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.
Tel: 86-20-37616606
