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The future of glyphosate industry in china
 

The future of glyphosate industry in china

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Glyphosate, a broad-spectrum herbicide, widely used to kill unwanted plants both in agriculture and in nonagricultural landscapes, has been in a leading position of herbicides in the world in the past few years; it is estimated that the global consumption of glyphosate is over 600kts at present and will increase by CAGR of over 15%.

China, now the largest production base of glyphosate technical in the world, has glyphosate capacity accounting for more than 40% of the global total. With the output expected to reach about 280kts and the export volume 250kts in 2008, China’s glyphosate supply and price will have great impacts on the global market.

However, will China maintain its dominance in the glyphosate supply in the world? Will the export of Chinese glyphosate keep growing since it has already constituted over 70% of China’s total output? What will be the major factors influencing China’s export and towards what direction will they drive China’s glyphosate export? This report will answer all these questions.

At present, China's glyphosate has been characterized for the following features, soaring glyphosate price, and huge profit in China's glyphosate producers, exploding capacity driven by these two factors mentioned above, changing technology landscape in China's glyphosate production etc.

Since February 2007, China's glyphosate price has been surging, from the average price of about RMB34,000/t in February to RMB42,000/t as of September 2007. However, this is far from the end of the price rise. The price has kept soaring, from RMB58,000/t at the end of 2007 to the unbelievably record high, RMB95,000~100,000/t as of May 2008. But in 2006, the average price was only about RMB26,000/t. What has caused the price hike? How does it influence domestic glyphosate production and the export? What are the comments from Chinese producers, traders, experts and raw material suppliers on this situation and how will they react to this price hike? When will the turning point be? CCM will provide an in-depth analysis in this report.

Driven by the huge profits and increasing demand, many Chinese manufactures are expanding, launching or desiring to launch new glyphosate projects. It could be foreseen that production capacity of glyphosate in China will have a sharp rise in the next 2 years. The competition among Chinese glyphosate manufactures in China will become intense. Moreover, with the development of oversea producers, the competitions among countries will be fierce also. China is raising environmental threshold and environmental protection cost is increasing accordingly. So small-scale glyphosate production lines will be shut down. What is the future of glyphosate production in China? What's the competitiveness and competitive strategies of China's glyphosate in the future? With the price soaring of non-renewable resources and development of other herbicide or weed-control technology, in the far future, would glyphosate production centre shift away from China, or will the life cycle of glyphosate come to an end?

In China, there are three pathways for glyphosate production including glycine route, IDAN route and DEA route. With sufficient supply of glycine and steady production, glyphosate production with glycine route, the route used in China only among all the glyphosate production countries, confronts almost no bottlenecks, except that it causes more water pollution than that by the other routes, and that the production cost is also much higher than the other routes. Judged from the pollution and production cost, glyphosate production with glycine route should run down in the coming years. And the share of glyphosate produced by glycine route in China has decreased year by year, which seems to have proved such speculation. However, the output of glyphosate by glycine route increased rapidly in 2007, and the capacity of glyphosate by glycine route was also exploding in 2007 and 2008, and it wi

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    The future of glyphosate industry in china The future of glyphosate industry in china Document Transcript

