Thursday, December 29, 2011

Glyphosate 10% SL to Withdraw the Market in 2012

Since the Chinese government has announced the forbidden registration of glyphosate 10% SL from 2010, the life of glyphosate 10% SL has been drawn to an end. From 1 January, 2012, glyphosate 10% SL can't be sold and all forms of glyphosate 10% SL will be considered as illegal products, according to CCM International’s December Issue of Glyphsoate China Monthly Report.

Glyphosate 10% SL had been the most popular herbicide in China and dominated over 70% of the domestic glyphosate market before 2009. According to the registration data from ICAMA, China had more than 250 registrations of glyphosate 10% SL before 2009. The output of glyphosate 10% SL was estimated to be over 600,000 tonnes and the consumption volume was 400,000 tonnes in China in 2008. Chinese producers usually sell 10% SL in local markets that is close to their production sites to reduce high transportation cost.

Two main reasons have contributed to the popularity of glyphosate 10% SL in the past, the first and the most important one is that glyphosate 10% SL could be produced from glyphosate mother liquid, so glyphosate technical manufacturers could escape from treating glyphosate mother liquid, which required high technology and much cost. The second one is that glyphosate 10% SL is the earliest specification which had been introduced to the market by domestic producers in the 1980s, and Chinese farmers are familiar with this easy-to-use formulation.

However, glyphosate 10% SL produced from glyphosate mother liquid is harmful to the environment, as it contains some untreated constituents such as formaldehyde and heavy metal. And this is the key reason why the Chinese government decided to ban the registration and use of glyphosate 10% SL in February 2009.

In 2010 and 2011, China has banned the registration 10% SL, so the production of glyphosate 10% is forbidden. Some top glyphosate technical manufacturers have invested much money in glyphosate mother liquid treatment, so they have to stop glyphosate 10% SL production in 2010. However, according to CCM International's investigation, some producers still produced 10% SL from the mother liquid in 2010 or even in 2011. Investigations have shown that glyphosate 10% SL remained well-sold in China in 2010 and 2011.

Investigations have also shown that most active glyphosate technical manufacturers don't have stocks of glyphosate 10% SL at present, and pesticide dealers or retailers are very prudent to stock glyphosate 10% SL in 2011.

Doubtlessly, there are some stocks of glyphosate 10% SL in the market, and part of these products will be illegally used in 2012. A market insider said that the policy implementation of 10% SL in 2012 will not very strict and the final death (no use) of glyphosate 10% SL will be extended to 2013.

Source: Glyphsoate China Monthly Report 1112

Content of Glyphsoate China Monthly Report 1112:
SinoChem Corporation plans IPO
Nantong Jiangshan abates reliance on glyphosate business
Glyphosate registration in Australia
Competitiveness of China's different glyphosate routes in 2011
Review of China's glyphosate industry in 2011
Glyphosate 10% SL to withdraw the market in 2012
Active carbon catalyzed PMIDA oxidation under microwave
IDAN market disappoints investors
Glyphosate price keep stable in Dec. 2011
Glyphosate export in October 2011

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

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.
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