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Monochloromethane recovery contributes to glycine route's cost advantage
1. Monochloromethane Recovery Contributes to Glycine Route's Cost Advantage
Summary: Monochloromethane recovery contributes to glycine route's cost advantage,
according to CCM’s August issue of Glyphsoate China Monthly Report.
Tag: Monochloromethane, glycine, glyphosate, glyphosate technical production, glycine route ,
DEA route, IDAN route, Zhejiang Wynca
Though glycine route glyphosate has disadvantage in waste water treatment, the recovery of by-
product monochloromethane makes this route have the strongest comprehensive
competitiveness among the three routes at present, according to CCM’s August issue of
Glyphsoate China Monthly Report.
Under the long-term depressed glyphosate market and undervalued price, more and more
Chinese glyphosate manufacturers suspend glyphosate technical production or quit glyphosate
business. In recent three months, only about 12 glyphosate technical manufacturers has been
operating formally, and most of them are manufacturers adopting glycine route.
According to CCM International's investigation and estimation, the cost of glyphosate technical
manufactured by glycine route is lower than that of DEA route and IDAN route, as glyphosate
technical manufacturers adopting glycine route could be repaid from the recovered
monochloromethane.
The average recovery rate is about 500kg by-product monochloromethane when producing one
tonne of glyphosate technical, and the recovery cost is less than USD78 (RMB500) per tonne of
monochloromethane. The market price of monochloromethane is about RMB3,900/t. It could be
calculated that glyphosate manufacturers adopting glycine route can gain about USD178
(RMB1,500) from monochloromethane when producing one tonne of glyphosate technical,
accounting for about 6% of glyphosate technical production cost. Thus, totally, glycine route
glyphosate has about USD125/t (RMB800/t) cost advantage over IDAN or DEA route glyphosate.
And that's one of the key reasons why more glycine route glyphosate technical manufacturers are
operating.
While other glyphosate technical manufacturers sell out monochloromethane, Zhejiang Wynca
Chemicals Industry Group Co., Ltd. (Zhejiang Wynca) developed combined production
technologies of glyphosate and organic silicon, and its monochloromethane is for private use.
Coupled with the higher recovery rate, Zhejiang Wynca could gain more value in
monochloromethane recovery. Some other glyphosate manufacturers such as Sichuan Fuhua
Tongda Agro-chemical Technology Co., Ltd. are planning to develop downstream industry of
monochloromethane.
2. (Guangzhou China, August 24, 2011)
Source: Glyphsoate China Monthly Report 1108
http://www.cnchemicals.com/Newsletter/NewsletterDetail_14.html
Content of Glyphsoate China Monthly Report 1108:
Redsun Group reorganization has no help to its glyphosate business
Anhui Huaxing falls into continuous loss in H1 2011
Brazil ceases antidumping mid-term review investigation on Chinese glyphosate
Deadline of ChemChina's acquisition for MAI extended again
Monochloromethane recovery contributes to glycine route's cost advantage
Increased manpower cost aggravates vulnerable glyphosate industry
Expanding downstream products is the key solution to IDAN’s market plight
Glyphosate price slightly increases in August 2011
Overview of glyphosate products export in H1 2011
Glyphosate export volume keeps stable in June 2011
Glyphosate China Monthly Report, a monthly publication issued by CCM International on 20th
of every month, will keep track of latest dynamics, hotspots and competitiveness analysis, and
forecasts on market trends of China’s glyphosate industry.
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