How Big an Effect on International Trade Will China’s Olefins Revolution Really Have?

• ·    China’s move away from naphtha-based olefin production could have huge knock-on effects on supply chains and international trade
• ·      CCM’s free webinar (20^th August, 09.30-10.30 EST, USA / 21.30-22.30 GMT+8, China) will explore the issue in detail, predict the future development of Chinese olefins production technology, and outline the effects this will have on related industries
• ·      To register, email event@cnchemicals.com

[Guangzhou, 14^th August 2014] We all know that China’s burgeoning coal-to-olefin and methanol-to-olefin industries have the potential to have a huge impact on global supply chains and trade, but how big will the knock-on effects really be? How effective have China’s first coal-to-olefin projects proved so far, and how much more efficient is the technology likely to become over the next ten years?

All these questions and more will be addressed in detail in CCM’s free webinar, Impact on International Trade of China’s Olefins Industry, which will take place on Wednesday 20^th August, 09.30-10.30 EST/21.30-22.30 GMT+8.

As China’s leading market research and business information provider with over 13 years’ experience analysing China’s chemicals market, CCM is uniquely positioned to offer insight into the Chinese olefins industry. Based in Guangzhou, CCM’s team of over 150 experts and extensive network of contacts within the new coal-to-olefin projects, as well the wider Chinese olefin production industry, give it an unrivalled knowledge of the sector.

Webinar spaces are limited, so anyone wishing to attend should register ASAP by emailing event@cnchemicals.com.

About CCM:

Owned and operated by Kcomber Inc., CCM is dedicated to market research in China, the Asia-Pacific Rim and the global market. With a staff of more than 150 dedicated, highly educated professionals, CCM offers Market Data, Trade Analysis, Reports, E-journals, Company Profiles, and customized consultancy services.

For more information, please contact:

Jessica

Marketing & PR Director, Kcomber

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E: econtact@cnchemicals.com

Serious oversupply has been commonly found in China's hybrid rice seed market in 2013

The stable or even shrank planting of hybrid rice also contributes to the serious oversupply. The rising planting costs (labor, seeds, pesticides, fertilizer, land rents, etc.) and unattractive purchase price of rice have affected rice growers' planting enthusiasm. As a result, rice growers in some southern regions like Hunan, Guangdong and Guangxi, are prone to cancel the cultivation of early season rice that offers low yield and benefits, simply replacing double-cropping rice (early season rice and late season rice) with single-cropping mid-season rice. The former paddy fields are even planted with fruit trees or other corps rather than rice in some grain planting areas of Guangxi and Guangdong, revealed by insiders engaged in rice seed business.
 
Hybrid rice generally maintains around 29.50 million ha. in recent years, occupying above 55% of China's total rice acreage (hybrid rice and open-pollinated rice) . Hybrid rice planting proportion is even higher in southern regions, where domestic rice planting is mainly concentrated.

Serious oversupply has been commonly found in China's hybrid rice seed market in 2013, compared with the balance or slight oversupply in the previous years. Statistical data from National Agro-Tech Extension and Service Center (NATESC) shows that the excess inventory of hybrid rice seeds in 2013 is 260,000 tonnes, equalling about half of the total demand. The oversupply of hybrid rice seeds are particularly serious in the major rice planting regions like Sichuan, Hunan and Jiangsu, where the supply-demand ratio reaches close to or even above 2:1. The serious oversupply caused by multiple factors impacts on China's hybrid rice seed market.

Compared with staple crops seeds like corn seeds and rice seeds, China's vegetable seed companies are universally "small, scattered and weak". Although vegetable seeds account for over 20% of the seed market share, there hasn't yet been any vegetable seed company whose business scale as large as that of listed seed companies. For example, Yuan Longping High-tech Agriculture Development Co., Ltd. and Shandong Donghai Seeds Co., Ltd., both of which engage in operating field crops seeds. Besides, the lack of core R&D competitiveness places domestic vegetable seed companies at a disadvantage when competing with transnational corporations like Syngenta and Seminis, since the latter can seize a higher market share benefiting from their high-value seed products. What’s a worse only national seed company in the mode of "breeding, production and promotion"(hereinafter national certified seed enterprises) are usually the key target of governmental support policies. Few vegetable seed companies can enjoy the policies since none of them has been approved as the national certified seed enterprises. For the reasons above, vegetable seed companies have an urgent need of government support, especially the construction of large and specialized vegetable seed group companies.

Seed China News  is a monthly publication released by CCM. It offers timely update and close follow up of China’s various kind of seed market dynamics, analyze the market data and trends. Major columns include market dynamic, company dynamic, raw material supply, price update, import & export analysis, consumption trend & competitiveness.

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, and Consultancy Service. 

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

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Domestic market price of AHF continually drops in July 2013

The domestic market price of anhydrous hydrogen fluoride (AHF) in China in July 2013 was about USD1,120/t, down by 3.03% compared with that in June 2013, when it stood at about USD1,155/t. Actually, its market price has been decreasing continuously for four months since March 2013 when it reached USD1,257/t, the highest level in the first seven months of 2013, according to China Fluoride Materials Monthly Report issued by CCM in August.

The continuous fall of AHF's market price in China in July 2013 was mainly caused by the following two reasons.

 

First, the cost of fluorite kept decreasing during the period. In July 2013, the average market price of fluorite (CaF2>97%), the major raw material of AHF, dropped by 5.45% month on month. Domestic fluorite producers kept their operating rate of the product at a high level because of the suitable weather for production, which led to a high inventory. However, the market demand for fluorite did not increase because of the flagging domestic economy. Therefore, the oversupply of fluorite led to a continuous fall of its market price.

