CCM Data & Primary Intelligence
Glyphosate Competitiveness Analysis in China
Researched & Prepared by:
Guangzhou CCM Information Science and Technology Co., Ltd Guangzhou, P. R. China
July 2008
Copyright by Guangzhou CCM Information Science and Technology Co., Ltd (P. R. China) Any publication, distribution or copying of the content in this report is prohibited. Website: http://www.cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968 Email: econtact@cnchemicals.com
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CCM Data & Primary Intelligence Description: This research is an extension of CCM's market research report on The Future of Glyphosate Industry in China. Many talent consultants in CCM spent one year to work out this masterpiece. Glyphosate has been in a leading position of herbicides in the world in the past few years; it is estimated that the global consumption of glyphosate is over 600kts at present and will increase by CAGR of over 12%. China, now the largest production base of glyphosate technical in the world, has glyphosate capacity accounting for more than 40% of the global total. With the output expected to reach about 280kts and the export volume 250kts in 2008, China’s glyphosate supply and price will have great impacts on the global market. Since February 2007, China's glyphosate price has been surging, from the average price of about RMB34,000/t in February to RMB42,000/t as of September 2007. However, this is far from the end of the price rise. The price has kept soaring, from RMB58,000/t at the end of 2007 to the unbelievably record high, RMB95,000~100,000/t as of May 2008. But in 2006, the average price was only about RMB26,000/t. Attracted by the huge market potential and the promising prospects of glyphosate, more and more domestic enterprises are busy either expanding their production capacities, or setting up new glyphosate production lines. The global production capacity of glyphosate is shifting to China and China has become the largest production base of glyphosate technical in the world with a capacity of 304,900t/a in 2007, accounting for more than one third of the global productivity. The output and export volume of glyphosate in China reached 187kt and 165kt respectively in 2007. It is estimated that the total capacity of glyphosate in China will reach 630,900 tonnes to the end 2008, based on the expanding plans of the glyphosate players in China. Then why the production capacity of glyphosate technical is concentrating into China and where the competitiveness of China’s glyphosate industry lies in? Whether most glyphosate producers in the domestic market undoubtedly earn considerable profit? Where its price will go next? What will influence China’s glyphosate industry and how this industry will develop in the future? … In this research, CCM will give a detailed analysis on glyphosate industry in China to help the readers understand in depth the competitiveness of China’s glyphosate industry, and to help the readers, mainly the decision maker to decide: whether is right to invest glyphosate in China, where to pay attention and how to access this market. - Introduction Because of the expanding planting of genetically modified crops and the fast growth of the agriculture in developing countries, Glyphosate develops rapidly these years. It is estimated that the annual growth rate of glyphosate will keep at 14% in the next few years in the world, and the global demand of
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CCM Data & Primary Intelligence glyphosate will reach 900,000 tonnes in 2010. Attracted by the huge market potential and the promising prospects of glyphosate, more and more domestic enterprises are busy either expanding their production capacities, or setting up new glyphosate production lines. It is estimated that the global production capacity of glyphosate will shift to China in the future and the gap between demand and supply will be filled in the next two years. The technology development is also quite rapid in China . There are two different pathways of glyphosate production in China : aminoacetic acid (AEA) pathway and iminodiacetic acid (IDA) pathway, about 60% of the domestic glyphosate producers take the AEA pathway and the rest 40% take the IDA route. AEA pathway, as a traditional pathway in China , is widely applied in China 's glyphosate production, because of the easy availability of raw material and mature technology. Many glyphosate producers are close to glycine manufacturers, which means lower transport costs and guaranteed glycine supply . But the AEA pathway consumes a lot of alkali to recycle the solvent and catalyst, which increases the equipment expenditure and utility. What's more, the product quality by this pathway is not as good as that by IDA pathway. So in recent years, the AEA pathway is partly replaced by the IDA pathway. However, some glyphosate producers adopting AEA pathway have innovated this pathway and made better use of their by-products, so that the production cost can be reduced. Although the raw material diethanolamine is mainly imported from some overseas countries and its price is rising all the time, IDA pathway is widely applied in most newly-built glyphosate projects in China these years, because of the comparative advantages in yield, production cost, environment protection and investment, Recently Anhui Huaxing Chemical Industry Co., Ltd. researched and developed a new Hydrocyanic acid-IDA-Glyphosate process, which extracts hydrocyanic acid from the nature gas. When the production line is put into operation, the cost can be reduced by RMB3,000 per tonne than the current level. What is the detailed situation of the competitiveness of AEA pathway and IDA pathway? In what aspects are they competitive? It is claimed by many people that the hydrocyanic acid process will be widely applied and used in the