat. It’s proved by local farmers that glyphosate is seldom used during their planting. In fact, the price of sugarcane Source: CCM International herbicides is at low level. The CCM International Limited 5 www.cnchemicals.com
  • 9. Herbicides China News Vol.4 Issue 01 2011average price of sugarcane herbicides be seen frequently on the herbicide that in the northern area. Becausefluctuates around RMB2~5 packages in Leizhou Peninsula. And more crop varieties in southern area(USD0.3~0.8) per packet of 15mL. the brands of famous companies like where banana is largely planted,Taking MCPA as an example, MCPA Sygenta and Nanjing Redsun Co., Ltd. fungicide is demanded more sharplywith SPX formulation in package can also be observed easily. here than in northern area. Byof 15mL is priced at only RMB2 contrary, herbicide is a dominant(USD0.3). Resulted from different planting pesticide category in northern structures of crops, pesticide sales peninsula.In addition, the logo of Shandong structure in the southern area ofQiaochang Chemical Co., Ltd. can Leizhou Peninsula is different from■ Company Dynamics Lier Chemical purchases Jiangsu Kuaida Figure 6: Lier Chemicals daily stock price trend, 2010 (Dec. 24th - Dec. 30th) Note: Monetary unit is RMB/share Source: Google.com/financeO n Dec. 30th 2010, Lier Chemical Co., Ltd. (Lier Chemical) proclaimed the information on purchase immediately. Although when Lier Chemical will Lier Chemical’s share price fluctuated on high level and closed on USD2.75/ share (RMB18.21/share) finally. cninfo.com.cn that China Securities achieve the deal is undercover, Lier Regulatory Commission (CSRC) Chemical’s share price witnessed It’s predicted that Lier Chemical’s had approved the acquisition of sharp soar, stimulated by the good share price will maintain the uptrend Jiangsu Kuaida Agrochemical Co., news about the approval from the after the acquisition accomplished. Ltd. (Jiangsu Kuaida)’s over 64 government. According to Lier As a relatively rapid way for the million shares with per share price Chemical’s share price history on company’s further development, Lier of USD0.39 since Dec. 28th. It’s google website, the share price jumped Chemical’s acquisition of Jiangsu the last administrative procedure by USD0.13 (RMB0.88) per share Kuaida will boost Lier Chemical’s for the acquisition from Chinese from that on Dec 29th to opening competitiveness. government, indicating that Lier price of USD2.72/share (RMB18.00/ Chemical could complete the share) on Dec. 30th. In the whole day, Especially, Jiangsu Kuaida’s complementary dominance aroused Figure 7: Jiangsu Kuaida’s annual performance, 2007 - 2009 Lier Chemical’s interest greatly. As mentioned in the purchasing report, 100 Net profit Jiangsu Kuaida owns diverse product Annual performance: million USD mix, complete production chain and Revenue 80 convenient geo-position. All these advantages are severely necessary for 60 Lier Chemical’s future development. 40 Although Lier Chemical ranks No.2 among global chloropyridine herbicide 20 producers by capacity and owns advanced Cyanopyridine Chloration 0 2007 2008 2009 Technology which can produce most key products of the company, namely Source: CCM International clopyralid, picloram and fluroxypyr, CCM International Limited 6 www.cnchemicals.com
  • 10. Herbicides China News Vol.4 Issue 01 2011the company’s product structure is still simple. with other domestic agrochemical companies, and the market share of its sulfonylurea herbicide products ranksWhat’s more, Lier Chemical with herbicide export as main No.1 in China.business also needs a ready-made sales network in China toexplore domestic market. As phosgene manufacturer approved by Chinese government, Jiangsu Kuaida’s performance witnessed riseAt present, Jiangsu Kuaida has more than 60 kinds of gradually, even though it was not as nice as expected inpesticide products which almost cover the whole domestic 2009 with a 19.59% drop in net profit year on year, due topesticide market with nice reputation. Especially, Jiangsu the global financial crisis.Kuaida’s herbicide business owns advantages comparedThe reorganization course:1) 2010.3.26 Lier Chemical applied for stock trade suspension for the purchase of Jiangsu Kuaida;2) 2010.4.1 Lier Chemical’s broad meeting passed the purchasing proposal;3) 2010.4.21 Jiangsu Kuaida’s broad meeting agreed to the purchase;4) 2010.4.26 & 2010.6.3 Lier Chemical detailed the plan for the purchase;5) 2010.6.22 Lier Chemical held general stockholders’ meeting and passed relative purchasing plans;6) 2010.11.2 The purchase passed the environmental acceptance check from Environmental Protection Department ofJiangsu Province;7) 2010.12.28 CSRC approved Lier Chemical to purchaseJiangsu Kuaida.