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

China Starch Output Continues to Grow in 2011

Guangzhou China, July 29, 2011 – The latest issue of Corn Products China News released by CCM presents that China's total output of starches reached 19.7 million tonnes in 2010, up by 9.7% over 2009.

The increase in starch output in 2010 is mainly driven by the strong demand for starch in downstream industries, like starch sugar, sugar alcohol and modified starch. Statistics show that total output of starch sugar products (liquid) increased by 13.1% in 2010 over 2009. Particularly, the output of high fructose corn syrup (HFCS, one kind of starch sugar) reached over 500,000 tonnes in 2010, up 41% over 2009 because sucrose price in China skyrocketed to a high level in 2010.

It's believed that the total output of starch in China will keep growing in 2011 thanks to its booming downstream market. Particularly, the output of potato starch will be stimulated to rise by the increase in China's anti-dumping duty on the EU's potato starch since April 2011. (The anti-dumping duty has been increased to 12.6%-56.7% since 19 April 2011 from 17%-35% before.) Output of corn starch is greatly affected by government policy. At present, constructing new production lines of corn starch will be hard to get approval. And if there are no other restriction policies to come out, it's believed that the output of corn starch will increase this year.

More news about the industrial trend, company dynamics, market price, and future forecast are unveiled in the latest issue of Corn Products China News.

The following highlights are covered in the latest issue of Corn Products China News:

-Total output of starch in China increased by 9.7% in 2010 over 2009.
-Northeast Pharmaceutical has begun to suspend its VC production for routine maintenance since 15 July 2011.-Compared with April 2011, total import volume of corn products in May 2011 increased, but the export volume dropped.-Lysine price maintains an uptrend in July 2011 over last month, while prices of tryptophan, threonine, and methionine perform relatively stable.-Price of VB2 witnesses an uptrend in July 2011, which will continue in the near future as believed.

-Shandong Longlive begins to go public on 20 July 2011, but its fuel ethanol business arouses concerns about the company’s prospect.-Global Bio-chem was granted the BioPreferred label by USDA for its polyol chemical biopropylene glycol in June 2011.-Xiwang Sugar is going to purchase two starch production lines and two production lines of maltodextrin from Xiwang Pharmaceutical in late 2011.-Xanthan gum is expected to have a promising market in 2011.-Some inferior capacities in citric acid, MSG and alcohol industries are to be eliminated by the end of 2011.-Luwei Pharmaceutical becomes one of the largest sorbitol manufacturers with 50,000t/a capacity in 2011.-Import volume of cassava starch is expected to be higher in 2011 over 2010 thanks to its booming demand in China.-It’s found through a questionnaire survey that corn price still has room for increasing before new corn comes out in 2011 as expected.

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

China Should Strengthen Supervision Over Foreign Seed Companies

August 1, 2011, CCM – Recently, several China's government ministries including Ministry of Agriculture, Ministry of Commerce, etc. have jointly investigated the situation of foreign seed enterprises entering domestic market, and the influence foreign capital has brought to domestic seed industry according to CCM’s July issue of Seed China News.

The investigation found that, relying on the strong advantages in capital, R&D, core technology, brand, marketing and service, many foreign companies have actively entered domestic seed industry, through the ways of M&A, joint venture, etc.

A source close to the investigation team disclosed on 20 July that, the investigation report is still in drafting at present; most members participating in the investigation do not make suggestions to limit the development of foreign seed companies within China, but call for strengthening supervision over them, especially implementing appropriate measures, such as price ceiling, to those multinational companies with monopolistic behavior.

Although some insiders advocate restricting the expansion of foreign seed enterprises in China, most members participating in the investigation do not agree with it. "It is reasonable for foreign companies to provide farmers with competitive products and services, if domestic companies are unable to do it  temporarily", said a investigator. Actually, the "closed protection policy" for blindly rejecting foreign capital is nothing short of seeking no progress.

Source: Seed China News June 2011

http://www.cnchemicals.com/Newsletter/NewsletterDetail_28.html

Content of Seed China News July 2011:

China should strengthen supervision over foreign seed companies
China: enhancing super rice promotion in 12th Five-Year
Changsha, future seed industry center of China
A vegetable seed company founded in Guangdong
Henan Qiule is climbing in seed industry
Winall Hi-tech to acquire Anhui Wannong
Guangxi Zhaohe acquires subsidiary of local corn institute

Henan Goldoctor commences a seed processing plant in July
CNSGC invests heavily in technology centerGenome research to accelerate potato breeding

Editor’s Note:

The "Suggestions for Accelerating Development of Modern Crop Seed Industry" was released in April 2011, which leads to certain fluctuations in domestic seed industry. While the most glaring concern should be that seed companies are amplifying efforts to collaborate with research institutes, in order to improve their overall technology level in variety breeding.

