Top 10 events of Chinese glyphosate industry in 2012

CCM, a professional information providing company in terms of market report, newsletter, data base and consultancy research service, has recently issued the latest edition of Glyphosate China Monthly Report that covers 10 topics in 12 pages. Among which, an article named of “Top 10 events of Chinese glyphosate industry in 2012” was highlighted as follows:

1. Glyphosate market turns warm

Having 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 the annual 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 by about 10 percentage points over 2011. The total output of glyphosate technical in China is estimated to be 400,000 tonnes in 2012, up by about 18% over 2011. The export volume of glyphosate A.I. (in terms of 100% glyphosate acid) is estimated to be 350,000 tonnes in 2012, up by about 16% over 2011.

2. Production capacity keeps expanding

Sichuan Fuhua Tongda Agro-chemical Technology Co., Ltd. and Zhejiang Jinfanda Biochemical Co., Ltd. both planned to construct 50,000t/a production lines of glyphosate technical respectively in mid-2012, but the 100,000t/a production lines were not launched in 2012.

3. Mergers and acquisitions still appear much

1) 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 Yangnong Chemical Co., Ltd., a listed company.

2) Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca) held 51% share of Shandong Xinfeng Seed Co., Ltd. in May 2012. Besides, in Nov. 2012, Zhejiang Wynca acquired the additional 70% share of Golden Sunshine Mining Co., Ltd. which is a mining company located in Ghana.

3) Nantong Jiangshan planned to acquire 90% equity of Ladda Group which is a leading company in agrochemical business in Thailand in Dec., 2012.

4) Anhui Huaxing Chemical Industry Co., Ltd. (Anhui Huaxing) planned to issue additional 452.25 million shares to CEFC Shanghai Oil Group Co., Ltd. (CEFC Shanghai) at USD308.99 million, and CEFC Shanghai will hold 60.61% equity of Anhui Huaxing after the deal in July 2012, but the deal hasn't been approved by China Securities Regulatory Commission in 2012.

5) Chongqing Sanxia Paints Co., Ltd. transferred 100% equity of Chongqing Sanxia Yingli Chemical 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 elimination

On 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) should not be lower than 30%. Registration applications (including temporary registration, formal registration and renewal registration) for mixed glyphosate formulations with glyphosate A.I. content below 30% faced rejection from 26 March, 2012, and existing registrations that can't meet the content requirement should be modified before 31 Aug., 2012.

5. Anti-dumping battle still continues

1) Australia Customs and Border Protection Service (ACBPS) released the Notice No. 2012/54 On 16 Nov., 2012 and claimed that ACBPS would resume anti-dumping investigation on formulated glyphosate products exported to Australia from China as a result of Australia Trade Measures Review Officer (ATMRO)'s revocation of ACBPS's decision to terminate the investigation on the glyphosate formulations exported to Australia from China on 23 Oct., 2012, and the termination decision released on 2 Aug., 2012 was the result of anti-dumping investigation on formulated glyphosate 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 European Commission and upheld the decision ruled by European Union General Court on 17 June, 2009 that Zhejiang Wynca was not guilty of dumping (selling glyphosate at unreasonable prices in EU market) on 19 July, 2012.

6. Zhejiang Wynca is involved in the case of chemical use salt being sold in edible salt market

Zhejiang Wynca has been involved in the trouble related to "chemical use salt being sold in edible salt market" in early Feb. 2012 because its wholly-owned subsidiary, namely Zhenjiang Jiangnan Chemical Co., Ltd. (Zhenjiang Jiangnan), sold chemical use salt to Zhenjiang Haitian Salt Chemical Co., Ltd. which illegally produced and sold chemical use salt in edible salt market in 12 provinces 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. What's more, Zhenjiang Jiangnan can't control how purchasers use the salt.

7. Anhui Huaxing avoids from being ST marked

Anhui Huaxing suffered an operating profit of USD14.22 million in 2011, but it enjoyed a net profit of USD0.40 million aided by the non-operating revenue of USD14.63 million, and thus Anhui Huaxing avoided from being ST marked for its stock.