(Relative news about Lier Chemical’s acquisition of Jiangsu Kuaida is provided in issue 1005 and 1010 ofHerbicides China News) Nantong Jiangshan sells Nantong Jiangtian’s shareA fter Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. (Nantong Jiangshan)’s Figure 8: Share structure of Nantong Jiangshan, Nantong Jiangtian and Nantong Industries, 2011 19.65% holding share towards Nantong Industries Holding Group Co., Ltd. Nantong Jiangtian Chemicals Co., Ltd. (Nantong Jiangtian) is sold to Nantong Industries Holding Group 28.45% Co., Ltd. (Nantong Industries), its holding share towards Nantong Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. Jiangtian reduced to 22.23% from original 41.88%. 22.23% 19.65%On Jan. 4th 2011, Nantong Jiangshan Nantong Jiangtian Chemicals Co., Ltd.issued a bulletin about a deal betweenNantong Jiangshan and Nantong Source: CCM InternationalIndustries. As written in the bulletin,Nantong Jiangshan’s broad of and methyl chloride. As one of to Nantong Jiangshan.directors had agreed to sell 19.65% Nantong Jiangtian’s founders,holding share of Nantong Jiangtian to Nantong Jiangshan can gain relatively However, in the past one and aNantong Industries. stable material supply, especially half years, Nantong Jiangshan’s paraformaldehyde from Nantong performance didn’t show a senseAs Nantong Jiangshan’s second share Jiangtian. of optimism. Only in the first halfholder with holding proportion of of 2010, the company experienced28.45%, Nantong Industries spent Ranking No.2 among Chinese large deficit, with total revenue andapproximately USD4.4 million glyphosate manufacturers with net profit dropping by 10.4% andfinishing the deal. technical capacity of 70,000t/a, 490.7% year on year to approximately Nantong Jiangshan mainly adopts USD161 million and USD-0.81 millionIt’s investigated by CCM International AEA route technology to run respectively.that Nantong Jiangtian is a chemical 30,000t/a technical capacity. As mainintermediate manufacturer primarily material in AEA route production, Although the global economy hasengaged in production and sales of the paraformaldehyde produced by been gradually recovering after 2009,formaldehyde, paraformaldehyde Nantong Jiangtian is mainly supplied Nantong Jiangshan’s weak business CCM International Limited 7 www.cnchemicals.com
  • 11. Herbicides China News Vol.4 Issue 01 2011performance is estimated to continue in the second half of Nantong Jiangshan.2010. Nantong Industries, a state-owned investment company,One possible reason why Nantong Jiangsu sold some focuses on investment business covering chemicals,Nantong Jiangtian’s share is that it wants to alleviate spinning, light industry, pharmaceuticals, machinery, etc.its deficit. But this conjecture hasnt been confirmed by Henan Yingtai constructs acetochlor quietlyO ne latest intelligence shows that Henan Yingtai Chemical & Industry Co., Ltd. (Henan Yingtai)s 10,000t/a acetochlor technical production line is on the As to Henan Yingtai’s other products, Henan Yingtai is engaged in production and sales of aniline chemicals agenda. primarily. If 10,000t/a acetochlor production line is launched, acetochlor product will be the first pesticide ofCCM International gained the intelligence about Henan Yingtai.10,000t/a acetochlor production line on the local officialwebsite of Puyang City, Henan Province, as all the Meanwhile, Henan Yingtai will also be in the leading rankconstructions in 2010 are listed by local government on of acetochlor manufacturers in China with the plannedthat wetsite. And according to the latest report on Dec. 10,000t/a production line. Currently, over five acetochlor15th 2010, all workshops and some assorted facilities are manufacturers capacities succeed 10,000t/a in China.being constructed, implying that main construction ofHenan Yingtai’s acetochlor production line has not been As the most popular herbicide in the world, acetochlor hasestablished. grasped largest market share among selective herbicides applied in China in the past many years. Thanks to its wideBut CCM International’s further investigation into Henan weed control spectrum and low application cost, acetochlorYingtai’s acetochlor production line was rejected due is usually used for pre-emergent control of annual weedsto secrecy obligation. "I don’t know anything about the and some broadleaf weeds in the fields of rice, corn, cotton,10,000t/a acetochlor production line." Said several insiders peanut, soybean, etc. And the peasants use acetochlor toof Henan Yingtai. mix with herbicides efficient in broadleaf weed control, such as bensulfuron-methyl and prometryn.Some relative reports also released that Henan Yingtaiis undergoing this acetochlor production line. And it’s With depressed herbicide market caused by the financialestimated that the main acetochlor production line could crisis, acetochlor, like popular herbicides such asbe launched in the first quarter of 2011. glyphosate, also experienced a hard period in 2010. The average price of acetochlor, which fluctuated around‘Actually, Henan Yingtai has no acetochlor products at USD2,789/t, is still lower than the price level in 2008present.’ A saleswoman of Henan Yingtai released honestly. (Herbicide China News 1008: Low acetochlor price toHowever, on the base of CCM Internationals investigation, continue).it could be confirmed that this production line is underconstruction now. Fengshan Group consolidates leading trifluralin positionI n a bid to share a slice of cake from Chinese herbicide industry, Fengshan Group also joins into the being pursued by Fengshan Group at the same time. According to Fengshan Group’s EIA announcement on Nov. project was set out not long before." Said Mr. Hu who is in charge of the project from Fengshan Group. And group who usually expand their 24th 2010, Fengshan Group plans he explained that the EIA application dominant production to consolidate to launch these two production lines has not been approved by local competitiveness. As No.1 trifluralin of 5,000t/a trifluralin and 300t/a government and the whole project is manufacturer with capacity of prodiamine in Dafeng Port Economic under civil construction currently. 3,000t/a in China, Fengshan Zone. Group is constructing another new After trifluralin production line trifluralin production line with According to its original plan the two launched, Fengshan Group’s trifluralin capacity of 5,000t/a now. production lines with investment of capacity will reach 8,000t/a and USD7.5 million are expected to be keep top position in China. And theProdiamine, one of dinitroaniline launched in H2 2011. "But there are prodiamine production can make useherbicides including trifluralin, is also still too much works because the whole of trifluralin production line as the CCM International Limited 8 www.cnchemicals.com
  • 12. Herbicides China News Vol.4 Issue 01 2011production technology of prodiamine trifluralin registrations, namely 96% Group, current price of trifluralinis similar to that trifluralin production. technical (PD20050165) and 48% technical floats around EC (PD20060091). On the whole, USD4,600/t. And CCM InternationalIn fact, two production lines were total 142 trifluralin registrations are thinks that friendly price of trifluralinarranged to be launched around achieved by 68 manufacturers in will make it enjoy nice market in thethe period when Chinese herbicide China. future.market booms again in 2011, whichmeans that it is possible for Fengshan Generally, trifluralin is mainly used Located in Dafeng City of Jiangsu,Group to enjoy the recovering global for selectively pre-emergence control Fengshan Group is a top pesticideenvironment in the future with of annual grassy weeds and some producer in China and is engaged indominant business. broadleaf weeds in fields of soybean, research, production and marketing of cotton, rape and so forth. In China, agrochemical products. With pesticidePrimarily exported to overseas market, trifluralin is mainly used to control technical capacity of 30,000t/a,trifluralin technical (grade: 96%) weeds in cotton fields with average AI Fengshan Group’s herbicides productswas firstly introduced into China by dosage of 1000g per hectare. include trifluralin, nicosulfuron,Sipcam S.p.a, Italy, in 1987. As of quizalofop-P-ethyl, etc.Jan. 2011, Fengshan has achieved two According to a salesman of Fengshan■ Market Analysis Dicamba attracts pursuers’ interestW ith dicamba-tolerant crops pushed by global top agrochemical companies such as Although dicamba didn’t witness golden period in the past years like What’s more, Jiangsu Shenghua had suspended dicamba production due Monsanto and BASF, dicamba draws glyphosate in 2008, dicamba-tolerant to complex factors including pollution more pursuers attention in global crops are developed one by one in the problem (Herbicide China News GM innovation wave. world, making global limelight focus 1012: Jiangsu Shenghua suspends on dicamba gradually. It’s reasonable dicamba plant). It means that dicamba‘Several projects across platforms and to think that dicamba may be the output in China reduces furthercrops designed to improve farmers’ second glyphosate in the future. and dicamba pursuers with strongeron-farm productivity and profitability competitiveness can take a largeradvanced phases today as part of But, actually, dicamba is not well market share.Monsanto Company’s (NYSE: MON) developing in domestic market.annual pipeline update. More expensive than general wheat Although it’s not sure whether herbicides, dicamba is primarily dicamba-tolerant crops could beThe company highlighted, in exported to overseas market. Only in approved to enter China, dicamba-particular, key projects in its yield H1 2010, over 30% of annual full-load tolerant crops developed by GMand stress pipeline collaboration with output was exported with average price technology will drive dicamba toGermany-based BASF Plant Science, of USD12,000t/a. Generally speaking, flourish further all over the world.which last year was expanded to peak export season of dicamba is from In addition, coupled with technologyinclude wheat. Yield and stress Oct. to next March in China. And innovation, it’s hopeful to lowerprojects advancing phases this year Chinese dicamba manufacturers dont unfriendly price of dicamba in China.include Nitrogen-Utilization Corn, stop production in the whole yearSecond-Generation Higher-Yielding except June and July, the time forSoybeans and Higher-Yielding/Stress inspection and maintenance.Tolerant Wheat.’ With high technology barriers,One news about Monsanto’s dynamics dicamba also faces stricterwas reported by MultiVu on Jan. 6th requirement on environmental2011. And some words about Stress protection in China, so only threeTolerant drew CCM International’s dicamba technical manufacturers existattention. As mentioned in the news, in China at present, namely Zhejiangthe Monsanto and BASF collaboration Shenghua Biok Biology Co., Ltd.,had developed several stress tolerant Youth Chemical Co., Ltd. and Jiangsucrops during former cooperation, Shenghua Pesticide Co., Ltd. (Jiangsunamely glyphosate/dicamba-tolerant Shenghua) with total capacity ofcrops. 3,500t/a. CCM International Limited 9 www.cnchemicals.com
  • 13. Herbicides China News Vol.4 Issue 01 2011 Metolachlor threatens acetochlor in ChinaA s a small breed amide herbicide in China, metolachlor owns predominant advantages over Table 2: Application dosage of metolachlor and acetochlor on soybean and corn, 2010 acetochlor and may substitute acetochlor in the future. But Crop metolachlor 72% acetochlor 90% acetochlor will still dominate field EC (g/ha. AI) EC (g/ha. AI) domestic market in the short term Soybean 5~9 3.5~4.4 with huge market share of about 10%. Corn 6~12 6~7.2With the pesticide industry taking Source: CCM Internationalsteps toward environmentally friendlydevelopment, acetochlor, the most Qingfeng) registered metolachlorpopular amide herbicide in China, technical firstly in China. Compared with consumption volumeis encountering large challenge and period of acetochlor appliedfrom other competitors and stricter At present, over 10 technical in China, less metolachlor is usedrequirements on environmental manufacturers is actively producing by Chinese peasants. It meansprotection after it has been applied for metolachlor in China with total that greater weed resistance toabout 30 years. capacity of more than acetochlor makes it less effective than 20,000t/a. According to the metolachlor. In addition, having beenAs one competitor of acetochlor, authoritative statistics, in China, applied for a long time, the residualmetolachlor is easily listed into metolachlor achieved sales value of problem of acetochlor is severerpotential substitute with higher safety USD5 million in 2009 with market than that of metolachlor, inhibitingand weaker resistance. Metolachlor, share of 0.4%. acetochlors development in domestican amide herbicide which is primarily market.applied to controlling annual Comparatively, the application dosagegramineae weeds in fields of soybean, of metolachlor and acetochlor is Although acetochlor is beingcorn, peanut, maize and paddy, ranks almost the same but control spectrums threatened by many competitorsNo. 4 among popular amide herbicides are different. Apparently, metolachlor including metolachlor in China,all over the world. could control more varieties of weeds. its stable consumption groups and low price promise will guaranteeFirstly registered by Syngenta Whats more, relative research its position of top popular amideCorporation in 1988 as metolachlor indicates that metolachlor is safer herbicide in the long term.72% EC with the trade name of Dual, and more environmentally friendlymetolachlor attracted domestic than acetochlor with the same dosage. Compared with metolachlor averageagrochemical pursuers’ interest A research about soil adsorbability price of USD3,800/t, acetochlor isgradually in subsequent twenty releases that the residue of acetochlor cheaper, with the price fluctuatingyears. In 1998, Hangzhou Qingfeng resided is more easily left in soil than around USD2,800/t in 2010. As forAgrochemical Co., Ltd. (Zhejiang that of metolachlor. lots of consumers in China, acetochlor with similar effect and lower price Figure 9: Price trend of acetochlor and metolachlor in China, 2010 is more adaptable, though its environmental pollution is higher and 4,000 phytotoxicity is greater. Monthly average price: USD/t 3,800 On the whole, acetochlor is facing 3,600 greater challenge from metolachlor, but it still take metolachlor a long 3,400 time to be a substitute of acetochlor 3,200 completely. 3,000 2,800 2,600 Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec. Acetochlor (92%) Metolachlor (97%) Source: CCM International CCM International Limited 10 www.cnchemicals.com
