Monday, January 27, 2014

Jiangsu Sanmei's PVDF project to go into normal production in 2014

In Dec. 2013, Jiangsu Sanmei's PVDF project finished the construction of main structures and it is estimated that the project will be put into normal production in April 2014.

According to China Fluoride Materials China Monthly Report 1401 issued by CCM,on 19 Dec., 2013, Jiangsu Sanmei Chemicals Co., Ltd. (Jiangsu Sanmei) announced that its polyvinylidene fluoride (PVDF) project, whose investment reached USD29.35 million, is going to finish the overall construction. Main structures of the PVDF project have been completed already, including a workshop, which covered an area of over 5,000 square meters. It's estimated that the PVDF project will be put into normal production in April 2014. The PVDF project has two production lines–vinylidene fluoride (VDF) production line and PVDF production line, with capacities of 7,142.85t/a and 5,000t/a respectively.

It is worth noting that the PVDF project is just a subproject of Jiangsu Sanmei's fluorine chemical project. The fluorine chemical project, whose total investment reached USD154.90 million, including anhydrous hydrogen fluoride (AHF) project, electronic grade hydrofluoric acid project, ozone depleting substance (ODS) substitutes project and the PVDF project. The fluorine chemical project was proposed by the parent company – Zhejiang Sanmei Chemical Industry Co., Ltd. (Zhejiang Sanmei), and it was constructed and implemented by Jiangsu Sanmei since 2011.

In recent years, domestic capacity of PVDF has increased rapidly, which soared from 6,000t/a in 2010 to 24,500t/a in 2012, up by 308.33%, indicating that domestic fluorine chemical enterprises have continuously invested in PVDF projects. For instance, in 2012, Kureha (China) Investment Co., Ltd. (Kureha China) invested USD90 million in constructing a PVDF production device with a planned capacity of 10,000t/a, which will be constructed in two phases. The first phase will be put into normal production in 2014 with a capacity of 5,000t/a. Moreover, due to PVDF's potential demand and extensive application in many industries, such as petrochemical engineering industry, electrical & electronic industry, and fluorocarbon coating industry, it is estimated that this investment trend will last for several years.

Zhejiang Sanmei was founded in 1999, mainly engaging in fluorine chemical businesses, such as fluorite, hydrofluoric acid, fluorine refrigerants and inorganic fluorides. In recent years, Zhejiang Sanmei took measures to expand its industrial chain and upgraded its product structure in the field of deep processing.

In addition, Jiangxi Sanmei Chemicals Co., Ltd. (Jiangxi Sanmei), another subsidiary of Zhejiang Sanmei, will invest over USD48.92 million in a new fluoropolymer project in 2014, indicating that another new progress will be made in Zhejiang Sanmei's development plan of fluoride deep processing. The project will include three main products–hexafluoropropylene (HFP), fluorinated ethylene propylene (FEP) and polytetrafluoro ethylene (PTFE) and will be put into normal production within two years. Besides, it is estimated that the annual sales revenue of the project will reach USD163.05 million.

1.Two domestic major fluorine industrial parks to enjoy new policy support
2.Export situation of HF may still be optimistic in Q1 2014
3.Domestic ex-works price of R22 remains an uptrend in Q4 2013
4.Domestic XPS foam industry prefers to use CO2 mixture as substitute for HCFCs
5.R290 to be popularized in domestic room air-conditioner industry
6.USITC continues anti-dumping and countervailing investigation into China-made R134a
7.HONF develops two new fluorine chemical production technologies
8.Export volume of AlF3 may decrease slightly in Q1 2014
9.Domestic market situation of PTFE is still depressed in Q4 2013
10.Jiangsu Sanmei's PVDF project to go into normal production in 2014
11.Domestic electronic grade HF producers to enjoy a bright future
12.Import and export analysis of fluoride chemicals in China in Nov. 2013
13.Domestic ex-works prices of most fluoride materials in Dec. 2013
14.Pengshui County legislates to standardize mineral exploitation
15.Hunan Nonferrous Corp. invests in fluorite recycling project
16.Arkema Changshu Site's PVDF resin obtains NSF 61 certification


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, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
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Email: econtact@cnchemicals.com


Anhui Huilong to increase proportion of its pesticide business to 20%-30%

Deng Dingliang, the chairman secretary of Anhui Huilong Agricultural Means of Production Co., Ltd. (Anhui Huilong) revealed that the company's business structure is in transition and the proportion of fertilizer revenue will be reduced to 60%, with that of pesticide business increased to 20%-30%, seed and other business to 10%, according to Insecticides China News issued by CCM in Junary.

