Tuesday, September 4, 2012

China’s DAP sees limited upside for price


When entering August, China’s Phosphate Price Index still remained at a low level, which seems to last for long, even in the planting season, according to CCM International’s August issue of Phosphorus Industry China Monthly Report.

According to China Agricultural Means of Production Association (CAMPA), China’s DAP plants were operating around 80%-85% of capacity in July. In view of current low exports and slack domestic consumption, it could be foreseen that Chinese DAP producers’ inventory might remain at a high level for poor shipments. Consequently, domestic supply of DAP won’t be tight even in the planting season.

In terms of the supply of raw materials, the price of phosphorus ore saw a little slide in July. Phosphate fertilizer producers mentioned that the enquiry from upstream phosphorus mining enterprises was increasing, leading several phosphorus mining enterprises to cut price. However, it’s difficult to judge whether the price of phosphorus ore is to rebound, out of the consideration of the supply of phosphorus ore in fertilization season. Also, DAP producers indicated that the current price of DAP was quite close to cost, especially for those producers without phosphorus resources.

In addition, there’s a question for DAP producers: whether the price of phosphorus ore would rise in the season of peak demand.

Relatively speaking, China’s farmers are weak in purchasing power. Therefore, they are apt to decrease the consumption in DAP if the price rises to an unacceptable level. Previous market situation of DAP in China witnessed such situation. From 2010 to H1 2011, the market price of DAP was driven by rising phosphorus ore, which gradually outpaced China’s farmer’s purchasing power. Thus it saw a trend of decline in H2 2011. (Note: Previous market price of DAP in China could see page 5 issue 6 Vol.2: China publishes first wholesale price index for DAP).
  
Apparently, low tolerance for high price of consumers was bound to be the prime reason why DAP producers or distributors couldn’t easily pass on the cost.

Source: Phosphorus Industry China Monthly Report 1208

Headlines of Phosphorus Industry China Monthly Report 1208
Phosphorus Ore
Company Dynamics: Phosphorus mining business to bring huge profits for Sichuan Hebang
Company Dynamics: Growing uncertainty to surround China Baoan’s new investment plan 
Company Dynamics: Guizhou Government makes up development scheme for Kailin Group 

Yellow Phosphorus
Policy & Legislation: Irreplaceability of yellow phosphorus to last for long in China 

Phosphate Fertilizer
Policy & Legislation: China to further heighten utilization of phosphogypsum 
Company Dynamics: Liuguo Chemical fails to make more profit in H1 2012  
Policy & Legislation: Hubei Government to curb local capacity expansion of fertilizer
Industry Dynamics: China’s DAP sees limited upside for price

Fine Phosphate Chemical
Industry Dynamics: Phosphorus investment rising in Leibo County  
Company Dynamics: Hubei Xingfa to invest new phosphate chemicals project

Import & Export
International trade situation of phosphate chemicals in H1 2012

Price Update
Price monitor of some phosphate chemicals in July 2012
… …

Phosphorus Industry China Monthly Report, a monthly publication issued by CCM International on 15th of every month, provides you the latest information on company dynamic, industry dynamic, factors impacting the price fluctuation, technology improvement, supply & demand of China's phosphorus industry.

(Guangzhou China, Aug.15, 2012)

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

Dairy Industry Growth in H1


In H1 the Chinese dairy industry has progressed well, according to data from the Dairy Association of China (DAC). These show the total output of dairy products at 11.5 million tonnes in H1, up by 6.6% compared with the same period in 2011. From this volume, 9.7 million tonnes (84.3%) comprised liquid milk products, a category which increased by 7.3%. It is likely that the total output of dairy products in 2012 will exceed the 23.9 million tonnes seen in 2011, according to CCM International’s July issue of Dairy Products China News.

The key production area remains Inner Mongolia Autonomous Region (IMAR), which produced 250,000 tonnes of dairy products (of which 200,000 tonnes of liquid milk products) in June. Overall its output stood at 1.56 million tonnes (1.27 million tonnes liquid) in H1. The region’s volumes went down and are counter to the overall trend, likely reflecting its reliance on WMP, a product category badly hit by the declining consumer confidence in local product.

The other leading regions are Hebei, Shandong and Heilongjiang. Shandong is the standout, with much the strongest development of these key areas – up 16.5% overall and 20% in liquid milk products compared with H1 2011.Strong milk supply appears to be a key factor driving the growth in Shandong’s figures: the province had 1.42 million cows and produced 4.6 million tonnes of milk in 2011, accounting for 12.6% of national production. Moreover 44% of dairy farms had 200+ head.