  • 14. Herbicides China News Vol.4 Issue 01 2011■ Supply & Demand Anhui Fengle expands tribenuron-methyl productionA nhuiFengle Agrochemical Co., Ltd. (Anhui Fengle), the subsidiary of Fengle Seed Co., Ltd, implementing the 300t/a expanding plan. is to trial the new production line with small output in May 2011. is expanding tribenuron-methyl Having been applied for years in On Dec. 17th 2010, one EIA production currently by constructing China, tribenuron-methyls advantages announcement about Anhui Fengle’s a new 300t/a technical production are expected by most of industrial 300t/a tribenuron-methyl production line. Although the 300t/a tribenuron- experts and pursuers. Tribenuron- line was issued on official website methyl production line is still under methyl is not only safe but also very of Hefei Environmental Protection construction at present, Anhui Fengle Bureau. As written in the bulletin, the active to succeeded crops like cotton, is confident in the future sales of soybean, corn, etc. Generally, only new production line is located in Hefei tribenuron-methyl products. 10~20 gram tribenuron-methyl can Circular Economy Park with total take effect on controlling weeds in one investment of USD3 million."Tribenuron-methyl is Anhui Fengle’s hectare field.prime product," Sales Manager Up to now, Anhui Fengle hassurnamed Lin introduced, "and we As of Jan. 2011, there are 233 active achieved three tribenuron-own export qualification of tribenuron- tribenuron-methyl registrations in methyl registrations includingmethyl." According to the introduction, China. Among them, the number of 92% technical (PD20070552),Anhui Fengle’s tribenuron-methyl is technical registrations exceeds 20. 75% WG (PD20070642) and 10%usually exported to Europe rather than WP (PD20081290). What’s more,South Asia. With herbicide industry in China tribenuron-methyl 10% WP is well sold recovering completely and developing in home market and 92% technicalBecause tribenuron-methyl is further in 2011, tribenuron market is quoted at USD22,000/t by Anhuigenerally applied in wheat field will witness nice prospect. Meanwhile, Fengle.to control annual and perennial Anhui Fengle could grasp the chancebroadleaf weeds, domestic sales of with tribenuron-methyl capacity of Anhui Fengle is a subsidiary of listedAnhui Fengle’s tribenuron-methyl is 800t/a after present 300t/a expanding Hefei Fengle Seed Co., Ltd., whichconcentrated in North China. capacity launched. is mainly engaged in crop seeds and agrochemical businesses. And AnhuiAlthough the company’s tribenuron- But it needs some time to finish the Fengle’s agro-chemical products aremethyl output is only 250t/a in 2009, construction of new production line. the second largest business of Fenglea half of its total capacity, resulted According to one insider of Anhui Seed.from the financial crisis, Anhui Fengle, EIA of the production line wasFengle is so optimistic about future just approved recently and next stepmarket of tribenuron-methyl that it is Hubei Huida suspends bispyribac-sodium productionH ubei Huida Technology Development Company (Hubei Huida)’s 200t/a bispyribac- production is confirmed by Beijing Insight Finechem Co., Ltd. (Beijing IFC), the parent company of Hubei products because it has no inventory. As introduced by Manager Guo, the output of this bispyribac-sodium sodiumproduction line has Huida. production line was still small though suspended operation recently even the 200t/a production line had been though it has been launched for "The bispyribac-sodium production launched for several months. only several months. Its estimated line will not be resumed until Chinese that the production will be resumed Spring Festival,"said the Sales After Chinese Spring Festival, Hubei after Chinese Spring Festival in Manager surnamed Guo of Beijing Huida will heighten operating rate of Feb.2011, the most important IFC, "and bispyribac-sodium 95% the bispyribac-sodium production line traditional festival in China, and technical is the main variety produced as planned. Although Manager Guo till then large-scale production will by this 200t/a product line." Of course didnt explain, it could be concluded be achieved instead of the small some formulation products will also be that the reason why Hubei Huida output before. According to CCM produced to meet customers demand. adapted low operating rate after International’s investigation, Hubei Huida has no bispyribac-sodium in the production line launched is that But Manager Guo refused to disclose Hubei Huida takes a cautious attitude stock at present. And Hubei Huaidas suspension of bispyribac-sodium the prices of bispyribac-sodium towards bispyribac-sodium. CCM International Limited 11 www.cnchemicals.com
  • 15. Herbicides China News Vol.4 Issue 01 2011 and it’s also believed to have barnyard grass. It’s reported thatActually, its the first time for Hubei promising market in the future. barnyard grass in the first to seventhHuida to produce bispyribac-sodium. Up to now, only three companies growth period could be controlledHence, it produces bispyribac-sodium have achieved bispyribac-sodium effectively by bispyribac-sodium withwith caution and plans to export its technical registration in China, not dosage of only 15 ~ 45g per hectare.bispyribac-sodium for overseas mature including Hubei Huida. (Please reviewmarket. Herbicides China News 1010) Hubei Huida, located in Jianglin County, Jingzhou City, HubeiAs for domestic agrochemical market, Absorbed by leaves or roots of plants, Province, is a