Industrial concentration of
Chinese glyphosate has increased further in H1 2012. The proportion of export
volume and value of glyphosate A. I. produced by China's top five glyphosate
producers has increased to 64% and 70% respectively in H1 2012, up 8% and 13%
over that at the corresponding period of 2011(TABLE 11), according
to CCM International’s August Issue of Glyphsoate
China Monthly Report.
Besides, the five glyphosate
producers' glyphosate A. I. export volume and value were 116,900 tonnes and
USD538.45 million in H1 2012, up 35% and 59% over that in H1 2011.
The top five glyphosate producers
are Zhejiang Jinfanda Bio-Chemical Co., Ltd. (Zhejiang Jinfanda) with capacity
of 82,000t/a, Zhejiang Wynca Chemical Group Co., Ltd. (Zhejiang Wynca) with
capacity of 80,000t/a, Nantong Jiangshan Agrochemical & Chemicals Co., Ltd.
(Nantong Jiangshan) with capacity of 70,000t/a, Sichuan Fuhua Tongda
Agro-chemical Technology Co., Ltd. (Sichuan Fuhua) with capacity of 70,000t/a
and Jiangsu Yangnong Chemical Group Co., Ltd. (Jiangsu Yangnong) with capacity
of 40,000t/a respectively.
China's total export value of
glyphosate related products has increased in H1 2012, and the export volume and
value of glyphosate A. I. produced by the top five companies has also increased
with different degrees (TABLE 12 and TABLE 13), especially for Sichuan Fuhua.
The export volume and value of glyphosate A. I. produced by Sichuan Fuhua
increased by 147% and 195% respectively over that in H1 2011, which was the
highest one among the five companies.
The strong overseas demand for
glyphosate surely contributed a lot to the increase of export volume and value
in glyphosate A. I. produced by the top five companies in H1 2012, but the high
concentration of production capacity was another important reason.
On one hand, the importers and
traders prefer to choose the glyphosate from the strong producers with
large-scale production capacity and advanced technology, because they don't
need to be worried too much about the supply and quality of its products. It's
a very important sale channel for domestic glyphosate producers to cooperate
with overseas importers and traders. Take Nantong Jiangshan for example,
Nantong Jiangshan has signed a cooperation agreement with HELM AG and Syngenta
respectively in 2008, and the agreement insured that Nantong Jiangshan provided
glyphosate of no less than 50,000 tonnes and 100,000 tonnes to HELM AG and
Syngenta respectively within the validity period. In addition, the glyphosate
producers have scale effect, so they can provide the cheaper price. Besides,
the market share released by the eliminated glyphosate producers was received
by the survivors, and the top five producers has struggled to tide over the
past tragic three years.
On the other hand, the bargaining
power of glyphosate producers with large-scale production capacity has been
improved. The price of glyphosate technical was USD4,100/t in June 2012, up 50%
over that in June 2010 (FIGURE 4). It's estimated that the price of glyphosate
technical will continue to increase in the coming months of 2012, and the price
of glyphosate technical may break through USD4,713/t.
It's estimated that the
industrial concentration of Chinese glyphosate will increase further. Zhejiang
Jinfanda and Sichuan Fuhua will launch a new production line with capacity of
50,000t/a at the end of 2012 as soon as possible, and the top five glyphosate
producers' total production capacity of glyphosate technical will be about
450,000t/a at that time, up about 7% over that before expansion, accounting for
about 50% of the total production capacity of glyphosate technical in China.
Besides, most of the glyphosate technical production capacity of small and
medium-sized glyphosate companies are below 20,000t/a, which be eliminated from
market in the future, resulting from lack of core competitiveness that will
increase industrial concentration of Chinese glyphosate further.
To a certain extent, the high
concentration of production capacity that causes the increase of export volume
and value in glyphosate A. I. has been related to the policy of Chinese
government. On 3 Feb., 2012, the Ministry of Industry and Information
Technology of China released the Plan for Pesticide Industry 2011-2015, and the
increase of industrial concentration has been one important goal. Besides, the
planning encourages to form the large-scale pesticide enterprises through
merger, reorganization and joint-stock reform, etc.
The Plan expected that there will
be 2-3 companies whose revenue is over USD1,568 million (RMB10,000 million),
over 5 companies whose revenue is over USD784 million (RMB5,000 million) and 20
companies whose revenue is over USD157.1 million (RMB1,000 million) till 2015,
expecting the total number of technical companies reduces by 30% to about
2,000.
Content of Glyphsoate China Monthly Report 1208:
Zhejiang Wynca finally wins glyphosate
anti-dumping lawsuit in EU
Anhui Huaxing to receive a cash investment of
USD308.99 million
Nantong Jiangshan turns loss into gain in H1
2012
Termination of Australia's anti-dumping
investigation to promote China's glyphosate formulation export
Hot money boosts China's glyphosate price
Overview of China's public patent application
related to glyphosate in H1 2012
Industrial concentration of Chinese glyphosate
increases further in H1 2012
Glyphosate price surges in August 2012
Overview of glyphosate products export in H1
2012
Glyphosate technical export volume in June
2012 increases by 17.6% 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
CCM
International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
Tel: 86-20-37616606
No comments:
Post a Comment