domestic market, and the AEA pathway will be replaced by the IDA pathway and the IDA pathway will be the dominant glyphosate producing pathway in the future. Is that true? Why? If it is true, how long will the process of this substitution take? If it isn't, what are the factors hampering this substitution? CCM will give a detail analysis in order to answer all these questions in this report. Although the output is growing all the time, the global price of glyphosate has been rising. One tonne of glyphosate was priced only at RMB28,000 last year, but the price has soared to nearly RMB50,000/t at present, that is, November 2007. The main reason for the price hike of glyphosate this year is the current demand and supply situation. Monsanto, a world renowned company, also the largest glyphosate producer in the world, has stopped investing in its glyphosate production capacity expansion, and has started to buy raw materials from China for their glyphosate production. Meanwhile, the output from the domestic glyphosate producers can not satisfy the huge demand in the overseas market. All these factors contribute to the tense supply and high price of glyphosate. Website: http://www.cnchemicals.com Tel: +86-20-3761 6606
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CCM Data & Primary Intelligence With the price hike of glyphosate, more and more profit has been gained by domestic glyphosate producers. The net profit was once several times of the production cost this year, although the current production cost is much higher than that in the past. What is the actual cost structure of glyphosate in active producers by different pathways? How does the production cost influence domestic glyphosate production and sales? In this report CCM will give an in-depth analysis of the production technology and production cost in some major glyphosate producers. In recent years, the Chinese government imposes stricter and stricter rules on the agrochemicals industry and environment protection, and the production cost of glyphosate including raw materials, manufacturing cost and management cost is rising all the time. These factors will inevitably contribute much to the development of glyphosate industry in China . Under such circumstances, it needs to find out: - What factors influence the development of glyphosate industry, especially the price and profit of glyphosate? - In the future, which pathway will be the dominant route in glyphosate production in China , and why? Will AEA pathway be replaced by IDA pathway in the future? How is the prospect of hydrocyanic acid process? - What is the price trend? - During the current and future production capacity expansion by domestic producers, whether most glyphosate producers in the domestic market undoubtedly earn considerable profit at the moment? How do policy adjustment, production cost rising and other factors influence the development of profit in the future? Will the profit keep stable in the next few years? - Which producer has the largest competitive advantage in China now? - How does the prospect of glyphosate industry in the future? CCM will give you a professional analysis to the above questions in this benchmarking research. - What is the aim of this research? CCM's research on glyphosate competitiveness analysis in China offers a comprehensive guide to the current technology situation and production cost structures of Chinese manufacturers. 1) Analyze the factors influencing the competitiveness landscape of China’s glyphosate industry, such as supply and demand dynamics, production pathways & technology level, raw materials supply, macro-economic situation and government policies, to understand where Chinese glyphosate competitiveness lies. 2) Research systematically the different processes for glyphosate production and the current production situation of the Chinese producers in an effort to understand their production cost structures, how the different production pathways compete with each other, and how the technology will evolve. 3) Set up model for glyphosate cost in China and make comparison to different cost structures of the major producers in China. 4) Carry out comparison between the competitiveness of AEA pathway and IDA pathway, and analyze the competitiveness landscape of glyphosate production in China. 5) Identify the key factors influencing the price of glyphosate and the internal relationship between the Website: http://www.cnchemicals.com Tel: +86-20-3761 6606
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CCM Data & Primary Intelligence key factors. And then set up glyphosate price model. 6) Based on the work mentioned above, make a forecast on the competitiveness of China’s glyphosate in the next five years. -
Why to purchase the research?
1) To understand the current technology level, cost structure, price and profit in Chinese glyphosate market. 2) To understand the competitive landscape of Chinese glyphosate producers. 3) To forecast the future development of glyphosate industry in China . 4) To help make decisions: whether is right to invest glyphosate in China ? -
Who should buy this research?
1) Glyphosate producers paying close attention to the Chinese technology level, cost structure, price and profit of major competitors in China ; 2) Glyphosate buyers who purchase glyphosate from Chinese manufacturers; 3) Glyphosate investors who plan to enter China to build new plants; 4) Technology suppliers who own the latest or best production and processing technology, and want to transfer their technology to Chinese glyphosate producers; 5) Research institutes who desire to know current technology level and research status in China ; 6) Analysts and consultants trying to gain insight into China 's fast-growing market for glyphosate If you are interested in this research: Please Contact Us for more information about this research!
Main content: No.
