CCM,
a professional information providing company in terms of market report,
newsletter, data base and consultancy research service, has recently issued the
latest edition of
Glyphosate China Monthly Report that covers 10 topics in 12 pages. Among which,
an article named of “Top 10 events of Chinese glyphosate industry in 2012” was highlighted as follows:
1.
Glyphosate market turns warm
Having been depressed for three years since
2009, glyphosate market finally turned warm in 2012, which reflected in the
increase of price, operating rate, output and export volume. In 2012,
glyphosate price increased to the profitable level for most glyphosate
producers in China, and the annual average ex-works prices of glyphosate
technical, glyphosate 41% IPA, glyphosate 62% IPA, glyphosate 50% SP and
glyphosate 75.7% WSG were about USD4,630/t, USD2,167/t, USD2,749/t, USD2,585/t
and USD4,030/t respectively, up by about 25%, 12%, 15%, 8% and 5% YOY
respectively. The overall operating rate in glyphosate industry in 2012 was
about 60%, up by about 10 percentage points over 2011. The total output of
glyphosate technical in China
is estimated to be 400,000 tonnes in 2012, up by about 18% over 2011. The
export volume of glyphosate A.I. (in terms of 100% glyphosate acid) is
estimated to be 350,000 tonnes in 2012, up by about 16% over 2011.
2.
Production capacity keeps expanding
Sichuan Fuhua Tongda Agro-chemical
Technology Co., Ltd. and Zhejiang Jinfanda Biochemical Co., Ltd. both planned
to construct 50,000t/a production lines of glyphosate technical respectively in
mid-2012, but the 100,000t/a production lines were not launched in 2012.
3.
Mergers and acquisitions still appear much
1) Sinochem International Corporation
raised its equity of Jiangsu Yangnong Chemical Group Co., Ltd. to 40.53% in
Feb. 2012 from 5% in 2011, and the latter is the holding company of Yangnong
Chemical Co., Ltd., a listed company.
2) Zhejiang Wynca Chemical Industry Group
Co., Ltd. (Zhejiang Wynca) held 51% share of Shandong Xinfeng Seed Co., Ltd. in
May 2012. Besides, in Nov. 2012, Zhejiang Wynca acquired the additional 70%
share of Golden Sunshine Mining Co., Ltd. which is a mining company located in Ghana.
3) Nantong Jiangshan planned to acquire 90%
equity of Ladda Group which is a leading company in agrochemical business in Thailand in
Dec., 2012.
4) Anhui Huaxing Chemical Industry Co.,
Ltd. (Anhui Huaxing) planned to issue additional 452.25 million shares to CEFC
Shanghai Oil Group Co., Ltd. (CEFC Shanghai) at USD308.99 million, and CEFC
Shanghai will hold 60.61% equity of Anhui Huaxing after the deal in July 2012,
but the deal hasn't been approved by China Securities Regulatory Commission in
2012.
5) Chongqing Sanxia Paints Co., Ltd.
transferred 100% equity of Chongqing Sanxia Yingli Chemical Co., Ltd. to
Chongqing Medical Purple Eagle Asset Management Co., Ltd. in Dec., 2012.
4.
Mixed glyphosate formulations with glyphosate acid content below 30% face
elimination
On 26 March, 2012, China Agriculture
Ministry released a formal document (Decree No. 1744), which clarified that the
content of glyphosate A.I. (in terms of glyphosate technical acid) should not
be lower than 30%. Registration applications (including temporary registration,
formal registration and renewal registration) for mixed glyphosate formulations
with glyphosate A.I. content below 30% faced rejection from 26 March, 2012, and
existing registrations that can't meet the content requirement should be
modified before 31 Aug., 2012.
5.
