Thursday, December 29, 2011

2011 Annual Review of Corn Product Industry

China's corn product industry not only faced great challenges but also enjoyed great opportunities in 2011, against the background of the high cost of raw materials, domestic inflation, government's strict supervision or even restriction, as well as some booming downstream markets. Affected by these factors, some corn product producers have to restrain their production or even shut down their plants, but others manage to win great profit in 2011, according to CCM’s December issue of Corn Products China News.

Corn, as the most important raw material of corn products, always attracts abundant attention. And corn price had run an uptrend in general from Jan. to Sept. 2011 majorly because of its insufficient supply. But the newly harvested corn this year, whose output is estimated to reach 184.5 million tonnes, up 4.1% over that in 2010, has turned the price to head down since Oct. 2011. Overall, the average domestic market price of corn increased by 18.6% to USD363/t in Dec. 2011 compared with that in Jan. 2011, partly caused by which, corn products' average prices also rose by 8% during the same period.

Besides, the generally sound local economic environment and stable development of food, beverage and feed industries also support the price increase of corn products. In detail, China achieved 9.7%, 9.5% and 9.1% of annual growth rate of GDP in Q1, Q2, and Q3 2011 respectively, and it's expected that the annual growth rate of GDP can average at 9.2% and 8.9% for the whole year of 2011 and 2012 respectively (it was 10.3% in 2010) according to Chinese Academy of Social Sciences. In addition, the averaged 5.5% CPI and 6.4% PPI during Jan. and Nov. signifies that "inflation" is the major word to describe China's macro economic performance in 2011. Moreover, in accordance with the National Bureau of Statistics of China, the output of food industry and beverage industry during the first ten months this year increased by 16.8% and 18.7% respectively compared with those in the same period of 2010; in light with the Ministry of Agriculture of China, feed's output is predicted to reach 169 million tonnes in the whole year of 2011, up 4% over that in 2010.

By dint of the above general economic environment and some promising market situations, a few corn products have enjoyed fast development in 2011, such as starch sugar, especially HFCS (high fructose corn syrup), some amino acids, like lysine. Take HFCS as an example, due to the insufficient supply of sucrose and its high price in 2011, HFCS' demand and price have enjoyed obvious increase, attracting lots of producers to enter into this industry or expand the production of HFCS, whose capacity all over the country reaches about 3 million t/a in 2011, up 38.9% over that in 2010.

However, some corn products have suffered bad market situation in 2011, like vitamin c (VC). Owing to VC's terrible oversupply, domestic and export prices of VC have maintained a low level in 2011, resulting in great loss of VC producers. And insiders are looking forward to the launch of encouraging governmental policies to turn around the stagnant market, like a new VC entrance threshold.

As for governmental policies, corn deep-processing industry has been restricted to some extent in 2011, and the following are highlights.

… …

As for the forecast in 2012, policies, market and industry environment make 2012 a key year for corn product's development. With the expected growth of China's economy in 2012, domestic corn product industry will still boom, but production costs will remain a problem, whilst corn price will still run at a high level due to the tight relationship between corn's supply and demand, even though corn's output enjoyed a bumper harvest in 2011. Besides, governmental restrictions will be still the leading factor to affect the industry, while it's a great opportunity for large enterprises to develop further by merging small ones.

Source: Corn Product China News 1112

Content of Corn Products China News 1112:
VC's demand structure should be changed in the future
Chinese corn products Imp. & Exp. analysis in October 2011
Lysine price in China maintains downtrend in Dec. 2011
Corn starch price in China still maintains downtrend in Dec. 2011
New policies to restrict development of fuel ethanol using grain as feedstock in China
New guide about domestic high technology industry with priority to develop forwarded
Chinese government strengthens support for small and micro enterprises
… …

Corn Products China News, a monthly publication issued by CCM International on 20th of every month, reveals the driving force of news stories and deeply analyzes the influence of trends and dynamics on domestic and international corn deep processing industry.

About CCM
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary 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, Guangzhou 510070, China
Tel: 86-20-37616606

Glyphosate 10% SL to Withdraw the Market in 2012

Since the Chinese government has announced the forbidden registration of glyphosate 10% SL from 2010, the life of glyphosate 10% SL has been drawn to an end. From 1 January, 2012, glyphosate 10% SL can't be sold and all forms of glyphosate 10% SL will be considered as illegal products, according to CCM International’s December Issue of Glyphsoate China Monthly Report.