chemical manufacturerbispyribac-sodium developed by bispyribac-sodium has excellent mainly engaged in production ofKumiai Chemical Industry Co., Ltd. effect on controlling grasses, sedge herbicide and plant growth regulator.is considered to be a new herbicide and broad-leaved weeds, especially All self-produced metamitron are exported in China"W e just accept foreign orders." Said one salesman of Hebei Wanquan Hongyu Chemical Table 3: Registration of metamitron in China, as of Jan. 2011 Registration Expiration Co., Ltd. (Hubei Wanquan), the Content Manufacturer number time only one metamitron manufacturer Hebei Wanquan Hongyu Chemical Co., in China now with capacity of LS20080072 70% WG 2012.01.04 Ltd. 1,500t/a. According to the salesmans Hebei Wanquan Hongyu Chemical Co., introduction, all Hebei Wanquan’s LS20080074 98% technical 2012.01.04 Ltd. metamitron products are exported to West Europe, North America and LS20091019 98% technical 2011.04.13 Rosi Chemical Co., Ltd. North Africa. Source: CCM InternationalBy looking up metamitron registrationrecord in China, CCM International by plant roots and is usually appliedfound that Rosi Chemical Co., Ltd. "We have regular clients purchasing to pre- and post-emergent control of(Rosi Chemical) also has achieved metamitron products." The salesman weeds in sugar beet field throughoutmetamitron registration. But, in fact, of Hebei Wanquan told us. It’s the growing period of weeds with highRosi Chemical hasn’t begun to produce revealed that Hebei Wanquan’s activity, low toxicity and low residue.metamitron. metamitron products are more popular in overseas market, thus, Hebei Wanquan, founded in 1997,"Rosi Chemical has developed the orders have been booked till 2011 is a private company who is mainlymetamitron production technology Chinese Spring Festival. engaged in production and sales ofnot long before," one insider of Rosi metamitron and clethodim. As aChemical explained, " it still needs Generally, Hebei Wanquan’s annual export-oriented enterprise, Hebeisome time to start formal metamitron output could exceed 1,000t/a. In terms Wanquan’s clients centralize inproduction with large output." of Rosi Chemical’s metamitron, it is Europe, America, Southeast Asia, etc. likely to be sold in domestic marketIt means that metamitron market in the future. But relative informationin domestic market is still blank at involving certain production line was Figure 10: Chemical structure ofpresent. Although CCM International unknown at present. metamitrontried to find the reason why HebeiWanquan’s metamitron is only for Belonging to triazine herbicides,export, Hebei Wanquan refused to metamitron is developed by Bayeranswer our confusion due to secrecy CropScience LLC. in 1975. As anobligation. inhibitor in photosynthesis process, metamitron can be easily absorbed CCM International Limited 12 www.cnchemicals.com
  • 16. Herbicides China News Vol.4 Issue 01 2011 Good Harvest-Weien to pursue 2,4-DR ecently, Jiangsu Good Harvest- Weien Agro Chemical Co., Ltd. (Good Harvest-Weien) starts will take use of existing assorted facilities, such as waste treatment. in recent years, including glyphosate, dicamba, 2,4-D. to pursue 2,4-D by constructing a Now the whole construction still Partially pushed by Monsanto’s 10,000t/a 2,4-D production line. stay in primary phase so that Good glyphosate-tolerant crops, glyphosate Although the 2,4-D production line Harvest-Weien has no 2,4-D products witnessed a flourish period in 2008. has not been installed, Good Harvest- yet. Actually, it’s the first time for Similar to glyphosate, 2,4-D may Weien’s behavior implies domestic Good Harvest-Weien to explore meet a booming market after Dow’s agrochemical manufacturers’ 2,4-D-tolerant crops popularized 2,4-D business. After formal increasing attention to 2,4-D. production achieved, Good Harvest- gradually, though GM crops have not Weien’s 2,4-D business will be been accepted completely by mostOn Dec. 3rd 2010, one EIA bulletin centralized in domestic market at first. countries in the world now.about Good Harvest-Weien’s 2,4-Dproduction line was issued on Nantong Even though Good Harvest-Weien Hence, 2,4-D is drawing globalEnvironmental Protection Bureau’s will not make great efforts to explore agrochemical manufacturers attentionofficial website, indicating that the overseas 2,4-D market in the short . As a domestic herbicide pursuer,construction gained local government’s term, the construction reflects the Good Harvest-Weien’s construction isagreement to be initiated. Accompany company’s ambition to pursue this hot in the contemplation.with 2,4-D production line, 500t/a product.MCPA production line will also be set Good Harvest-Weien, located inout meanwhile. The fast development of Qidong City, Jiangsu Province, is a 2,4-D-tolertant crops has been joint stock company engaged in theAccording to the bulletin, these two raising overseas 2,4-D manufacturers production and sales of insecticidesproduction lines will be invested with enthusiasm. Accompany with