Wednesday, June 26, 2013

Round-up of China’s Glyphosate Intelligence in Q1 2013

On 27th June, 2013, CCM is going to hold a free webinar to share the latest intelligence on China’s glyphosate market in Q1 2013. Since 2011, CCM has held several webinars in relation to China’s glyphosate industry. The upcoming webinar features the following highlights

Impacts Resulted from the Cancellation of 13% Export Rebate Rate on PMIDA
After the cancellation of 13% export rebate rate on PMIDA, Chinese PMIDA manufacturers are likely to suffer higher export cost. In order to mitigate the cost pressure, they have to increase their export price. However, during the past several months, the ex-factory price and the export price of PMIDA in China have remained stable as the overseas demand for PMIDA is not quite large. Influenced by the limited overseas demand, the ex-factory price has not shown a drastic increase. The ex-factory price fluctuated between $17,000/ton and $17,700/ton in Q1 2013.  

Export Dynamics
The total A.I. volume (100% glyphosate acid equivalent) of China's exported glyphosate related products in Q1 2013 increased by 74% and 39% over Q1 2011 and Q1 2012, with the total export value up by 145% and 78% over Q1 2011 and Q1 2012 respectively.

Price Dynamics
Influenced by the financial crisis in 2008, the overseas demand for glyphosate maintained sluggish for a certain period. In addition, China’s glyphosate industry encountered overcapacity resulted from blind expansion. Under this circumstance, China’s glyphosate market entered a gloomy period from 2009–2011. During these three years, the glyphosate price was generally in a rather low level. Some middle-to-small scale glyphosate manufacturers were weeded out of the market. China’s capacity of glyphosate also dropped to about 650,000 tonnes.   

The demand for glyphosate has witnessed an uptrend since the second half year of 2012. The glyphosate price also began to increase in the second half year of 2012. At present, the glyphosate products price remains at a high level.

Company Dynamics
Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. (Nantong Jiangshan), Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca) and Anhui Huaxing Chemical Industry Co., Ltd. (Anhui Huaxing) all achieved great operating performance in 2012, thanks to the thriving market and rising profitability of glyphosate. With the enhancing profitability of glyphosate and PMIDA business in Q1 2013, the three companies all turned loss into gain in Q1 2013.

The registration for the webinar is available now. For more information, please visit:

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