Strong milk supply growth has been a factor behind the rising output: the Ministry of Agriculture puts production at 15.7 million tonnes in H1, representing growth of 3.6% compared with H1 2011. This is timely but will not meet demand, as many of the larger dairy enterprises such as Bright Dairy, Yili and Mengniu have expanded their production capacity in 2011-2012. Producers have been encouraged by stable milk prices and the supply growth reflects a series of government policies geared toward promoting the development of commercialscale production, such as the 12th 5-Year Development Plan of the Livestock Industry (please see Dairy Products China News Vol.4 Nov. issue, p11).

The latest figures seem to fit with the data released in late April by the China Economic Monitoring and Analysis Centre (CEMAC, part of the National Bureau of Statistics of China or NBSC). Its “Prosperity Index” (calculated from a variety of economic data on the domestic dairy industry’s performance) stood at 99.4 for Q1 2012, up 0.2 over Q4 2011. This seems significant: during that last Q the Index was 98.5, down 0.2 from the Q3 figure of 98.7 – this had been the first decline in 2011. The Index seems likely to keep increasing given the work being put in by processors and governments to improve the management of food safety.

China’s consumption of liquid milk products has been widely reported as likely to reach 23 million tonnes in 2012, an increase of 2 million tonnes over 2011, so the local output growth is meeting a growth market, albeit one with increasing international competition. But at 6.6% the growth rate of overall dairy industry output in H1 is lower than the 13.9% (to 10.8 million tonnes) achieved in H1 2011, according to the data from DAC. A similar situation is expected during H2 this year, potentially challenging many local dairy enterprises as they seek to make the most of the booming market.

Meanwhile import demand remains strong.


Content of Dairy Products China News 1207:
Dairy Industry Growth in H1
Signs of the Growing Cheese Market
Strengthened Supervision + Increasing Concern = More Food Incidents
Government Plan for Build Food Safety Supervision System
New Website for Quality Management of Food Enterprises
Arla Foods + Mengniu + Biostime: Cooperation Arrangements
Junlebao Dairy Cooperation with BOC
Pengxin Targets Domestic Raw Milk
New Hope Dairy Signs A New Farm
Dairy Industry Benefits from the Development of Grassland
Tianyou Dairy Launches New Yoghurt
Dumex Launches New Formula

Dairy Products China News, a monthly publication issued by CCM International on the 30th/31st of every month, brings you the latest information on new market dynamics, company dynamics, new dairy products and consumption trend, new legislations and policies and raw milk supply dynamics that are shaping the market.


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.
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

Lianhe Technology achieves USD25.7 million in net profit of H1 2012


Lianhe Chemical Technology Co., Ltd. (Lianhe Technology) issued its semi-annual report by the end of July 2012, which showed the company's nice performance in the first half of 2012. It's detailed in the report that Lianhe Technology gained about USD25.7 million (RMB163.3 million) in net profit of H1 2012, achieving a year-on-year growth of 26.17%. And the total revenue touched USD232.9 million (RMB1,481.9 million) with the year-on-year growth of 20.15% in the meantime, according to CCM’s August Issue of Herbicides China News.

It can be said that Lianhe Technology achieved the growth plan smoothly in H1 2012, and the company also confirmed this itself. With current promising development, Lianhe Technology expects to maintain a continuous growth in net profit of Q3 2012, and then to complete the growth plan of 20%~50% year on year in the first three quarters of 2012.

In a move to meet the sustainable growth in net profit of the whole 2012, Lianhe Technology expressed early in its 2011 annual fiscal report that the company will still keep aggressive behavior and sensible strategy in 2012. In the reporting period of 2011 annual report, Lianhe Technology witnessed a growth of 45.01% and 30.13% year on year in net profit and revenue to USD46.3 million (RMB294.3 million) and USD403.7 million (RMB2,568.0 million) respectively.

It's observed actually that Lianhe Technology's core competitiveness and profit growth points focus on intermediate manufacture covering pharmaceuticals and pesticides, especially the customized manufacture. And Lianhe Technology's rapid development these years is primarily driven by the intermediate manufacture. According to the semi-annual 2012 report, the accumulative revenue of two intermediate manufacture businesses accounted for approximately 61.1% of the total revenue in Lianhe Technology of H1 2012. Besides, two intermediate manufactures of pharmaceuticals and pesticides could meet gross margins of 37.67% and 41.94% respectively in the first half of 2012.

