The
2013 (5th session) Development Symposium of China's Glyphosate Industry
(hereinafter referred to as the Symposium) was successfully held in Jinan City,
Shangdong Province during 17-18 July, 2013. During the Symposium, it was
revealed that the environmental protection inspection against glyphosate/PMIDA
manufacturers in China will remain stringent in H2 2013. Therefore, the supply
of glyphosate will be tight, which will contribute towards maintaining the high
prices of glyphosate products in H2 2013, according to Glyphsoate China
Monthly Report issued by CCM in
August.
Wang
Xiaomi, the director of Pollution Prevention and Control, China's Ministry of
Environmental Protection, revealed that the Inspection (China's Ministry of
Environmental Protection released document No.: [2013] 57—Notice
Regarding the Environmental Protection Inspection against Glyphosate (PMIDA)
Manufacturers (hereinafter referred to as the Inspection) on 21 May, 2013) will
remain stringent in H2 2013. Wang highlighted the 2 aspects for this decision.
Firstly,
the stringent inspection will help to create a more rational competitive
environment for the glyphosate/PMIDA manufacturers in China. Wang stated that
glyphosate/PMIDA manufacturers which fail to pass the Inspection requirements
will have their ability to survive gradually eradicated. Glyphosate/PMIDA
manufacturers that succeed in passing the Inspection requirements and obtain
the qualification will significantly benefit by acquiring the market share left
by small and medium glyphosate/PMIDA manufacturers that have failed the
Inspection.
Lower
or a lack of investment into waste treatment has enabled small and medium
manufacturers to compete with mainstream manufacturers to the detriment of the
environment. At present, the glyphosate products prices of many small and
medium glyphosate/PMIDA manufacturers are more competitive than the mainstream
manufacturers' prices. One of the most important reasons for this is that the
production cost for small and medium manufacturers is lower. This is due to
their lower, or lack of investment into the treatment of glyphosate waste. Wang
stated, "It means that the waste treatment capacity of glyphosate industry
in China will be greatly enhanced when there are many glyphosate/PMIDA
manufacturers succeeding in passing the requirement of the Inspection in the
glyphosate industry, and the environmental pollution incidents caused by
glyphosate/PMIDA manufacturers will be fewer and fewer".
Secondly,
the positive effects of stringent environmental inspection against the
glyphosate industry will set an example for other pesticides sectors in China.
"Glyphosate
is the first pesticide to undertake environmental protection inspections in
China, and at present the glyphosate industry is the eleventh industry to
undertake environment protection inspections.
China has implemented environmental protection inspections in the citric
acid industry, rare earth industry and other industries", said Wang.
"We hope that the stringent environmental protection inspections can solve
problems in the glyphosate industry such as overcapacity, backward waste
treatment technology, etc., which will set a good example for other pesticides'
environmental protection inspection in the future".
At
present, some pesticides suffer from overcapacity or have serious environmental
pollution problems in China. However, the next pesticide to undergo an
environmental protection inspection is uncertain. Zhuang, a director of a top
fungicide manufacturer in China, said that the fungicide——carbendazim will be
the next pesticide for environmental protection inspection in China. The
initiation time will depend on the final result of the environmental protection
inspection on the glyphosate industry.
Glyphosate/PMIDA
manufacturers have differing opinions regarding the stringent environmental
protection inspection on glyphosate/PMIDA manufacturers. Some manufacturers
support the Inspection.
Liu,
a manager of CAC Group Co. Ltd, believes that the Inspection is very necessary
for the glyphosate industry because it can eliminate rogue small and medium
glyphosate/PMIDA manufacturers in China. Guan, a manager of Jiangsu Kuaida
Agrochemical Co. Ltd, said that his company supports the Inspection because the
Inspection's advantages outweigh the disadvantages for glyphosate industry.
Guan also revealed that his company would actively apply for the Inspection.
However,
other manufacturers were reluctant to apply for the environmental protection
inspection.
Guo,
a manager of Redsun Group Co. Ltd stated that his company must apply for the
environmental protection inspection if his company wants to keep glyphosate
business. Jiang, a manager of Chongqing Fenghua Technology Co. Ltd said that
his company has no choice but to apply for the environmental protection
inspection, even though glyphosate is not his company's main business.
The
other issue of concern for glyphosate/PMIDA manufacturers is whether there will
be many new policies and/or regulations pertaining to the glyphosate/PMIDA
industry.
New
policies and regulations about glyphosate/PMIDA industry will be released. Wang
stated that although a glyphosate/PMIDA manufacturer may voluntarily apply for
environmental protection inspection, the manufacturer will be required to
provide the certification for passing the Inspection when seeking
administrative licensing and/or approval.
Also,
China's Ministry of Environmental Protection plans to formulate policies and/or
regulations against glyphosate industry with other Chinese governmental
departments, including China's Ministry of Commerce, China General
Administration of Customs, the Institute for the Control of Agrochemicals,
Ministry of Agriculture (ICAMA), China Crop Protection Industry Association
(CCPIA), and other departments.
Li
Xiaoni, vice president of the China Chamber of Commerce of Metals Minerals
& Chemicals Importers & Exporters, stated that in July 2013 she
proposed to the China's Ministry of Commerce that glyphosate products should
only be granted an export license upon the completion of an Inspection. Li also
revealed that this proposal needs the cooperation of the China General
Administration of Customs.
Li
Zhengxian, secretary-general of the CCPIA, said that the CCPIA would propose to
the ICAMA that the ICAMA require the certification for passing the
environmental protection inspection when a company applies for the registration
of glyphosate products. Li also revealed that the CCPIA has many proposals
regarding the glyphosate industry, including licensing and approval of
expanding or constructing new glyphosate capacity, and tax incentive measures.
Overall,
there will be 4 categories of policies and regulations which may be formulated
by the relevant governmental departments following the completion of the
Inspection at the end of 2015. The 4 categories are as follows:
1).
Administrative licensing and approval policies and regulations, including
industry access, product registration, production approval and mandatory
production plans.
2).
Trade policies and regulations, including export quotas and export licensing.
3).
Tax policies and regulations, including the comprehensive utilization of
resources income tax, value added tax concessions, export tariffs, etc.
4).
The elimination of policies or regulations that encourage backward production
technologies.
If
the environmental protection inspection remains stringent in H2 2013, the supply
of glyphosate will be tight. This is good news for glyphosate/PMIDA
manufacturers that have the ability to complete waste treatment. The tight
supply will contribute to perpetuating the high prices of glyphosate products in H2
2013.
Table of Contents of Glyphsoate
China Monthly Report 1308:
Sichuan
Shuncheng accomplishes trial run of 90,000t/a PMIDA production line
The
revenue of Monsanto in the past nine months of fiscal year 2013 increases by
11%
Brief
overview of 2013 Development Symposium of China’s Glyphosate Industry
Environmental
protection inspection to keep stringent in H2 2013
94%
glyphosate products pass national quality check in Q2 2013
Chlor-alkali
co-production to lead the treatment technology of glyphosate waste water
Thirteen
glyphosate registrations in July 2013
Glyphosate
technical price sees a significant increase in Aug. 2013
Export
volume of glyphosate technical decreases by 11.45% in June 2013
Review
of Chinese glyphosate export in H1 2013
Glyphosate China Monthly Report, a monthly publication issued
by CCM on 20th, will keep track of latest dynamics, hotspots and
competitiveness analysis, and forecasts on market trends of China
CCM is dedicated to market research in China
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