China’s Defeat on Export Restriction Case not to Hit Yellow Phosphorus

On Jan. 30th, 2012, World Trade Organization (WTO) adjudicated that China's export restriction on nine types of raw materials is illegal. Amongst the nine types of materials in the ruling, yellow phosphorus is included, according to CCM International’s February issue of Phosphorus Industry China Monthly Report.

On the very next day, China's Ministry of Commerce made a response that China set the export rules for protecting resources and maintaining the sustainable development of these resources. After review of this verdict, China declared it will adopt scientific methods to administrate export of these resources in accordance with WTO rules, although it viewed such export restriction legitimately.

In the face of such an arbitrament, some people suggest that China could take several actions to protect native resources. Despite of WTO's ruling, China is still entitled to increase resource tax or environment tax to restrict resource export. Besides, China could raise electricity price and through other methods to drive up the production cost rather than levying tax, which is also in favor of restricting resource export.

 

However, if China adopts the suggestion, it will confront potential inflation resulting from the soaring prices of raw materials. Perhaps further improving the standard on the quality of export commodities is a more effective way to solve the present problem.

Generally speaking, it makes little difference on China's yellow phosphorus export whether China would improve taxes or the standard on exported commodity quality. In 2011, China produced 853,565 tonnes of yellow phosphorus, only 1.8% being exported.

Compared with other prime yellow phosphorus exporters, China's export tax in yellow phosphorus is a bit high indeed. However, even with such a high tax, the average export price of China is still lower than that of the US—another prime exporter of yellow phosphorus in the world.

As is known to all, the export tax of yellow phosphorus in China is ever up to 70% before 2009. Even China levies a 20% export tax on yellow phosphorus at present, its export situation of yellow phosphorus still seems to have a downturn.

However, it is noteworthy that China has been implementing export quota on phosphorus ore and high export tariff on phosphate fertilizer. Different from yellow phosphorus, China and other countries all have strong demand on phosphorus ore and phosphate fertilizer. In view of WTO's ruling on China's nine types of raw materials' export, once loosening the export of these two phosphorus products, it will bring about the outflow of native resources to a larger extent, which is against China's original intention.

Source: Phosphorus Industry China Monthly Report 1202

http://www.cnchemicals.com/Newsletter/PhosphorusIndustryChinaMonthlyReport.shtml

Content of Phosphorus Industry China Monthly Report 1202:

Phosphorus ore

Global Insight:  Japan accelerates phosphorus resource exploitation overseas   

New Technology:  New process to promote application of low-grade phosphorus  

Indusry Dynamics:  Guizhou phosphorus enterprises lead phosphorus-fluorine integration 

Yellow Phosphorus

Policy & Legislation: China’s defeat on export restriction case not to hit yellow phosphorus  

Industry Dynamics: Tight electricity supply in 2012 to hit yellow phosphorus    

Phosphate fertilizer 

Global Insight:  China ties up with international phosphate fertilizer market 

Industry Dynamics: China’s phosphate fertilizer to develop stably with deep integration during 2012-2015    

Company Dynamics: Sinofert to expand phosphorus chemical business

Fine phosphate Chemical 

Company Dynamics: Sichuan Hebang to start IPO for phosphate chemical projects 

Company Dynamics: Xingwang Group to extend its phosphorus chemical business 

Import & Export

International trade situation of phosphate chemicals in 2011

Price Update 

Price monitor of some phosphate chemicals in January

Phosphorus Industry China Monthly Report, a monthly publication issued by CCM International on 15^th 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.

(Guangzhou China, February 16, 2012)

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

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_973.html

China to Accelerate Development of Biomaterials

Chinese Ministry of Industry and Information Technology (MIIT) released a "Twelfth Five-Year Plan for Industrial Technology Innovation (2011- 2015)" on November 4, 2011, which will accelerate the development of domestic biomaterial industry in next several years, according to CCM International’s first issue of Biomaterials China News.

