On
May 27, 2013, the Ministry of Commerce of P. R. China issued an announcement
that China preliminarily judged that Indian and Japanese companies dumped
pyridine to China, which damaged China's pyridine industry. The certain period
of this pyridine dumping investigation was July 1, 2011-June 30, 2012, and the
certain period of China's pyridine industry injury was Jan.1, 2008-June 30,
2012.
From
now on Chinese companies import pyridine from those companies will be levied
guarantee funds by China's customs based on their margin of dumping. In detail,
as for Indian companies, the guarantee funds levy ratio of Jubilant Life
Sciences Limited is 24.6%, while that of other Indian companies is 57.4%. As
for Japanese companies, the guarantee funds levy ratio of all Japanese
companies who exported pyridine to China is 47.9%, including Koei Chemical Co.,
Ltd., Daicel Corporation and Nippon Steel Chemical Co., Ltd., etc. (Guarantee
funds=Import price*Guarantee funds levy ratio *｛1+VAT rate of
imported goods ｝)
According
to the Ministry of Commerce's announcement, this anti-dumping investigation on
pyridine products in China was initiated by Chinese pyridine manufacturers.
China's four major pyridine manufacturers, namely Anhui Guoxing Biochemical
Co., Ltd., Nanjing Redsun Biochemical Co., Ltd., Weifang Luba Chemical Co.,
Ltd. and Nantong Reilly Chemical Co., Ltd., submitted the application for
investigation formally on Aug. 2, 2012.
The
four applicants indicated that Japanese and Indian companies dumped pyridine
products in China during 2008–H1 2012 by ways of increasing quantity and
decreasing price. Owing to the low-price dumping, as indicated by the four
applicants, the total market share of pyridine products from Japan and India
has floated around 20% in China these years, which oppressed Chinese pyridine
industry severely, for example, causing price inhibition, oppression on gross
profit margin, sluggish investment return, employment atrophy and so
forth.
Shown
by the data from the Ministry of Commerce's announcement, China's pyridine
capacity and output have kept increasing in recent years. The domestic sale
volume and revenue are also experiencing an increase. However, oppressed by the
low price of pyridine from Japan and India, domestic pyridine manufacturers had
to lower their pyridine prices, which caused slipped gross profit these years.
In detail, the domestic gross profit of pyridine was about USD4.74 million with
a year-on-year decrease of 39% in 2011, although the sale revenue saw a
year-on-year growth of 14%.
Fortunately,
affected by the investigation, the domestic pyridine price has seen a
continuous uptrend from Aug. 2012 to early June 2013. In detail, the ex-factory
price of pyridine 99.9% kept increasing from USD4,145/t in Aug. 2012 to USD5,531/t
in May 2013 without sharp fluctuations. On May 31, 2013, the delivery price of
pyridine in Shanghai Port from Jubilant Life Sciences Limited was about
USD6,520/t (RMB40,000/t), while it was about USD4,824/t (RMB30,000/t) in early
Nov. 2012. It's predicted that with increasing profit, pyridine business also
stimulates pyridine companies' financial performance in 2013.
Table of Contents of Herbicides
China News 1306:
Nanjing
Redsun and Hubei Sanonda see increase in stock price
Noposion's
raising projects start to get profit
CAC
Nantong completed 400t/a fluorochloridone and 400t/a asulam TC production lines
Anhui
Futian plans for 600t/a mesotrione TC production line
Jiangsu
CF to construct 2,4-D project
Lianyungang
Langxuan aims at 2,4-D market
China's
new pesticide enterprise, Yancheng Taihe, with USD17.67 million project
China
takes anti-dumping measures on Indian and Japanese pyridine import
Pendimethalin
sees mediocre development in China
Atrazine
experienced intense supply in early June 2013
Export
volume of picloram increased in 2012
Export
business of isopropylamine facing slightly gloomy situation
17
new registrations of herbicide technical in China in May 2013
Price
Review in June 2013
Herbicides
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