Plenty of juice left in the Chinese LiPF6 market

After three years of plummeting prices and chronic industry overcapacity, there appeared to be nothing but more bad news in store for Chinese manufacturers of LiPF₆, a key raw material in the production of lithium-ion (Li-ion) batteries. However, according to China market experts CCM, there are suddenly many reasons to be optimistic about China’s LiPF₆ market.

The Chinese LiPF₆ industry has had a short but turbulent history. Due to the high production costs and advanced technology needed to produce LiPF₆, Chinese firms only began to enter the market en masse as late as 2011. At that time, the market was effectively monopolized by a small group of Japanese companies, including Kanto Denka Kogyo Co., Ltd., Stella Chemifa Corporation and Morita Chemical Industries Co., Ltd., which were then enjoying profit margins of up to 70%.

Keen to grab their share of this lucrative market, Chinese enterprises such as Do-Fluoride Chemicals Co., Ltd., Jiangsu Jiujiujiu Technology Co., Ltd. and Guangzhou Tinci Materials Technology Co., Ltd. started to set up their own LiPF₆ projects, and through the introduction of external technologies and their own independent R&D, they succeeded in breaking up the Japanese monopoly.

However, spurred on by this initial success, these Chinese firms began aggressively to expand their production capacities – as of December 2013, Do-Fluoride’s production capacity of 2,200t/a is the largest of any LiPF₆ manufacturer worldwide.

Problems soon emerged, as growth in demand was far too slow to keep pace with the rocketing production capacity. LiPF₆ prices began to fall from their 2011 levels of USD48,786/t (RMB300,000/t), and they kept on falling. Currently, the average price of LiPF₆ is just USD14,636/t (RMB90,000/t), less than one third of the average price just three years ago. This has hurt the profit margins of LiPF₆ manufacturers badly, and several smaller factories in Japan have been forced to cease production.

On the surface, the situation still appears to be challenging for the LiPF₆ industry. According to Xu Jinfu, chairman of Tinci, the global production capacity of LiPF₆ totals around 12,000 t/a at present, which, if completely converted into output and used to produce Li-ion battery electrolyte, would produce 80,000 t/a of electrolyte. On the other hand, the overall market capacity for Li-ion battery electrolyte is just 70,000 t/a at present. Overcapacity is therefore still a major problem, and this is reflected in Tinci’s latest results, which reported profit falls for its Li-ion battery material business in H1 2014.

Nevertheless, CCM believes that there are several reasons why we should feel very optimistic about the short- and long-term future of the LiPF₆ market in China. Firstly, although Tinci’s Li-ion battery material business saw profits fall in H1 2014, its sales volume increased by an impressive 70% compared to the same period last year. This sudden surge in demand suggests that the industry’s fortunes are already beginning to change.

What is particularly promising about this upturn in demand is that it is primarily coming from two emerging industries that have huge potential long-term – the alternative energy automobile and energy storage industries. The alternative energy automobile market especially is already having a great effect on demand for LiPF₆. The industry is growing rapidly – China is predicted to manufacture 55,000 alternative energy automobiles in 2014, and this is expected to increase to 100,000 in 2015. If the industry develops as predicted, it will already account for 9% of global demand for Li-ion battery electrolyte in 2015.

The energy storage market has possibly even greater long-term potential, although this potential is hard to quantify. One promising possible application of Li-ion batteries in the energy storage industry is in mobile base stations, so we can take this as an example. If all mobile base stations in China were to use Li-ion batteries to store energy, demand for Li-ion battery electrolyte would increase by approximately 20,000-40,000 tons. Considering that global demand for Li-ion battery electrolyte is currently only around 60,000 tons, it is clear that the development of this industry could transform the market for LiPF₆.

Looking more short-term, there are also reasons to be optimistic that Chinese LiPF₆ manufacturers may start to see their profit margins stabilize, or even slightly increase next year. Given the recent overcapacity problems, no expansions of production capacity will be completed before the end of 2015. Any increase in demand for LiPF₆ in 2015 should therefore directly benefit the manufacturers.

Moreover, even if the supply/demand situation does not stabilize as expected, it is worth bearing in mind that production costs for Chinese manufacturers remain significantly lower than the costs of their overseas competitors. Although LiPF₆ prices have declined in recent years, the current prices are still acceptable to many Chinese enterprises. By contrast, as already noted, several small-scale Japanese manufacturers have already had to quit the market. Therefore, if prices do continue to drop slightly next year, most Chinese manufacturers should be able to deal with the pressure on profit margins better than the international competition.