    • CCM Data & Primary Intelligence The Future of Glyphosate Industry in China The Fifth Edition Researched & Prepared by: Guangzhou CCM Information Science and Technology Co., Ltd Guangzhou, P. R. China Jun 2008 Copyright by Guangzhou CCM Information Science and Technology Co., Ltd(P. R. China) Any publication, distribution or copying of the content in this report is prohibited. Website: http://www.cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968 Email: econtact@cnchemicals.com Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
    • CCM Data & Primary Intelligence Description: Glyphosate, a broad-spectrum herbicide, widely used to kill unwanted plants both in agriculture and in nonagricultural landscapes, has been in a leading position of herbicides in the world in the past few years; it is estimated that the global consumption of glyphosate is over 600kts at present and will increase by CAGR of over 15%. China, now the largest production base of glyphosate technical in the world, has glyphosate capacity accounting for more than 40% of the global total. With the output expected to reach about 280kts and the export volume 250kts in 2008, China’s glyphosate supply and price will have great impacts on the global market. However, will China maintain its dominance in the glyphosate supply in the world? Will the export of Chinese glyphosate keep growing since it has already constituted over 70% of China’s total output? What will be the major factors influencing China’s export and towards what direction will they drive China’s glyphosate export? This report will answer all these questions. At present, China's glyphosate has been characterized for the following features, soaring glyphosate price, and huge profit in China's glyphosate producers, exploding capacity driven by these two factors mentioned above, changing technology landscape in China's glyphosate production etc. Since February 2007, China's glyphosate price has been surging, from the average price of about RMB34,000/t in February to RMB42,000/t as of September 2007. However, this is far from the end of the price rise. The price has kept soaring, from RMB58,000/t at the end of 2007 to the unbelievably record high, RMB95,000~100,000/t as of May 2008. But in 2006, the average price was only about RMB26,000/t. What has caused the price hike? How does it influence domestic glyphosate production and the export? What are the comments from Chinese producers, traders, experts and raw material suppliers on this situation and how will they react to this price hike? When will the turning point be? CCM will provide an in-depth analysis in this report. Driven by the huge profits and increasing demand, many Chinese manufactures are expanding, launching or desiring to launch new glyphosate projects. It could be foreseen that production capacity of glyphosate in China will have a sharp rise in the next 2 years. The competition among Chinese glyphosate manufactures in China will become intense. Moreover, with the development of oversea producers, the competitions among countries will be fierce also. China is raising environmental threshold and environmental protection cost is increasing accordingly. So small-scale glyphosate production lines will be shut down. What is the future of glyphosate production in China? What's the competitiveness and competitive strategies of China's glyphosate in the future? With the price soaring of non-renewable resources and development of other herbicide or weed-control technology, in the far future, would glyphosate production centre shift away from China, or will the life cycle of glyphosate come to an end? In China, there are three pathways for glyphosate production including glycine route, IDAN route and DEA route. With sufficient supply of glycine and steady production, glyphosate production with glycine route, the route used in China only among all the glyphosate production countries, confronts almost no bottlenecks, except that it causes more water pollution than that by the other routes, and that the Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