Anhui Huilong is the biggest chain enterprise for the distribution of agricultural production means in Anhui Province, its main business includes fertilizer, pesticides, agricultural produces and chemical products, among which, revenue of fertilizer business accounting for over 70% of its total revenue at present.  

In recent years, revenue of Anhui Huilong has experienced sharp increase, however, its net profit is decreasing. Compared with 2010, the total revenue of the company in 2012 was USD1,827 million, up by 101%, while its net profit was USD11 million, down by 49%. The main reason for the decrease in the profit of Anhui Huilong is the severe over capacity of fertilizer in China, the continuous weak market, which leads to the decreasing gross profit margin. The gross profit margin of fertilizer business in the company was 7.05% in 2010, however, it decreased to 3.84% in 2012 and further decreased to 3.08% in H1 2013.  

Unlike fertilizer unit, the company's sales revenue of pesticide business obtained large growth and meanwhile, its gross profit margin kept at a relatively high level. This is the important reason for the company's determination of focusing on the pesticide business.  

The company's revenue of pesticides was USD122 million in 2012, up by 41.03% compared with the same period of 2011 and its gross profit margin was 8.15%, being the top among all of its businesses. In H1 2013, the revenue of the company decreased by 9.55% year-on-year, however, that of pesticides kept increasing, with the growth of 13.22% compared with the same period of 2012, reaching USD72 million.

In fact, Anhui Huilong comes across some opportunities in the field of agricultural produces sales. Recently, the willing of the Chinese government in promoting land transformation is clear and as the agricultural distribution chain enterprise, Anhui Huilong is closely related with land transformation that it attracts lots of attention from investors. The company's share price increased from about USD1 per share in July 2013 to the highest of USD2.3 per share in Oct. 2013.  

Investors believe that land transformation has two benefits to the company. On one hand, the company directly takes part in land transformation. Anhui Huilong took part in land transformation in Quanjiao County of Anhui Province and leased more than 1333 ha of land, actively exploring efficient ecological agriculture.

What's more, after land transformation, the subject of agricultural production will change from small scale farmers to large scale farming and rural cooperatives, which will largely improve the demand for specific agriculture service. Such demand will benefit large enterprises with agriculture service abilities.

Table of Contents of Insecticides China News 1401:
China returns several batches of GM corn containing MIR162
Technology marketing helps crop protection in China goes green
Domestic market of seed treatment products continues to develop rapidly
Agricultural application of methyl bromide to banned from Jan. 2015 in China
Minimum of 1.8 billion mu arable land: true or false propositions?
China's export volume of diafenthiuron technical and formulations in Jan.-Oct. 2013 up 42.53% YoY
China's export volume of malathion technical and formulations in Jan.-Oct. 2013 up 23.75% YoY
Fengshan Group to build 5,000t/a chlorpyrifos TC production line
Anhui Huilong to increase proportion of its pesticide business to 20%-30%
Registration of fosthiazate becomes popular
Spirodiclofen registration becoming popular
China stops accepting applications of chlorpyrifos and triazophos registered for vegetables
Lanfeng Import and Export obtains its commercial registration on Dec. 16, 2013
Registered product announcement system to be implemented from Jan. 1, 2014
Bayer, CITIC Trust to jointly establish land transfer platform
Hentin Chem-tech marches into bio-pesticide industry
China's output of insecticide TC down 12.35% YoY in Nov. 2013
China's export volume of pesticide formulations up 18.20% YoY, Jan.-Oct. 2013
First phase of Jiangu Repont's relocation project to be completed soon 24
China's total profit of pesticide industry soars 39.1% YoY, Jan.-Oct. 2013


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, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

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
Email: econtact@cnchemicals.com



Detailed Rules for Infant Formula Processor Approval in 2013 Released

According to Dairy Products China News issued by CCM in January 2014, on 25 December, the China Food and Drug Administration (CFDA) held a press conference attended by a range of media and industry personnel from processors such as Mengniu, Dumex and NestlĂ©. The event saw it announce the release of the Detailed Rules for Infant Formula Processor Approval in 2013 (the Rules) and outline its review of processors’ production licenses.

The Rules were finalised after soliciting opinions from the dairy industry and the public in August last year. They set new requirements for infant formula producers in nine aspects, including purchasing of raw materials, infant formula inspection, manufacturing processes and product traceability.

