Glyphosate Price Keeps Stable in June 2012

Price growth of glyphosate technical and glyphosate formulations is mainly due to the provisionally tight supply. Many active glyphosate manufacturers claimed that they were producing products for contracted orders currently and they can't arrange glyphosate production for new orders until the end of June 2012 or even early August 2012. The maintaining of "high" glyphosate price and profitable glyphosate market have attracted some suspended glyphosate manufacturers to resume production. There are about 19 active glyphosate technical manufacturers in mid-June 2012 , according to CCM International’s June Issue of Glyphsoate China Monthly Report.

Some overseas buyers and domestic traders complain that Chinese glyphosate price has increased too much in H1 2012 and has maintained at the high level for several months. In fact, most Chinese glyphosate technical manufacturers can't obtain much profit from the price uptrend in H1 2012. Three listed glyphosate technical manufacturers including Zhejiang Wynca Chemical Industrial Group Co., Ltd., Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. and Anhui Huaxing Chemical Industry Co., Ltd., all reported operating profit losses in Q1 2012. The increase of glyphosate technical price in H1 2012 is a rational improvement from the undervalued glyphosate price before. The gross profit margin of glyphosate technical under current "high" price is less than 8%.

Glyphosate raw material price experienced slight decrease in June 2012, due to the decrease cost in basic raw materials. The slow growth in global economy has caused the downtrend of petroleum price in the past months. The decreased glyphosate raw material price also indicates that the overcapacity of these raw materials in China is serious and the increasing operating rate of glyphosate can't promote raw material price.

It's predicted that current glyphosate price will last to early July 2012 because of the provisionally tight supply. However, there is no room for Chinese glyphosate price to rise in the near future, because the raw material cost has decreased, and more suspended producers would resume their production if glyphosate price rise, which may cause the surplus supply again.

Source: Glyphsoate China Monthly Report 1206

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

Content of Glyphsoate China Monthly Report 1206:

Zhejiang Wynca set foot in China's seed industry

Chongqing Sanxia to extricate from quagmire of glycine

Nantong Jiangshan to sell glycine-supply subsidiary

Zhejiang Wynca, Nantong Jiangshan and Anhui Huaxing all suffer loss in Q1 2012

Concept and differentiation of 78% glyphosate IPA SG on marketing

China to enforce inspection of 10% glyphosate AS

Farmers like to buy and pesticide retailers like to sell bulk glyphosate AS

Mixed formulation containing glyphosate and saflufenacil

Glyphosate price keeps stable in June 2012

Export volume of glyphosate technical increase but price change slightly in April 2012

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_1115.html

Huaxing Chemical Flees from Deficit in 2011

Anhui Huaxing Chemical Industry Co., Ltd. (Huaxing Chemical) went through 2011 at last, without worrying about consecutive deficit following 2010 which will lead to special treatment for the company in stock market. According to 2011 performance forecast released on Feb. 24, 2012, Anhui Huaxing was predicted to meet the fruit of performance growth that net profit and revenue rose by 103% and 9.19% year on year to USD0.6 million and USD0.15 billion respectively last year, according to CCM International’s March Issue of Herbicides China News.

Even though the data of Huaxing Chemical's 2011 performance hasn't been confirmed by the accounting firm yet, it can be sure that Huaxing Chemical had overturned the deficit situation of 2010 in 2011 with the financial assistance from the local government.

Admitted by Huaxing Chemical in the forecast, the governmental subsidy has improved Huaxing Chemical's finance of 2011 indeed. Aiming to save Huaxing Chemical from continuous deficit and the risk of special treatment in stock market, in detail, the local government in Anhui Province had given Huaxing Chemical USD11.8 million (RMB75 million) in the name of research subsidy at the end of 2011.

It's noteworthy that Huaxing Chemical's sales profit in 2011 was still negative, which reached USD-14.2 million with year-on-year growth of 28.74%. As explained by Huaxing Chemical, it was because abnormal climate impacted on the company's insecticide businesses and stagnant glyphosate market eroded the company performance in 2011. Especially, limited profit room in glyphosate production always exerts pressure on Huaxing Chemical, whose main business focuses on glyphosate with technical capacity of about 70,000t/a, though the company has been taking effort to improve current glyphosate performance by adjusting market strategy and management.