    • CCM Data & Primary Intelligence production cost is also much higher than the other routes. Judged from the pollution and production cost, glyphosate production with glycine route should run down in the coming years. And the share of glyphosate produced by glycine route in China has decreased year by year, which seems to have proved such speculation. However, the output of glyphosate by glycine route increased rapidly in 2007, and the capacity of glyphosate by glycine route was also exploding in 2007 and 2008, and it will keep exploding in 2009. What has happened in China? What on earth has resulted in the change? What is the development trend? In this report, CCM will give a detailed introduction and summary about glyphosate production in the past, at present and in the future to help the readers understand the actual production of China's glyphosate. Owning to its excellent efficiency in weed control, glyphosate, is also the most widely used herbicide in China, similar to its situation in the world. China is a large agriculture country, with cultivated land area of 120 million hm2, over 70 million hm2 of which employ herbicides for weed control. However, China's glyphosate consumption encounters application limitations, competition from other herbicides, as well as peasants' preference. What is the situation of China's crop planting, glyphosate demand & market share in China, regional distribution of glyphosate use, peasants' preference on the choice of herbicides and competitive herbicides? This report will also reveal all these situation of current glyphosate use and demand in China. Main content: No. Content Page Guideline 15 Executive summary 18 Introduction and methodology 26 I Pesticide industry in China 30 I-1.1 Overview of crop planting situation 30 I-1.2 Brief introduction to history of pesticide industry 32 I-1.3 Overview of China's current pesticide production 33 I-1.4 Governmental policies on Chinese agriculture & pesticide industry 35 I-1.5 Pesticide Demand in China 40 I-1.6 Reviews of Chinese pesticide industry 41 II Glyphosate upstream industry 43 II-1 Brief introduction to raw materials & intermediates involved in glyphosate 43 II-2 Introduction to major raw materials & intermediates of glyphosate 47 II-2.1 Yellow phosphorous in China 47 II-2.2 Phosphorus trichloride in China 59 II-2.3 Dimethyl phosphite in China 63 II-2.4 Formaldehyde in China 67 II-2.5 Glycine in China 70 II-2.6 Paraformaldehyde in China 77 II-2.7 Diethanolamine in China 83 II-2.8 Natural gas in China 95 II-2.9 Hydrocyanic acid in China 99 Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
    • CCM Data & Primary Intelligence II-2.10 Iminodiacetonitrile in China 103 II-2.11 PMIDA in China 110 II-3 Impact of raw materials on glyphosate industry 122 III China's glyphosate nowadays 124 III-1 History of glyphosate production in China 124 III-2 Registration situation of glyphosate in China 129 III-3 Production technology 132 III-3.1 Introduction to different pathways of glyphosate production in China 133 III-3.1-1 AEA pathway 133 III-3.1-2 IDA pathway 134 - DEA route 135 - IDAN route 135 III-3.2 Comparison of different pathways of glyphosate production 136 III-3.3 Development trend of technology in China 136 III-4 Current supply situation 137 III-4.1 Glyphosate technical 137 III-4.1.1 Overall situation of glyphosate technical producers 138 III-4.1.2 Production capacity 147 - Capacity by province 148 - Capacity by pathway 149 - Capacity expanding 149 III-4.1.3 Output 149 - Output by province 151 - Output by pathway 152 III-4.2 Glyphosate formulations 153 III-4.2.1 Overall situation of glyphosate formulations 158 III-4.2.2 Introduction to specific formulations 167 - Summary of glyphosate 10% solution 167 - Summary of glyphosate 41% solution 168 - Summary of soluble powder & WP forms of glyphosate formulations 170 - Summary of high content glyphosate water formulations 170 III-4.2.3 About the additive technology & Chinese weakness in formulation production 171 III-5 Trading of glyphosate in China 172 III-5.1 Pricing of glyphosate 172 III-5.1.1 Key factors influencing the price 172 III-5.1.2 Pricing in the past few years 173 III-5.1.3 Current pricing and pricing in the future 175 III-5.2 Import & export analysis 178 III-5.2.1 Import situation of glyphosate 179 III-5.2.2 Export situation of glyphosate 181 III-5.2.3 Antidumping issue of Chinese glyphosate 198 III-5.3 Active traders in China 200 III-5.4 Distribution channels of glyphosate in China 201 III-5.5 Position of imported products and overseas producers in China 205 Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