Glyphosate 10% SL had been the most popular herbicide in China and dominated over 70% of the domestic glyphosate market before 2009. According to the registration data from ICAMA, China had more than 250 registrations of glyphosate 10% SL before 2009. The output of glyphosate 10% SL was estimated to be over 600,000 tonnes and the consumption volume was 400,000 tonnes in China in 2008. Chinese producers usually sell 10% SL in local markets that is close to their production sites to reduce high transportation cost.

Two main reasons have contributed to the popularity of glyphosate 10% SL in the past, the first and the most important one is that glyphosate 10% SL could be produced from glyphosate mother liquid, so glyphosate technical manufacturers could escape from treating glyphosate mother liquid, which required high technology and much cost. The second one is that glyphosate 10% SL is the earliest specification which had been introduced to the market by domestic producers in the 1980s, and Chinese farmers are familiar with this easy-to-use formulation.

However, glyphosate 10% SL produced from glyphosate mother liquid is harmful to the environment, as it contains some untreated constituents such as formaldehyde and heavy metal. And this is the key reason why the Chinese government decided to ban the registration and use of glyphosate 10% SL in February 2009.

In 2010 and 2011, China has banned the registration 10% SL, so the production of glyphosate 10% is forbidden. Some top glyphosate technical manufacturers have invested much money in glyphosate mother liquid treatment, so they have to stop glyphosate 10% SL production in 2010. However, according to CCM International's investigation, some producers still produced 10% SL from the mother liquid in 2010 or even in 2011. Investigations have shown that glyphosate 10% SL remained well-sold in China in 2010 and 2011.

Investigations have also shown that most active glyphosate technical manufacturers don't have stocks of glyphosate 10% SL at present, and pesticide dealers or retailers are very prudent to stock glyphosate 10% SL in 2011.

Doubtlessly, there are some stocks of glyphosate 10% SL in the market, and part of these products will be illegally used in 2012. A market insider said that the policy implementation of 10% SL in 2012 will not very strict and the final death (no use) of glyphosate 10% SL will be extended to 2013.

Source: Glyphsoate China Monthly Report 1112
http://www.cnchemicals.com/Newsletter/NewsletterDetail_14.html

Content of Glyphsoate China Monthly Report 1112:
SinoChem Corporation plans IPO
Nantong Jiangshan abates reliance on glyphosate business
Glyphosate registration in Australia
Competitiveness of China's different glyphosate routes in 2011
Review of China's glyphosate industry in 2011
Glyphosate 10% SL to withdraw the market in 2012
Active carbon catalyzed PMIDA oxidation under microwave
IDAN market disappoints investors
Glyphosate price keep stable in Dec. 2011
Glyphosate export in October 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.

About CCM
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary 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, Guangzhou 510070, China
Tel: 86-20-37616606

Wednesday, December 28, 2011

Increasing Electricity Price Pressures Yellow Phosphorus Industry

The December issue of Phosphorus Industry China Monthly Report has been published by CCM International on December 15th , 2011. The top story is that yellow phosphorus industry is going to be hit by the increasing electricity price.

The electricity price in China has been increased in different degrees in different regions since December 1st , 2011. The average price of electricity will rise by 0.47p/kWh nationwide, up 6.8% compared with that in 2010. For yellow phosphorus producers, it means the cost of production is to rise by USD66.14/t at least.

What’s worse, electricity prices in Guizhou Province and Yunnan Province are estimated to rise by 0.79p/kWh and 2p/kWh respectively during the dry season (Dec., Jan.–Apr.) each year, both with more than 10% increase compared with other seasons. That is to say, the four major yellow phosphorus production provinces (Hubei, Yunnan, Sichuan, Guizhou) will experience the pressure of increasing electricity price in different degrees.

In addition, most downstream purchasers, such as producers of phosphoric acid, STPP and POCl3, have also felt the great pressure caused by the current yellow phosphorus price and the poor sales performance. It seems hard for them to transfer the increased cost to depressed downstream industry in the short term.