Content
Page
Executive summary I II
15
Introduction and methodology
37
Introduction to this Work
40
Factors influencing the competitiveness landscape of China’s glyphosate industry
42
II-1
Government policy
42
II-1.1
Promotion of genetically modified crops
42
II-1.2
Promotion of no-tillage land
43
II-1.3
Environmental and energy policy
44
II-1.4
Policy on import and export
47
II-1.5
Support on some important enterprises
48
II-1.6
Some policies for foreign invested enterprises
49
II-1.7
Other unfavourable policies for glyphosate investment
50
II-2
Economic environment for the development of glyphosate industry
51
II-2.1
China economy continuously develops with fast growth rate
51
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CCM Data & Primary Intelligence II-2.2
Income of Chinese peasants grows continuously and stably
52
II-2.3
Low labor cost
54
II-2.4
More population to feed but reducing peasants and shrinking cultivated land
56
II-2.5
Serious Inflation
57
II-2.6
RMB appreciation
59
II-2.7
Growth rate of export
61
II-2.8
Shortage of energy and raw material
63
II-2.9
Great demand for bio-energy
68
II-3
Situation of Chinese pesticide
70
II-3.1
Output and demand of pesticide
70
II-3.2
Adjustment of pesticide
72
II-3.3
Competition pattern of pesticide industry in China
73
II-3.4
Technology level and characters of pesticide industry
76
II-3.5
Profit tendency and the reason
77
II-3.6
Trend of pesticide industry
77
II-3.7
Advantageous and disadvantageous factors of pesticide industry development
78
II-3.8
Major obstacles of entering pesticide industry
79
II-4
Crop planting situation in the world
80
II-4.1
Conventional crop planting situation in the world
80
II-4.2
Planting situation of GM crops in the world
81
II-5
Crop planting situation in China
86
II-5.1
Conventional crop planting situation in China
86
II-5.2
Planting situation of GM crops in China
88
II-6
Entry Barriers of glyphosate industry
91
II-6.1
Policy
91
II-6.2
Capital
92
II-6.3
Production scale
92
II-6.4
Anti-dumping and technical barrier
92
II-6.5
Technology
93
II-6.6
Export channel
94
II-6.7
Environment barriers
95
II-6.8
No GLP lab and hard to register in other countries
95
II-6.9
High dependence on overseas market
95
II-7
Supply of glyphosate in China
96
II-7.1
Glyphosate technical
96
II-7.2
Glyphosate formulation
98
II-7.2.1
Overview of formulations species
98
II-7.2.2
Introduction of special formulations
98
II-7.3
PMIDA
100
II-8
Demand for Chinese glyphosate
104
II-8.1
Global demand for China’s glyphosate
104
II-8.1.1
Overview of global glyphosate production
104
II-8.1.2
Role of China’s glyphosate in global markets
104
II-8.2
Domestic demand for glyphosate
107
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CCM Data & Primary Intelligence II-8.2.1
Overview of Chinese glyphosate technical consumption
107
II-8.2.2
Glyphosate formulations use in China
109
II-8.2.2.1
Regional distribution of glyphosate use in China
109
II-8.2.2.2
Use situation of glyphosate formulations in each major crops
110
II-8.2.2.3
Use pattern of glyphosate formulations
111
II-8.2.2.4
Others
112
II-9
Supply situation of glyphosate raw materials in China
113
II-9.1
Raw materials of AEA pathway
114
II-9.1.1
Glycine
114
II-9.1.1.1
Introduction
114
II-9.1.1.2
Supply situation of glycine in China
115
II-9.1.2
Yellow phosphorous
122
II-9.1.3
Paraformaldehyde
126
II-9.1.4
Dimethyl phosphite
128
II-9.2
Raw materials of DEA route
130
II-9.2.1
Diethanolamine
130
II-9.2.2
Formaldehyde
135
II-9.3
Raw materials of IDAN route
138
II-9.3.1
IDAN
138
II-10
Production pathways & technology level
143
II-10.1
Summary of production, output by different pathways
143
II-10.2
Introduction to different pathways and their levels
147
II-10.2.1
AEA pathway
147
II-10.2.1.1 Description
147
II-10.2.1.2 Development of AEA pathway in China
148
II-10.2.1.3 Theoretical consumption of raw materials for AEA pathway
151
II-10.2.1.4 Advantages and problems
151
II-10.2.2
152
DEA route
II-10.2.2.1 Description
152
II-10.2.2.2 Development of DEA route in China
154
II-10.2.2.3 Theoretical consumption of raw materials for DEA route
156
II-10.2.2.4 Advantages and problems
156
II-10.2.3
157
IDAN route
II-10.2.3.1 Description
157
II-10.2.3.2 Development of IDAN route in China
158
II-10.2.3.3 Theoretical consumption of raw materials for IDAN route
159
II-10.2.3.4 Advantages and problems
159
II-10.2.4
Comparison of different pathways
160
II-10.3
Glyphosate formulation producing technology
160
II-10.3.1
Description
160
II-10.3.2
Development of glyphosate formulation producing technology in China
161
II-10.3.3
Theoretical models for glyphosate formulations
163
II-11
Other factors influencing the competitiveness landscape of China’s glyphosate industry
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166
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CCM Data & Primary Intelligence II-11.1
New situation of glyphosate
166
II-11.2
Marketing strategies
168
II-11.3
Competitions with other herbicides and foreign glyphosate
168
III
Analysis of major glyphosate producers in China
171
III-1
Zhejiang Xin’an Chemical Industrial Group Co., Ltd.