    • CCM Data & Primary Intelligence III-6 Mass balance between glyphosate and its upstream products 206 III-7 Demand for glyphosate 208 III-7.1 Global demand for China's glyphosate 208 III-7.1.1 Overview of global genetically modified crop 209 III-7.1.2 Estimated global demand for glyphosate 212 III-7.1.3 Overview of global glyphosate production 213 III-7.1.4 Roles of China's glyphosate in overseas markets 213 III-7.2 Domestic demand for glyphosate 214 III-7.2.1 Overview of Chinese glyphosate technical consumption 214 III-7.2.2 Position and market size of glyphosate in herbicide industry 216 III-7.2.3 Glyphosate formulations use in China 217 - Regional distribution of glyphosate use in China 217 - Use pattern of glyphosate formulations 222 - Seasonal factor in use of glyphosate in China 224 - Packing 225 - How to choose 225 - The weed which can not be killed 226 - Glyphosate mixed with other herbicide 226 - Use situation of glyphosate formulations in each major crops 227 IV Competitive landscape of Chinese glyphosate industry 241 IV-1 Production cost 241 IV-2 Governmental policies 241 IV-3 Technology innovation 243 IV-4 Marketing strategies 245 IV-5 Competitions to other herbicides 247 V Prospects of Chinese glyphosate in the future 250 V-1 Key factors and driving forces for the development of glyphosate in China 250 V-1.1 Planting area of crops 250 V-1.1.1 GM crops 250 V-1.1.2 No-tillage crops 251 V-1.1.3 Total planting area of crops 252 V-1.2 Development trend of pesticide 253 V-1.2.1 Herbicides development in China 253 V-1.2.2 Influences of high price on the consumption of glyphosate 256 V-1.2.3 Consumption trend of herbicides 257 V-1.3 Production concentration into China 257 V-1.3.1 Current trend 257 V-1.3.2 Competitiveness of China's glyphosate industry 258 V-1.4 Policies 259 V-1.4.1 Trade regulations 259 V-1.4.2 Environmental regulations 260 V-1.4.3 Entry barriers 262 V-1.4.4 Regulations related to GM crops 263 V-1.5 Macro economic situation in China 264 Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
    • CCM Data & Primary Intelligence V-1.5.1 China economy continuously develop with fast growth rate 264 V-1.5.2 Growth rate of export reduced 266 V-1.5.3 Peasants' income grows continuously and stably 268 V-1.5.4 Low labor cost 270 V-1.5.5 More population and less peasants and cultivated Land 274 V-1.5.6 Serious Inflation 276 V-1.5.7 RMB appreciation 279 V-1.5.8 Short of energy and raw materials supply 281 V-1.5.9 Great demand for bio-energy 284 V-2 Challenges and opportunities for Chinese glyphosate industry 286 V-2.1 Opportunities 286 V-2.2 Risks 286 V-3 Future forecast on glyphosate in the next 5-10 years 287 V-3.1 Introduction 287 V-3.2 Forecasts to 2018 290 Competitiveness in global glyphosate markets 290 Demand 290 Production Capacity 291 Output 292 Export 293 Import 294 VI Conclusion, challenges, commercial opportunities and recommendation 295 VII Appendix: Situation of Chinese manufacturers 297 VII-1 Glyphosate technical producers 297 VII-1.01 Zhejiang Xinan Chemical Industrial Group Co., Ltd. 297 ... 0 VII-1.45 Shandong Wucheng Kangda Chemical Co., Ltd. 385 VII-2 Glyphosate formulation producers 387 VII-2.01 Guangxi Zizhu Chemical Co., Ltd. 387 ... 0 VII-2.20 Guangxi Guigang Songtian Chemical Co., Ltd. 405 Executive summary: (Note: The following summary is based on the situation in June 2008 and maybe different to what it is nowadays. Please be noted.) With the globalization of herbicide market, the Chinese herbicide industry is booming and plays a more and more important role in the world. China has been supplying more than XX of the global production of glyphosate. It exports XX percent of its production. China has been the largest production base of glyphosate technical in the world and it is estimated that the output of glyphosate technical (formulations included) in China was over XX kt and the export volume was up to XX kts in 2007. Over XX% of China’s total production of Glyphosate is exported to Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
    • CCM Data & Primary Intelligence over XX countries and regions worldwide. In recent years glyphosate has accounted for around XX% of total herbicide exports. In China there are some significant expansions in glyphosate plants. Many of those producing, for example, 10kt/a are talking of plans to expand to 20-30kt/a. But it is hard to predict the level of implemented increase in output in the second half 2008 and 2009. Glyphosate was invented by American agri-business giant Monsanto in the early 1970s, but came off-patent in 2000, sparking a massive rise in production in China, where most of the factories are in the Yangtze River delta (Jiangsu, Zhejiang, Shanghai) with Shandong, Anhui, Hubei, Fujian, Sichuan, and Chongqing in other regions also starting to attract investment. The total