It is believed that the increasing electricity price will give pressure to domestic yellow phosphorus industry. This dry season will be a tough period for most yellow phosphorus enterprises, as well as downstream purchasers of yellow phosphorus.

Headline News of Phosphorus Industry China Monthly Report 1112:
-Thanks to the technology advantage on recycling phosphorus resource, Wengfu Group successfully absorbs investment overseas.
-Major policies in 2011 promote the sustainable development of phosphorus industry.
-More and more recycling projects regarding yellow phosphorus waste emerge in China.
-Yellow phosphorus industry is going to be hit by the increasing electricity price.
-Phosphate fertilizer industry in Hubei Province is to be integrated in the light of the latest issued proposal.
-Winter storage of phosphate fertilizer is not optimistic this year in China.
-Sales of single superphosphate are suffering pressures.
-Liuguo Chemical horizontally merges with Guixi Fertilizer to strengthen its scope effect.
-Hubei Xingfa and Wengfu Group commence cooperation on developing downstream deep processing fine phosphorus products.
-The industrial application of purification technology of wet-process phosphoric acid is emerging in China.
-The average export price of phosphorus products is soaring in Oct. 2011.
-Increase in electricity price pushes up the price of yellow phosphorus, while those of other phosphorus keep stable in general.

Phosphorus Industry China Monthly Report, a monthly publication issued by CCM International on 15th of every month, provides you the latest information on company dynamic, industry dynamic, factors impacting the price fluctuation, technology improvement, supply & demand of China's phosphorus industry.


About CCM
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary 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, Guangzhou 510070, China
Tel: 86-20-37616606

Market of Rice Insecticides to Keep On Increasing

As one of key rice planting countries, China’s rice planting area exceeds 29.63 million hectares, accounting for about 18.9% of the total rice planting area in the world and 18.68% of China's total crop planting area. The domestic consumption of rice insecticides on rice accounts for about 10% of the total pesticide consumption in China.

In recent years, many MNCs have attached great importance to the promotion of rice insecticides in China, which intensified the market competition of rice insecticides in China. It is certain that the market size of rice insecticides will keep on increasing and the market competition will become fiercer in the following years, signifying more opportunities and challenges in the rice insecticides market in China.

Currently, the share of chlorpyrifos is the largest by volume and the share of abamectin is the largest by value in China’s rice insecticide market.

The rice insecticide market will mainly follow the trend of low toxicity, practical effectiveness and environmental friendliness, influenced by the occurrence and resistance of rice insects, as well as the development of crops.

It is predicted that the market share of pymetrozine and imidacloprid will enlarge, and acephate will lose some market share, and the share of other major rice insecticides will be relatively stable.

More details about the future development of China’s rice insecticides market will be presented in CCM International’s new report of Survey of Rice Insecticides in China. The report gives you a comprehensive understanding of China’s rice insecticides market from aspects of supply, demand, major products, MNCs’ dynamic, future development, etc. If you need more information about this report, please feel free to contact us at econtact@cnchemicals.com.



About CCM
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary 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, Guangzhou 510070, China
Tel: 86-20-37616606

China Rice Insecticides Market Report Published

CCM International has launched a new report on rice insecticides recently, namely Survey of Rice Insecticides in China. The report gives you a comprehensive description of China’s rice insecticides market from aspects of supply, demand, MNCs’ dynamic, future development, etc.

Rice, following corn, has the second largest crop planting area of 29.63 million hectares in 2009 in China. And about 45% of the total rice planting area in China suffer from rice insect damage each year. China produced over 745,000 tonnes of insecticides in 2010, of which about 32,000 tonnes (calculated by 100% tech.) was used to kill insects in rice fields. What is the general situation of rice planting in China in the recent three years? What is the change of the domestic rice insecticides market in the recent three years?

The usage volume of insecticides on rice, which occupies about 10% of the total usage of pesticides China, is more than that of any other crops. It is certain that market size of rice insecticides will keep on increasing and the competition between local suppliers and MNCs will be fiercer in the following years. What are the major insecticides using on rice in the recent three years? Which manufacturer produce these products? What is the situation of these insecticides in the recent three years, such as register situation, market share, demand, price, etc.?  What is the future of these rice insecticides in China?