It has been a tough few years for China’s LiPF₆ companies, but they have struggled on impressively and look like they have plenty of juice left in the tank. It is possible next year that the trend toward declining profit margins will continue temporarily, but CCM expects rapidly increasing demand from the energy storage and, especially, the alternative energy automobile industries to decisively shift the balance of supply and demand in favor of the manufacturers. When this happens, these companies will finally be rewarded for their persistence.

-          This article was provided by CCM, a leading provider of data and business intelligence on China’s chemicals market. CCM has launched China Li-ion Battery E-News, a new e-journal dedicated to analyzing all the latest news and trends in China’s Li-ion battery industry. For more information on CCM and China Li-ion Battery E-News, please visit www.cnchemicals.com or contact econtact@cnchemicals.com

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Quality Business Intelligence Gives Investors Security in China’s Famously ‘Opaque’ Market, Says Kcomber

·        China’s reputation as a high-risk, ‘opaque’ market is primarily due to a lack of quality business intelligence

·        Kcomber has created KcomData service to address this deficiency and provide investors with accurate, reliable intelligence on target companies and markets

[Guangzhou, 18^th August 2014] China is the economic miracle of our age. The country has experienced three decades of unbroken, often double-digit growth, has emerged unscathed from two major economic crises, and is now widely expected to overtake the United States as the world’s largest economy within the next ten years. Yet, China is still widely regarded as a high-risk market. How can this be?

According to Kcomber, China’s leading business information firm, the biggest problem investors encounter in the Middle Kingdom remains the lack of reliable data. Though the Chinese government has made efforts to modernise its methods of collecting economic data, the system is still too decentralised and easy to manipulate. Misreporting of income and output by Chinese enterprises, sadly, is still common.

Kcomber has therefore created KcomData, a comprehensive business information service that relies solely on ‘primary data’ – data that has been verified first-hand by Kcomber’s own team of experts. This uniquely accurate service gives investors access to detailed reports on over 350,000 China-based companies, and Kcomber is also able to carry out full due diligence reports on any company on request.

Sunny Lei, Manager of CBD at Kcomber, commented: “Uncertainty is a cancer on investment, and this is why many investors still hesitate to invest in China. They know that there are unique opportunities to make large profits here, but when the push comes to shove they may choose supposedly ‘safer’ markets with less potential because they perceive China as ‘opaque’.

“We created KcomData precisely to give investors the confidence that comes from knowing you have reliable, accurate data in front of you. Now, our clients can take advantage of the huge opportunities available here safe in the knowledge that their decisions are based on quality intelligence. By taking away the uncertainty, we have taken away much of the perceived risk, too.”

For more information about Kcomber and the KcomData service, please visit www.kcomber.com or call +86-20-37616606.

About Kcomber:

Kcomber is China’s leading provider of business information, market research, and consultancy services. Founded in Guangzhou in 2001, Kcomber’s mission is not only to provide clients with the most accurate data, but to go ‘beyond information’ and give valuable, instantly actionable insight.

For more information, please contact:

Jessica He

Marketing & PR Director, Kcomber

T: +86-20-37616606

E: econtact@cnchemicals.com

Savvy Investors Have No Need to Fear China’s Commodities Markets, Says Kcomber

·         Markets are entering a period of increasing uncertainty, but those with genuine understanding of the situation on the ground in China will reap huge rewards

·         Kcomber’s Consolidated Commodity Data platform offers most comprehensive, accurate information on Chinese commodities available globally

[Guangzhou, 14^th August 2014] The ’10 year boom’ in China’s commodities markets is over, according to many Western analysts. Among these commentators, a prevailing narrative has emerged, namely that rising but uneven demand, massive oversupply, and fallout from the on-going investigations into fraudulent use of commodities to finance transactions in Qingdao will kill off China’s attractiveness to investors.

While it is true that China’s commodities markets are entering a period of increasing uncertainty, China’s leading business information firm, Kcomber, has reminded investors that this narrative is overly simplistic and based mainly on perception, and that there are still huge opportunities available for investors with knowledge of the real situation on the ground in China.

David, the manager of Agricultural Department at Kcomber, commented: “To be frank, these recent pessimistic reports about the future of the commodities markets in China are as overblown as the optimistic reports being released just a few years ago.  

“Analysts in the West are continually expressing surprise at a new set of positive economic figures released here, and sadly that is because they simply have not taken the time to understand China’s economic reality, and instead base their predictions on abstract concepts developed to analyse developed Western economies.

“In many ways the commodities markets here have become more high-risk than they were a few years ago, but China’s growth rate remains robust and there are huge opportunities for savvy investors. By far the greatest risk comes from investing in China, or anywhere, without a thorough understanding of the market you are investing in.”