8. Zhejiang Wynca introduces glyphosate 78% IPA SG

Zhejiang 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 2012

According to the publication of China's State Intellectual Property Office, there were 17 public patent applications related to glyphosate wastewater treatment in 2012, thereinto, eight public patent applications are related to the removal techniques of phosphorus and nitrogen in glyphosate wastewater by the way of converting organicphosphorus compounds and organicnitrogen compounds to phosphate ion and ammonia ion respectively, and another nine public patent applications 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 fast

A 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 existing glyphosate-tolerant weeds were also found in other countries. For example, another two new glyphosate-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 found in Arizona, California, Mississippi and North Dakota respectively.

Table contents of Glyphosate China Monthly Report 1301

Multinational companies actively seize patent registrations for mixed glyphosate formulations in China

Global glyphosate demand to grow at a CAGR of 4.37% in 2012-2016

Review of China's glyphosate industry in 2012

Export tax rebate of PIMDA may be cancelled in China

Top 10 events of Chinese glyphosate industry in 2012

Glyphosate status hard to be shaken by the new paraquat formulation

Glyphosate market in 2012 fails to surpass the brilliant performance in 2008

Solid glyphosate ammonium salt is still the mainstream registration in 2012

Glyphosate price decreases slightly in Jan. 2013

Glyphosate export volume increases in Nov. 2012

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

About CCM

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

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Australia restarts antidumping investigation on formulated glyphosate from China

"In economics, "dumping" is any kind of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price either below the price charged in its home market, or in quantities that cannot be explained through normal market competition.”

On Nov. 16, 2012, the Australian Customs and Border Protection Service (CBP) announced the resumption of antidumping investigation on formulated glyphosate exported to Australia from China. The CBP has initiated an investigation following an application by Nufarm Limited and Accensi Pty Limited, manufacturers of formulated glyphosate in Australia. The application seeks the publication of a dumping duty notice in respect of formulated glyphosate exported to Australia from China. The application alleges that formulated glyphosate has been exported to Australia from China at prices less than its normal value and that the dumping has caused material injury to the Australian formulated glyphosate industry.

The Australian Customs started the antidumping probe in February and terminated the probe with a no-dumping ruling in Aug. 2. Then Nufarm Ltd, a representative of the Australian formulated glyphosate industry, lodged an application to the Review Officer for a review of the decision to terminate the investigation on Aug. 28, 2012. And the Review Officer revoked the terminate decision on Oct. 23, 2012, which led to the resumption of the investigation as of Oct. 25, 2012.

Faced with such event, what will be the fate of the Chinese glyphosate? CCM‘s experts will investigate the future development of Chinese glyphosate market, please stay focus on CCM's coming global report: World Outlook of Glyphosate 2012-2016.

http://www.cnchemicals.com/Special/SignsOfRecoveryInGlyphosateIndustry.html

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.
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

Banning Paraquat Raises Dispute in China

According to the information from the 4th China High-Level Forum on Pesticides held on Sept. 23 to 24, 2011, the Ministry of Agriculture (MOA) will take measures to further restrict and forbid the use of paraquat and some other highly toxic pesticides in the near future, based on CCM’s latest issue of Crop Protection China News.

Though it is not a piece of new information in China, it is the first time for Chinese government to officially announce the restriction and forbidding of the use of paraquat.

As people are shocked by the official statement, dispute is raised in and out of domestic pesticide industry. As a non-selective herbicide, paraquat is largely used to control weeds in the fields of fruit, mulberry, rubber, corn, sugarcane, soybean, etc. Although it is featured by high efficient and low price, it is also famous for its high toxicity to human beings and animals. Once being poisoned, especially by oral intake, it is incurable.

Eyeing more than 5,000 people die annually from the poisoning caused by paraquat, many medical workers propose legislating against the use of paraquat in the National People's Congress. As more and more foreign countries have added paraquat into their ban lists, the voice of forbidding the use of paraquat in China has been even louder in the past two years.