Compared with the initial draft, the final version saw some specific stipulations added. For example, infant formula are divided into 3 stages to avoid confusion: 1st stage for infants from 0-6 months; 2nd stage for 6 months to 1 year old; and 3rd stage for 1-3 years old. Moreover, it requires that production of infant formula with dry and wet mixing processes should be completed at a single site. Most of the main factories in China are wet-blending, however some processors produce a base formula at a plant in the North by wet process, and then transport the base product to another factory in the South where additional nutrients are added by dry process – this practice will be forbidden.

Mr. Ma Chunliang, an official at the CFDA, explained the stipulations with regard to imported infant formula in the press conference, the area where the public is most concerned. For example, he explained that production of infant formula through dry process or wet process with imported base powder is allowed, but that importing the base powder and then simply adding a few ingredients or sub-packaging are not permitted.

In order to urge all the processors to implement these Rules, the CFDA issued a notice on 24 December indicating that it will review all infant formula processors’ production licenses; the following aspects are notable:
 The review must be completed by 31 May 2014, otherwise the processors will have to halt production and will be offered a 2 years transition period to rectify their production processes
 Processors who pass the review should send the products’ formulations along with samples of packaging and labels to the provincial CFDA offices to be kept on file; those who want to change formulations, or product names, packaging, labels etc should comply with the requirements for 1st/2nd/3rd stages (for 1st stage formula, demineralised whey powder’s ash content must be ≤15% and WPC ash content ≤5.5%), and will be offered a 1 year transition period to rectify processes as required
 Processors whose base powder and infant formula production are in different factories will be offered a 3 years’ transition period for rectification

Mr. Teng Jiacai, Deputy Director of the CFDA, said that the infant formula processors who want to exit this sector can diversify into other products and will get support from the government to do so. As a next step the Ministry of Industry and Information Technology and other authorities will issue a policy to support the development of infant formula industry and those companies seeking to diversify in this way.

The Rules involve stricter standards for domestic infant formula production, taking production standards in the pharmaceutical sector as a reference point, in order to guarantee better safety and quality. They also require processors to take primary responsibility for quality problems, to strengthen inspection of raw materials, to review their suppliers and to set up records systems to monitor and control every step of the production process, as the potential Fonterra food incident last year underlined the risks which could theoretically be caused by upstream suppliers.

As the standards for the industry are raised, processors will be under great pressure and some small and mid-sized processors may be eliminated, but the changes seem beneficial for the industry’s long term development and the Rules are unlikely to disturb the supply and pricing of infant formula in China. They constituted the 3rd announcement made by the CFDA about infant formula in December, but many consumers will still doubt whether the quality of domestic products is as good as imported products – this concept is so ingrained will take a long time to change.

Table of Contents of Dairy Products China News 1401:
Guangzhou Cancels School Milk Guide Price
Biostime Acquisition Brings Local Production Capability
Government Focuses on Infant Formula Safety
Import Tariff Cut for Infant Formula
China Tightens Supervision on Infant Formula Sales
Government Concerns over Milk Safety and Quality
Detailed Rules for Infant Formula Processor Approval in 2013 Released
Rebornne Focuses on E-commerce
Fonterra’s Challenge in China’s Dairy Market
Ausnutria’s Profitability Challenged
Milk Price Rises in Heilongjiang
Abbott’s Similac Launched Online

Dairy Products China News, a monthly publication issued by CCM on 15th, offers you the latest information on new market dynamics, company development, new products, technology, packaging and raw material supply, etc. It also focuses on the government’s direction and polices, helping you get the whole picture of the 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, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

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

Top 8 features of Chinese glyphosate industry in 2013

1. The environmental protection inspection against glyphosate industry was unprecedentedly stringent.
On one hand, the environmental protection policy of large-scale inspections on the glyphosate industry was released for the first time. On 21 May, 2013, the Ministry of Environmental Protection of the People's Republic of China released a document——Notice Regarding the Environmental Protection Inspection against Glyphosate (PMIDA) Manufacturers, and the inspection will last to 2015. This means that the glyphostate industry will be tightly regulated and monitored for environmental protection purposes for about two years and six months.

On the other hand, the environmental monitoring against the glyphosate industry was unprecedentedly stringent. Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejian Wynca) and Zhejiang Jinfanda Bio-Chemical Co., Ltd. (Zhejiang Jiafanda) were both involved in a court case over various environmental pollution offences. Zhejiang Jinfanda's general manager Pu, its deputy general manager Du and Zhejiang Wynca's safety and environmental protection department manager Gu have been arrested by the Zhejiang Provincial Public Security Department. So far, there is no news about the final judgment. Given the current situation, the final judgment is unlikely to be positive for the suspects.