Aiming to become main force for variety breeding, not a few companies have invested heavily to establish R&D centers, by introducing advanced equipment and facilities, and technical personnel. Due to lack of attention in R&D for a long time, most seed companies have seriously lagged behind in variety breeding. Therefore, research institutes who possess abundant breeding experience and senior research talents, are certainly considered as best partners for seed companies to improve variety breeding.

Apart from large-size enterprises such as CNSGC, Winall Hi-tech, etc., many fast-growing companies like Henan Qiule and Guangxi Zhaohe, also spare no effort to seek collaboration with local research institutes, in order to further enhance their regional advantages.

As for research institutes, they also actively get close to seed companies. For example, Hunan Academy of Agricultural Sciences releases that it shall phase out commercial breeding and turn to basic and public research in the future, to provide research services for seed companies.

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

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 us at econtact@cnchemicals.com

2010 China Starch Output up 9.7% over 2009

July 29, 2011, CCM - According to China Starch Industry Association (CSIA), China's total output of starches (corn starch, cassava starch, potato starch, sweet potato starch, wheat starch, etc.) reached 19.7 million tonnes in 2010, increasing by 9.7% over 2009. Moreover, the output of corn starch, the largest category of starch in China, also increased by about 10% in 2010 over last year. Meanwhile, sweet potato starch, wheat starch and other starches also witnessed slight increase in output, and that of potato starch rose obviously. But CSIA didn't reveal the accurate output data of cassava starch in 2010. (FIGURE2)Based on CCM’s July issue of Corn Products China News, the increase in starch output in 2010 is majorly driven by the strong demand for starch in downstream industries, like starch sugar, sugar alcohol and modified starch. According to CSIA, total output of starch sugar products (liquid) increased by 13.1% in 2010 over 2009. Particularly, the output of high fructose corn syrup (HFCS, one kind of starch sugar) reached over 500,000 tonnes in 2010, up 41% over 2009 because sucrose price in China skyrocketed to a high level in 2010.

In sugar alcohol industry, total output of major sugar alcohols (sorbitol, xylitol, maltitol, mannitol and erythritol) also witnessed an uptrend in 2010, which increased by about 9% over 2009, according to CCM's latest sugar alcohol report published in May 2011: Production, Market and Manufacturing Cost of Sugar Alcohols in China. Along with the output increase of sugar alcohol products, the demand for starch (majorly referred to corn starch) followed to rise as it is one of the most important raw materials of sugar alcohols.

Moreover, according to Modified Starch Speciality Council of CSIA, modified starch's output in China increased by 4% over 2009.

Besides the increase in output, starch's production technology also improved in 2010 compared with 2009. Take corn starch for example, its average starch yield in 2010 was 69.9% compared with 65.9% in 2009. The higher average starch yield means the unit consumption of raw material has been reduced to some extent, so did the production cost. Moreover, the average unit consumption of water, electricity and steam also reduced in 2010 over last year.

However, the unit consumption in corn starch's production varies among different manufacturers. In 2010, the highest starch yield in all

corn starch manufacturers was 71.2%, and the lowest one was just 64.1%; the lowest unit consumption of water was 1.5t/t, and the highest 6t/t; the lowest unit consumption of electric power was 111kWh/t, and the highest was 250kWh/t; the lowest unit consumption of steam was 0.66t/t, and the highest was 2.34t/t. In 2011-2015, it's believed that the government will try to clear out starch production lines with inferior technology and low capacity.

It's believed that the total output of starch in China will maintain an uptrend in 2011 thanks to its booming downstream market. Particularly, potato starch's output will be stimulated to rise by the increase in China's anti-dumping duty on the EU's potato starch since April 2011. (The anti-dumping duty has been increased to 12.6%-56.7% since 19 April 2011 from 17%-35% before.) Output of corn starch is greatly affected by government policy. At present, constructing new production lines of corn starch will be hard to get approval. And if there is no other restriction policies to come out, it's believed that corn starch's output will increase this year.

