Glyphosate Market in China Remains Sluggish

CCM’s August issue of Herbicides China News indicates that glyphosate price in China still floats at a low level in the first seven months of 2011.

The average ex-work price of glyphosate 95% technical fluctuates around USD3,500/t in the first seven months of 2011. The low price hurts all glyphosate manufacturers in China. There is limited profit room for glyphosate production nowadays.

Overcapacity in domestic glyphosate manufacture is the main reason for the current sluggish situation. As the most popular herbicide with the largest consumption volume in the world, glyphosate still faces excessive supply at present.

It is estimated that the glyphosate market in China would restore to balance in the future. But this process might take a long time, which means Chinese glyphosate manufacturers should struggle to survive in glyphosate business.

The following highlights are covered in the August issue of Herbicides China News:

-Lier Chemical’s growth of net profit in H1 2011 is attributed to the integration of Jiangsu Kuaida's financial reporting, not caused by actual increase in earning.

-Lianhe Technology met continuous growth in revenue and net profit in H1 2011.

-Nanjing Redsun won final approval for asset reorganization from CSRC.

-Vertellus expands pyridine production chain in China.

-CAC Group's capacities of asulam and fluorochloridone run smoothly at present after the relocation into CAC Nantong.

-Shandong Dacheng relocates a 5,000t/a paraquat capacity and several capacities of insecticides and fungicides as well as chemical materials.

-Huayang Technology sold chloroacetic acid business.

-Chinese herbicide market was repressed in H1 2011 by several adverse factors such as the long-lasting inflation and abnormal climate in home market, as well as debt crisis in EU and the US.

-Poor glyphosate price torments Chinese pursuers.

-Diuron price floats on high level this July with tense supply in China.

-Now Jiangsu Huifeng's 2,4-D is exported to overseas market primarily.

-Jiangsu Repont's 1,000t/a sulfonylurea herbicide project is under civil construction now.

-Amide herbicide witnesses supply shortage in July, leading to the uptrend of its price.

-Lier Chemical will start glufosinate-ammonium production in H2 2011.

-Trifluralin meets price uptrend in July.

 (Guangzhou China, August 25, 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

Glyphosate Struggles on Bottom Line

August 22, 2011, CCM - Glyphosate price in China still floats at such a low level in the first seven months of 2011, even though it sees a relatively stable price trend compared with that in corresponding period of 2009 and 2010, the two years severely affected by the financial crisis. Especially repressed by more expensive material this year, over half of glyphosate manufacturers in China suspended their production due to narrowed profit margin currently. As for the current active glyphosate producers, their production status is characterized by low operating rate at present, according to CCM’s August issue of Herbicides China News.

The average ex-work price of glyphosate 95% technical in first seven months of 2011 is higher than that in 2010 or 2009 on the whole. What's more, its price keeps relatively stable and fluctuates around USD3,500/t during this period.

But it's noteworthy greatly that glyphosate 95% technical price is still at relatively low level, about USD3,400/t-USD3,600t/a averagely during Jan. to July 2011. Weakened by slack season around summer and autumn every year in Chinese herbicide market, it is going to decline in the nearest months.

It could be observed that the price downtrend of glyphosate 95% technical is slight, which is supported by current expensive material. As reported in former issues of Herbicides China News, various factors such as the inflation in domestic market, high price of rude oil, disaster in Japan, etc. drive up the price of basic material in China. Accordingly, the jumping production cost of glyphosate forces Chinese manufacturers to maintain current glyphosate price.

Approaching the bottom line of glyphosate technical production nearly, the low price hurts all glyphosate manufacturers in China. According to CCM International's price monitoring, the unit cost of over USD3,000 in glyphosate technical was touched by glyphosate technical price several times in 2009 and 2010. It means that limited profit room of glyphosate production is being narrowed by high material price at present.

As a result, at present, over half of Chinese glyphosate manufacturers choose to suspend their production in order to avoid risk in the production. What's more, due to regular equipment maintenance check during July to Aug. every year, most Chinese glyphosate manufacturers' production is laid aside except a few leading companies like Zhejiang Wynca Chemical Group Co., Ltd. with strong competitiveness and fixed clients.

Generally speaking, overcapacity in domestic glyphosate manufacture is mainly responsible for the sluggish situation. As the most popular herbicide with the largest consumption volume in the world, glyphosate still faces excessive supply at present, though its demand will continue rising in the future.

With Chinese government's economic regulation and market selection, some surplus glyphosate capacities have been swept out already in China. On the current track, it's sure that glyphosate market in China could restore to balance in the future. But, unfortunately, this process will take a long time, signaling that Chinese glyphosate manufacturers must endure large pain in glyphosate business. In other words, only those who can survive should enjoy brilliant prospect.

Source:  Herbicides China News 1108

http://www.cnchemicals.com/Newsletter/NewsletterDetail_11.html

Content of Herbicides China News 1108:

Lier Chemical witnessed growing net profit in H1 2011

Lianhe Technology achieves planned growth in H1 2011

Nanjing Redsun wins approval for asset reorganization

Vertellus expands pyridine chain in China

CAC Group relocates capacities of asulam and fluorochloridone

Shandong Dacheng relocates 5,000t/a paraquat capacity

Huayang Technology sells chloroacetic acid business

Adverse influences on Chinese herbicide in H1 2011

Glyphosate struggles on bottom line

Supply shortage boasts diuron price in China

Jiangsu Huifeng’s 2,4-D aims at overseas market

Jiangsu Repont constructs 1,000t/a sulfonylurea herbicide project

Amide herbicide supply intense around July

Lier Chemical to run glufosinate-ammonium production in H2 2011

Trifluralin meets price uptrend in July

Herbicides China News, a monthly publication issued by CCM International on 15^th of every month, provides you with the latest occurrences, exclusive analysis on the market trend as well as professional reviews on competitiveness of companies, products and relative industries in China’s herbicide industry.

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