capacity of glyphosate technical in China in 2007 is XX t/a with a year-on-year growth rate being xx%. China has xx glyphosate producers with a total capacity of around xxt/a as of May 2008. Along with the increasing demand for glyphosate at home and abroad, the output of glyphosate technical in China grows year by year. The CAGR of glyphosate technical was xx% in 2003-2007, and the estimate of net glyphosate production reached xx tonnes in 2007. Stimulated by the huge market and the fat profits, many enterprises in China including Zhejiang Xinan, Nantong Jiangshan and Anhui Huaxing etc. are planning to expand their capacity to make glyphosate. There are also xx potential producers of glyphosate in the second half of 2008 or 2009. As calculated, about xx kt/a new production installations of glyphosate were put into commercial production in the first half of 2008 in China, and about xx kt/a and xx kt/a new production will come on stream in the second half of 2008 and 2009 respectively if all these potential projects will be undertaken and successfully put into production. Major producers include Zhejiang Xinan (xx t/a), Zhejiang Jinfanda (xx t/a) and Nantong Jiangshan (xx t/a) etc. At the same time, xx companies are proved to be potential players who will probably start to produce glyphosate technical since 2008. Total xx producers with the capacity of xx kt/a started glyphosate technical production in the end of 2007 and the beginning of 2008 including xx, xx, xx, xx, xx, xx and xx. ...... (The rest content of this report is omitted.) Character of CCM' Report: The aim of this report is to provide powerful assistance to the strategy group and the management team in making correct decision as how to penetrate the ever-increasing China market and how to catch the maximum commercial opportunities. The report is formulated independently by CCM’s professional market researchers, based on the first-hand and primary data which are analyzed by scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and presented in a logic way. Sample pages: Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
    • II Glyphosate upstream industry II-1 Brief introduction to raw materials & intermediates involved in glyphosate production As glyphosate is produced by both AEA pathway and IDA pathway in China, the raw materials are diverse. Yellow phosphorus is a public raw material needed by both AEA pathway and IDA pathway, and the supplying situation of yellow phosphorus largely influences the production of glyphosate. Figure II-1-2 Glyphosate by different pathways and value chain of key raw materials P4 CI2 AEA pathway IDA pathway PCI3 DMP H3PO3 DEA Methanol Formaldehyde PF Glyphosate PMIDA IDA HCI Ammonia Glycine Formaldehyde Chloroacetic acid IDAN Glycolonitrile urotropine HCN Natural gas
    • II-2.5 Glycine in China Glycine is an important raw material for glyphosate production with AEA pathway, and about XXXXX tonne of glycine of industrial grade is needed to produce 1 tonne of glyphosate. Table II-2.5.1-2 Industrial grade glycine producers in China as of May 2008 (tonne) Capacity Output No. English name Status Location May 08 '07 1 XXXXXXXXXXXXXXXX active XXXX XXXXXXX XXXXX 2 XXXXXXXXXXXXXXXXXXXXXXXXX active XXXXXX XXXXXX XXXXX 3 XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX active XXXX XXXXX XXXXX 4 XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX active XXXXX XXXXX XXXXXX 5 XXXXXXXXXXXXXXXXXXXXXXXXX active XXXXXX XXXXX XXXXX 6 XXXXXXXXXXXXXXXXXXXXXXXXXXX active XXX XXXXX XXXX 7 XXXXXXXXXXXXXXXXXXXXXX active XXXXXXX XXXXX XXXX 8 XXXXXXXXXXXXXXXXXXXXXXXXXX active XXXXXX XXXXX XXXXXX 9 XXXXXXXXXXXXXXXXXXXXXXXXXXXX active XXXXX XXXXX XXXX 10 XXXXXXXXXXXXXXXXXXXXXXXXXXXX active Jiangsu 5,000 2,000 11 XXXXXXXXXXXXXXXXXXXXXXXXXXXXX active XXXX XXXX XXXX 12 XXXXXXXXXXXXXXXXXXXXXXXXXX active XXXXX XXXX XXXX 13 XXXXXXXXXXXXXXXXXXXXXXXX active XXXXX XXXX XXX 14 XXXXXXXXXXXXXXXXXXXXXXXXXXXXX active XXXXX XXXX XXX 15 XXXXXXXXXXXXXXXXXXXXXXXXXXX stopped XXXXX XXX XXXX 16 XXXXXXXXXXXXXXXXXXXXXXX potential XXXXX XXXXX XX Total - X XXXXXX XXXXX III-4.1.1 Overall situation of glyphosate technical producers The number of active glyphosate technical manufacturers in 2008 increases compared to that in 2007. As of May 2008 there are totally XX active manufacturers, who produce both glyphosate technical and its formulations as well in China, but the number was much smaller in 2006 and 2007, which was only XX and XX respectively.
    • Table III-4.1.1-2 Overview of glyphosate technical manufacturers in China-2 Pathway Raw material Capacity (tonne) Output (tonne) No. Company '08 '07 2005 2006 2007 2008 2004 2005 2006 2007 VII-1.01 XXXXXXXXXXX XXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX VII-1.02 XXXXXXXXXXXXX XXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXX XXXX XXXX XXXXX VII-1.03 XXXXXXXXXXX XXX XXXXX X X XXXX XXXXX X X X XXXX VII-1.04 XXXXXXXXXXXXX XXX XXXXX XXXX XXXX XXXX XXXXX XXXX XXXX XXXX XXXX XXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX VII-1.05 XXXXXXXXXXXX XXX XXXX X XXXXX XXXXX XXXXX X X XXXX XXXX XXX XXXX X X XXXXX XXXXX X X X X VII-1.06 XXXXXXXXX XXX XXX XXXX XXXX XXXX XXXX XXXX XXX XXX XXX VII-1.07 XXXXXXXXXXX XXX XXX XXXXX XXXXX XXXXX XXXXX XXXX XXXX XXXX XXXXX VII-1.08 XXXXXXXXXXXX XXX XXXXX XXX XXX XXXX XXXXX X XXX XXX XXXX VII-1.09 XXXXXXXXXX XXX XXXX X X X XXXXX X X X X VII-1.10 XXXXXXXXXXX XXX XXXXXXXXXX X XXXX XXXX XXXXX X X XXXX XXXX VII-1.11 XXXXXXXXX XXX XXX XXXXX XXXXX XXXXX XXXXX XXX XXXX XXXX XXXXX VII-1.12 XXXXXXXXXXXX XXX XXXXX XXXX XXXXX XXXXX XXXXX XXXX XXXX XXXX XXXX VII-1.13 XXXXXXXXXXXXX XXX XXXXX X X X XXXXX X X X X VII-1.14 XXXXXXXXXXX XXX XXXXX 10,000 XXXXX XXXXX XXXXX XXXX XXXXX XXXXX XXXXX VII-1.15 XXXXXXXXXXXXX IDA XXXX 5,000 XXXXX XXXXX XXXXX XXXX XXX XXX XXXX VII-1.16 XXXXXXXXX AEA XXXXX 5,000 XXXXX XXXXX XXXXX X XXXX XXXX XXXXX VII-1.17 XXXXXXXXXXX IDA XXXX 8,000 XXXX XXXXX XXXXX XXX XXXX XXXXX XXXXX VII-1.18 XXXXXXXXXX IDA & AEA XXXXXXXXXXX 5,000 XXXX XXXX XXXXX XXXX XXXX XXX XXXX VII-1.19 XXXXXXXXXXXX IDA XXXX X XXXXX XXXXX XXXXX X X XXXX XXXXX VII-1.20 XXXXXXXXXXXXX IDA XXXX XXXXX XXXXX XXXXX XXXXX XXXX XXXX XXXX XXX
    • Table III-4.1.1-1 Number of glyphosate producers in China, by province No. Province 2001 2003 2005 2006 2007 2008 1 XXXXXX X 10 XX XX XX XX 2 XXXXXXX X 8 X X X X 3 XXXXXXXX X 1 X X X X 4 XXXXX X 6 X X X X 5 XXXXX X 0 X X X X 6 XXXXXX X 1 X X X X 7 XXXXXXXX X X X X X X 8 XXXXXXXXX X X X X X X 9 Hunan X X X X X X 10 Fujian X X X X X X 11 Ningxia X X X X X X 12 Hebei X X X X X X 13 XXXXX X X X X X X 14 XXXXXXX X X X X X X Total XX XX XX XX XX XX - Capacity by pathway Table III-4.1.2-2 Capacity of glyphosate technical in China by different pathway (tonne) Year/ Pathway 2001 2002 2003 2004 2005 2006 2007 2008 Capacity XXXXXX XXXXX XXXXX XXXXX XXXXXX XXXXXX XXXXXX XXXXXX AEA Producers XX XX XX XX DEA Capacity XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX XXXXX route Producers XX XXX XX XX XX IDAN Capacity X X X X XXXXX XXXXX XXXXX XXXXX IDA route Producers X X X X X X XXX PMIDA Capacity X X X X X X XXXX XXXX route Producers X X X X X X X Other Capacity XXXXX XXXX XXXX XXXX X X X X Capacity XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX Total Producers XXX XX XX XX XX - Capacity expanding Stimulated by the huge market and the fat profits, many enterprises in China including XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX etc. are planning to expand their capacity to make glyphosate. There are also XX potential producers of glyphosate in the second half of 2008 or 2009. As calculated, about XXkt/a new production installations of glyphosate were put into commercial production in the first half of 2008 in China, and about XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
    • XXXXXX Table III-4.1.2-3 Capacity expanding of glyphosate technical in China, 2008-2009 (tonne) -1 Status End 2008 No. Company 2008 (A) B-A 2009 (C) C-A Pathway '08 (B) VII-1.01 XXXXXXXXXXX active XXXXXXX XXXXXXX XX XXXXXXX XXXXXXX XXX VII-1.05 XXXXXXXXXXXXX active XXXXXXX XXXXXXX XX XXXXXXX XXXXXXX XXX VII-1.06 XXXXXXXXX active XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXX VII-1.07 XXXXXXXXXXX active XXXXXXX XXXXXXX XX XXXXXXX XXXXXXX XXX VII-1.08 XXXXXXXXX active XXXXXXX XXXXXXX XX XXXXXXX XXXXXXX XXX VII-1.09 XXXXXXXXXXXXX active XXXXXXX XXXXXXX XX XXXXXXX XXXXXXX XXX VII-1.11 XXXXXXXXX active XXXXXXX XXXXXXX XX XXXXXXX XXXXXXX XXX VII-1.13 XXXXXXXXXXXX active XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXX VII-1.18 XXXXXXXXXXXX active XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXX VII-1.21 XXXXXXXXXXX active XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXX VII-1.26 XXXXXXXXX active XXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXX VII-1.27 XXXXXXXXX active XXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXX VII-1.30 XXXXXXXXXX active XXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXX VII-1.37 XXXXXXXXX active XXXXXX XXXXXX XX XXXXXXX XXXXXXX XXX VII-1.40 XXXXXXXXXXXX active XXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXX VII-1.46 XXXXXXXXX idle XXXXXX XXXXXX XXXXXX XXXXXX XXX VII-1.47 XXXXXXX potential XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXX VII-1.48 XXXXX potential XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXX VII-1.49 XXXXXXXXX potential XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXX VII-1.50 XXXXXXXXX potential XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXX VII-1.51 XXXXXXXXXXXX potential XXXXXX XXXXXX XXXXXXX XXXXXXX XXX VII-1.52 XXXXXXXXXXXX potential X X XXXXXXX XXXXXXX XXX VII-1.53 XXXXXXXXX potential XXXXXX XXXXXX XXXXXX XXXXXX XXX VII-1.54 XXXXXXXXXX potential X XX XXXXXXX XXXXXXX XXX VII-1.55 XXXXXXXXX Potential XXXXXX XXXXXX XXXXXX XXXXXX VII-1.56 XXXXXXXXX potential X X XXX X XXX VII-1.57 XXXXXXXXXXX potential X X XXX X XXX Total XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX X III-4.2 Glyphosate formulations III-4.2.1 Overall situation of glyphosate formulations - Overview of formulations species The solubility of glyphosate technical is quite weak (1.2% at 25℃). But glyphosate salts have good solubility in the water without losing the activity. E.g. the solubility of both glyphosate isopropyl ammonium (IPA) and glyphosate sodium is 500g/L, and the solubility of glyphosate
