Australia terminates the resumed anti-dumping investigation on China's formulated glyphosate

On 24 June, 2013, Australia Customs and Border Protection Service (ACBPS) released Notice No. 2013/51 (The Notice), showing the result of anti-dumping investigation on formulated glyphosate products exported to Australia from China resumed on 16 Nov., 2012, namely these three China's glyphosate companies haven't dumped in Australia and ACBPS terminated this resumed anti-dumping investigation, according to CCM’s latest newsletter, Glyphoste China Monthly Report issued in July.

According to The Notice, these three China's glyphosate companies, namely Jiangsu Good Harvest-Weien Agrochemical Co., Ltd. (Jiangsu Good Harvest-Weien), Shandong Weifang Rainbow Chemical Co., Ltd. (Shandong Weifang Rainbow) and Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca), are judged that they haven't dumped formulated glyphosate products in Australia, so ACBPS decided to terminate the resumed investigation in accordance with s.269TDA(1) of the Customs Act 1901.

Besides, the total export volume of glyphosate formulations to Australia that have dumped from all other Chinese exporters was negligible, so ACBPS decided to terminate the resumed investigation in accordance with s.269TDA(3) of the Customs Act 1901.  

Anyway, it's the second time that ACBPS terminated the anti-dumping investigation on formulated glyphosate products exported to Australia from China since this anti-dumping investigation initiated on 6 Feb., 2012 lodged by Nufarm Limited (Nufarm) and Accensi Pty Limited (Accensi), the top two manufacturers of formulated glyphosate in Australia, and the first time was on 2 Aug., 2012.

It seems that the termination hasn't exhilarated some Chinese glyphosate producers and the glyphosate products prices in China did not fluctuate much. Take Zhejiang Wynca for example, Zhejiang Wynca claimed that this termination will have some positive impact on developing the glyphosate market in Australia, but the impact is estimated to be low. As to the glyphosate price, it's still stable in China, and the ex-works price of glyphosate technical in China keeps at about USD5,800/t-USD5,900/t at present.

But for the glyphosate producers who are eager to enlarge the glyphosate market in Australia, the result of investigation was worth cheering. Take three glyphosate companies for examples. Jiangsu Good Harvest-Weien, Shandong Weifang Rainbow and Sichuan Fuhua Tongda Agro-chemical Technology Co., Ltd. (Sichuan Fuhua) all have glyphosate registrations in Australia at present. They are always regarding Australia as one of their most important glyphosate market.

However, the proportion of these three companies' glyphosate A.I. export volume to Australia in 2012 in their total glyphosate A.I. exports has decreased to about 19.14%, down by about 8.75 and 7.67 percentage points over 2010 and 2011 respectively. The Australia's investigation result is expected to help increase the export volume of glyphosate manufactured by these three companies in the whole year of 2013.

Anti-dumping is a normal taxation measure to prevent domestic industry from damage caused by under-pricing imported products. China's glyphosate products have encountered anti-dumping issues in many regions including Brazil, Argentina, Australia, the US and the EU. Dumping accusation of China's glyphosate products in overseas markets has indicated the products' poor competitiveness and simplistic sale strategy (low-price strategy only) in the international market.

Table of Contents of Glyphsoate China Monthly Report 1307:

Zhejiang Wynca involves in the trouble of "Environmental pollution case"

Anhui Huaxing finishes leadership replacement

Australia terminates the resumed anti-dumping investigation on China's formulated glyphosate

EU revises the maximum residue limits for glyphosate in food

Overview of China's glyphosate industry in H1 2013

RMB appreciation brings negative impact on China's glyphosate industry development in H1 2013

Result of glyphosate use survey for 2012 rice planting in Hunan province

China accomplishes 28 new glyphosate registrations in H1 2013

Glyphosate technical price increases slightly in July 2013

Export volume of glyphosate technical increases 22.76% in May 2013

Glyphosate China Monthly Report, a monthly publication issued by CCM on 20^th, 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, and Consultancy Service. 

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

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Industrial Concentration of Chinese Glyphosate Increases in 2011

The long-term undervalued price and negative profit of glyphosate have led to the decrease in China's glyphosate technical capacity and lower operating rate of the less competitive manufacturers. The increasing proportion of glyphosate A.I. exports in the top glyphosate manufacturers has revealed the increase in industrial concentration of Chinese glyphosate industry in 2011, which will result in a better glyphosate market in 2012, according to CCM International’s February Issue of Glyphsoate China Monthly Report.

Although it's hard to get every glyphosate manufacturer's actual output, the export volume from companies exporting glyphosate is a good reference for estimating the industrial concentration of Chinese glyphosate industry, as more than 83% of China's glyphosate products have been exported in the past ten years. In 2011, China has exported about 300,000 tonnes of glyphosate technical, which is estimated to account for 85% of China's total output.

 

In 2010, the total export volume of glyphosate A.I. manufactured by the top six companies accounted for 55.5%-61.3% of China's total exports (interval value is given because manufacturers of some records can't be identified).

 

But in 2011, the total export volume of glyphosate A.I. manufactured by the top six companies has taken up 66.5%-69.6% of China's total glyphosate A.I. exports.

 

In terms of export volume, the share of the top 10 glyphosate manufacturers accounted for 69.5%-76.8% in 2010, whilst the top 10 took up 82.4%-86.2% in 2011.

 

According to CCM International's analysis, glyphosate products exported in 2010 are manufactured by 54 manufacturers, and glyphosate products exported in 2011 are manufactured by 45 manufacturers.

The increase in industrial concentration has reflected the integration process of Chinese glyphosate industry, and there will be smaller and smaller space for the less competitive glyphosate manufacturers. It's predicted that industrial concentration will continue to increase in 2012, and there will be a more rational market.

Source: Glyphsoate China Monthly Report 1202

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

Content of Glyphsoate China Monthly Report 1202:

Zhejiang Wynca involved in trouble of "chemical salt sold to edible salt market" case

Brazil keeps high growth in adoption of GM crops in 2011

Australia lodges anti-dumping petition on formulated glyphosate from China

Industrial concentration of Chinese glyphosate increases in 2011

Chinese glyphosate faces four challenges in 2012

A new method to treat glyphosate mother liquid and recycle its nitrogen and phosphorous elements

Glycine market keeps gloomy

Glyphosate price in February 2012

Glyphosate export significantly grows in December 2011

Overview of glyphosate export in 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.

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_985.html