2. Glyphosate prices hit new peaks.
Glyphosate technical and formulations' ex-works prices in 2013 all represented new peaks since 2009. Specifically, the glyphosate technical average ex-works price in 2013 was USD5,988/t (RMB36,708/t), up by 27% over 2012. The average ex-works prices of glyphosate 41% IPA, glyphosate 50% SP, glyphosate 62% IPA and glyphosate 75.7% WSG in 2013 respectively were USD2,792/t (RMB17,113/t), USD3,310/t (RMB20,292/t), USD3,428/t (RMB21,013/t) and USD5,245/t (RMB32,153/t), up by about 27%, 26%, 23% and 28% over 2012.

3. Glyphosate output and export volume increased significantly.
The environmental monitoring against the glyphosate industry was strict in 2013. However, this did not prevent China's glyphosate technical output from increasing. The total output was approximately 480,000 tonnes in 2013, up by 10% over 2012. Besides, the export volume of glyphosate A.I. was about 360,000 tonnes in the first eleven months of 2013. The total export volume of glyphosate A.I. is estimated to be about 400,000 tonnes in 2013. Thus, the export volume in 2013 will increase about 29% over 2012.

4. Production capacity continued to expand.
On one hand, Sichuan Fuhua Tongda Agro-chemical Technology Co., Ltd. (Sichuan Fuhua) became the largest glyphosate manufacturer in Asia, with a 120,000t/a production capacity. There are also many other companies trying to construct glyphosate production capacity. This includes Sichuan Hebang Co. Ltd. (Sichuan Hebang) and Lier Chemical Co., Ltd. (Lier Chemical).

Sichuan Hebang, whose main products are soda ash and ammonium chloride, planned to spend one year to construct a 50,000t/a glyphosate production project with a total budget of USD81.81 million (RMB501 million). At present, Sichuan Hebang is still preparing funds for the construction. Unlike Sichuan Hebang, which has not started construction of its glyphosate project, Lier Chemical claimed that in Nov. 2013 its subsidiary——Jiangsu Kuaida Agrochemical Co., Ltd. was trialling its 10,000t/a glyphosate production line, and that this line was expected to be launched in the beginning of 2014.

5. Almost every glyphosate manufacturer made a full-year profit in 2013.
Because of the prosperous glyphosate market in 2013, almost every Chinese glyphosate manufacturer made a full-year profit in 2013. The performances of the following three companies exemplify the strength of the glyphosate industry. The operating profit in the first nine months of 2013 of Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca), Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. and Anhui Huaxing Chemical Industry Co., Ltd. respectively were USD74.36 million (RMB455.35 million), USD48.20 million (RMB295.16 million) and USD5.22 million (RMB31.91 million). These three companies' operating performances in Q4 2013 mean that they will certainly record high full-year profits for 2013.

6. Chinese glyphosate companies not to have engaged in dumping conduct in Australia.
On 24 June, 2013, the Australia Customs and Border Protection Service released Notice No. 2013/51, showing that the China's glyphosate companies that exported glyphosate formulations to Australia were judged not to have dumped their products into Australia. Subsequently, Australia terminated the anti-dumping investigation that had been resumed on 16 Nov., 2012. This decision would help China's glyphosate companies develop in Australia's glyphosate market. Apart from Australia, China's glyphosate companies have had anti-dumping investigations in other foreign countries. The EU started to levy a 48% anti-dumping duty on Chinese glyphosate in 2000, and subsequently carried out anti-dumping investigations on multiple occasions against China's glyphosate. However, China eventually won this anti-dumping case in July, 2012.

7. Some Chinese pesticide companies continued to expand their overseas glyphosate market.
Sinochem Group replaced Nufarm and took over the exclusive distribution rights. Nufarm Limited (Nufarm)'s exclusive distribution rights for Roundup branded glyphosate in Australia and New Zealand were terminated on 28 Aug., 2013. Given the huge glyphosate market in Australia and New Zealand, this represents a huge step for Sinochem Group in its strategy to enlarge its overseas glyphosate market. In addition, Shandong Binnong Technology Co., Ltd. achieved a glyphosate registration in Australia in 2013.

8. Some Chinese glyphosate companies attempted to expand their business scope.
Anhui Huaxing Chemical Industry Co., Ltd. intends to set foot into the natural gas business. It will receive a total of USD358.83 million (RMB2.20 billion) from CEFC Shanghai Oil Group Co., Ltd., Shanghai Daiwah Group International Trade Co., Ltd. and Dasheng Commercial Co., Ltd., and will use these funds to enter into the natural gas industry. Zhejiang Wynca Chemical Industry Group Co., Ltd. continued to achieve progress on its overseas mining business. Zhejiang Wynca's holding subsidiary–Akoko Gold Fields–has successfully obtained mining rights, covering 28.07 km2 of territory, in Ghana in Sept. 2013.Source: Glyphosate China Monthly Report issued by CCM in January.