Meanwhile, Lianhe Technology expects to expand its industrial chain to downstream sectors such as pesticide technical manufacture all the time for the sustainable growth. Thus Lianhe Technology puts continuous efforts to establish new manufacture these years in pesticide technical, which cover mostly herbicides such as clomazone, cyhalofop-butyl, fomesafen and so forth. In the recent past, Lianhe Technology pushed the establishment of 300t/a carfentrazone-ethyl technical manufacture. (Herbicides China News 1106: Lianhe Technology's carfentrazone-ethyl capacity runs smoothly)

And it's noteworthy that the manufacture of these new herbicides aims at novel herbicides such as cyhalofop-butyl. It's understandable that these novel herbicides and even the patented products can provide relatively high added value and profit margin for Lianhe Technology's manufacture. It's predicted further that the company will continue to develop new manufacture in novel pesticides. In Lianhe Technology's herbicide registration list, it's observed that three new breed herbicides were registered by the company in recent two years, namely aminocyclopyrachlor, fluthiacet-methyl and metamifop.

In addition, Lianhe Technology also endeavors to expand raw material manufacture nowadays. In other words, stable material supply will cut down manufacture cost directly. Hence, Lianhe Technology accomplished the 100% acquisition of Shandong Pingyuan Yongheng Chemicals Co., Ltd. in H1 2012 so as to grab 20,000t/a phosgene capacity. According to Lianhe Technology's semi-annual 2012 report, the phosgene plant is under construction at present.

It's analyzed in terms of sales region that Lianhe Technology is always inclined to export business. Among its export destinations, it's observed that the regions where the developing countries centralize play a key role. In H1 2012, the revenue in Asia approached USD22.5 million (RMB143.0 million), toping over that in other regions.

Coupled with macro economy thriving gradually in the developing countries such as Brazil and India, Lianhe Technology will be able to meet the promising markets of pesticides and intermediates undoubtedly. Of course, Lianhe Technology also needs to grab relevant chances and avoid probable risks regarding environmental problems, market fluctuation, global economic changes and so forth.

Lianhe Chemical, listed in 2008, is mainly engaged in chemical production such as intermediates of medicine and pesticides. Especially, Lianhe Chemical's customized manufacturing services for various industries including pharmaceuticals, pesticides and other fine chemicals are the company's remarkable characteristics. The company maintains rapid development these years with the improving performance.

Source: Herbicides China News 1208

Content of Herbicides China News 1208:
Lianhe Technology achieves USD25.7 million in net profit of H1 2012
Good Harvest-Weien seeks new growth in herbicides
Jiangsu Changqing plans 2,000t/a dicamba technical construction
Limin Chemical pushes mesotrione business
Hefei Xingyu prepares oxadiazon technical expansion
Jiangsu Yunfan enhances oxyfluorfen production
Glyphosate arouses investors' expectation in stock market in H2 2012
2,4-D dwarfs MCPA in China
Propisochlor approaches deadline in EU
Domestic manufacturers keep optimistic about trifluralin
Nantong Jiangshan meets flat phosphorus trichloride manufacture
Shandong Dehao maintains atrazine production
Jiangsu Luye taking the trial run of 300t/a propyzamide production line
Yancheng South plans to launch 100t/a orthosulfamuron technical project
Zhejiang Bosst tops clodinafop-propargyl manufacturers

Herbicides China News, a monthly publication issued by CCM International on 15th 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

Monday, September 3, 2012

The Global Market of Yellow Phosphorus


Phosphorus is one of the most important basic raw materials that is applied in pharmaceutical, pesticide and fertilizer, electronic industry and other fields. With the development of Chinese economy, yellow phosphorus is attracting more and more attention in the world.

CCM International, a leading market research consulting company in China, published the report of The Global Market of Yellow Phosphorus. The report focused on analysis of the global state of supply, demand, import and export, production situation. The report will indicate the global phosphorus flow, influencing factors and future trends.

Global yellow phosphorus capacity concentrates in five countries, namely, China, the US, Kazakhstan, Netherlands, and Vietnam. What is the production situation of yellow phosphorus in major countries in 2011 and in the following five years, as well as other policies? How about their export situation?

The global yellow phosphorus demand has increased slowly in the past five years. However, the situation of the five main downstream products, phosphoric acid, phosphorus trichloride, phosphorus pentoxide, phosphorus pentasulfide and sodium hypophosphite, is different from each other. In the next five years, the demand from thermal phosphoric acid sector will gradually decrease, while that from phosphorus trichloride sector will continue increasing fast. What have driven such changes to happen? How is the demand of the world's yellow phosphorus?

How does phosphoric ore influence yellow phosphorus production? Which is the consumption pattern of yellow phosphorus? How will it be evolved in the future? What changes have taken place to the global yellow phosphorus flow from 2008 to 2010? What are the opportunities in the yellow phosphorus industry in the future?