Anti-dumping battle still continues
1) Australia Customs and Border Protection
Service (ACBPS) released the Notice No. 2012/54 On 16 Nov., 2012 and claimed
that ACBPS would resume anti-dumping investigation on formulated glyphosate
products exported to Australia from China as a result of Australia Trade
Measures Review Officer (ATMRO)'s revocation of ACBPS's decision to terminate
the investigation on the glyphosate formulations exported to Australia from
China on 23 Oct., 2012, and the termination decision released on 2 Aug., 2012
was the result of anti-dumping investigation on formulated glyphosate products
exported to Australia from China initiated on 6 Feb., 2012.
2) European Union Court of Justice claimed
that it turned down an appeal by European Commission and upheld the decision
ruled by European Union General Court on 17 June, 2009 that Zhejiang Wynca was
not guilty of dumping (selling glyphosate at unreasonable prices in EU market)
on 19 July, 2012.
6. Zhejiang Wynca is
involved in the case of chemical use salt being sold in edible salt market
Zhejiang Wynca has been involved in the trouble
related to "chemical use salt being sold in edible salt market" in
early Feb. 2012 because its wholly-owned subsidiary, namely Zhenjiang Jiangnan
Chemical Co., Ltd. (Zhenjiang Jiangnan), sold chemical use salt to Zhenjiang
Haitian Salt Chemical Co., Ltd. which illegally produced and sold chemical use
salt in edible salt market in 12 provinces of China in 2011, but Zhejiang Wynca
states that it has no responsibility in this case, because Zhenjiang Jiangnan
has the right to produce and sell chemical salt. What's more, Zhenjiang
Jiangnan can't control how purchasers use the salt.
7. Anhui Huaxing avoids
from being ST marked
Anhui Huaxing suffered an operating profit
of USD14.22 million in 2011, but it enjoyed a net profit of USD0.40 million
aided by the non-operating revenue of USD14.63 million, and thus Anhui Huaxing
avoided from being ST marked for its stock.
8. Zhejiang Wynca
introduces glyphosate 78% IPA SG
Zhejiang Wynca firstly produced a new glyphosate formulation called
glyphosate 78% IPA SG, and sold it widely since March 2012 in China, but the introduction of this
product was considered to be a marketing concept and differentiation.
9.
Technique research concerning glyphosate wastewater treatment accelerates in
2012
According to the publication of China's
State Intellectual Property Office, there were 17 public patent applications
related to glyphosate wastewater treatment in 2012, thereinto, eight public
patent applications are related to the removal techniques of phosphorus and
nitrogen in glyphosate wastewater by the way of converting organicphosphorus
compounds and organicnitrogen compounds to phosphate ion and ammonia ion
respectively, and another nine public patent applications are related to the
recycling techniques of glyphosate technical, PMIDA, glyphosine, glycine,
formaldehyde, methylal, sodium phosphite and sodium chloride.
A new glyphosate-tolerant weed, namely
amaranthus spinosus, was discovered in the US in 2012, and thus the number of
global glyphosate-tolerant weed increased to 24 species. More existing
glyphosate-tolerant weeds were also found in other countries. For example,
another two new glyphosate-tolerant weeds were found in Greece and Argentina respectively in 2012.
Besides, more glyphosate-tolerant weeds were found in some regions of the US. In 2012,
three glyphosate-tolerant weeds, namely amaranthus palmeri, amaranthus spinosus
and kochia scoparia, were found in Arizona, California, Mississippi
and North Dakota
respectively.
Multinational companies actively seize
patent registrations for mixed glyphosate formulations in China
Global glyphosate demand to grow at a CAGR
of 4.37% in 2012-2016
Review of China's glyphosate industry in 2012
Export tax rebate of PIMDA may be cancelled
in China
Top 10 events of Chinese glyphosate
industry in 2012
Glyphosate status hard to be shaken by the
new paraquat formulation
Glyphosate market in 2012 fails to surpass
the brilliant performance in 2008
Solid glyphosate ammonium salt is still the
mainstream registration in 2012
Glyphosate price decreases slightly in Jan.
2013
Glyphosate export volume increases in Nov.
2012
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’s
glyphosate industry.
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CCM
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Guangzhou 510070, China
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