To help investors and companies looking to deepen their knowledge of the Chinese commodities markets, Kcomber has developed Consolidated Commodity Data, a customisable ‘one-stop’ platform that not only provides clients with the most accurate, up-to-the-minute data available on their industries of choice, but also integrates qualitative research which will give insight, identify trends, and predict future market developments. Each platform is developed individually by Kcomber’s consultants to suit their clients’ needs.

For more information about Kcomber and the Consolidated Commodity Data platform, please visit www.kcomber.com or call +86-20-37616606.

About Kcomber:

Kcomber is China’s leading provider of business information, market research, and consultancy services. Founded in Guangzhou in 2001, Kcomber’s mission is not only to provide client with the most accurate data, but to go ‘beyond information’ and give valuable, instantly actionable insight.

For more information, please contact:

Molly Cheng

Marketing & PR Director, Kcomber

T: +86-20-37616606

E: econtact@cnchemicals.com

How Big an Effect on International Trade Will China’s Olefins Revolution Really Have?

• ·    China’s move away from naphtha-based olefin production could have huge knock-on effects on supply chains and international trade
• ·      CCM’s free webinar (20^th August, 09.30-10.30 EST, USA / 21.30-22.30 GMT+8, China) will explore the issue in detail, predict the future development of Chinese olefins production technology, and outline the effects this will have on related industries
• ·      To register, email event@cnchemicals.com

[Guangzhou, 14^th August 2014] We all know that China’s burgeoning coal-to-olefin and methanol-to-olefin industries have the potential to have a huge impact on global supply chains and trade, but how big will the knock-on effects really be? How effective have China’s first coal-to-olefin projects proved so far, and how much more efficient is the technology likely to become over the next ten years?

All these questions and more will be addressed in detail in CCM’s free webinar, Impact on International Trade of China’s Olefins Industry, which will take place on Wednesday 20^th August, 09.30-10.30 EST/21.30-22.30 GMT+8.

As China’s leading market research and business information provider with over 13 years’ experience analysing China’s chemicals market, CCM is uniquely positioned to offer insight into the Chinese olefins industry. Based in Guangzhou, CCM’s team of over 150 experts and extensive network of contacts within the new coal-to-olefin projects, as well the wider Chinese olefin production industry, give it an unrivalled knowledge of the sector.

Webinar spaces are limited, so anyone wishing to attend should register ASAP by emailing event@cnchemicals.com.

About CCM:

Owned and operated by Kcomber Inc., CCM is dedicated to market research in China, the Asia-Pacific Rim and the global market. With a staff of more than 150 dedicated, highly educated professionals, CCM offers Market Data, Trade Analysis, Reports, E-journals, Company Profiles, and customized consultancy services.

For more information, please contact:

Jessica

Marketing & PR Director, Kcomber

T: +86-20-37616606

E: econtact@cnchemicals.com

CAAS led research reveals asymmetrical evolution of Brassica genomes at cnchemicals.com

The Multinational Brassica Genome Project has recently made a breakthrough in the full genome sequencing of Brassicaoleracea. The project was led by scientists from the Oilcrops Research Institute of Chinese Academy of Agricultural Sciences (CAAS), and joined by scientists and researchers from other domestic and foreign universities and research institutes.

Last month, the B. oleracea research team reported a draft of genome sequence of B. oleracea, comparing it with those of its sister species to reveal multi-layer asymmetrical evolution of Brassica genomes. The research findings were published in the latest issue of Nation-Communications.

The genusBrassica comprises many important crops, including B. rapa(AA) and B. oleracea (CC), common vegetable crops in China, and their hybrid species B. napus (AACC), a major oil crop in China. The completion of B. oleracea genome sequencingis another important step after the full genome sequencing of B.rapa in the genetic study of the genus Brassica.

As the leading scientist of the Brassica oleracea project, Liu Shengyi fromthe Oilcrops Research Institute said that the research predicts a total of 45,758 protein-coding genes for B. oleracea. As most of B. oleracea genomes are in lineage with Arabidopsis thaliana genomes, B. oleracea serves a model for the study of polyploid genome evolution. So far, the project revealednumerous chromosome rearrangements and asymmetrical gene loss in duplicated genomic blocks, asymmetrical amplification of transposable elements, differential gene co-retention for specific pathways and variation in gene expression, including alternative splicing, among a large number of paralogous and orthologous genes. These data provide insights into the dynamics of Brassica genome evolution and divergence, and serve as important resources for vegetable and oilseed crop breeding in the genus Brassica.