However, most of domestic pesticide enterprises and dealers hold different opinions over the forbidding use of paraquat.

With years' development, China has become the largest paraquat producer in the world with the production capacity of paraquat TK reaching 152,500t/a in 2010. The total output of paraquat 42% TK reached 122,000 tonnes in 2010 with the operating rate of 80.0%, compared with 72.4% in the previous year.

As of April 2011, 553 paraquat registration applications from 272 enterprises, both temporary and formal, have been approved in China, including 63 for technical, 483 for single formulations and seven for mixed formulations.

Thus, once paraquat is forbidden, these pesticide players will suffer greatly. As a matter of fact, they will fight to delay the release and implementation of the policy to ban the use of paraquat.

"Domestic apparent consumption of paraquat formulations was 31,256 tonnes (calculated by 200g/L AS) in 2010. And obviously it is hard to find a substitute to replace it. Once it is forbidden, pesticide market will be affected greatly. Actually, it will do little harm to the environment and health of human being if the herbicide is used safely," said Mr. Yu, a district manager from Shandong Luba Chemical Co., Ltd. "Actually, there is a better way to decrease the happening of paraquat poisoning, which is to change the dominant formulation of paraquat AS into DP or ointment."

However, some insiders believe that the announcement from the 4th China High-Level Forum on Pesticides is just a statement of Chinese government to declare its attitude towards highly toxic pesticides. Banning paraquat or not is still can't be nailed down and the implementation of the policy is still beyond expectation. If government carries out the policy, the worst condition of paraquat in the near future is that the use on several fruit or crops may be forced to be banned. The all-out ban on the product in China may still have a long way to go.

Source: Crop Protection China News 1119

http://www.cnchemicals.com/Newsletter/NewsletterDetail_16.html

(Guangzhou China, October 18, 2011)

Content of Crop Protection China News 1119:

Banning paraquat raises dispute in China

Rising pesticide resistance bothers domestic pesticide industry

Heavy metal seriously pollute domestic farmland

Jiangsu Huifeng to expand in fluorine industry

Hubei Sanonda predicts good performance in Q3

Syngenta extends collaboration with SIOC, CAS

Glyphosate price rises but profit stays

China's mancozeb industry faces severe challenges

Crop Protection China News, a semimonthly publication issued by CCM International on 15th and 30th(31st) of every month, aims to gain a deep insight into Chinese market, supply the latest market data and strategy support, analyze the newest legislation and policy and grasp the future market trend.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

China Acephate Survey Expected To be Released This August

Guangzhou China, August 8, 2011 – CCM is going to publish a brand-new report this August, entitled Acephate Survey in China. Aimed to present you an in-depth and comprehensive view on Chinese acephate market, the upcoming report will show you aspects of acephate production, consumption as well as growth potential from 2011 to 2015.

Acephate, mainly applied to control pests with chewing mouthparts and piercing-sucking mouthparts, has witnessed fast demand growth in recent years. It is a kind of insecticide recommended by Chinese government to substitute methamidophos. The demand of domestic acephate has been robust in recent years. At the same time, as one of the products supported by the special fund for treasury bond in the National Eleventh Five-Year Plan from 2006 to 2010, acephate capacity experienced a fast growth. Compared with the capacity in 2006, the capacity in 2011 has increased more than 90%. Now 24 companies have got technical registrations and 69 companies have got formulations registrations, and all of them are within validity. In order to prevent the potential possibility of over capacity, government is planning to make relevant policies to control the acephate technical capacity. It would not repeat the over capacity mistake like the one of glyphosate in China and would develop in a sustainable way.

The following aspects will be covered in this research:

-To provide overview on Chinese acephate industry.

-To survey current production situation of acephate technical and formulations.

-To reveal production technologies adopted by domestic producers.

-To identify major acephate suppliers in China.

-To analyze demand for acephate.

-To figure out market value, import & export, price movement, raw materials supply, etc.

-To reveal influencing factors and drivers for Chinese acephate development.

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.
Please visit http://www.cnchemicals.com for more information or contact econtact@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