In recent years, many MNCs have attached great importance to the promotion of new insecticides in China’s rice fields, which intensified the market competition of rice insecticides in China. How are the promotion situation of MNCs' brands? What are the differences between domestic and overseas company in circulation channel?

All questions will be answered in CCM International’s rice insecticides report. If you need more information about this report, please feel free to contact us at econtact@cnchemicals.com.

The report focuses on the following aspects:
-Figure out market summary of rice insecticides in China in recent 3 years.
-Provide supply and demand situation of major rice insecticides, including abamectin, chlorpyrifos, imidacloprid, etc. In particular, market share of key products by players or by insects will be emphasized.
-Reveal MNCs’ dynamics in Chinese rice insecticide market, and figure out promotion situation of several popular brands of rice insecticides of MNCs, such as Rynaxypyr, Virtako, and so on.
-Progress circulation channel study of rice insecticides through comparison of domestic companies and overseas companies.
-Forecast future development of rice insecticides in China.


About CCM
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary 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, Guangzhou 510070, China
Tel: 86-20-37616606

Monday, December 26, 2011

Huaxing Chemical Oppugned

Triggered by an announcement about subsidiary liquidation issued on Nov. 23, 2011, Anhui Huaxing Chemical Industry Co., Ltd. (Huaxing Chemical) encountered a trouble of being blamed and questioned by investors. In detail, Huaxing Chemical is criticized for acting with unadvisable and mutable strategies. Although the criticism seems subjective to some extent, it's observed that Huaxing Chemical has witnessed constantly weak performance indeed these years, according to CCM’s DecemberIssue of Herbicides China News.

Clouded by the shrinkage of company performance in 2009, Huaxing Chemical lost USD20.1 million (RMB127.7 million) in net profit in the whole year of 2010, and witnessed continuously net profit loss of USD4.3 million (RMB27.6 million) in the first three quarters of 2011. As a result, Huaxing Chemical's stock price in the exchange market always appears sluggish and unstable after 2008, and the global stock market is also impacted by some severe social events such as the European Debt Crisis.

As to the responsibility behind such a weak performance, the investors' fire burns toward Huaxing Chemical's operation and management rather than current unfavorable pesticide market. Take this subsidiary liquidation for example, Huaxing Chemical put its subsidiary, Anhui Huaxing Chemical Industry Chongqing Co., Ltd. (Huaxing Chongqing), into liquidation because of current unsuitable situation, according to Huaxing Chemical's explanation in the announcement. But some rumors indicated that the liquidation of Huaxing Chongqing, who runs a 34,000t/a IDAN project (initiated in 2009) valuated at USD5.6 million (RMB35.5 million), is mainly attributed to the company's unsuccessful investment resulted from the unadvisable decision.

As Huaxing Chemical indicated, owing to the depressed glyphosate market, the whole glyphosate production chain is trapped in dilemma at present. Intense competition and overcapacity lead to many suspensions and stops of the relative productions such as IDAN in China.

In Huaxing Chemical's investments, a 20,000t/a glyphosate technical transformation initiated in 2009 with accumulative investment of USD4.3 million (RMB27.7 million) is being delayed in the long term. In detail, the construction still stays at the installation stage of main equipments due to the weak glyphosate market.

These vain investments even withdraw Huaxing Chemical's performance instead of enhancing company competitiveness. Huaxing Chemical will probably encounter the problem of deficit in two consecutive years (2010–2011), implying that the company will meet special treatment in stock market if the loss happens again in 2011.

Although Huaxing Chemical acquired local government's subsidy of USD11.8 million (RMB75 million) in total last month, the reduction of deficit risk can't alleviate investors' worries. What's more, recent suspended reorganization of Huaxing Chemical tenses the investors' nerve further.

According to Huaxing Chemical's bulletin issued on Nov. 11, 2011, Huaxing Chemical resumed stock trade on that day, and declared not to map out the reorganization in the future three months for it isn't at the proper time. On Nov. 7, the company suspended stock trade for laying out company reorganization.

