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Operating performance of four listed glyphosate companies may improve further in h2 2012
 

Operating performance of four listed glyphosate companies may improve further in h2 2012

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Industrial concentration of Chinese glyphosate increases further in H1 2012, and China's top five glyphosate producers' proportion of export volume and value of glyphosate A. I. has increased to 64% ...

Industrial concentration of Chinese glyphosate increases further in H1 2012, and China's top five glyphosate producers' proportion of export volume and value of glyphosate A. I. has increased to 64% and 70% respectively in H1 2012, up 8% and 13% H1 2011.

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    Operating performance of four listed glyphosate companies may improve further in h2 2012 Operating performance of four listed glyphosate companies may improve further in h2 2012 Document Transcript

    • Operating performance of four listed glyphosate companies may improve further in H22012Summary: Industrial concentration of Chinese glyphosate increases further in H1 2012, andChinas top five glyphosate producers proportion of export volume and value of glyphosate A. I.has increased to 64% and 70% respectively in H1 2012, up 8% and 13% H1 2011.Tag: Glyphosate, seme-annual report, profit, loss, subsidiary, integration, industrail concentration,wastewater, technology, technique, price, volume, manufacturer, destinationThe market situation of glyphosate has improved in H1 2012, which may last and improve theoperating performance of four listed glyphosate companies further in H2 2012, according toCCM’s September Issue of Glyphsoate China Monthly Report.If the improved market situation of glyphosate last in H2 2012, its estimated that four listedglyphosate companies operating performance will improve further in H2 2012, or even they allcan be profitable this year (TABLE 5).On 28 Aug., 2012, Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca) releasedits 2012 semi-annual report and claimed that it would achieve an estimated profit of aboutUSD4.26 million (RMB27 million) in Q3 2012, and thus Zhejiang Wynca would achieve breakeven in net profit attributed to shareholders in the first nine months of 2012.On 22 Aug., 2012, Anhui Huaxing Chemical Industry Co., Ltd. (Anhui Huaxing) released its 2012semi-annual report and claimed that it would achieve an estimated profit of about USD2.13-2.92million (RMB13.5-18.5 million) in Q3 2012, and thus Anhui Huaxing would achieve net profit ofabout USD1.26-2.05 million (RMB8-13 million) in the first nine months of 2012.The other two listed glyphosate companies, Nantong Jiangshan Agrochemical & Chemicals Co.,Ltd. (Nantong Jiangshan) and Jiangsu Yangnong Chemical Co., Ltd. (Jiangsu Yangnong), bothachieved good net profit in H1 2012, and its estimated that the two companies would maintaintheir good performance in the second half of this year.The demand for glyphosate from overseas is still very strong in Q3 2012 and is likely to last tillQ4 2012, which will promote the export volume of the four companies further. Its estimated thatthe revenue in the four companies would remain stable in H2 2012, or even exceed that of thefirst half of this year.
    • In H1 2012, the export volume of glyphosate A. I. from Zhejiang Wynca, Nantong Jiangshan andJiangsu Yangnong has increased by 16%, 20% and 61% respectively, with export valueincreasing by 41%, 42% and 94% accordingly over that in H1 2011 (FIGURE 7). Because of themismanagement and shortage of operating funds, Anhui Huaxing didnt grab the salesopportunity in H1 2012, and its export volume and value of glyphosate A. I. decreased by 33%and 16% respectively. After the completion of acquisition by a strong company, namely CEFCShanghai Oil Group Co., Ltd., Anhui Huaxings problem of operating fund shortage andmismanagement would be improved greatly, which would have a good effect on Anhui Huaxingsoperating performance in H1 2012.The prices of yellow phosphorous, glycine, IDAN and PMIDA have increased little in Q3 2012, butthe prices of these raw materials except yellow phosphorous will not increase greatly in Q4 2012due to the overcapacity and limited demand under the situation of slow development in Chinasmanufacture industry. Besides, the price of glyphosate is still increasing in Q3 2012, and its likelyto maintain at a high level in Q4 2012 mainly due to the strong demand for glyphosate and strictenvironmental protection policy, which will promote the situation of profit in the four companiesfurther.The development of Chinas manufacture industry was very low in H1 2012 and this situation islikely to last in H2 2012, which meant that the prices of raw materials for producing glyphosateincluding yellow phosphorous will not increase greatly in H2 2012. According to theannouncement from National Bureau of Statistics of China, the Purchase Management Index(PMI) was 49.2% in Aug, 2012, down 0.9 percentage point over that in previous month, whichwas the first time to decrease below the gloom-boom index of 50 in China in 2012.Besides, the quantity of restarting production in small and medium-sized glyphosate producerswould not be too much due to the high cost in environmental protection, leading to the limitedincrease in glyphosate supply, and thus the price of glyphosate will stay at a high level in H22012. Its heard that Chinas Ministry of Environmental Protection will carry out a check in Chinaspesticide industry, and the companies which cant reach the waste treatment standard will beordered to stop production.Furthermore, in H1 2012, the operating rate and gross profit margin of glyphosate business ofZhejiang Wynca, Nantong Jiangshan and Jiangsu Yangnong in H1 2012 was about 100%, 90%,70% and 11%, 5%, 10% respectively, all increased over that in H1 2011. The operating rate ofAnhui Huaxing in H1 2012 was about 39%, down 17 percentage points over that in H1 2011, butits gross profit margin in glyphosate business was 9%, up seven percentage points over that inH1 2011. After solving the problem of operating fund shortage, its estimated that the operatingrate of Anhui Huaxing would increase in H2 2012.
    • According to CCM s analysis report on glyphosate price, as to Aug. 2012, the price ofglyphosate technical was about USD4,646/t, up 22% over that in Jan. 2012 (FIGURE 7).The prosperity in Chinas glyphosate industry resulting from the improved market situation ofglyphosate is a special scenery in Chinas bleak chemical industry at present, but for theglyphosate producers which have witnessed the miserable situation in Chinas glyphosateindustry in the past three years, how to improve the operating performance would be the mostimportant thing in H2 2012 and the future coming years.Source: Glyphsoate China Monthly Report 1209http://www.cnchemicals.com/Newsletter/NewsletterDetail_14.htmlContent of Glyphsoate China Monthly Report 1209:Zhejiang Wynca suffers huge profit loss in H1 2012Anhui Huaxing cant turn loss into gain in H1 2012Jiangsu Yangnong: Glyphosate business promotes its operating performance in H1 2012Nantong Jiangshan is unsuccessful to sell glycine-supply subsidiary——Dongchang ChemicalOperating performance of four listed glyphosate companies may improve further in H2 2012Chinas glyphosate industry: Market integration is accelerating in 2012Overview of export rebate abolishment in Chinas glyphosate technical from August 2009 to July2012Zhejiang Wynca achieves breakthrough on treatment technique of glyphosate wastewaterGlyphosate price continues to surge in September 2012Export price of glyphosate technical increases by 3.17% in July 2012Glyphosate China Monthly Report, a monthly publication issued by CCM International on 20thof every month, will keep track of latest dynamics, hotspots and competitiveness analysis, andforecasts on market trends of China’s glyphosate industry.About CCMCCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff ofmore than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis,Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its newproprietary product ValoTracer.For more information, please visit http://www.cnchemicals.com.
    • CCM International Ltd.Guangzhou CCM Information Science & Technology Co., Ltd.17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou510070, ChinaTel: 86-20-37616606Email: econtact@cnchemicals.comSource: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1222.html