Friday, August 3, 2012

Glyphosate Potassium Salt Needs Further Promotion in China

Glyphosate potassium, a product with the best theoretical performance among all glyphosate series, only dominates rather small market share in China at present, which needs further promotion in the future, according to CCM International’s July Issue of Glyphsoate China Monthly Report.

As the regulation of lowering the price of Roundup in China in H1 2012 has drawn much market concerns, it's investigated that another well-know glyphosate product Touchdown branded by Syngenta also suffers the same treatment in China. "Touchdown® is undersold in Hubei Province in China, and its wholesale price is about USD4,430/t (RMB28,000/t) at present, compared with USD6,330/t (RMB40,000/t) in the past," said Mr. Xiang, a sales representative formerly in Syngenta but now in Bayer.
Mr. Xiang said that the retail price of Touchdown® is about USD1.26-1.42 (RMB8-9) per bottle (250 mL), compare with more than USD1.90 (RMB12) per bottle before 2012. 
“Glyphosate potassium products didn't sell well in China in the past. At present, as their prices are much higher than those of other glyphosate products, its performance doesn't significantly surpass its competitors,” said Mr. Xiang.
Theoretically, the manufacturing cost of glyphosate potassium salt is higher than that of glyphosate IPA salt under the same content of glyphosate acid equivalent. But interestingly, the price of Touchdown® has decreased to a comparable level as Roundup®.
"Touchdown® is not Syngenta's focus product in China at present. Compressed by the fierce competition from domestic glyphosate AS products, coupled with the price down-regulating of Roundup®, Syngenta finally decreases the price of Touchdown®," Mr. Xiang disclosed. 
Theoretically, glyphosate potassium salt has two main superiorities over other glyphosate salts; the quick efficacy and the potassium supply for crops as a fertilizer are the key reasons why glyphosate potassium products have been widely used in overseas countries. Domestic academic experts and market professionals all admit these advantages of it.
“Basically, the target market of glyphosate potassium is the high-end users. And the popularity of glyphosate potassium products in China needs more promotion. Besides, the cost of glyphosate potassium products should decrease if players want to expand market share of these products." Mr. Xiang suggests.
According to Mr. Xiang, some domestic companies are launching glyphosate potassium products in China market. “The risk is obvious, and the immature market and high price will led to the little acceptability for Chinese farmers.

Only two companies including Syngenta and Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca) have registered glyphosate potassium products in China as of 13 July, 2012.

According to Mr. Tang, Territory Manager of Zhejiang Wynca., Zhejiang Wynca is the first domestic company to launch glyphosate potassium products in China. "Glyphosate potassium is a new product series for Zhejiang Wynca and it has been newly brought into Chinese market in 2012. The main product is 58% glyphosate potassium SG.” It's estimated that market share of Zhejiang Wynca's glyphosate potassium is very small at present.
"Our product is different from Syngenta's Touchdown®. Our glyphosate potassium is formulated into SG, while Touchdown® is formulated into AS. Consumers of our glyphosate potassium are high-end users," said Mr. Tang.
Tang emphasized that Zhejiang Wynca's glyphosate potassium is on the promotion stage at present, and the quotation to wholesalers is indefinite, depending on the trading amount. "The retail packaging is 70g per packet, which is usually priced at USD0.79 (RMB5) in retail market.”

Source: Glyphsoate China Monthly Report 1207

Content of Glyphsoate China Monthly Report 1207:
Sichuan Shuncheng to launch 150,000t/a PMIDA at the end of 2012
Sichuan Hepu's 40,000t/a IDAN project to receive additional investment from shareholders
Outage insurance indemnities of USD0.51 million will not meet Nantong Jiangshan's need of operating funds
Sichuan Fuhua keeps cost advantage through continuous technological innovation
Scientists found soil microbes may play a role in weeds' resistance to glyphosate
Overview of China's glyphosate industry in H1 2012
Enhancing profitability of glyphosate stimulates stock prices of listed glyphosate producers
Glyphosate potassium salt needs further promotion in China
Glyphosate technical price keeps uptrend in July 2012
Glyphosate technical export in May 2012: volume down 14.99% while price up 4.15% MoM

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.
For more information, please visit
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