Export Volume of Urea and DAP Is Excepted to Decline

CCM’s September issue of Phosphorus Industry China Monthly Report has come out recently. The top story is export volume of urea, and DAP is expected to keep downturn in the rest of 2011.

The export tariffs of urea and DAP/MAP have been effective since Jan. 1^st , 2011. The export tariff adjustments resulted in the decrease of urea and DAP exportation. In H1 2011, China totally exported 4.75 million tonnes of fertilizers: DAP accounted for 642,000 tonnes and urea was 688,000 tonnes. Compared with that in the same period last year, DAP and urea export volume decreased by 14.1% and 55.8% respectively.

Based on the export tariff, the declining export trigger prices and the raising production cost, as well as RMB appreciation (has appreciated 3.6% from Jan. 1^st  to Aug. 31^st ), jointly erode the profits from urea and DAP/MAP export. Many enterprises, especially that without cost advantage (e.g. with own phosphorus resource), even lost in exporting urea and DAP/MAP. As a result, the export of urea and DAP fell in H1 2011.

In the rest of 2011, the export volume of urea and DAP is expected to keep downturn, with the raising production cost.

Headline news of September issue of Phosphorus Industry China Monthly Report:

-Hubei Yihua adds investment on phosphorus ore exploitation to optimize its industry layout.

-Investment on phosphorus ore is upsurging in the worldwide.

-Integration of Phosphorus-fluorine industry is in favor of the development of phosphorus industry and fluorine industry.

-World is less and less depending on China's yellow phosphorus.

-China's yellow phosphorus industry pushes clean production technology for energy conservation and emission reduction.

-Shandong Kingenta cooperates with Weng'an government to develop upstream phosphate chemical products.

-China's export tariff adjustments for urea and phosphate fertilizers curb urea and DAP export volume in H1 2011.

-Brazil's phosphate fertilizer industry draws large mining companies' attention.

-Yoke Technology is accelerating upstream expansion.

-Double Dragons holds ground breaking ceremony for its TCP production line in Weng'an County, Guizhou Province.

If you are interested in CCM’s Phosphorus Industry China Monthly Report, please feel free to contact us at econtact@cnchemicals.com.

(Guangzhou China, September 16, 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.
Please visit http://www.cnchemicals.com for more information or contact econtact@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

Export Tariff Curbs Urea and DAP Export in H1 2011

China's export tariff adjustments for urea and phosphate fertilizers curb urea and DAP export volume in H1 2011, according to CCM’s first issue of Phosphorus Industry China Monthly Report.

In H1 2011, China totally exported 4.75 million tonnes of fertilizers: DAP accounted for 642,000 tonnes and urea was 688,000 tonnes. As compared with that in the same period last year, DAP and urea export volume decreased by 14.1% and 55.8%, respectively. However, the other types of fertilizers, such as concentrated superphosphate and ammonium sulfate, saw fast growing in the export volume in the same period. In H1 2011, the export volume of these two types of fertilizers reached 935,000 tonnes and 883,000 tonnes respectively, surging by 112.4% and 59.5% year on year.

The enormous contrast is primarily attributed to the export tariff adjustments for urea and DAP/MAP in 2011.

To guarantee the supply in domestic market, China's government adjusted the export tariffs of urea and DAP/MAP, having been effective since Jan. 1st, 2011. The new export tariff regulation maintains the tariff rate for urea and DAP/MAP, while it shortens the period of slack season and prolongs the period of peak season for urea and DAP/MAP export. Meanwhile, it turns down the export trigger prices of urea and DAP/MAP.

Based on the export tariff, the declining export trigger prices and the raising production cost, as well as RMB appreciation (has appreciated 3.6% from Jan. 1st to Aug. 31st), jointly erode the profits from urea and DAP/MAP export. Many enterprises, especially that without cost advantage (e.g. with own phosphorus resource), even lost in exporting urea and DAP/MAP. As a result, the export of urea and DAP fell in H1 2011.

In the rest of 2011, the export volume of urea and DAP is expected to keep downturn, with the raising production cost.