 

Second, the market demand for AHF from downstream industries in July 2013 was quite weak. In H1 2013, the overcapacity of the aluminum fluoride (AlF3) industry was still serious, which led to a low operating rate. Under the circumstance, the demand for AHF from the AlF3 industry largely declined. Moreover, the operating rate of the refrigerant industry in China in July 2013 was also low. Some refrigerants enterprises even shut down their production lines because of the shrinking profits. For instance, Shandong Dongyue Group Co., Ltd. shut down its 1,1,1,2-tetrafluoroethane (R134a) production lines on July 19, 2013 and may resume production in the middle of Aug. 2013.

Along with the continually decreasing market price and weak demand, AHF producers have reduced their operating rate. In July 2013, the average operating rate of domestic AHF enterprises was 46.80%, decreasing by 2.92% month on month. Some of the enterprises in North China, especially in Inner Mongolia, have shut down their production lines to alleviate their inventory pressure.

 

The market situation of AHF in South China is better than that in North China. As a matter of fact, most of the refrigerant producers are located in South China, where AHF producers have an obvious price superiority compared with that in North China, thanks to lower transportation costs. It's estimated that the market price of AHF in South China in July 2013 was USD80/t lower than that in North China.

It is estimated that the market price of AHF in China in Aug. 2013 will continually drop slightly. On one hand, the market demand for AHF will still stay at a low level because of the weak economy. There is no signal that producers of its downstream industries like AlF3 and refrigerants will increase their operating rates in Aug. 2013. On the other hand, the market price of its raw materials like fluorite will continually fall because of the high inventory.

Table Contents of China Fluoride Materials Monthly Report 1308:

Domestic market price of AHF continually drops in July 2013 

Meilan Chemical releases its purchase order of USD162 million on Netsun 

3F to extend fluorine chemical chain by acquisition 

Domestic market price of R22 rebounds in July 2013 

Do-Fluoride shuts down its AlF3 production lines 

Sen Lanping Chemical invests in constructing HF and inorganic fluoride projects 

Market review of PTFE in H1 2013 

Juhua suffers a sharp drop of net profit in H1 2013 

Domestic fluorine chemical enterprises increase their investments in FEP projects 

Main device of Longxing Chemical's PVDF project launches in July 2013 

Yongtai Technology sees its net profit reducing sharply in H1 2013 

Import and export analysis of fluoride chemicals in China in June 2013

China Fluoride Materials Monthly Report, a monthly publication issued by CCM on 20^th, covers the sectors on policy & legislation, company dynamic, supply & demand, price update, etc. of China’s fluoride material market. You can keep pace with the latest dynamics through its timely, complete and professional report.

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, and Consultancy Service. 

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

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Increasing Electricity Price to Exert Cost Pressure on Yellow Phosphorus

Yellow phosphorus industry is going to be hit by the increasing electricity price. On Nov. 30th, National Development and Reform Commission (NDRC) announced the raise in the electricity price. It is estimated that the average price of electricity is to rise by 0.47p/kWh nationwide, up 6.8% compared with that of 2010. In accordance with the new scheme of electricity price, the adjustment is varied from region to region.  And the new scheme has taken effect since Dec.1st, 2011, according to CCM’s December issue of Phosphorus Industry China Monthly Report.

For yellow phosphorus producers, it means the cost of production is to rise by USD66.14/t at least. In addition to the national increase, electricity prices in Guizhou Province and Yunnan Province will rise by 0.79p/kWh and 2p/kWh respectively when the dry season (Dec., Jan.–Apr.) approaches each year, both whose increase is above 10% compared with that of level period (other seasons). That is to say, four prime production provinces (Hubei, Yunnan, Sichuan, Guizhou) will experience the pressure of increasing electricity price in different degrees.

Meanwhile, most of the downstream purchasers such as producers of phosphoric acid, STPP and POCl3, have expressed the huge pressure causing by the present price of yellow phosphorus and the poor sales recently. While for those yellow phosphorus producers, it seems hard for them to transfer the increased cost to depressed downstream industry in the short term.

Given this contradiction, it is believed that this dry season will be a tough period for most yellow phosphorus enterprises holding low self-sufficiency rate of electricity, as well as downstream purchasers of yellow phosphorus.

Source: Phosphorus Industry China Monthly Report 1112

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

Content of Phosphorus Industry China Monthly Report 1112:

Phosphorus ore

Company Dynamics: Wengfu Group's recycling technologies draw investment overseas    

Policy & Legislation: Policies guide future development of phosphorus industry  

Yellow phosphorus 

Industry Dynamics: Utilization regarding yellow phosphorus waste grows in China 

Industry Dynamics: Increasing electricity price to exert cost pressure on yellow phosphorus   

Phosphate Fertilizer

Policy & Legislation: Integration policy extends to downstream phosphorus products in Hubei  

Industry Dynamics: Winter storage of phosphate fertilizer not optimistic in China 

Industry Dynamics: Single superphosphate encountering dilemma in China    

Company Dynamics: Liuguo Chemcial to strengthen scope effect  

Fine phosphate chemicals

Company Dynamics: Hubei Xingfa joins hands with Wengfu for complementary advantage 

Industry Dynamics: Purification of wet-process phosphoric acid emerges in China 

Import & export

International trade situation of phosphate chemicals in October

Price Update

Price monitor of some phosphate chemicals in November

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.

(Guangzhou China, December 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.

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

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Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_893.html

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

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