Thursday, July 25, 2013

Australia terminates the resumed anti-dumping investigation on China's formulated glyphosate

On 24 June, 2013, Australia Customs and Border Protection Service (ACBPS) released Notice No. 2013/51 (The Notice), showing the result of anti-dumping investigation on formulated glyphosate products exported to Australia from China resumed on 16 Nov., 2012, namely these three China's glyphosate companies haven't dumped in Australia and ACBPS terminated this resumed anti-dumping investigation, according to CCM’s latest newsletter, Glyphoste China Monthly Report issued in July.

According to The Notice, these three China's glyphosate companies, namely Jiangsu Good Harvest-Weien Agrochemical Co., Ltd. (Jiangsu Good Harvest-Weien), Shandong Weifang Rainbow Chemical Co., Ltd. (Shandong Weifang Rainbow) and Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca), are judged that they haven't dumped formulated glyphosate products in Australia, so ACBPS decided to terminate the resumed investigation in accordance with s.269TDA(1) of the Customs Act 1901.

Besides, the total export volume of glyphosate formulations to Australia that have dumped from all other Chinese exporters was negligible, so ACBPS decided to terminate the resumed investigation in accordance with s.269TDA(3) of the Customs Act 1901.  

Anyway, it's the second time that ACBPS terminated the anti-dumping investigation on formulated glyphosate products exported to Australia from China since this anti-dumping investigation initiated on 6 Feb., 2012 lodged by Nufarm Limited (Nufarm) and Accensi Pty Limited (Accensi), the top two manufacturers of formulated glyphosate in Australia, and the first time was on 2 Aug., 2012.

It seems that the termination hasn't exhilarated some Chinese glyphosate producers and the glyphosate products prices in China did not fluctuate much. Take Zhejiang Wynca for example, Zhejiang Wynca claimed that this termination will have some positive impact on developing the glyphosate market in Australia, but the impact is estimated to be low. As to the glyphosate price, it's still stable in China, and the ex-works price of glyphosate technical in China keeps at about USD5,800/t-USD5,900/t at present.

But for the glyphosate producers who are eager to enlarge the glyphosate market in Australia, the result of investigation was worth cheering. Take three glyphosate companies for examples. Jiangsu Good Harvest-Weien, Shandong Weifang Rainbow and Sichuan Fuhua Tongda Agro-chemical Technology Co., Ltd. (Sichuan Fuhua) all have glyphosate registrations in Australia at present. They are always regarding Australia as one of their most important glyphosate market.

However, the proportion of these three companies' glyphosate A.I. export volume to Australia in 2012 in their total glyphosate A.I. exports has decreased to about 19.14%, down by about 8.75 and 7.67 percentage points over 2010 and 2011 respectively. The Australia's investigation result is expected to help increase the export volume of glyphosate manufactured by these three companies in the whole year of 2013.

Anti-dumping is a normal taxation measure to prevent domestic industry from damage caused by under-pricing imported products. China's glyphosate products have encountered anti-dumping issues in many regions including Brazil, Argentina, Australia, the US and the EU. Dumping accusation of China's glyphosate products in overseas markets has indicated the products' poor competitiveness and simplistic sale strategy (low-price strategy only) in the international market.

Zhejiang Wynca involves in the trouble of "Environmental pollution case"
Anhui Huaxing finishes leadership replacement
Australia terminates the resumed anti-dumping investigation on China's formulated glyphosate
EU revises the maximum residue limits for glyphosate in food
Overview of China's glyphosate industry in H1 2013
RMB appreciation brings negative impact on China's glyphosate industry development in H1 2013
Result of glyphosate use survey for 2012 rice planting in Hunan province
China accomplishes 28 new glyphosate registrations in H1 2013
Glyphosate technical price increases slightly in July 2013
Export volume of glyphosate technical increases 22.76% in May 2013


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