Glyphosate plays important role in Nufarm's strong operating performance for 2013 fiscal year
Zhejiang Wynca and Zhejiang Jinfanda involved in environmental pollution case
Review of China's glyphosate industry in 2013
Top 8 features of Chinese glyphosate industry in 2013
Stock performance comparison of Zhejiang Wynca, Nantong Jiangshan and Anhui Huaxing in 2013
List of first batch glyphosate manufacturers passing environmental protection inspection fails to release in 2013
Outlook of China's glyphosate industry in 2014
Solid glyphosate ammonium salt still the most registered glyphosate product in 2013 in China
Ex-work price of glyphosate technical in Jan. 2014 up 4.17% MoM
Export volume of glyphosate technical increases 44.10% in Nov. 2013

Glyphosate China Monthly Report, a monthly publication issued by CCM on 20th, will keep track of latest dynamics, hotspots and competitiveness analysis, and forecasts on market trends of China’s glyphosate industry.

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, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

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

Friday, January 24, 2014

CPCIF compiles thematic report to ease the overcapacity in eight chemical industries

In early Dec. 2013, the China Petroleum and Chemical Industry Federation (the CPCIF) finished the compiling of the Thematic Research Report on Defusing Overcapacity (the Report). The Report documents the overcapacity problem and makes recommendations for the eight chemical industries that are most affected by the overcapacity problem, namely oil refining, nitrogen fertilizer, ammonium phosphate, chlor-alkali, sodium carbonate, calcium carbide, carbinol and silicon fluoride, according to CCM’s Phosphorus Industry China Monthly Report 1401.

The Report has been submitted to the National Development and Reform Commission (the NDRC), the Ministry of Industry and Information Technology of People's Republic of China (the MIIT), the National Energy Administration (the NEA), and the State-owned Assets Supervision and Administration Commission of the State Council (the SASAC). It has been distributed to regional industrial associations and industrial competent departments. The Report will be released after it has been unanimously approved by the relevant departments and authorities.

There are four general features of the overcapacity situation in the above mentioned eight chemical industries. Firstly, these industries are mainly traditional and basic industries. There is also a trend that some emerging industries are also becoming threatened by overcapacity. Secondly, the overcapacity in these industries is largely the result of structural problems—oversupply for low-end products and a supply shortage for high-end products. Thirdly, there are still too many small and uncompetitive companies in these eight industries. In other words, the degree of concentration in these industries is not high enough. Finally, the proportion of backwards production capacity involving antiquated methods in these industries remains high. Take the domestic calcium carbide industry for example, the use of internal combustion furnaces for production still accounts for 40% of the total calcium carbide production capacity.

Although the export tariff imposed on phosphate fertilizer will be sharply reduced in 2014, the domestic industry will remain encumbered with the issue of overcapacity for several years. Overcapacity is a root problem faced by China's phosphate fertilizer industry. In the first 11 months of 2013, the production volume of phosphate fertilizer was steady, while the export volume of DAP, which accounts for the majority of phosphate fertilizer exports, decreased by 16.48% compared with the corresponding period in 2012. Meanwhile, there was new DAP production capacity, with about 1 million t/a put into operation in 2013. Therefore the overcapacity in ammonium phosphate, which traditionally accounts for 80% of the production volume of the entire phosphate fertilizer industry, worsened during 2013.

The direct purpose of the Report is to reduce the ammonium phosphate fertilizer production capacity. The CPCIF has targets to reduce the overall production capacity of DAP from nearly 20 million t/a in 2013 to 15 million t/a, and the production capacity of MAP from nearly 17 million t/a in 2013 to 12 million t/a by 2015. The long-term purpose of the Report is to stimulate the phosphate fertilizer industry towards integrating, transforming and modernizing the industry.

The major challenge that the phosphate fertilizer industry faces is how to achieve the targets that have been set by the CPCIF. In the Report, some measures will probably be included, such as setting standards and thresholds to weed out backward production capacity and the rejection of applications for investment into new ammonium phosphate projects.

However, the government's policies will only have a minor and temporary effect. Any major integration or upgrade in China's phosphate fertilizer industry will depend on the private enterprises themselves. Private enterprises will need to adjust their product structures and drive technological innovation so that phosphorus resources are comprehensively used.

