Successive Decline of China’s Titanium Feedstock Import Volume

Guangzhou China, July 29, 2011 - China's titanium feedstock import volume continues to decline in May 2011, according to the July issue of TiO2 China Monthly Report released by CCM.

China's titanium feedstock import volume is 174,088 tonnes in May 2011, down by 19.61% compared with April 2011. The global strong demand and tight supply of titanium result in a successive downward trend from March 2011.

By May 2011, China has imported 955,623 tonnes of titanium feedstock, up 16.82% compared with the same period last year, indicating the growing demand of China’s imported titanium feedstock. However, the global titanium feedstock is in short supply now. It’s a great challenge for titanium feedstock suppliers to increase their production capabilities.

More news about the industrial trend, company dynamics, market price, and future forecast are unveiled in the latest issue of TiO2 China Monthly Report.

The following highlights are covered in the latest issue of TiO2 China Monthly Report:

- China's TiO2 trade surplus hit a record high in May 2011, with the export volume up 58.94% and the import volume up 2.37% respectively year on year.- Lluka reports ilmenite production decreases in Q2 2011, down 2% year on year.- Rio Tinto reports a 1% year-on-year decline in its TiO2 feedstock production.- Henan Billions goes public in this month and draws much attention.- Shandong Dongjia gives up restructuring CNNC Huayuan.- Kansai Paint is to build a heavy duty coating production and sales base in Chongqing, China.- Leading coating companies report great revenue growth in Q2 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

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

Titanium Feedstock Import Volume Continues to Decline in May

July 29, 2011, CCM - China's titanium feedstock import volume continues to decline while the average import price shoots up in May 2011, as compared with last month. It is primarily due to global tight supply of titanium feedstock, according to CCM’s July issue of TiO2 China Monthly Report.

In May 2011, China's titanium feedstock import volume is 174,088 tonnes, decreasing by 19.61% from 216,541 tonnes in last month. It keeps a downward trend from March this year, as a result of global strong demand and inadequate supply.

By May, China has totally imported 955,623 tonnes of titanium feedstock in 2011, up 16.82% year on year. It indicates that the demand for imported titanium feedstock increases in China. However, titanium feedstock is in short supply globally now. Under the circumstances, many titanium feedstock suppliers have taken measures to strengthen their production capabilities.

The average import price of titanium feedstock is USD197/t in May 2011, increasing by 13.62% over last month, and 66.63% higher than that of May 2010, boosted by robust demand and tight supply.

Source: TiO2 China Monthly Report July 2011

http://www.cnchemicals.com/Newsletter/NewsletterDetail_7.html

Content of TiO2 China Monthly Report July 2011:

China's TiO2 trade surplus hit record high
Titanium feedstock import volume continues to decline in May
Kenmare expects to gain market share
Iluka's ilmenite production decreases
Rio Tinto posts weak titanium feedstock production
Henan Billions goes public on July 15

CNNC Huayuan's restructuring fizzles out again
Pangang Group sees strong output
Tronox benefits from restructuring and strong demand
Huntsman wins 2011 Low Carbon Award
South Korea to end anti-dumping duties on China's TiO2
China's coating output grows rapidly
Carpoly outstands coating producers in Asia Pacific
Kansai Paint sets up Chongqing base
Leading coating companies report great revenue growth

Price update of TiO2 and its feedstock in July 2011
TiO2 price increases in North America
DTT announces price increase effective in Sept. 2011

Editor’s Note

A climate of unrest appears in China's economy, with 6.4% increase in CPI and 1.1% decrease in PMI in June 2011.

Premier Wen Jiabao called for intensified efforts to save energy and reduce emissions at a meeting on July 19, 2011. He added that China would press ahead with reforms of resource taxes and environmental taxes, and adjust import and export duties to curb export of high energy-consuming and high-pollution products.

The shortage of titanium feedstock continues, due to output decline and great demand all over the world. In domestic market, titanium feedstock prices keep an uptrend.

China's TiO2 industry is in a booming period, enjoying global strong demand and rising prices. Henan Billions is one of the producers that have seized the opportunity. However, TiO2 prices become relatively stable in domestic market, due to weak demand in this slack season.

The coating industry in China sees great output growth this year, but its profit is seriously affected by high raw material cost.

TiO2 China Monthly Report, a monthly publication issued by CCM International on 25^th of every month, will penetrate into Chinese TiO₂ market from a global view, deeply analyse TiO2 industrial chain and manufacturers’ competitiveness and trace the latest industrial hotspots and dynamics, aiming to provide the most valuable information about China’s TiO2 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

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