Coupled with industrial integration in Chinese pesticide, Huaxing Chemical will choose reorganization to boost its performance in an estimate. But it can't be predicted who will be the next cooperator of Huaxing Chemical.  It can be sure that investors expect Huaxing Chemical to adjust its management and strategy on the right track. However, in fact, Huaxing Chemical's management team witnessed changes of personnel twice in the past eleven months of 2011.

Source: Herbicides China News 1112
http://www.cnchemicals.com/Newsletter/NewsletterDetail_11.html

Content of Herbicides China News 1112:
Jiangsu Lanfeng favored in weak stock market
Huaxing Chemical oppugned
Shenyang Sciencreat clarified confusion about new constructions
Jiangsu Huifeng pushes overseas business
Vertellus launches 10,000t/a 3-cyanopyridine production
Only two bifenox registrations in China
Thaihot Group: Pesticide production to fluorinated-chemicals business
Fengshan Group runs trifluralin trial production
Acetochlor supply shortage alleviates in Nov.
Lier Chemical's glufosinate-ammonium construction always late
Fire pushes relocation in Shandong Zhongshi
Tianrong group to meet new stage of relocation
Hubei Huida runs plant relocation
Review of five popular herbicide prices in 2011
Glyphosate price in the first eleven months

Herbicides China News, a monthly publication issued by CCM International on 15th of every month, 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.


About CCM
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary 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, Guangzhou 510070, China
Tel: 86-20-37616606

Xanthan Gum Consumption, Export and Benchmarking Report Comes Out

CCM International has published the latest report of Consumption, Export and Benchmarking of Xanthan Gum in China. This report will provide you with vital and comprehensive intelligence about China's xanthan gum industry from the following aspects: export situation, production cost and profit, as well as the consumption.

China's xanthan gum is export-oriented, and the export volume was seriously impacted by 2008 global financial crisis, only about 40,000 tonnes in 2009, down 20.40% over last year. What about the export situation after 2009?

Xanthan gum is widely used in crude oil drilling fluids, foods & beverages, pharmaceuticals in China, which are the top three consumption fields. So what is the latest consumption pattern of the product in China? How about the detailed consumption in different downstream industries?

Shandong Deosen and Shandong Fufeng are the top two exporters, whose total export volume takes up 70%-80% of the national total in 2010. Their production costs and profits are a critical reference for other producers. What are the production cost and profit analysis of these two producers in 2010?

All questions will be shared in this report, and you will find more details about the consumption, export and key players in China’s xanthan gum industry. If you need more information about this report, please feel free to contact us at econtact@cnchemicals.com.


About CCM
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary 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, Guangzhou 510070, China
Tel: 86-20-37616606

What is Supply and Consumption Situations of China’s Xanthan Gum?

A report on xanthan gum, namely Supply and Consumption Situations of Xanthan Gum in China, was newly published by CCM International. The report provides you with an insightful analysis of xanthan gum from aspects of production, raw material supply, production technology and consumption.

China has twenty-four years' history in producing xanthan gum and has witnessed fast development in the past few years. China plays an increasingly important role in global supply of the product and it has become one of the largest xanthan gum production bases in the world since 2005.

In H1 2011, there are 11 xanthan gum producers in China, with total capacity and output of 135,400t/a and 37,995 tonnes respectively. What's the detailed production situation about the 11 producers? How about the production situation in the past few years? What are the challenges and opportunities for producers?

Corn and corn starch are important raw materials of xanthan gum. This report represents the supply situation of them in China in theses years. Nowadays, xanthan gum's production technology is quite mature worldwide. Which production technology is the most popular among producers? And what are the key factors that affect the whole production process?

Moreover, xanthan gum is widely used in crude oil drilling fluids, foods & beverages, pharmaceuticals in China, the top three consumption fields. So what are the consumption patterns of xanthan gum in China and how different downstream areas share the total consumption volume of 21,735 tonnes in 2010?
All questions will be answered in CCM International’s xanthan gum supply and consumption report. If you are interested in this report, please contact us at econtact@cnchemicals.com.

Highlights of this report are as follows:
- Production situation in 2007-H1 2011
- Raw material supply in 2006-2010
- Production technology
- Consumption situation in 2009-2010


About CCM
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary 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, Guangzhou 510070, China
Tel: 86-20-37616606