China's Glyphosate Market Still with Fierce Competition

Since some glyphosate technical manufacturers quit the glyphosate technical business, the problem of overcapacity has been slightly eased in China. However, the fact of serious overcapacity and surplus supply is still a big problem in China's glyphosate industry, and there is still intense competition in this industry.

Take Anhui Shunong Agrochemicals Co., Ltd. (Anhui Shunong) for example, Anhui Shunong used to be a well-known glyphosate technical producer in Anhui Province, but the company can not survive in the fierce competition and it was purchased by a real estate company.

According to CCM International's survey, Anhui Shunong has suspended glyphosate production for more than half a year, and most of the employees have been dismissed in Q2 2011. The company had 5,000t/a glyphosate technical facilities, and glyphosate revenue had approached USD17 million (RMB120 million) in 2008. But it didn’t positively respond to the market challenge and made strategic change when glyphosate market became worse in later 2008. Therefore, it became a victim of the long-term depressed glyphosate market in China.

The dreadful glyphosate market with under-valued price and stagnant demand has forced more and more small and medium-sized glyphosate manufacturers to give up glyphosate business. Manufacturers who keep glyphosate production lines should make changes and develop new profitable products so as to survive in the fierce market.

The above is extracted from CCM’s October Issue of Glyphsoate China Monthly Report. More news please check:

-ChemChina completes the acquisition of 60% shares of MAI, which is the first largest overseas merger in China's agrochemical industry.

-Hubei Sanonda's 15,000t/a glyphosate expansion project is ongoing slowly because the market demand hasn't increased as expected.

-Greenpeace (India) warns glyphosate risk to human and environment and suggests the halt of commercialization process of GM crops in India.

-The U.S. scientist found exposure of significant level of glyphosate in air and water.

-Chinese glyphosate manufacturers strive to seize market left by the ban of glyphosate 10% SL.

-China's glyphosate capacity decreases in 2011, but intensive competition continues.

-Complexation extraction technology for glyphosate recovery from mother liquid is briefly introduced.

-Yellow phosphorus price continues skyrocketing in October 2011, due to the tight supply caused by the electricity shortage in Yunnan Province and Guizhou Province.

-Glyphosate price keeps uptrend in October 2011, contributing a little to manufacturers' profit.

-Glyphosate export volume keeps stable in August 2011, maintaining a relatively high level in 2011.

For more information about CCM’s October Issue of Glyphsoate China Monthly Report, please feel free to contact us at econtact@cnchemicals.com.

 (Guangzhou China, October 18, 2011)

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.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_781.html

China's Glyphosate Capacity Decreases but Intensive Competition Continues

Driven by intensive market competition and their powerlessness in product profiting, some glyphosate technical manufacturers have quitted the glyphosate technical business, and the overcapacity has been slightly eased in China. However, the serious overcapacity and surplus supply remain a big problem in China's glyphosate industry, and intensive competition can't be greatly alleviated, according to CCM’s October Issue Glyphsoate China Monthly Report.

In late September 2011, some local media had reported that Anhui Shunong Agrochemicals Co., Ltd. (Anhui Shunong), once a well-known glyphosate technical producer in Anhui Province, was seeking for investors or buyers with a very low quotation (less than USD1 million). In early October 2010, CCM International was informed that Anhui Shunong had been already sold to a real estate company when contacting with Anhui Shunong.

According to CCM International's monitoring and relevant reports, Anhui Shunong has suspended glyphosate production for more than half a year, and most of the employees have been dismissed in Q2 2011. The company had 5,000t/a glyphosate technical facilities, and glyphosate revenue had approached USD17 million (RMB120 million) in 2008.

In fact, compared with some new glyphosate players, the market situation that Anhui Shunong encountered is not the worst. What's more, the company is an old glyphosate technical manufacturer and had gained considerable profit in 2008, and the company should have made strategic change for its further development when glyphosate market became worse in later 2008. The company hasn't positively responded to the market challenge and then become a victim of the long-term depressed glyphosate market in China.

The experience and final destiny may be a good example for small and medium-sized glyphosate technical manufacturers, especially those who have no any other key products except glyphosate and passively undergone the glyphosate market. The long-term (over two years) dreadful glyphosate market with under-valued price and stagnant demand have forced more and more small and medium-sized glyphosate manufacturers to give up glyphosate business, and manufacturers who keep glyphosate production lines also shift their focuses to other products.

According to a survey conducted by CCM International in mid-October 2011, more than 20 companies in China have laid aside or dismantled glyphosate technical production lines, and the total production capacity of glyphosate technical is about ……

Source: Glyphsoate China Monthly Report 1110

http://www.cnchemicals.com/Newsletter/NewsletterDetail_14.html

Content of Glyphsoate China Monthly Report 1110:

ChemChina completes the acquisition of MAI

Hubei Sanonda's glyphosate expansion ongoing slowly

Greenpeace warns glyphosate safety

Glyphosate safety issue arouses attention again

Chinese glyphosate manufacturers strive to seize market after the ban of 10% SL

China's glyphosate capacity decreases but intensive competition continues

Complexation extraction technology for glyphosate recovery from mother liquid

Yellow phosphorus price continues skyrocketing in October 2011

Glyphosate price keep uptrend in Oct.2011

Glyphosate export volume keeps stable in August 2011

Glyphosate China Monthly Report, a monthly publication issued by CCM International on 20^th 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.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China