Herbicides China News Focuses on Paraquat SL Restriction Issue

It's obvious that recent heated discussions in Herbicides China News is focused on governmental restriction on paraquat SL in China. Coupled with various responses aroused by the official decision in China’s herbicide industry, Herbicides China News collects diverse opinions. The detailed reports are presented in both June and July issues.

Undoubtedly, governmental policy is the key to China’s pesticide industry in China. Hence, the restriction on paraquat SL by the Chinese government triggered such a wide attention. Following the core conception of paraquat regulation, ICAMA also issued detailed instructions in terms of pesticide administration to push the SL restriction. What are the detailed registration regulations that ICAMA has released?

In the column of market dynamics, glyphosate price trend in China is most attractive because current glyphosate price appears different in comparison with the previously sluggish situation. The stable ascent in the first half of 2012 implies glyphosate may meet a nice prospect this year. Of course, this optimistic expectation should be confirmed by the coming market situation. How will the price of glyphosate go in the next season?

In addition, coupled with the gradual coming of the hottest two months, July and Aug. of every year, Chinese herbicide manufacturers suspend production one after another for maintenance and check. Accordingly, herbicide market meets slack season at present. A short-term peaceful period will come. What is the market trend of domestic herbicide industry?

More detailed information will be discovered in CCM International’s Herbicides China News, published on 15^th  every month. It 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.

Headline news in the July issue of Herbicides China News:

-ICAMA issued new registration regulations to implement the official decision about paraquat restriction in China.

-Several key governmental regulations for pesticide industrial integration in China were listed in this article.

-Integration is the main characteristic of herbicide industry in China of H1 2012.

-Chinese acetochlor export is hardly shocked by the acetochlor restriction in the EU.

-Metolachlor is expected to meet nice prospect in China for the advantage of low toxicity, high efficiency, broad controlling spectrum and so on.

-Glyphosate price in China witnessed stable ascent in the first half of 2012.

-Acetochlor price level in 2012 is higher than that in 2011, resulting from the price increase of acetochlor's raw materials and the shortage of acetochlor stock this year.

… …

About CCM International

CCM International 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 International 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_1152.html

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

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