Thus, Huaxing Chemical's weak behavior still tenses investors' nerves, and even led them to oppugn company operation once. Some opinions pointed out that Huaxing Chemical's poor performance in recent years has much to do with the company's unadvisable and mutable strategies. As indicated in this opinion, for example, Huaxing Chemical mapped out large investment in the 34,000t/a IDAN project and 20,000t/a glyphosate technical transformation (both initiated in 2009), but can't gain profit from these investments. (Herbicides China News 1112: Huaxing Chemical oppugned)

It probably can relieve the investors a little that Huaxing Chemical's share price (Share code: SZ002018) appears upward recently, but the truth is that the whole uptrend of share market in China contributes primarily to this. According to the tracing as of Feb. 24, 2012, SZSE Component Index has jumped by almost 1,500 points on the basis of the opening level in 2012 of about 8,600 points.

At any rate, Huaxing Chemical's glyphosate business always faces various challenges. Shadowed by shrinking demand in overseas market due to global economic turbulence, Chinese glyphosate encountered anti-dumping investigation from Australian government and price reduction of Roundup recently. It can be said that Chinese glyphosate manufacturers creep for survival in this industry.

As to Huaxing Chemical's performance in 2012, it can't be estimated how the company's performance will be impacted by the complicated market factors, though Huaxing Chemical has been putting large effort to change current situation.

Source: Herbicides China News 1203

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

Content of Herbicides China News 1203:

Chinese pesticide export in 2011-the cahier in 2012 CAC Conference

Huaxing Chemical flees from deficit in 2011

Assets exchange of Huayang Technology blocked

Jiangsu Changqing launches 300t/a nicosulfuron IPO project

Sanonda to launch 10,000t/a pyridine production

MAX (Rudong) emphasizes innovative herbicide technology

Jiangsu Repont to relocate sulfonylurea herbicide production

Pesticide companies promote herbicide sales in March

Chinese 2,4-D witnesses growth in 2011

Decreasing doses of herbicide application researched in China

Chinese paraquat meets demand increase

Dicamba meets supply shortage in Feb.

Wanquan Hongyu's clethodim does not out-sold

Jiangsu Jiannong to resume clomazone supply

Herbicide price fluctuates slightly in early March

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.

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_1009.html

China's Glyphosate Market Still with Fierce Competition

Since some glyphosate technical manufacturers quit the glyphosate technical business, the problem of overcapacity has been slightly eased in China. However, the fact of serious overcapacity and surplus supply is still a big problem in China's glyphosate industry, and there is still intense competition in this industry.

Take Anhui Shunong Agrochemicals Co., Ltd. (Anhui Shunong) for example, Anhui Shunong used to be a well-known glyphosate technical producer in Anhui Province, but the company can not survive in the fierce competition and it was purchased by a real estate company.

According to CCM International's survey, Anhui Shunong has suspended glyphosate production for more than half a year, and most of the employees have been dismissed in Q2 2011. The company had 5,000t/a glyphosate technical facilities, and glyphosate revenue had approached USD17 million (RMB120 million) in 2008. But it didn’t positively respond to the market challenge and made strategic change when glyphosate market became worse in later 2008. Therefore, it became a victim of the long-term depressed glyphosate market in China.

The dreadful glyphosate market with under-valued price and stagnant demand has forced more and more small and medium-sized glyphosate manufacturers to give up glyphosate business. Manufacturers who keep glyphosate production lines should make changes and develop new profitable products so as to survive in the fierce market.

The above is extracted from CCM’s October Issue of Glyphsoate China Monthly Report. More news please check:

-ChemChina completes the acquisition of 60% shares of MAI, which is the first largest overseas merger in China's agrochemical industry.

-Hubei Sanonda's 15,000t/a glyphosate expansion project is ongoing slowly because the market demand hasn't increased as expected.

-Greenpeace (India) warns glyphosate risk to human and environment and suggests the halt of commercialization process of GM crops in India.

-The U.S. scientist found exposure of significant level of glyphosate in air and water.

-Chinese glyphosate manufacturers strive to seize market left by the ban of glyphosate 10% SL.

-China's glyphosate capacity decreases in 2011, but intensive competition continues.

-Complexation extraction technology for glyphosate recovery from mother liquid is briefly introduced.

-Yellow phosphorus price continues skyrocketing in October 2011, due to the tight supply caused by the electricity shortage in Yunnan Province and Guizhou Province.

-Glyphosate price keeps uptrend in October 2011, contributing a little to manufacturers' profit.

-Glyphosate export volume keeps stable in August 2011, maintaining a relatively high level in 2011.

For more information about CCM’s October Issue of Glyphsoate China Monthly Report, please feel free to contact us at econtact@cnchemicals.com.

 (Guangzhou China, October 18, 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.

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Source: http://www.cnchemicals.com/PressRoom/PressRoomDetail_c_781.html