Newyangfeng Fertilizer approved to be listed by back door listing
Tianjin Tanyi develops a new technology to produce MKP by using yellow phosphorus tail gas
CPCIF compiles thematic report to ease the overcapacity in eight chemical industries
Phosphate fertilizer export tariff to be sharply reduced in 2014
New standard to regulate domestic single superphosphate market in 2014
Batian to invest in a giant synthesis ammonia project in Weng'an County, Guizhou Province
Kainlin Group to start the integration project of phosphorus and coal chemical industry in H2 2014
The first phosphate complex in South East Asia to be built in Malaysia
Yidu Dajiang to upgrade its phosphate compound fertilizer production devices
Iodine recycling item of Kailin Mining & Ferilizer to be put into operation in Feb. 2014
International trade of phosphate chemicals in Nov. 2013
Market review of prime phosphate chemicals in Dec. 2013
Price monitoring of phosphate chemicals in Dec. 2013

Phosphorus Industry China Monthly Report, issued by CCM on 15th, keeps providing the latest company dynamics related to China’s phosphorus industry, and market analysis on supply and demand, import and export as well as global insight.

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, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

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

Email: econtact@cnchemicals.com

China's cyclamate export: volume drop in Jan.-Nov. 2013

Data from China Customs showed that the average export price of China's cyclamate witnessed an increase to USD1,932/t in the first eleven months of 2013, but at the same time, its total export volume decreased by 4.3% YoY from 24,526 tonnes in Jan.-Nov. of 2012 to 23,480 tonnes in Jan.-Nov. of 2013, according to Sweeteners China News issued by CCM in January.

The export price increase was one important reason for the export volume decrease of China's cyclamate in Jan.-Nov. 2013. In fact, price advantage is the most useful weapon for cyclamate to compete with other sweeteners. However, RMB appreciated rapidly in 2013. For example, according to the People's Bank of China, the RMB/USD exchange rate was 6.2897 on 4 Jan. 2013, but it decreased to just 6.0969 on 31 Dec. 2013. As a result, the export price of China's cyclamate also increased in the same period. Thus, overseas downstream enterprises had to pay higher price for the same quantity of China's cyclamate, which reduced their import enthusiasm.

Meanwhile, China's cyclamate began to face more competitions from other high intensity sweeteners (HIS) in overseas markets, putting pressure on China's cyclamate export. It is reported that downstream enterprises in Argentina, the second largest destination of China's cyclamate exports in 2012, preferred stevia sweetener in 2013. For example, Coca Cola launched its "green cola" containing stevia sweetener. Argentinean downstream enterprises' preference for stevia sweetener could be the reason for the significant YoY decrease in the export volume of China's cyclamate to Argentina in 2013.

It is predicted that the total export volume of China's cyclamate will decrease in 2013, and domestic cyclamate producers may have a negative prospect in 2014. Actually, it is estimated that the demand for China's cyclamate from overseas market has been falling in 2013, compared with that in 2012. Data from China Customs showed that only the demand for China's cyclamate from Europe witnessed a slight increase in Jan.-Nov. 2013, while that from other continents declined to varied extents in the same period. At the same time, the appreciation of RMB will not have a significant change in the future, which means China's cyclamate will further lose its price advantage. Based on the above negative factors, domestic cyclamate producers have to plan for their future development.

Table of Contents of Sweeteners China News 1401:
Shandong Longlive's technology center rated state-level
National standard of feed sweeteners passes expert examination
QHT cooperates with GDHA on requirement of doctors and patients for microecological health
Chenguang Biotech obtains patent certificate for stevia in Nov. 2013
CNRIFFI's stachyose (P80) rated as “national key new product”
China's sweetener industry annual overview 2013
Gross profit of Shandong crystalline glucose producers rebounds in Dec. 2013
Domestic starch sugar producers shift sales focus to export in 2013
China's HFCS: sucrose price becomes more decisive factor for profit margin decrease in 2013
Expiration of patent protection for neotame in 2013 boosts neotame production in China
First-phase of Guangdong L&P's sucralose project completed in Dec. 2013
Low sucrose price in 2013 causes contrasting net profit growth between two FOS producers
Shandong Longlive opens online flagship shop at Tmall
Shandong Futaste became the first GMP (2010 edition)-certified producer of xylitol in China
China's saccharin: combined export volume of domestic designated producers decreases in Jan.-Oct. 2013
China's cyclamate export: volume drop in Jan.-Nov. 2013
Export overview of some sweeteners and raw materials in China, November 2013
Sucrose price in China continues to drop since Nov. 2013
Ex-factory prices of sweeteners in China in December 2013


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, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

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

Thursday, January 23, 2014

Kingfa signs framework agreement about promoting its biodegradable agricultural film