global and herbicides. And herbicidesUSD10.9 million totally. Located developing trend of herbicide industry, produced in Good Harvest includein Good Harvest-Weien’s current domestic agrochemical manufacturers glyphosate, phenmedipham andaddress, Bingjiang Fine Chemical have also begun to pursue some desmedipham.Park, Qidong City in Jiangsu Province, herbicides related to GM technologyand the 10,000t/a 2,4-D production■ Price Analysis- Price Review Monthly market prices of main crops in China, Jan. 2011 Jan. 11 Dec. 10 Jan. 10 2009 Crop Planting area Chinese output USD/t RMB/t USD/t RMB/t USD/t RMB/t (103 ha.) (103 tonnes) Indica rice 349 2,301 480 3,200 409 2,793 29,680 195,800 Japonica rice 423 2,794 581 3,870 504 3,440 - - Wheat 316 2,084 307 2,045 295 2,018 24,210 114,950 Rapeseed 591 3,900 591 3,941 603 4,120 7,200 13,500 Corn 297 1,962 291 1,940 260 1,776 30,460 163,000 Soybean (oil) 561 3,700 603 4,020 540 3,690 8,800 14,500 Soybean (food) 606 4,000 653 4,350 586 4,000 - - Peanut 1,227 8,100 1,126 7,500 1,245 8,500 4,233 13,607 Broomcorn 308 2,030 339 2,260 310 2,120 1,016 3,640 Source: CCM International CCM International Limited 13 www.cnchemicals.com
  • 17. Herbicides China News Vol.4 Issue 01 2011 Monthly ex-factory prices of key raw materials, Jan. 2011 Jan. 11 Dec. 10 Jan. 10 Raw material/intermediates USD/t RMB/t USD/t RMB/t USD/t RMB/t Phosphorus trichloride (99%) 788 5,200 870 5,800 857 5,850 Glycine (98%) 1,894 12,500 1,951 13,000 1,757 12,000 Iminodiacetonitrile (92%) 1,667 11,000 1,876 12,500 1,831 12,500 Chloroacetic chloride (99%) 1,106 7,300 1,246 8,300 1,245 8,500 Pyridine (99.9%) 4,546 30,000 4,502 30,000 4,613 31,500 Cyanuric chloride (> 99.3%) 1,667 11,000 1,876 12,500 1,933 13,200 Paraformaldehyde (95%) 727 4,800 - - - - Dimethylamine (40%) 576 3,800 - - - - Isopropylamine (99%) 2,030 13,400 - - - - Source: CCM International Monthly ex-factory prices of main herbicides, Jan. 2011 Jan. 11 Dec. 10 Jan. 10 Technical USD/t RMB/t USD/t RMB/t USD/t RMB/t Glyphosate (95%) 3,437 22,680 3,479 23,180 3,615 24,680 Paraquat (42%) 2,300 15,180 2,203 14,680 2,223 15,180 Acetochlor (92%) 2,906 19,180 2,849 18,980 2,780 18,980 Atrazine (97%) 2,830 18,680 3,029 20,180 2,956 20,180 Tribenuron- methyl (95%) 17,377 114,680 18,712 124,680 18,260 124,680 Metolachlor (97%) 4,118 27,180 3,854 25,680 3,761 25,680 Butachlor (92%) 3,361 22,180 3,329 22,180 3,029 20,680 Pendimethalin (95%) 7,528 49,680 7,606 50,680 7,276 49,680 Trifluralin (95%) 4,952 32,680 3,854 25,680 3,541 24,180 Quizalofop- P-ethyl (95%) 24,195 159,680 23,965 159,680 22,361 152,680 Fenoxaprop- P-ethyl (95%) 33,286 219,680 32,970 219,680 30,709 209,680 Oxyfluorfen (97%) 19,346 127,680 19,163 127,680 18,993 129,680 Nicosulfuron (95%) 31,771 209,680 - - - - Bensulfuron-methyl (96%) 20,862 137,680 - - - - Fluroxypyr (96%) 22,680 149,680 - - - - Clomazone (95%) 15,407 101,680 - - - - Fomesafen (95%) 14,346 94,680 - - - - Source: CCM International CCM International Limited 14 www.cnchemicals.com
  • 18. Herbicides China News Vol.4 Issue 01 2011 Monthly Shanghai port prices and FOB Shanghai of main herbicides, Jan. 2011 Shanghai Port Price FOB (Shanghai) Technical Jan. 11 Dec. 10 Jan. 10 Jan. 11 Dec. 10 USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t USD/t Glyphosate (95%) 3,485 23,000 3,527 23,500 3,661 25,000 3,573 3,617 Paraquat (42%) 2,349 15,500 2,251 15,000 2,270 15,500 2,392 2,296 Acetochlor (92%) 2,955 19,500 2,897 19,300 2,827 19,300 2,983 2,925 Atrazine (97%) 2,879 19,000 3,077 20,500 3,002 20,500 2,909 3,101 Tribenuron- methyl (95%) 17,425 115,000 18,760 125,000 18,307 125,000 17,100 18,402 Metolachlor (97%) 4,167 27,500 3,902 26,000 3,808 26,000 4,166 3,906 Butachlor (92%) 3,409 22,500 3,377 22,500 3,076 21,000 3,426 3,394 Pendimethalin (95%) 7,576 50,000 7,654 51,000 7,323 50,000 7,492 7,567 Trifluralin (95%) 5,000 33,000 3,902 26,000 3,588 24,500 4,979 3,906 Quizalofop- P-ethyl (95%) 24,244 160,000 24,013 160,000 22,408 153,000 23,752 23,526 Fenoxaprop- P-ethyl (95%) 33,335 220,000 33,018 220,000 30,756 210,000 32,621 32,311 Oxyfluorfen (97%) 19,395 128,000 19,211 128,000 19,040 130,000 19,022 18,841 Nicosulfuron (95%) 31,820 210,000 - - - - 31,143 - Bensulfuron-methyl (96%) 20,910 138,000 - - - - 20,500 - Fluroxypyr (96%) 22,728 150,000 - - - - 22,274 - Clomazone (95%) 15,455 102,000 - - - - 15,178 - Fomesafen (95%) 14,395 95,000 - - - - 14,143 - Note: Shanghai port price = ex-factory price plus transport fee from production plant to Shanghai port Shanghai FOB price = port price + handling and THC + trading companies profit – export rebate Source: CCM International- Pricing Overview of Chinese glyphosate price in 2010S imilar to that in 2009, the prices of Chinese glyphosate products in 2010 also witnessed stagnant Figure 11: Ex-factory price trend of glyphosate products in China, 2010 4,000 situation. However, with global economy recovering gradually, 3,500 glyphosate prices witnessed slight Monthly average price: USD/t 3,000 increase at the end of 2010. 2,500As usual, the whole situation ofglyphosate prices didn’t change too 2,000much in 2010. With one drop during 1,500Jan. to May and one rise during Juneto Dec. respectively, average prices 1,000of glyphosate products still kept at a 500low level. Take glyphosate technicalfor example, top price in Jan. 2010 0reached only USD3,660/t, just Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec.USD199/t over the valley price in Dec. 10% SL 41% IPA 62% IPA 50% WP 75.7%WP Tech.2008. Source: CCM International CCM International Limited 15 www.cnchemicals.com
