Friday, May 27, 2011

COFCO to Merge Fuel Ethanol Business from Two Subsidiaries

After April 3, 2011, COFCO Corporation (COFCO) will probably merge the fuel ethanol business from its two subsidiaries, namely China Agri-Industries Holdings Limited (China Agri-Industries, listed in Hong Kong) and AnHui BBCA Biochemical Co., Ltd. (BBCA Biochemical, listed in China mainland) within six months.
In fact, China Agri-Industries is wholly owned by COFCO and 20.74% shares of BBCA Biochemical is owned by COFCO which is also the largest share holder of BBCA Biochemical. In order to avoid competitions in fuel ethanol business between the two subsidiaries, COFCO has signed an agreement with China Agri-Industries before its listing in Hong Kong. This agreement included: China Agri-Industries has the option and the pre-emptive right to purchase the shares owned by COFCO in terms of the five competitive businesses mainly referring to fuel ethanol business. If China Agri-Industries does not buy the 20.74% shares of BBCA Biochemical from COFCO by April 3, 2011, COFCO will have to sell it to the non-related third party within six months since April 3, 2011.

Monday, May 23, 2011

Natureworks Picks Asia for Second PLA Plant Location

American bioplastics maker NatureWorks LLC has chosen Asia as the location of its second world-scale manufacturing facility for its Ingeo polylactic acid resin, saying the continent is its fastest-growing sales region.

The Minnetonka, Minn.-based company did not release details but company executives had said as far back as NPE 2009 that they had been looking for a second facility, to complement their existing American plant in Blair, Neb., and were considering either Asia or Europe.

In an unrelated late March announcement that it planned to start directly selling its Ingeo packaging resin grades in Taiwan, rather than through an exclusive distributor there, NatureWorks said it planned to announce a location in Asia later this year for its second world-scale Ingeo facility.

Newspapers in Thailand reported in September 2010 that NatureWorks President and CEO Marc Verbruggen said in a visit to the country that Thailand was under consideration for the US$300 million to US$400 million facility, although they also said the company was also considering locations in Europe and South America.

Sources: International

Thursday, May 19, 2011

USDA Awards NatureWorks First Certified Biobased Product Label for Plastics

Agriculture Deputy Secretary Kathleen Merrigan announced today that NatureWorks is one of the first 11 companies approved to use USDA's new product label on its certified bio-based Ingeo products under the department's BioPreferred program. The announcement was made at a bio-based product meeting held in Glenwillow, Ohio.

NatureWorks' Ingeo biopolymer – made from plants not oil – is the market-leading material among a new generation of fibers and plastics that provide low-carbon-footprint products. With the BioPreferred label, Ingeo resins are now USDA certified as containing 100 percent biobased carbon content. Ingeo is used in multiple industries and categories, including packaging, electronics, clothing, house wares, health and personal care, semi-durable products and the foodservice industry. More than 500 companies produce Ingeo based products, including such international brands as Avianca, Electrolux, Henkel, NEC, Shiseido, Stonyfield and Walmart. The production of Ingeo uses less fossil fuel and emits fewer greenhouse gases than conventional polymers.

"The USDA's new product label serves as a critical and trusted signpost for consumers by identifying bio-based materials and products that have undergone a robust and rigorous third party certification," said Steve Davies, director marketing and public affairs, NatureWorks. "NatureWorks is proud to be one of the first to have earned the BioPreferred distinction from the USDA."

NatureWorks is a Cargill-owned company and is one example of the company's innovations in bio-based products. Cargill also manufactures soy-based BiOH® polyhols used in making flexible foam, which can be used to create upholstered furniture and bedding, carpet backing and automotive cushioning. Additional bio-based industrial products developed by Cargill include naturally sourced oils used to make paints, coatings, construction materials, lubricants and transformer fluids, among other products.

Biobased products are those composed wholly or significantly of agricultural ingredients – renewable plant, animal, marine or forestry materials. This new label indicates that the product has been independently certified to meet USDA BioPreferred program standards for bio-based content. Bio-based products can help increase U.S. energy independence by reducing the use of petroleum in manufactured products. They may also reduce the introduction of fossil carbon into the atmosphere, thus mitigating potential climate change impacts.

"These companies are proving that innovation and agriculture can grow together to build a foundation for future growth in rural America as we work to win the future," said Deputy Secretary Merrigan. "Consumer cleaning products, containers and the "intermediate materials" used to manufacture them – made from agriculturally-sourced ingredients – help add value to commodities, create jobs in rural communities and can reduce our dependence on imported oil."