The framework agreement is reached based on the developmental direction of both organisations. In short, as the spring ploughing   period   approaches, biodegradable agricultural film with good performance has become the first choice for cotton farmers of XPCC, since they have witnessed the good degradation of biodegradable agricultural film in their cotton fields and obtained a cost-recovering reduction last year. Specifically, approximately 3,300 ha. of biodegradable agricultural film was promoted by XPCC in 2012. Kingfa, a leading biodegradable plastic producer in China, is actively preparing for the domestic market for biodegradable agricultural film after the No.1 Proposal was released in March 2013 (the No. 1 Proposal for strengthening the development of green agriculture will set the direction of the Chinese government's major tasks this year).

Kingfa possesses a leading position in the development of China's biodegradable agricultural film industry. Firstly, the company's biodegradable agricultural film has a performance that is comparative with PE material. Moreover, its biodegradable agricultural film has proved to be completely biodegradable and has passed the EU-based EN13432 certification and the US-based BPI certification (ASTM D6400).

Kingfa has even drafted a national standard of the new material industry—the "biodegradable plastic used for blown film" (standard label: GB/T 29646-2013) has got the approval by the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China and the Standardization Administration of the People's Republic of China in Sept. 2013. The national standard is scheduled to be implemented from Jan. 31, 2014.

According to an insider of Kingfa, the amount of biodegradable agricultural film will not compress the orders of existing packaging film. It may, however, increase the sales of its biodegradable plastic.

At present, the development of China's biodegradable agricultural film industry is mostly limited by the high price and disordered industrial standards.

On one hand, the price of biodegradable agricultural film is much higher than that of PE film, making it unaffordable for the majority of farmers.  According to related statistics, the price of traditional agricultural film is about USD2,445.8/t, while the price of biodegradable agricultural film will be over USD3,261.1/t (verified by Zhong Luhua, the chairman of Shenzhen Ecomann Biotechnology Co., Ltd. (Ecomann)).

On the other hand, China has no strict industrial standards for the degradable agricultural film industry, which can cause disorder in the industry. For example, many enterprises including Guangdong Shangjiu Biodegradable Plastic Co., Ltd. (Guangdong Shangjiu) produce their biodegradable film just by mixing PE with starch. Once the starch is decomposed, the PE residue can hide in the soil and still do harm to the environment.

Related preferential policies need to be published to encourage more enterprises to enter the biodegradable agricultural film industry and help ease the problem of white pollution in China.

Table of Contents of Biomaterials China News 1401:
China's PHA industry shows good momentum of development
Biological PE industry achieves progress in 2013
WPC brings business opportunities to domestic enterprises
Glory Biomaterial's biological PDO program put into operation
Kingfa signs framework agreement about promoting its biodegradable agricultural film
Shenzhen Union Red Kite Holding launches new bio-based NPG 100% degradable plastic
Hexing Chemical's PBS project receives governmental support
China's corn price decreases in Oct. but increases in Nov. 2013
New production capacity of 20,000 tonnes is put into SA industry
China's PLA import volume up while export volume down in Nov. 2013
China's import volume of fresh cassava increases sharply in Nov. 2013
China's import volume of castor oil and its derivatives decreases in Nov. 2013
BPFRG warns about biodegradable bags tax exemption
BASF produces its first commercial quantities of bio-based BDO
Futaste's polyol pilot service center project passes inspections
QIBEBT, CAS joins US-based BTB2C
Avantium produces 100% bio-based PEF T-shirts from recycled PEF bottles

Biomaterials China News, with 12 to 14 topics in one issue, published by CCM on 8th every month, will bring you the latest information on the market dynamics, company dynamics, new biomaterials products, new biomaterials technology development, new legislations as well as policies and raw material supply dynamics, which are shaping the significant market intelligence of the 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, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

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


Tuesday, January 7, 2014

Cooperation between seed enterprises and research institutes: undesirable


In 2011 the State Council of the People's Republic of China issued the Suggestions for Accelerating Development of Modern Crop Seed Industry (the Suggestions), which clearly laid emphasis on "leading and actively mobilizing research institutes and colleges to gradually withdraw from commercialized breeding, and to establish the dominant status of technological innovation in seed enterprises". However, the results have been unsatisfactory.

Since the birth of China's seed industry, the breeding, production and promotion of seeds have been totally out of joint in China. In order to establish the dominant status of technological innovation in seed enterprises, commercialized breeding should be gradually removed from research institutes. Since the issuance of the Suggestions two years ago, there have been huge difficulties in the reform of agricultural research systems, along with strong resistance and few contributions.