  • 19. Herbicides China News Vol.4 Issue 01 2011What’s more, the changes in prices of rebound. future.glyphosate products in 2010 are stillcaused by supply/demand relationship Little different from other varieties of Compared with that of glyphosate 10%primarily. Due to alleviation supply of glyphosate products, glyphosate 10% SL, the price of glyphosate 41% IPA isenergy and material, glyphosate prices SL price has been increasing slightly in higher. In 2010, the average price ofwitnessed continual drop after winter. 2010, with the increase floating in the glyphosate 41% IPA fluctuated aroundAnd glyphosate technical price didn’t range of USD500/t. In Dec. 2010, the USD1,700/t.decrease to valley of USD2,828/t until price of glyphosate10% SL approachedMay 2010. top of USD670/t. Although domestic glyphosate overcapacity still exists at present,Thanks to the peak selling season In addition, according to Chinese the whole recovering environment,(Feb. - May) and coming winter, governments regulation considering increasing material price andcoupled with the whole recovering pollution problem, that is, glyphosate swelling overseas demand are drivingenvironment, glyphosate prices 10% SL pollute environment more glyphosate prices to recover fromstarted to rebound after the valley serious than glyphosate 41% IPA, and gloom casted by the financial crisisprice. Actually, global pesticide market glyphosate 10% SL will be prohibited in 2009. Thus, it’s predicted that thebegan meeting recovery in 2010. The to produce in Chinas herbicide market price level of glyphosate in 2011 will begradually increasing overseas demand, from Jan. 2011. Hence, glyphosate higher than that in 2010.the abolishment of glyphosate export 41% IPA might substitute glyphosaterebate and rising prices of materials 10% SL to be the Chinese popularalso drove glyphosate prices to formulation of glyphosate in the■ News in Brief Chinese herbicide technical output in- New herbicide products in 2011 creases in Nov. 2010 I ts reported from Agrow that ten new herbicide productsC urrent statistics indicate that domestic herbicide are expected in 2011, they are listed as below: technical output in Nov. 2010 increased by 20.9% year on year to 99,000 tonnes, accumulatively reaching 0.99 1. Callisto Xtra® (Mixed formulation including mesotrione million tonnes in 2010. and atrazine) from Syngenta, applied in corn field; 2. Peak® (Prosulfuron mainly) from Syngenta, corn field; 3. TripleFlex® (Acetochlor, flumetsulam, and clopyralid) UN not to ask anti-dumping tax against from Monsanto, corn field; 4. Warrant® (Acetochlor) from Monsanto, soybean and Chinese glyphosate in 2011 corn; 5. Kixor® (Pyribenzoxim mainly) from BASF, corn,E U will not resume anti-dumping tax against Chinese glyphosate in 2011 after the anti-dumping application cancelled by the European Glyphosate Association in soybean and wheat; 6. TripleFlex® (Acetochlor, flumetsulam, and clopyralid) Sept. 2010. Before the cancellation, Chinese glyphosate from Monsanto, corn field; manufacturers had to pay 29.9% anti-dumping tax to EU 7. Cleansweep D® & Cleansweep M® (Buctril and 2,4-D & for Chinese glyphosate exported to EU. Starane and 2,4-D) from Nufarm, wheat; 8. Huskie® (Buctril and pyrasulfotole) from Bayer, wheat; Fujian Sannong’s relocation 9. PowerFlex® (Pyroxsulam mainly) from Dow, wheat; 10. Pulsar® (Fluroxypyr and dicamba) from Syngenta,O wheat. n Nov. 4th 2010, Fujian Sannong Group Co., Ltd. issued a bulletin that the company had gained partial compensation of about USD49 million from local Chinachem to purchase MA Industries government due to the whole relocation into Huangsha Chemical Industry Park in Sanming City. According to the bulletin, the whole relocation will be finished at the beginning of 2011. A ccording to MA Industrys official report, Chinachem and Koor Industries, parent company of MA Industries, the leading generic pesticide company in the world, reached agreement that Chinachem would purchase 60% share of MA Industries with projected capital of USD1.44 billion. The formal contract was planned to be finished in H1 2011. CCM International Limited 16 www.cnchemicals.com
  • 20. Journalist: Bobby Liu Editor: Micheal Li Editor in Chief: Ann Liang Publisher: Zhonghui WuCCM International Limited17th Floor, Huihua Commercial & Trade Building, No.80 Xianlie Zhong RoadGuangzhou, 510070, P.R.ChinaTel: +86-20-37616606Fax: +86-20-37616968E-mail: econtact@cnchemicals.comWebsite: www.cnchemicals.com