Source: Corn Product China News July 2011

http://www.cnchemicals.com/Newsletter/NewsletterDetail_6.html

Content of Corn Products China News July 2011:

2010 China starch output up 9.7% over 2009
Northeast Pharmaceutical suspends VC production since 15 July

Chinese corn products Imp. & Exp. analysis in May 2011
Prices of four major amino acid products keep stable except lysine
VB2 price sees increase in July
Shandong Longlive's fuel ethanol business arouses concerns
Global Bio-chem's polyol chemical awarded BioPreferred label by USDA
Xiwang Sugar to purchase starch and maltodextrin production lines from Xiwang Pharmaceutical
Xanthan gum expected to performance well in 2011
Inferior capacity of citric acid, MSG and alcohol to be eliminated by late 2011
Luwei Pharmaceutical marches into sorbitol industry with 50,000t/a capacity
2011 import volume of cassava starch expected to increase
Corn price expected to increase before new corn comes out in 2011

Corn Products China News, a monthly publication issued by CCM International on 20^th of every month, reveals the driving force of news stories and deeply analyzes the influence of trends and dynamics on domestic and international corn deep processing industry.

Please visit http://www.cnchemicals.com for more information or contact us at 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

Challenges and Opportunities in China's Seed Industry under New Policy

A workshop on China's seed industry is going to be held in Beijing on September 21, 2011.

Hosted by Beijing Seed Fair, the leading seed trade fair in China has a  history of 18 years, and the workshop is co-hosted by CCM, a professional consulting company with 3-year crop protection summit organization experience.

Experienced seed experts will be invited as speakers of the seminar, and they will discuss the development of seed industry in a presentation entitled, "Challenges and Opportunities in China's Seed Industry under New Policy". Domestic seed giant companies, well-known seed experts and important governmental officers will attend the workshop as well.

The seed industry has witnessed a rapid development in recent years. With the release of the governmental policy "Suggestions for Accelerating Development of Modern Crop Seed Industry" in April 2011, the seed industry will enter a new development stage. What kind of opportunities ahead for the seed manufacturers? How to seize the opportunities? What challenges will the seed companies face? You will find all the answers in this workshop.

The following highlights will be delivered during the seminar:
-Current situation of the seed industry in China, including seed market size and market structure, analysis of domestic key seed players and dynamic of overseas seed companies, progress of seed transgenosis technology and domestic science research, confronted problems, etc.
-Analysis of seed policy in China, including background and main purpose of policy, integration of the seed industry and establishment of commercialized seed-planting system, etc.
-Opportunities in China's seed industry, such as various solutions to deal with the new policy for the different companies, and confronted problems, etc.

Join us for the presentation, you might get inspired by the surprising ideas shared by our experts.


For further information about this workshop and how you can get involved, please visit our website page:http://www.cnchemicals.com/Event/EventSubList.aspx?TypeId=o.
Or you can also contact us at econtact@cnchemicals.com.


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

Biotech Crop Breeding and Bio-pesticides Urge to Grow in China

China takes up 22% of the population in the world but with only 10% of global farmland. The figure tells the stress on Chinese food supply. Added with natural catastrophes, China is now urgently looking for new ways to make full use of every inch of the arable land. Biotech crop breeding may be a good choice.

Biotech Crop Breeding is not a brand-new concept to China, for it has been implementing the Agriculture Biosafety Regulation since 1996. Experiments applying in this kind of technology have never ceased at the moment. After being granted the Biosafety license, China has bred more than 20 hybrid combinations, among which the biotech rice resisting to insect pests is an outstanding achievement.

Read more:http://www.cnchemicals.com/Report/Report.aspx

China’s Abamectin Industry Seeking Breakthrough by Joint Efforts

Abamectin prospects a bright future but it is overcapacity due to chaotic production and fierce competition since 2008, hindering the development of the whole industry. For the sustainable and healthy growth of the industry, large-scale abamectin enterprises have jointed to build a synergy group working together with crop protection industry associations.

Abamectin with rapid development relies on its high effectiveness, low toxicity, wide spectrum on insect and no residue on soil. With the phase-out of five kinds high toxicity pesticide, namely, methamidophos, parathion-methyl, parathion, moncrotophos and phosphamidon, abamectin has won its place in insecticide. Beside, China pays more attention to the investment in crop protection, environment protection and energy-saving, and abamectin becomes the substitute of high toxicity pesticide, which provides great opportunity for its growth.

Read more:http://www.cnchemicals.com/Report/Report.aspx