Thursday, April 21, 2011

High Price of Petroleum to Impact China’s GA Industrial Chain

Recently, CCM publishes its newest report, Production& Market of Glyoxylic Acid (GA) in China, which introduces the developing history of GA in China, the studies from raw material to the supply situation of downstream industrial chain, price trend, production capacity & output, different technology, and the major factors to influence the development of GA, main producer, and forecast of GA development tendency in the future 5 years.

According to the report, China has started glyoxylic acid (GA) production with oxalic acid electro reduction method in early 1985, and it has gone through the 2 rapid developments during 2002 to 2003 and 2005 to 2007. At present, China has been the GA main producer in the world. GA production reached 134,880 tonnes in March 2011 and is predicted to reach 135,380 tonnes at the end of 2011. There are about 20 producers in China at present, which are mainly located in Hubei, Jiangsu, Shanghai, Hebei and Shandong Province, covering 95% of GA capacity in China.

Although the capacity and output of GA is very large, the consumption of GA is still concentrated in China. GA is mainly used to produce p-hydroxylphenylglycine, DL-p-hydroxy phenylhydantoin, allantoin, vanillin, 2-hydroxyl-phosphine acetic acid and other chemical products in China. The demand of downstream products especially vanillin, p-hydroxylphenylglycine, and DL-p-hydroxy phenylhydantoin are the dynamic of GA to grow. China is the main producer and exporter of vanillin, and 75% of vanillin is used for export. In recent 2 years, the main reason to stimulate the capacity of GA to extend is to use GA method to produce vanillin. The consumption of GA to produce vanillin occupied 38.81% in 2010,and it has become the largest consumption area of GA in China.

According to the report, the production methods of GA is researched and analyzed. Recently, glyoxal method is basically used to produce GA. To process the cost analysis of using glyoxal method to produce GA, we can know glyoxal is the chief component of GA, while the price rise and fall of petroleum influences the forward price of glycol and then influences the price of glyoxal. The price rise and fall of petroleum delivers to the price of GA quickly, and the influence is also very large.

Mr Shaohong Xu, the research from CCM indicates that along with the widely application of GA method to produce vanillin and steady demand of several other consumption area, the demand of GA domestic still presents up-trend, but the price raise of petroleum will cause the shortage of GA resources, and its price will increase. At the same time, due to the unordered development, the downstream productions of GA are competitive, and their price raise slowly even some prices of products presents downtrend. Along with the price raise of raw material and cost raise of environmental protection, the profit of producing DA downstream productions is decreasing in recent years. In the age of high price of petroleum, China’s GA industrial chain will face the bigger and bigger impact.

Rice Diseases Predicted to occur seriously in 2011

Guangzhou China April 14, 2011 - China is one of the original centres of rice cultivation. It is the world's largest rice producer, and it is also the pioneer of hybrid rice. Rice is an important staple food and cash crop of China.
However, the rice crop is subjected to more than forty diseases, which is one of the factors for low yields of rice in the world (including China). The diseases may appear at any stage of the growth and development of plant, attacking the seed sown, root system, foliage, stalk, leaf sheath, inflorescence and even the developing grain.
In 2010, due to the wide spread of rice virus disease and bad weather, output of rice in China was cut down. In Feb. 2011, experts made a forecast on rice disease according to weather change, related data and inspection. It is predicted that occurrence of rice diseases in 2011 will be more serious than the previous year, and the total stricken area of rice diseases will hit about 26.67 million ha. in 2011, up 5.26% compared with last year.
Detailed data was collected in CCM's monthly newsletter of April 2011- Fungicides China News, which is published in mid of each month. The newsletter also contains related dynamics of fungicides products, markets and major producers.
About products information: The newsletter finds that the supply of Mancozeb and domestic flusilazole technical is tight at present due to its strong demand growth. Coumoxystrobin 20% SC , exclusively produced by Jilin Bada, has entered into domestic market in March 2011. The ex-factory price of prochloraz 97% TC has jumped sharply to USD9,467/t in early Apr. 2011, up 28.11% compared with last month. Xinaomycin, a bio-fungicide, also enjoys bright market prospect. About 80% iprodione technical produced by domestic pesticide producers is exported to overseas market with great demand.
About producers and players: Three companies are promoting trinexapac-ethyl technical. Zhejiang Heben and Shanghai Shengnong, are producing triflumizole 95% technical and triflumizole 30% WP. Jiangsu Frey is relocating to the International Chemical Industrial Park of Zhenjiang Economic Development Zone. Changqing Agrochemical is building fenoxanil technical production line with capacity of 500t/a, which will fully be put into production in late 2011. On 22 March 2011, Jiangsu Huifeng launched its 900t/a dimethomorph technical production line, which makes it become the second largest domestic dimethomorph technical producer. Qianjiang Biochemical's both net profit and revenue witnessed an increase of 88.76% and 20.95% year on year to USD7.59 million and USD66.01 million respectively in 2010. Shaanxi Kangze is going to promote difenoconazole·azoxystrobin 32.5% AS in the domestic market in mid-2011.

The original source coms from:

Wednesday, April 6, 2011

Japan's earthquake bring negative effect

Japan's huge earthquake, along with tsunami and nuclear woes, has attracted wide attention throughout the world, and the international community should work together to help the country to overcome this disaster. It is predicted this disaster will bring negative effect on Sino-Japan import and export business, including corn products import and export business. Mainly based on current high corn price, a deputy of the National People's Congress called on the government to further restrain domestic corn deep-processing industry, which caused wide controversies, and CCM views that the government should adjust its regulation direction towards corn deep-processing industry. Besides, news that citric acid export tax rebate may be cancelled from April 2011 is supporting citric acid export price to head up at present. 

Source from  【CCM Info】 :

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