Through implementation of the pre-existing USDA BioPreferred program, the Secretary of Agriculture has designated 5,100 bio-based products for preferred purchasing by federal agencies. The new label makes identification of these products easier for Federal buyers and will increase awareness of these high-value products in the commercial and consumer markets. USDA estimates that there are 20,000 biobased products currently being manufactured in the United States.

Sources from:CCM International

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New Energy Material and Refrigerant Ask for More Fluoride-CCM's Forthcoming Free Webinar

Fluorine chemicals' prices keep going high in May under the influences of international crude oil price surge. The turmoil in Libya, the worries of Al Qaeda retaliation on Bin Laden's death and the fall of US dollar exchange rate led to the crude oil price stay high. Its downstream chemical products' prices are in step with that of crude oil. Fluorine industry is of no exception. As fluoride is the raw material of fluorine chemicals with tighten-up policy on fluoride exploitation, its price takes on an irrevocable upward trend.

Fluorine downstream industries like the fluorine electronic chemicals, fluoro-phamarceuticals and fluoro-pesticides in the new energy materials are in great demand of fluoride. Take the liquid crystal material for example, it has been widely used in the satellite technology, laptop and digital camera, etc.  By far, high performance LCD is all contained fluorine liquid crystal materials, and its consumption volume is predicted to grow with the demands in LCD.

In the traditional industry, refrigerant used in air conditioners, cars and refrigerators is another large consumer of fluoride. The weeding out of current refrigerant R22 is on schedule in China because it contains the element chlorine, the criminal to the ozone depletion. R410 is predicted to take the lead in refrigerant market because it eliminates chlorine and is much more environmental friendly. Demands for air conditioners and refrigerators keep steady and cars are in even greater needs. The demands for fluoride bounce up with correlation.

CCM is preparing a free webinar on fluorine industry on May 26, 2011. We sincerely welcome your participation! You can register by clicking the following link:

For more information, please visit or contact
Tel: +86-20-37616606

Wednesday, May 11, 2011

CCM Newly Published Newsletter-Sweeteners China News

Sugar and sweeteners are mainly used in foods and beverages. As the most populous country in the world, China’s food and beverage industry enjoys good development. It's predicted that China's total value of food and beverage in 2011 can reach USD37 billion, up 10% over 2010. Aided by the development of food and beverage market, sugar and sweeteners also enjoy rapid development in the past and will have a promising market in the future. Therefore, updating information about China's sugar & sweetener industry is highly necessary.

This newsletter is reporting the situations such as supply & demand, new products, recent investment, large projects, policy, and quality monitoring of Chinese sugar and sweetener market; analyzing the impacts or reasons, explaining how and why supply & demand of sweeteners will change, and forecasting the trends in the future.

  • Market Dynamics of sweeteners in China
  • Price upgrade of sweeteners in China
  • Consumption Trend & Competitiveness
  • Company Dynamics
  • Raw Material Supply
  • Import & Export Analysis

Monday, May 9, 2011

Pyrethroid Pesticide Tight in Domestic Market

Cyhalothrin and cypermethrin in pyrethroid insecticides is the large varieties in China. At present, the technicals are in short supply in the market, which leads to their prices increased. Cyhalothrin TC is about USD29231/t, up USD15,38.5/t compared with at the beginning of 2011.  Benzene oil cypermethrin is about USD6230/t, up USD384.6/t compared with last year.

There are two main factors affecting the price of cyhalothrin and cypermethrin. First, enterprises can not purchase raw materials in the market. As global crude oil prices rising and the day after the Japanese earthquake products prices increased, the major aldehyde intermediates and Dichlorochrysanthemoylureido at home and abroad are short in the market, causing prices to soar. At present, the price of aldehyde is USD12,769/t, up USD3,077/t - USD4,615/t compared with the same period last year. Although sales prices of cyhalothrin and cypermethrin increased, the high prices of raw materials and the high cost made the enterprises have no profit. In late 2010, some producers stopped the production of cyhalothrin and cypermethrin because of the high cost resulting in lower inventory, and now formulations are in a serious shortage in the market. Second, in the second half of 2010, the high price of raw materials, intermediates and environmental factors made most companies cut or stop production, a great decline in national output.

Cypermethrin is a higher biological activity of pesticides, and many companies launched in 2007. At present, there are more than 30 technical companies, about 270 formulations enterprises and nearly 600 enterprises complex. Through the promotion of plant protection department in recent years, cypermethrin benzene oil application in cotton, grapes, corn, vegetables dramatically increased. Although there are many cypermethrin benzene oil producers in China, only 2 to 3 companies have the normal production and supply, and the output is related limit.

It is predicted that shortage situation of cyhalothrin and cypermethrin may last for a long time, if the market situation of cotton and corn are well later and the shortage situation have not  been changed.

The original source comes from: