Glycine Route Has Cost Advantage in Glyphosate Technical Production

The August issue of Glyphsoate China Monthly Report was released by CCM recently, revealing that the recovery of by-product monochloromethane makes glycine route the best route to produce glyphosate.

The cost of glyphosate technical manufactured by glycine route is lower than that of DEA route and IDAN route, as glyphosate technical manufacturers adopting glycine route could be repaid from the recovered monochloromethane, according to CCM's investigation and estimation.

The average recovery rate is about 500kg by-product monochloromethane when producing one tonne of glyphosate technical, and the recovery cost is less than USD78 (RMB500) per tonne of monochloromethane. The market price of monochloromethane is about RMB3,900/t. It could be calculated that glyphosate manufacturers adopting glycine route can gain about USD178 (RMB1,500) from monochloromethane when producing one tonne of glyphosate technical, accounting for about 6% of glyphosate technical production cost. Thus, totally, glycine route glyphosate has about USD125/t (RMB800/t) cost advantage over IDAN or DEA route glyphosate. And that's one of the key reasons why more glycine route glyphosate technical manufacturers are operating.

Following highlights are covered in the August issue of Glyphsoate China Monthly Report

-Redsun Group's reorganization has no help to its glyphosate business.

-Anhui Huaxing falls into continuous loss in H1 2011, due to the depressed glyphosate market.

-Deadline of ChemChina's acquisition for MAI has been extended to 30 October 2011.

-Brazil ceases anti-dumping mid-term review investigation on Chinese glyphosate, but there are not many market responses.

-Monochloromethane recovery contributes to glycine route's cost advantage.

-Increased manpower cost aggravates vulnerable glyphosate industry.

-Expanding downstream products is the key solution to ease Chinese IDAN's severe surplus.

-Glyphosate price slightly increases in August 2011, but it remains undervalued.

-China experiences decrease in glyphosate A.I. export but enjoys increase in total export value in H1 2011.

-Glyphosate export volume keeps stable in June 2011.

(Guangzhou China, August 24, 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

Monochloromethane Recovery Contributes to Glycine Route's Cost Advantage

Though glycine route glyphosate has disadvantage in waste water treatment, the recovery of by-product monochloromethane makes this route have the strongest comprehensive competitiveness among the three routes at present, according to CCM’s August issue of Glyphsoate China Monthly Report.

Under the long-term depressed glyphosate market and undervalued price, more and more Chinese glyphosate manufacturers suspend glyphosate technical production or quit glyphosate business. In recent three months, only about 12 glyphosate technical manufacturers has been operating formally, and most of them are manufacturers  adopting glycine route.

According to CCM International's investigation and estimation, the cost of glyphosate technical manufactured by glycine route is lower than that of DEA route and IDAN route, as glyphosate technical manufacturers adopting glycine route could be repaid from the recovered monochloromethane.

The average recovery rate is about 500kg by-product monochloromethane when producing one tonne of glyphosate technical, and the recovery cost is less than USD78 (RMB500) per tonne of monochloromethane. The market price of monochloromethane is about RMB3,900/t. It could be calculated that glyphosate manufacturers adopting glycine route can gain about USD178 (RMB1,500) from monochloromethane when producing one tonne of glyphosate technical, accounting for about 6% of glyphosate technical production cost. Thus, totally, glycine route glyphosate has about USD125/t (RMB800/t) cost advantage over IDAN or DEA route glyphosate. And that's one of the key reasons why more glycine route glyphosate technical manufacturers are operating.

While other glyphosate technical manufacturers sell out monochloromethane, Zhejiang Wynca Chemicals Industry Group Co., Ltd. (Zhejiang Wynca) developed combined production technologies of glyphosate and organic silicon, and its monochloromethane is for private use. Coupled with the higher recovery rate, Zhejiang Wynca could gain more value in monochloromethane recovery. Some other glyphosate manufacturers such as Sichuan Fuhua Tongda Agro-chemical Technology Co., Ltd. are planning to develop downstream industry of monochloromethane.

(Guangzhou China, August 24, 2011)

Source: Glyphsoate China Monthly Report 1108

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

Content of Glyphsoate China Monthly Report 1108:

Redsun Group reorganization has no help to its glyphosate business

Anhui Huaxing falls into continuous loss in H1 2011

Brazil ceases antidumping mid-term review investigation on Chinese glyphosate

Deadline of ChemChina's acquisition for MAI extended again

Monochloromethane recovery contributes to glycine route's cost advantage

Increased manpower cost aggravates vulnerable glyphosate industry

Expanding downstream products is the key solution to IDAN’s market plight

Glyphosate price slightly increases in August 2011

Overview of glyphosate products export in H1 2011

Glyphosate export volume keeps stable in June 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