To answer these questions, CCM International has carried out the research on global yellow phosphorus market. If you are interested in this report, please feel free to contact us.

About CCM International
CCM International is located in Guangzhou, China. CCM provides Data and Primary intelligence about China & Asia Market in Crop Protection, Life Science & Health Care, Chemicals, Materials and Energy, etc. CCM's mission is to bring value to clients with our accurate, complete and timely information and services in the form of Newsletters, Reports, Import/Export analysis, Benchmarking data, Buyer/Seller data and a comprehensive suite of customized consulting services. For more information, please visithttp://www.cnchemicals.com

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Building, No.80 XianlieZhong Road, Guangzhou 510070, China
Tel: 86-20-37616606

Five provinces released phosphorite new management measures


On August 23, provinces of Hubei, Hunan, Sichuan, Guizhou, Yunnan jointly issued the “Five Innovative Regulations on Exploiting Phosphorite Resource”. These five new measures will regulate the management of phosphate rock resource development from five aspects, including new phosphate mining rights, renovation and expansion of phosphate rock production scale and services, mining rights put, and total phosphate mining management principles, which are discussed and decided by the phosphate rock resources development joint meeting of the five provinces. The new regulations will strengthen the scientific exploitation of phosphate rock and reasonable utilization, improve industry concentration, and standardize tenements trafficking.

Phosphorus is an important chemical raw material and also an essential element for the growth of crops. Industrial phosphorus must be extracted from a large number of phosphate rock, to be used in the manufacture of yellow phosphorus, red phosphorus, phosphoric acid, phosphate fertilizer, phosphate. It is used as a phosphate fertilizer, phosphorus-containing pesticides, poultry and livestock feed in agriculture.

CCM International is a professional industry information consulting institution with more than 10-year experience in China’s phosphorus industry research and development. Its research fields cover yellow phosphorus, phosphorus flame retardants, phosphorus pentoxide, phosphorus ore, phosphorus trichloride, phosphorus oxychloride, red phosphorus and other areas in the phosphorus industry. The company has also published various market research reports and monthly reports, such as the newly published Global Market of Yellow Phosphorus, The Future of Yellow Phosphorus in China, Phosphorus Ore Resource in China and Phosphorus Industry China Monthly Report. These reports present you the global dynamic, reliable data, analysis of the status quo, predict future trends and professional insights of global and Chinese phosphorus market.

This year, the average price of phosphate rock rose more than 10%, the Guizhou-grade 32% tax price of phosphate rock SHIP rose from RMB640/t in the beginning of the year to the new RMB720/t; Hubei grade of 30% of the tax price of phosphate rock SHIP rose from RMB580/t in the beginning of the year to the latest RMB650/t. Affected by the phosphate resource management five new initiatives, the price of phosphate rock has been a strong support. Fall fertilizer demand market is about to start, the DAP exports is expected to increase, the price of phosphate rock will keep the upward trend. What are the development trends about manufacturers, resource supply, output, price, cutting edge technologies, comparison of production cost, consumption situation in the future? You may find results in CCM International’s relevant products and services in phosphorus industry as mentioned above.

In addition, based on large number of first-hand information and advanced forecast method, CCM International also provides Database, Content Chunk, Trade Analysis related to phosphorus. If you need any information or data regarding phosphorus industry, please feel free to contact us.


About CCM International
CCM International is located in Guangzhou, China. CCM provides Data and Primary intelligence about China & Asia Market in Crop Protection, Life Science & Health Care, Chemicals, Materials and Energy, etc. CCM's mission is to bring value to clients with our accurate, complete and timely information and services in the form of Newsletters, Reports, Import/Export analysis, Benchmarking data, Buyer/Seller data and a comprehensive suite of customized consulting services. For more information, please visithttp://www.cnchemicals.com

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Building, No.80 XianlieZhong Road, Guangzhou 510070, China
Tel: 86-20-37616606

Free Webinar on China Starch Industry to be Held on Sep. 6th, 2012


Starch is a production made through the use of corn, cassava, potato, sweet potato, wheat and other processed. The starch is widely used from food to the chemical and pharmaceutical. The demand of starch shows an increasing trend. A free webinar talking about China's starch industry will be held by CCM International at 17:00 (GMT +8, Beijing Time) on Sep. 6th , 2012. With the topic of Analysis of China Starch Industry, the webinar will introduce the key influencing factors, the latest dynamics and the future trends of China's Starch industry.