In general, the plan will support technological innovation of four industry fields including raw materials, equipment manufacturing, consumer goods and information technology sectors to boost the industrial transformation and upgrading. Among these fields, biomaterial industry will directly benefit from the related support policies of the raw materials and consumer goods. Based on the specific content of the plan, domestic biomaterial industry will get more support from the Chinese government and enter a rapid development stage.

Major tasks of the plan are: to strengthen the technological innovation ability, to build the service system of technological innovation, to develop the key and common technologies, to promote the transformation of scientific research achievements, and to foster and develop the emerging industries of strategic importance.

Major guarantee measures of the pan to support technological innovation are: to establish a coordination mechanism, to increase investment, to strengthen policy guidance, to improve the technology standard system, to expand international scientific and technological cooperation and to strengthen talent training.

Besides this plan, another plan related to biomaterial, namely "Twelfth Five-Year Plan for New Material Industry", has also been completed by MIIT at the end of November 2011, which may be published in December 2011. On November 16, 2011, Mr. Gao, an officer from MIIT, revealed that total output value of domestic new material industry may reach about USD300 billion in 2015, with an annual growth rate of above 25% from 2011 to 2015. Meanwhile, the specific guarantee measures are: to establish a stable financial input mechanism, to build and perfect a safeguard mechanism for investment and to promote 30 new materials, etc.

As for the above plans, some insiders of domestic major biomaterial producers believed that the above plans will be helpful to accelerate development of domestic biomaterial industry in the next several years. Mr. Zhang, a staff from Wuhan Huali Environmental Technology Co., Ltd. (Wuhan Huali) which is the largest starch-based material producer with capacity of 40,000t/a in China, thought that the above two plans will be helpful to exploit new domestic market and promote starch-based material in the future. Moreover, Mr. Zhang hoped that the Chinese government can release more support policies in addition to the measures of the above plans, such as increasing export tax rebates to strengthen international competitiveness and providing finance subsidy to reduce raw material cost.

Moreover, Mr. Liu, a staff from Tianjin Green Bioscience Co., Ltd.(Tianjin Green)which is the largest PHA (Polyhydroxyalkanoates) company with capacity of 10,000t/a in China, believed that the above plans will increase domestic demand for biomaterials. Meanwhile, he also revealed that Tianjin Green may adjust product structure, expand capacity and make more efforts to cooperate with more domestic downstream companies in the future. Furthermore, Mr. Liu also expected that the Chinese government can provide financial subsidies to reduce the negative effect caused by the increasing RMB appreciation.

Additionally, Mr. Wu, a manager from Nanyang Zhongju Tianguan Low Carbon Technology Co., Ltd. (Nanyang Zhongju Tianguan) which is the largest PPC (Polypropylene-carbonate) company with capacity of 5,000t/a in China, also generally agreed with the above opinions of Mr. Zhang and Mr. Liu. Mr. Wu thinks that the plan can improve competitiveness of biomaterial companies to be better than that of oil-based plastic companies. Meanwhile, Mr. Wu hoped that the Chinese government should make a law to clearly regulate a specific content of biomaterials in related environmental friendly products, in order to guarantee stable demands from domestic biomaterial downstream industries.

         

Source: Biomaterials China News

http://www.cnchemicals.com/Newsletter/BiomaterialsChinaNews.shtml

Main content of Biomaterials China News:

China to accelerate development of biomaterials

Overview of development of milk protein fiber in China

Worldwide economic downturn affects PTT sales in China

PHA manufacturers to benefit from the ban on plastic in Europe and in America

Chitosan fiber still has a long distance to the industrial production

Suzhou HiPro to expand its bio-polyamide capacity

Wanwei Updated High-tech expands PVA capacity

Nanyang Zhongju Tianguan to expand its PPC resin capacity

Zhejiang Hisun to expand its PLA capacity in 2013

… …

(Guangzhou China, December  15, 2011)

Biomaterials China News, with 12 to 14 topics in one issue, published on the 8th every month, will bring you the latest information on the latest market dynamics, company dynamics, new biomaterials products, new biomaterials technology development, new legislations and policies and raw material supply dynamics that are shaping the market.

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

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_892.html