Decreasing Monochloromethane Price Compresses Glyphosate Profit

It's often said by professionals that glyphosate technical production adopting glycine route has the strongest competitiveness among the three routes (glycine, DEA, IDAN) because of its cost advantage, attributed to the recovery of monochloromethane, the by-product. However, the decreasing price of monochloromethane has compressed the profit margin of glyphosate technical adopting glycine route, according to CCM International’s April Issue of Glyphsoate China Monthly Report.

In April 2012, the ex-works price of monochloromethane has descended to USD350/t (RMB2,200/t), down 18.5% over March 2012. Compared with that in Oct. 2011, monochloromethane price in April 2012 decreased by 46.3%. In fact, monochloromethane price has witnessed a sharp decline in the past half year (from Q3 2011 to Q1 2012). The average ex-works price of monochloromethane in the first three quarters of 2011 is over USD800/t (RMB5,000/t).

"The stagnant demand in downstream industry has led to price downturn of monochloromethane in the past half year, and the sale of monochloromethane has become a problematic," a market insider said.

 

The main end use of monochloromethane is organic silicon. Now the low operating rate of organic silicon, resulting from the overcapacity and competition from overseas product, has led to the stagnant monochloromethane demand and then price downtrend.

 

The average recovery rate is about 500kg by-product monochloromethane when producing one tonne of glyphosate technical, and the recovery cost of monochloromethane is about USD80/t (RMB500/t). Thus, the gross profit from monochloromethane recovery and sales is about USD95/t (RMB600/t) from glyphosate technical production in April 2012, compared with more than USD160/t (RMB1,000/t) from that in H1 2011.

While other glyphosate technical manufacturers sell out monochloromethane, Zhejiang Wynca Chemicals Industry Group Co., Ltd. (Zhejiang Wynca) developed combined production technologies of glyphosate and organic silicon, and its monochloromethane is for private use. Coupled with the higher recovery rate, Zhejiang Wynca could gain more value in monochloromethane recovery. Some other glyphosate manufacturers, such as Sichuan Fuhua Tongda Agro-chemical Technology Co., Ltd., Hubei Xingfa Group (its subsidiary Hubei Taisheng Chemical are operating 40,000t/a glyphosate capacity) plans to develop downstream industry of monochloromethane.

Monochloromethane is mainly generated at hydrolysis process of glyphosate synthesis. The recovery process of monochloromethane includes four steps: water scrubbing, alkaline washing, drying and condensation.

Source: Glyphsoate China Monthly Report 1204

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

Content of Glyphsoate China Monthly Report 1204:

Anhui Huaxing saved from ST marking

Nantong Jiangshan:Technology improvement ensures sustainable development

Chaotic market of glyphosate 41% IPA

China bans mixed glyphosate formulation with glyphosate content lower than 30%

Treated mother liquid used to produce 30% glyphosate SL

Decreasing monochloromethane price compresses glyphosate profit

China's glyphosate demand to grow at CAGR of 9.5% in 2012-2016

Mixed formulation containing glyphosate salt and fomesafen salt

Glyphosate price slightly decreases in April 2012

Glyphosate export volume in Feb. 2012 increases by 3.1% MoM

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.

For more information, please visit http://www.cnchemicals.com.

CCM International Ltd.
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

Email: econtact@cnchemicals.com

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1044.html

Is It Possible to Transfer China’s Glyphosate Technical Capacity

Glyphosate is one of the most commonly used herbicides in the market today. As the largest production base of glyphosate, China experienced irrational expansion in 2007 and 2008, but the whole glyphosate industry has been undergoing depressed glyphosate market since late 2008.

Some people remark whether there is an industrial transfer globally, which could help release China's overcapacity and improvement of world's glyphosate price. CCM International has done research on the possibility of glyphosate technical's capacity transfer.

All findings are recorded in the report of Global Commercial Opportunities Derived from Glyphosate Industry. Some results are:

1) It is impossible (or little possibility) to launch new glyphosate technical production line by using original starting material DEA (or glycine, IDAN) in overseas countries in the future 5~10 years. In other words, it's inadvisable to invest such glyphosate technical production lines.

2) It is possible to launch glyphosate production line by using PMIDA as the starting raw material in the future 5~10 years, but the possibility is relatively low.

3) There is low possibility of China's industrial transfer from Southeast China to Western China.

This report also focuses on the following aspects:
  -Analysis of supply and demand of glyphosate technical, 2006-2020;
  -Introduction and comparison of different production routes of glyphosate;
  -Projection of glyphosate supply by route, 2011-2020;
  -Projection of possible transfer of glyphosate production in the world in the future;
  -Introduction of supply & demand and consumption of glycine, IDAN, DEA, ethylene oxide, paraformaldehyde, yellow phosphorus, phosphorus trichloride, dimethyl phosphite, chlor-alkali, and methanol, 2006/2008-2010, 2011-2020;
  -Analysis of upstream opportunities derived from global glyphosate development.

If you are interested in this report, please feel free to contact us at econtact@cnchemicals.com.

(Guangzhou China, October 26, 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_r_779.html

Global Glyphosate Demand Expected to Keep Increasing

Glyphosate has witnessed stunningly fast development since 2007, boosting the development of its upstream products including DEA, glycine, IDAN, DMP, etc. With rapidly increasing demand, glyphosate has shared more than 30% of the global herbicide sales volume. In 2010, global glyphosate sales have reached USD3.95 billion, with consumption volume of 610,000 tonnes.

It is estimated that global glyphosate demand in next ten years will keep increasing, but the growth rate will be much lower than before. The global production of glyphosate technical will grow stably correspondingly, while the three production routes will still coexist and the production by route will not change much in the coming few years.

  -What is the future development trend of glyphosate supply and demand?
  -How about the current and future competition of the three glyphosate production routes?
  -What about the supply and demand of main raw materials of glyphosate globally?
  -Is glyphosate production going to transfer from China and the U.S. to other countries?
  -Whether Chinese glyphosate production will transfer from East China to West China?
  -What opportunities will arise from the future development of glyphosate industry?

All questions will be answered in CCM’s Global Commercial Opportunities Derived from Glyphosate Industry. CCM’s intelligent report, finished in May 2011, conducts opportunity analysis of glyphosate upstream industries based on the projection of the future development of global industry from the aspects of supply, demand, possible transfer, technology innovation, etc.

If you are interested in this report, please feel free to contact us at econtact@cnchemicals.com.

(Guangzhou China, October 24, 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_r_780.html