China has a huge starch production, in which corn starch occupied the largest proportion of 86.5%, potato starch, followed by 9.5%, 3.9% of the wheat starch and other starch yield a minimum proportion of 0.02%. In 2011, China's starch output has been increasing to over 20 million tones with a CAGR of around 9% in 2008-2011. It is estimated that China's starch output will increase to nearly 30 million tonnes in 2016 at a 5%-6% CAGR in 2012-2016. How will the future starch industry develop in China's concerning aspects of supply, demand, export, production? What are the hidden challenges and opportunities in this industry?

Starch plays a key role in deep processing, food, pharmaceuticals, etc. Deep processing is the most important consumption field of starch in China, consuming nearly 30% of the nation's total starch consumption in 2011. Besides, starch is also used in other downstream industries such as food and beverage processing and papermaking. In China, large-scale downstream producers will purchase starch from producers directly, and most producers would like to sell their starch by themselves rather than by distributors mainly for a high profit. How is the current situation of China's starch market? What are the influencing factors in this industry?

Mr. Zhang, Professional Consultant and Speaker of this webinar, will share with you his unique perspective and insightful analysis about this promising industry. Grasp this amazing opportunity to obtain the latest market information and discover commercial potential for your business. Come and join us on Sep.6th, 2012

Outline:

1 Regulatory issues in Chinese starch industry
    - What kinds of policies involved?
    - What about the effects on China's starch?

2 Supply and demand of starch in China
   - What is Chinese starch supply situation?
   - Who are the key starch producers and their traits?
   - What is China's starch import and export situation?
   - How about starch demand situation and it's application fields in China?
   - What will Chinese starch's supply and demand be in 2012-2016?

3 Starch derivatives in China
   - What kinds of starch derivatives involved?
   - How about their production and consumption and supply and demand forecast?
 
4 Conclusion and forecast
   - What are challenges in Chinese starch industry?
   - Where are the opportunities?

About CCM International
CCM International is located in Guangzhou, China. CCM provides Data and Primary intelligence about China & Asia Market in Crop Protection, Life Science & Health Care, Chemicals, Materials and Energy, etc. CCM's mission is to bring value to clients with our accurate, complete and timely information and services in the form of Newsletters, Reports, Import/Export analysis, Benchmarking data, Buyer/Seller data and a comprehensive suite of customized consulting services. For more information, please visithttp://www.cnchemicals.com

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Building, No.80 XianlieZhong Road, Guangzhou 510070, China
Tel: 86-20-37616606


AgriChina News Alerts Daily


China’s agriculture industry has experienced rapid development in recent years and has achieved outstanding outputs. In the future, China’s agriculture will continue to attract investments, improve productivity and product quality, and expand international trade. Foreign investors and business practitioners who are eager to be participated in commercial opportunities in the China agricultural industry need timely access and analysis on information of China agricultural news.

CCM International has launched a daily updated English newsletter named Agrichina News Alerts Dailyto meet the urgent needs from clients who need to keep informed of the most updated news on China’s agriculture industry but find it difficult to collect all.

Agrichina News Alerts Daily helps business practitioners and investors who care about Chinese agricultural and agro-chemical industry to gain access to the timely and accurate first-hand agricultural market news. The features of this daily report are “rapid, timely coverage of agricultural news, company news, policy and regulations ". In addition, the price is very affordable. Please continue to pay attention to it.


China Agriculture News Alert Daily covers China's agricultural markets, agricultural chemicals, pesticides, fertilizers, agricultural products, plant protection, seeds, grains, agricultural technology, pest control and other related information. It also provides information about events such as summits, seminars, exhibitions, and web conferences on China's agricultural market. Delivered via email and database, China Agriculture News Alert Daily will bring you the latest news of China's agriculture, agricultural market conditions, dynamic company, product prices and other breaking news and events, help you make wiser judgments and decisions, and capture good investment opportunities quickly. CCM International publishes China Agriculture News Alert Daily by analysts independently. For more information, please visit http://www.cnchemicals.com; to subscribe, please call Tel: 86-20-37616606 or Email: econtact@cnchemicals.com


About CCM International
CCM International is located in Guangzhou, China. CCM provides Data and Primary intelligence about China & Asia Market in Crop Protection, Life Science & Health Care, Chemicals, Materials and Energy, etc. CCM's mission is to bring value to clients with our accurate, complete and timely information and services in the form of Newsletters, Reports, Import/Export analysis, Benchmarking data, Buyer/Seller data and a comprehensive suite of customized consulting services. For more information, please visithttp://www.cnchemicals.com

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Building, No.80 XianlieZhong Road, Guangzhou 510070, China
Tel: 86-20-37616606