Zhejiang Wynca Finally Wins the Long-run Glyphosate Anti-dumping Case

Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca), a leading glyphosate producer in China, announced on 24 July, 2012 that it has finally won the glyphosate anti-dumping case accused by the Council of the European Union (the CEU) since 2000. Thus Zhejiang Wynca becomes the first domestic company to challenge the unfair trade remedy investigation initiated by the CEU and gained two trials' victory, according to CCM International’s latest issue of Crop Protection China News.

The winning of the glyphosate anti-dumping case has greatly cheered up domestic glyphosate production enterprises, especially Zhejiang Wynca. The company now believes that it is worth laying 12 years' effort to cope with the anti-dumping case because the winning has made a good demonstration effect to all of domestic glyphosate producers who may face anti-dumping investigation in the future and it has also helped domestic glyphosate producers set up confidence in exploring market in the EU.

Even so, Zhejiang Wynca has still paid great price on the anti-dumping case because of the long-run lawsuit which has made it almost lose the glyphosate market shares in the EU in the past few years. According to the financial report of Zhejiang Wynca in 2011, although its revenue in overseas market in this period reached USD286.38 million, accounting for nearly 40% of its total revenue, its revenue of glyphosate exported to the EU accounted for a very tiny part of the revenue in overseas market. Now, as the company has won the anti-dumping case, it believed that its market expansion of glyphosate in the EU will be much smoother.

However, the market exploring in the EU may not be as easy as what Zhejiang Wynca believes. It is heard that the CEU is not resigned to give up but still preparing launching trade remedy investigations by itself.

In the past decade, domestic glyphosate has been facing anti-dumping investigations in overseas markets. Owing to the lower cost of the production of domestic glyphosate, the more competitive price of domestic glyphosate compared to those products in some other countries has threatened the local producers. In addition to the EU, Brazil and Australia have ever levied anti-dumping duties on Chinese glyphosate. In a bid to protect domestic glyphosate industry, most countries would set up trade barrier with the name of anti-dumping to charge extra duties on the glyphosate originated from China. It is becoming a usual measure for these countries used to protect local glyphosate industry. Eyeing the intensive competition in overseas markets, this kind of protection measure will be used much more frequently in the future.

Events review

In Feb. 2000, the European Union (the EU) started to levy 48% anti-dumping duty over glyphosate originating from China.

In Feb. 2003, the EU initiated merger investigation towards Chinese glyphosate. Zhejiang Wynca, as the representative of domestic glyphosate industry, responded to the prosecution exclusively.

In Sept. 2004, the EU decided to levy 29.9% of anti-dumping duty over Chinese glyphosate.

In Dec. 2004, Zhejiang Wynca claimed that it appealed against the decision of the EU and decided to prosecute to the decision to the European Court of First Instance.

In May 2009, the EU claimed to suspend levying anti-dumping duty over Chinese glyphosate for a period of nine months.

On 17 June, 2009, the European Court of First Instance made a judgment to cancel levying final anti-dumping duties over the glyphosate from Zhejiang Wynca.

In Aug. 2009, the CEU sued the verdict of the European Court of First Instance to the European High Court of Justice.

On 19 July, 2012, European High Court of Justice made the final judgment that Zhejiang Wynca finally won the lawsuit.

Source: Crop Protection China News 1214

http://www.cnchemicals.com/Newsletter/NewsletterDetail_16.html

Content of Crop Protection China News 1214:

Chlorantraniliprole: still common as recessive composition in China

Zhejiang Wynca finally wins the long-run glyphosate anti-dumping case

Glyphosate: short supply and continuously rising price

Import of pesticides keeps increasing in H1 2012

China's export volume of pesticides to ASEAN increases

Jiangsu Changqing initiates pesticide expansion

New investor helps Anhui Huaxing to relive

Lianhe Technology enjoys good performance in H1 2012

Lier Chemical's performance exceeds forecast in H1 2012

Crop Protection China News, a semimonthly publication issued by CCM International on 15th and 30th(31st) of every month, aims to gain a deep insight into Chinese market, supply the latest market data and strategy support, analyze the newest legislation and policy and grasp the future market trend.

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_1164.html

Analysis of tomato seed market in Shandong

2012 Alfalfa Construction Project released to boost alfalfa industry

"Shannong 20" operated by Shandong Shengfeng

IPA1 gene applied in rice breeding

Snow lotus GM technique obtains invention patent

Peanut genome sequencing project to boost peanut breeding

Seed China News, a monthly publication issued by CCM International on 30th of every month, offers timely update and close follow-up of China’s seed industry dynamics, analyzes market data and finds out factors influencing market development

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.

CCM International Ltd.
Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Source : http://www.cnchemicals.com/PressRoom/PressRoomDetail_w_1165.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