China's Glyphosate Market Still with Fierce Competition

Since some glyphosate technical manufacturers quit the glyphosate technical business, the problem of overcapacity has been slightly eased in China. However, the fact of serious overcapacity and surplus supply is still a big problem in China's glyphosate industry, and there is still intense competition in this industry.

Take Anhui Shunong Agrochemicals Co., Ltd. (Anhui Shunong) for example, Anhui Shunong used to be a well-known glyphosate technical producer in Anhui Province, but the company can not survive in the fierce competition and it was purchased by a real estate company.

According to CCM International's survey, Anhui Shunong has suspended glyphosate production for more than half a year, and most of the employees have been dismissed in Q2 2011. The company had 5,000t/a glyphosate technical facilities, and glyphosate revenue had approached USD17 million (RMB120 million) in 2008. But it didn’t positively respond to the market challenge and made strategic change when glyphosate market became worse in later 2008. Therefore, it became a victim of the long-term depressed glyphosate market in China.

The dreadful glyphosate market with under-valued price and stagnant demand has forced more and more small and medium-sized glyphosate manufacturers to give up glyphosate business. Manufacturers who keep glyphosate production lines should make changes and develop new profitable products so as to survive in the fierce market.

The above is extracted from CCM’s October Issue of Glyphsoate China Monthly Report. More news please check:

-ChemChina completes the acquisition of 60% shares of MAI, which is the first largest overseas merger in China's agrochemical industry.

-Hubei Sanonda's 15,000t/a glyphosate expansion project is ongoing slowly because the market demand hasn't increased as expected.

-Greenpeace (India) warns glyphosate risk to human and environment and suggests the halt of commercialization process of GM crops in India.

-The U.S. scientist found exposure of significant level of glyphosate in air and water.

-Chinese glyphosate manufacturers strive to seize market left by the ban of glyphosate 10% SL.

-China's glyphosate capacity decreases in 2011, but intensive competition continues.

-Complexation extraction technology for glyphosate recovery from mother liquid is briefly introduced.

-Yellow phosphorus price continues skyrocketing in October 2011, due to the tight supply caused by the electricity shortage in Yunnan Province and Guizhou Province.

-Glyphosate price keeps uptrend in October 2011, contributing a little to manufacturers' profit.

-Glyphosate export volume keeps stable in August 2011, maintaining a relatively high level in 2011.

For more information about CCM’s October Issue of Glyphsoate China Monthly Report, please feel free to contact us at econtact@cnchemicals.com.

 (Guangzhou China, October 18, 2011)

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