Transcript of "Top 10 events of chinese glyphosate industry in 2012"
Top 10 events of Chinese glyphosate industry in 2012Summary: Glyphosate has gone through an extraordinary year in 2012, and there are ten events inChinas glyphosate industry which caused great responses from glyphosate market.Tags: glyphosate, chemical, export, formulation, anti-dumping, wastewater, glyphosate-tolerantweedCCM, a professional information providing company in terms of market report, newsletter, database and consultancy research service, has recently issued the latest edition of Glyphosate ChinaMonthly Report that covers 10 topics in 12 pages. Among which, an article named of “Top 10events of Chinese glyphosate industry in 2012” was highlighted as follows:1. Glyphosate market turns warmHaving been depressed for three years since 2009, glyphosate market finally turned warm in 2012,which reflected in the increase of price, operating rate, output and export volume. In 2012,glyphosate price increased to the profitable level for most glyphosate producers in China, and theannual average ex-works prices of glyphosate technical, glyphosate 41% IPA, glyphosate 62%IPA, glyphosate 50% SP and glyphosate 75.7% WSG were about USD4,630/t, USD2,167/t,USD2,749/t, USD2,585/t and USD4,030/t respectively, up by about 25%, 12%, 15%, 8% and 5%YOY respectively. The overall operating rate in glyphosate industry in 2012 was about 60%, up byabout 10 percentage points over 2011. The total output of glyphosate technical in China isestimated to be 400,000 tonnes in 2012, up by about 18% over 2011. The export volume ofglyphosate A.I. (in terms of 100% glyphosate acid) is estimated to be 350,000 tonnes in 2012, upby about 16% over 2011.2. Production capacity keeps expandingSichuan Fuhua Tongda Agro-chemical Technology Co., Ltd. and Zhejiang Jinfanda BiochemicalCo., Ltd. both planned to construct 50,000t/a production lines of glyphosate technical respectivelyin mid-2012, but the 100,000t/a production lines were not launched in 2012.3. Mergers and acquisitions still appear much1) Sinochem International Corporation raised its equity of Jiangsu Yangnong Chemical Group Co.,Ltd. to 40.53% in Feb. 2012 from 5% in 2011, and the latter is the holding company of YangnongChemical Co., Ltd., a listed company.2) Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca) held 51% share ofShandong Xinfeng Seed Co., Ltd. in May 2012. Besides, in Nov. 2012, Zhejiang Wynca acquiredthe additional 70% share of Golden Sunshine Mining Co., Ltd. which is a mining company locatedin Ghana.3) Nantong Jiangshan planned to acquire 90% equity of Ladda Group which is a leading companyin agrochemical business in Thailand in Dec., 2012.4) Anhui Huaxing Chemical Industry Co., Ltd. (Anhui Huaxing) planned to issue additional452.25 million shares to CEFC Shanghai Oil Group Co., Ltd. (CEFC Shanghai) at USD308.99million, and CEFC Shanghai will hold 60.61% equity of Anhui Huaxing after the deal in July
2012, but the deal hasnt been approved by China Securities Regulatory Commission in 2012.5) Chongqing Sanxia Paints Co., Ltd. transferred 100% equity of Chongqing Sanxia YingliChemical Co., Ltd. to Chongqing Medical Purple Eagle Asset Management Co., Ltd. in Dec.,2012.4. Mixed glyphosate formulations with glyphosate acid content below 30% face eliminationOn 26 March, 2012, China Agriculture Ministry released a formal document (Decree No. 1744),which clarified that the content of glyphosate A.I. (in terms of glyphosate technical acid) shouldnot be lower than 30%. Registration applications (including temporary registration, formalregistration and renewal registration) for mixed glyphosate formulations with glyphosate A.I.content below 30% faced rejection from 26 March, 2012, and existing registrations that cant meetthe content requirement should be modified before 31 Aug., 2012.5. Anti-dumping battle still continues1) Australia Customs and Border Protection Service (ACBPS) released the Notice No. 2012/54 On16 Nov., 2012 and claimed that ACBPS would resume anti-dumping investigation on formulatedglyphosate products exported to Australia from China as a result of Australia Trade MeasuresReview Officer (ATMRO)s revocation of ACBPSs decision to terminate the investigation on theglyphosate