On the one hand, relevant departments have not attempted to promote reform and to rationally allocate resources to remove commercialized breeding from research institutes from the macro policy perspective; instead they advocate the collaboration between seed enterprises and institutes, or the R&D alliance between the two sides. On the other hand, officials and scholars conduct investigations on the collaboration between seed enterprises and institutes, and the cooperation is also a hot topic on magazines. Authoritative experts observe that "the reform goes from bad to worse under the guidance of misconception".

It is feasible for those seed enterprises that are qualified for the research system "breeding, production and promotion" to voluntarily cooperate with institutes on seed researches, to buy varieties from the latter, or to temporarily transfer researchers from the latter.

However, the cooperation is not what the development of a seed enterprise relies on. To place the cooperation in a dual-track system with double benefits means that research institutes sell their varieties to enterprises, and that seed enterprises buy varieties from institutes. But the contrasting rules and intentions of the two sides cause seed enterprises to give up technological innovation, and to become a permanent "seed supermarket" instead.

Disagreement on time for cooperation

Scientific research is an incremental process, and the breeding of a variety takes 7-8 years, along with unpredictability, while seed enterprises hope to get the results as soon as possible, usually without a clear understanding of the time required for breeding. As a result, they may quit the cooperation at any time when getting no positive short-term outcome.

Conflicting cooperation purposes

For research institutes, the breeding of varieties is aimed at publications and academic titles, while product conversion is often considered secondary. Scientific evaluation of a newly developed variety usually takes five years, but seed enterprises buy existing varieties for the purpose of instant profits. Thus, both sides have conflicting aims and conflicting purposes for entering into a cooperation.

Enterprises signs contracts with varying ranks of research units, such as institutes, chambers, research groups, and even individuals, which hints at the inefficiency of legally binding agreements. Therefore, the alteration or the adjustment of leaders and research of the institute also influences the cooperation. Furthermore, cooperation between seed enterprises and research institutes is all about unconstrained contracts and purchases. Because of that, a long-term stable partnership cannot get established between both sides. Seed enterprises expect instant success, and they may break up the partnership if they cannot obtain expected profits.

Disagreement on variety rights

Seed enterprises pay institutes for R&D on seeds in the hope of obtaining exclusive rights on a seed variety and to obtain exclusive rights to explore the market, which help the company elevate its reputation. However, institutes are not willing to make their resources and breeding information open to society. Institutes are willing to transfer variety distribution rights to multiple enterprises in order to expand the promotion of the seed variety, and to possibly increase their eligibility for State Science and Technology Prizes and other awards. Thus, cooperations between seed enterprises and research institutes prioritise the institute's interests over the seed enterprises' interests, which creates conflict.

Divergence in economic foundations

Nowadays agricultural research institutes still follow the planned economic system, while seed enterprises have just entered the market economy. Cooperation between the two parties belonging to totally contrasting economic systems makes it difficult to maintain a balance between competition and profit distribution. Thus, the so-called "industry-university-research cooperation" between the industry and researchers based upon a market orientation and sharing interests and risks are unattainable.

The market economy has so far been the most efficient economic system, and enterprises boost its development by way of science and technology. The developmental experience of the world's developed countries proves that enterprises are the mainstay of the development of the market economy, of technology innovation, and of the formation of independent intellectual property rights. Also, the establishment of an innovation-oriented country and the improvement of independent innovation rely on the support from thousands of innovation-oriented enterprises. For every country, under the current situation of rapid global economic development, the decline of enterprises will inevitably lead to the downfall of the national economy; similarly, the rise of enterprises will certainly boost the national economy.

Table of Contents of Seed China News 1312:
Policy on grain purchasing and subsidy implemented again
Cooperation between seed enterprises and research institutes: undesirable
GM foods rejected by most Chinese
Beidahuang Kenfeng terminates cooperation with SOPO on backdoor listing
Winall Hi-tech to establish three subsidiaries
Oversupply in China's corn seed market and revelations from it
Brief introduction of Guangdong corn seed market
Analysis on corn variety Demeiya
Analysis on China's cotton seed market from industrial chain perspective
Inner Mongolia's grass industry confronted with challenges

Seed China News, a monthly publication issued by CCM at the end of every month, mainly covers a diversity of topics, including market dynamic, company dynamic, crops, seed market, etc. With the latest news in seed industry and in-depth analysis on government direction and market competition, Seed China News can provide you with valid information which would help you make rational decisions in investment, production, marketing, etc.

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, and Consultancy Service. 

For more information, please visit http://www.cnchemicals.com.

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