Another important finding of theBrassica oleracea genetics project is that B. oleracea crops have potent anti-cancer properties. Researches in the past already proved that eating crops of the family Brassicaceae have the effects of preventing and controlling cancer, and this time, the research results indicate that B. oleracea crops may have the highest anticancer value in thefamily Brassicaceae.

According to Mr. Wang Hanzhong, leader of the B. napus and B. oleracea genome sequencing team under the Multinational Brassica Genome Project, genomic study of the genus Brassica is of fundamental importance, and will provide guidance to genetic improvement of B. napus and the foundation for molecular breeding of B. napus.

China Herbicide Trade Flows Analysis

In 2013, global trade flows of herbicides has been enhancing, especially those of glyphosate and paraquat. Herbicides are playing greatly important roles in pesticide industry and pesticide exports in China, making a great contribution to the rapid growth of pesticide exports.

There has been a steady growth in China herbicide industry in past years. In China, the output of herbicides kept increasing due to the rising demand from domestic and overseas markets. At present, attributable to the advantages such as high efficacy, low toxicity, broad spectrum and low dosage, herbicides are playing an increasingly important role in China pesticide industry.

Lately, CCM has compiled a full report China Herbicide Trade Flows Analysis, which clearly described China’s trade flows of herbicide in global market and gave some constructive opinions, responding to the questions below by analyzing the following aspects:

- Import and export situation of herbicides in China, 2012-2013; 

- Import and export situation of herbicide technical and formulations in China, 2012-2013;

- Export situation of major herbicide products in China, 2012-2013; 

- Export price of major herbicide products in China, 2012-2013;

- Strategy adjustments of suppliers of herbicides in China;

- Key factors for the development of herbicides in China;

- Commercial opportunities.

At present, China is playing a greatly important role in global herbicide trade flows, mainly for export. In 2013, China exported about 1,307 million tonnes of herbicide, mainly to South America, Asia and North America, etc. This report is compiled for those global herbicide manufacturers that need production information of their competitors in China or want to enter China’s market.

Trade flow of herbicide in China is estimated to keep increasing in the near future. The overall export volume of herbicides is expected to continue to move upward, while export price will keep rising, especially for glyphosate and paraquat. Besides, Europe is China's most promising market of herbicides. This report will help clients obtain the latest info of herbicides, see change in recent two years from technical and formulations, major products, export regions and exporters and have a better understanding of the whole China's trade flow for decision making. For more information in detail, please visit:

http://www.cnchemicals.com/Product/Report/2369/China-Herbicide-Trade-Flows-Analysis-Edition(1)

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, and consultancy service. 

For more information, please visit http://www.cnchemicals.com.

Contact:

Tel: 86-20-37616606

Email: econtact@cnchemicals.com

Steady Growth of Sugar Alcohol Price in China

As the deep processed products widely used in pharmacy and food industries, sugar alcohols are more and more popular, especially VC and sugar-free chewing gum industries. The demand for sugar alcohols in the domestic market has been growing fast, driving up market prices of sugar alcohols over the past 10 years.

Sharing some similar features with sugar and having good thermostability, sugar alcohol products are increasingly popular in food and health care products industry. In China, there are five major types of sugar alcohols: sorbitol, mannitol, erythritol, xylitol and maltitol. With the steady growth of sugar alcohols’ prices, then in 2012-2013, domestic market prices of sugar alcohols tended to be stable overall; however, the market prices of some sugar alcohol products even declined due to the oversupply and the weak demand.

To clearly describe the prices of sugar alcohols in China in 2013 and give readers some constructive opinions, CCM has obtained lots of information with diverse methods to compile a full report, Sugar Alcohol Price in China, about the prices analysis of sugar alcohols in the following aspects:

-       Overview of sugar alcohol industry in China

-       Price of sugar alcohols in China in 2013 (by month)

-       Price trend of sugar alcohol industry

-       Price analysis of sugar alcohol industry

-       Influencing factors and price forecast in 2014

All of these sugar alcohols can be used as food additives in varieties of foods along with the emergence of the concept of sugar-free or low-sugar. Besides, rising awareness of healthy diet pushes up consumption of sugar alcohols in food industry greatly over the past years. Consumption of sugar alcohols in food industry is estimated to remain at a high level.

What are the factors influencing the price trends of sugar alcohols? How is the price change of sugar alcohols by month in China in 2013? What are the opportunities in China’s sugar alcohol industry? CCM will give you more detail and useful information in this report. For all of it, please visit: http://www.cnchemicals.com/Product/Report/2382/Sugar-Alcohol-Price-in-China-Edition(1)

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, and consultancy service. 

For more information, please visit http://www.cnchemicals.com.

Contact:

Tel: 86-20-37616606

Email: econtact@cnchemicals.com