formulations exported to Australia from China on 23 Oct., 2012, and the terminationdecision released on 2 Aug., 2012 was the result of anti-dumping investigation on formulatedglyphosate products exported to Australia from China initiated on 6 Feb., 2012.2) European Union Court of Justice claimed that it turned down an appeal by EuropeanCommission and upheld the decision ruled by European Union General Court on 17 June, 2009that Zhejiang Wynca was not guilty of dumping (selling glyphosate at unreasonable prices in EUmarket) on 19 July, 2012.6. Zhejiang Wynca is involved in the case of chemical use salt being sold in edible saltmarketZhejiang Wynca has been involved in the trouble related to "chemical use salt being sold in ediblesalt market" in early Feb. 2012 because its wholly-owned subsidiary, namely Zhenjiang JiangnanChemical Co., Ltd. (Zhenjiang Jiangnan), sold chemical use salt to Zhenjiang Haitian SaltChemical Co., Ltd. which illegally produced and sold chemical use salt in edible salt market in 12provinces of China in 2011, but Zhejiang Wynca states that it has no responsibility in this case,because Zhenjiang Jiangnan has the right to produce and sell chemical salt. Whats more,Zhenjiang Jiangnan cant control how purchasers use the salt.7. Anhui Huaxing avoids from being ST markedAnhui Huaxing suffered an operating profit of USD14.22 million in 2011, but it enjoyed a netprofit of USD0.40 million aided by the non-operating revenue of USD14.63 million, and thusAnhui Huaxing avoided from being ST marked for its stock.8. Zhejiang Wynca introduces glyphosate 78% IPA SGZhejiang Wynca firstly produced a new glyphosate formulation called glyphosate 78% IPA SG,and sold it widely since March 2012 in China, but the introduction of this product was considered
to be a marketing concept and differentiation.9. Technique research concerning glyphosate wastewater treatment accelerates in 2012According to the publication of Chinas State Intellectual Property Office, there were 17 publicpatent applications related to glyphosate wastewater treatment in 2012, thereinto, eight publicpatent applications are related to the removal techniques of phosphorus and nitrogen in glyphosatewastewater by the way of converting organicphosphorus compounds and organicnitrogencompounds to phosphate ion and ammonia ion respectively, and another nine public patentapplications are related to the recycling techniques of glyphosate technical, PMIDA, glyphosine,glycine, formaldehyde, methylal, sodium phosphite and sodium chloride.10. Development of glyphosate-tolerant weed is still fastA new glyphosate-tolerant weed, namely amaranthus spinosus, was discovered in the US in 2012,and thus the number of global glyphosate-tolerant weed increased to 24 species. More existingglyphosate-tolerant weeds were also found in other countries. For example, another two newglyphosate-tolerant weeds were found in Greece and Argentina respectively in 2012. Besides,more glyphosate-tolerant weeds were found in some regions of the US. In 2012, three glyphosate-tolerant weeds, namely amaranthus palmeri, amaranthus spinosus and kochia scoparia, were foundin Arizona, California, Mississippi and North Dakota respectively.Table contents of Glyphosate China Monthly Report 1301Multinational companies actively seize patent registrations for mixed glyphosate formulations inChinaGlobal glyphosate demand to grow at a CAGR of 4.37% in 2012-2016Review of Chinas glyphosate industry in 2012Export tax rebate of PIMDA may be cancelled in ChinaTop 10 events of Chinese glyphosate industry in 2012Glyphosate status hard to be shaken by the new paraquat formulationGlyphosate market in 2012 fails to surpass the brilliant performance in 2008Solid glyphosate ammonium salt is still the mainstream registration in 2012Glyphosate price decreases slightly in Jan. 2013Glyphosate export volume increases in Nov. 2012Glyphosate China Monthly Report, a monthly publication issued by CCM on 20 th, will keeptrack of latest dynamics, hotspots and competitiveness analysis, and forecasts on markettrends of China’s glyphosate industry.About CCMCCM is dedicated to market research in China, Asia-Pacific Rim and global market. With staffof more 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.