    • ammonium is 300g/L. Thus in actual application, glyphosate is converted into the following formulations: Water formulation XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXX Table III-4.2.1-1 Glyphosate formulation species and number of producers in China Number of producers Specifications 2003 2005 2006 2007 XXXXX X X X XX XXXXX X X X X XXXXXXXXXXXXXXXXXXXXXXXXXX X X X X XXXXX X X X XX XXXXX X X X X XXXXX X X X X XXXXXXX X X X X XXXXXXXX X X X X XXXXXXX X X X X XXXXXXX X X X X XXXXXX X X X X XXXXX XX XX XX XXX XXXXXXXXXXXXXXXXXXXXX X X X X XXXXXXX X X X X 41%IPA XX XX XX XXX 48%IPA X X X X 62%IPA XX XX XX XX III-5.2 Import & export analysis China began to export glyphosate since 1991. Originally the Chinese people only export glyphosate 95% technical. The export in 1992 was less than 100 tonne. Table III-5.2-1 Import & export of glyphosate technical and formulations, 2002-2007 (tonne) Export Import Year Technical 41%IPA 62%IPA WP 41%IPA 2002 XXXXXX XXXXXX XXXXXX XXXXX XXXXX 2003 XXXXXX XXXXXX XXXXXX XX XXXXX
    • 2004 XXXXXX XXXXXX XXXXXX XX XXXXX 2005 XXXXXX XXXXXX XXXXXX XXX XXXXX 2006 XXXXXX XXXXXX XXXXXX XXX XXXXX 2007 XXXXXXX XXXXXX XXXXXX XXX XXXXX III-7.1.4 Roles of China’s glyphosate in global markets Table III-7.1.4-1 Situation of China’s glyphosate output in global market, 2005-2007 (tonne) Year Global output Output Share Output of PMIDA Total* Share 2005 XXXXXX XXXXXXX XXXXXX XXXXXX XXXXXXX XXXXXX 2006 XXXXXX XXXXXXX XXXXXX XXXXXX XXXXXXX XXXXXX 2007 XXXXXX XXXXXXX XXXXXX XXXXXX XXXXXXX XXXXXX Total* including the glyphosate technical and converting PMIDA to glyphosate technical III-7.2 Domestic demand for glyphosate III-7.2.1 Overview of Chinese glyphosate technical consumption As China seldom imports glyphosate technical, CCM considers that all of domestic glyphosate formulation is made from domestic glyphosate technical. For describing the export and domestic consumption situation of Chinese glyphosate technical, CCM calculates output and export (including 10% SL, 41% IPA, 62% IPA, 95% and other specifications) volume by 95% technical. The data and the chart are displayed as follows: Table III-7.2.1-1 The consumption pattern of glyphosate technical (tonne) 2004 2005 2006 2007 Item Quantity Percentage Quantity Percentage Quantity Percentage Quantity Percentage Output XXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX XXXXXXX For Export XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX XXXXXXX XXXXXX For formulation* XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX XXXXXX For formulation* including the formulation consumed in China and exported