(Guangzhou China, September 16, 2011)

Source: Phosphorus Industry China Monthly Report

http://www.cnchemicals.com/Newsletter/PhosphorusIndustryChinaMonthlyReport.shtml

Content of Phosphorus Industry China Monthly Report 1109:

-Phosphorus ore

Global Insight: Investment on phosphorus ore upsurging worldwide

Industry Dynamic: Phosphorus-fluorine integrated industry emerging in China 

Company Dynamic: Hubei Yihua strengthens phosphorus ore exploitation

-Yellow phosphorus

Global Insight: World less depends on China's yellow phosphorus

Policy & Legislation: China's yellow phosphorus industry to promote clean production technology 

-Phosphate fertilizer

Policy & Legislation: Export tariff curbs urea and DAP export in H1 2011

Global Insight: Brazil's phosphate fertilizer industry attracts investment

Company Dynamic: Shandong Kingenta to develop phosphate chemicals in Weng'An County

-Fine phosphate chemicals

Company Dynamic: Double Dragons to develop TCP

Company Dynamic: Yoke Technology accelerates upstream extension 

-Import & export

International trade situation of phosphate chemicals in July

-Price Update

Price monitor of some phosphate chemicals in August

Phosphorus Industry China Monthly Report, a monthly publication issued by CCM International on 15^th of every month, provides you the latest information on company dynamic, industry dynamic, factors impacting the price fluctuation, technology improvement, supply & demand of China's phosphorus 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.
Please visit http://www.cnchemicals.com for more information or contact econtact@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

Pesticide Business Licenses in Hainan Province Becoming Hotspot

Guangzhou China, August 17, 2011 – CCM has released the latest issue of Crop Protection China News, indicating state-owned enterprises and private enterprises are all busy preparing the bid for pesticide business licenses in Hainan Province in late Aug. 2011.

With advantages of large state-owned background, Hainan Agricultural Production Materials Co., Ltd. and Haiken Agriculture Materials Co., Ltd. are believed to be the default winners of the pesticide business licenses bidding.

In terms of small and medium size pesticide wholesale enterprises which are unwilling to lose their business in Hainan Province, some of them have held together and co-founded a company to bid for pesticide business licenses.

It is still hard to predict the final list of the companies that will get pesticide business licenses, but it is clear that the promotion of the policy would face lots of blocks in the near future. Hainan Government will require those companies which have got pesticide business licenses to solve the remaining problems after the withdrawal of unqualified companies, such as massive unemployed population, inventory problems, even credit and debt concern.

Main content in the latest issue of Crop Protection China News:

-State-owned enterprises and private enterprises are all busy preparing the bid for pesticide business licenses in Hainan Province in late Aug. 2011.

-RMB currency rate against USD rises to a new record high of 6.4399 on Aug. 1, 2011.

-Sale on credit, a very common phenomenon in domestic agricultural material business, has become a sore point to domestic agricultural material dealers.

-Davinci Furniture scandal alerts domestic agriculture material dealers to change their business concept into developing products with better quality rather than cheating.

-EC formulations will still play an important role in domestic market in the near future. 

-After more than eight months' waiting, Nanjing Redsun finally received the formal approval on its M&A with NFP Group from CSRC on 29 July 2011.

-Noposion's net profit in H1 2011 witnesses increase of 52.07% YOY.

-China has been popularizing trichogramma wasps to control crop pests.

-Corn price hits record high in recent years.

If you are interested in CCM’s Crop Protection China News , please feel free to contact us at econtact@cnchemicals.com or check the following webpage:

http://www.cnchemicals.com/Newsletter/NewsletterDetail_16.html

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.
Please visit http://www.cnchemicals.com for more information or contact econtact@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

China’s Glyphosate Industry Deteriorates

Guangzhou China, July 29, 2011 - The July issue of Glyphsoate China Monthly Report reveals that RMB appreciation and the rising interest rate aggravate glyphosate industry in China.

Chinese glyphosate industry suffers a lot from the decreased USD exchange rate against RMB, also called  RMB appreciation.

On July 20, 2011, the central parity exchange rate between USD and RMB dropped to 6.4592, compared with that of 6.7812 in July 20, 2010. Providing glyphosate technical price is RMB22,000/t, and the difference of one tonne of glyphosate technical is USD161.73 (22,000/6.4592 - 22,000/6.7812) when computed by the exchange rate of 6.7812 and 6.4592.

Overseas buyers are unwilling to completely burden the Chinese glyphosate exporters' loss caused by RMB appreciation or USD depreciation, and thus the loss would only be shouldered by both exporters and importers or completely burdened by the domestic manufacturers.

What’s worse, on July 6, 2011, Chinese government raised the loan interest for the third time this year, which means the production cost of glyphosate will be increased.

Providing the investment in glycine route glyphosate with capacity of 10,000t/a is USD10 million (Investment in IDAN route will be higher), and the loan interest will increase by USD0.111 million (10, 000,000 * (7.05%.-5.94)). Calculated by the current operating rate of 30%, the increased cost of one tonne of glyphosate technical caused by the increased loan interest rate could reach USD37 (111,000/3,000).

The RMB appreciation and raised loan interest rate have posed much pressure to glyphosate industry, making glyphosate technical producers harder to survive.

You will find more news about the industrial trend, company dynamics, market price, and future forecast in the latest issue of Glyphsoate China Monthly Report.

The following highlights are covered in the latest issue of Glyphsoate China Monthly Report:

- Nantong Jiangshan preannounced its preliminarily estimated profit, reporting a profit loss of USD3.64 million (RMB23.5 million).-Zhejiang Wynca's endless technology innovation secures its leading position in glyphosate industry-Monsanto's Roundup incentive program is under investigation by the U.S. Security and Exchange Commission.-The deadline for ChemChina's acquisition to MAI has been extended to the end of September 2011.-APG is considered as a promising substitution of tallow amine adjuvant.-Chinese company recommends the joint application of glyphosate and paraquat-RMB appreciation and heightened interest rate aggravate glyphosate industry.
-Glycine destiny is tied up with glyphosate for its high dependence on glyphosate consumption.-Glyphosate price slightly decreases in July 2011 due to the slack season in overseas market.-Glyphosate export volume decreases in May 2011, reflecting the stagnant overseas market.

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.
Please visit http://www.cnchemicals.com for more information or contact econtact@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

RMB Appreciation and Heightened Interest Rate Aggravate Glyphosate Industry

July 29, 2011, CCM - The vulnerable Chinese glyphosate industry has been suffering from the increasing cost in financing and the loss caused by the RMB appreciation, and many glyphosate producers are on the edge of survival, according to CCM’s July issue of Glyphsoate China Monthly Report.

On July 6, 2011, People's Bank of China announced the decision of implementing new interest rate from July 7, 2011, which is the third time for China to heighten interest rate this year. The purpose of the third consecutive raise in interest rate is to control inflation and soaring CPI.

According to the new interest rate, the loan interest rate of long-term loan (more than five years) reaches 7.05% annually, up 18.69% over the corresponding period last year (5.94%).

Obviously, the increased loan interest rate will heighten the cost of glyphosate. Providing the investment in 10,000t/a glycine route glyphosate is USD10 million (Investment in IDAN route will be higher), and the loan interest will increase by USD0.111 million (10, 000,000 * (7.05%.-5.94)). Calculated by the current operating rate of 30%, the increased cost of one tonne of glyphosate technical caused by the increased loan interest rate could reach USD37 (111,000/3,000).

The decreased USD exchange rate against RMB, or so-called RMB appreciation, has also exerted great pressure on Chinese glyphosate industry at present.

RMB exchange rate against USD had seen a sharp uptrend in the past one year. On July 20, 2011, the central parity exchange rate between USD and RMB dropped to 6.4592, compared with that of 6.7812 in July 20, 2010.

Providing glyphosate technical price is RMB22,000/t, and the difference of one tonne of glyphosate technical is USD161.73 (22,000/6.4592 - 22,000/6.7812) when computed by the exchange rate of 6.7812 and 6.4592.

Obviously, oversea buyers are unwilling to completely burden the Chinese glyphosate exporters' loss caused by RMB appreciation or USD depreciation, and thus the loss would only be shouldered by both exporters and importers or completely burdened by domestic manufacturers.
   
Therefore, compared with the corresponding period last year,

glyphosate technical manufacturers may shoulder increased cost of about USD162 and USD37 caused by RMB appreciation and raised loan interest rate respectively in selling one tonne of glyphosate technical.

Now the glyphosate price is undervalued; the RMB appreciation and raised loan interest rate have posed much pressure to glyphosate industry, let alone the increasing cost in raw material and manpower. As for the current glyphosate technical producers, any other raised cost may become the last straw that break the camel's back.

Source: Glyphsoate China Monthly Report July 2011

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

Content of Glyphsoate China Monthly Report July 2011:

Nantong Jiangshan suffers from profit loss in H1 2011
Zhejiang Wynca: Endless technology innovation secures its leading position in glyphosate industry
Monsanto's Roundup incentive program under investigation by SEC
ChemChina to complete its acquisition to MAI in September 2011
APG considered as promising substitution of tallow amine adjuvant
Joint application of glyphosate and paraquat
RMB appreciation and heightened interest rate aggravate glyphosate industry
Glycine destiny tied up with glyphosate
Glyphosate price slightly decreases in July 2011
Glyphosate export volume decreases in May 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.
Please visit http://www.cnchemicals.com for more information or contact econtact@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