171
III-1.1
Introduction
171
III-1.2
Financials
172
III-1.3
Products
174
III-1.4
Existing capacity and expanding plan
175
III-1.5
Glyphosate
176
III-1.5.1
Production and market situation of glyphosate
176
III-1.5.2
Cost analysis of glyphosate
180
III-2
Nantong Jiangshan Agrochemical & Chemical Co., Ltd.
182
III-2.1
Introduction
182
III-2.2
Financials
183
III-2.3
Products
185
III-2.4
Existing capacity and expanding plan
187
III-2.5
Glyphosate
187
III-2.5.1
Production and market situation of glyphosate
187
III-2.5.2
Cost analysis of glyphosate
189
III-3
Anhui Huaxing Chemical Industry Co., Ltd.
192
III-3.1
Introduction
192
III-3.2
Financials
193
III-3.3
Products
195
III-3.4
Existing capacity and expanding plan
195
III-3.5
Glyphosate
196
III-3.5.1
Production and market situation of glyphosate
196
III-3.5.2
Cost analysis of glyphosate
198
III-4
Jiangsu Yangnong Chemical Group Co., Ltd.
200
III-4.1
Introduction
200
III-4.2
Financials
201
III-4.3
Products
203
III-4.4
Existing capacity and expanding plan
204
III-4.5
Glyphosate
205
III-4.5.1
Production and market situation of glyphosate
205
III-4.5.2
Cost analysis of glyphosate
208
III-5
Hubei Sanonda Co., Ltd.
210
III-5.1
Introduction
210
III-5.2
Financials
211
III-5.3
Products
213
III-5.4
Existing capacity and expanding plan
214
III-5.5
Glyphosate
215
III-5.5.1
Production and market situation of glyphosate
215
III-5.5.2
Cost analysis of glyphosate
216
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CCM Data & Primary Intelligence III-6
SWOT analysis of the five glyphosate manufactures
218
IV
Competitiveness landscape of glyphosate production in China
219
IV-1
Competitiveness of AEA pathway
219
IV-2
Competitiveness of IDA pathway
221
IV-2.1
DEA route
221
IV-2.2
IDAN route
223
IV-3
Comparison between the competitiveness of AEA pathway and IDA pathway and conclusion
224
V
Index model for glyphosate price
226
V-1
Influencing factors for glyphosate price
227
V-1.1
Production cost
227
V-1.2
Supply/demand situation
228
V-2
Price Index model for glyphosate
231
V-3
Identification
233
VI
Forecast on the competitiveness of China’s glyphosate in the next five years
235
VI-1
Research hot points
235
VI-2
Development trend of pathways
238
VI-3
Change trend of production cost
239
VI-3.1
Change trend of some major raw materials
239
- DMP
240
- Glycine
241
- DEA
243
- IDAN
244
VI-3.2
Change trend of production cost
245
VI-4
Change trend of supply & demand situation
247
- Operation rate
247
- Export dependence
247
- Ratio of total export to glyphosate technical export
248
VI-5
Glyphosate price fluctuating trend
248
VI-6
Estimation on profit in Chinese manufacturers
249
VII
Conclusion and commercial opportunities
251
VII-1
Conclusion
251
VII-2
Commercial opportunities
252
Executive summary: The competitiveness landscape of China’s glyphosate industry is embodied on the following factors, such as government policy, economic environment, crops planting situation, entry barriers, demand and supply, raw materials supply and technology level. ……….. - Production pathways & technology level
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CCM Data & Primary Intelligence There are two pathways for glyphosate production in China including IDA pathway and AEA pathway. According to the difference of raw materials, IDA pathway can also be subdivided into two categories, which are DEA route and IDAN route. Because of its simple flowchart and mature technology, AEA pathway is easy to be mastered by most companies, plus the easy availability of raw materials in China, the AEA pathway, though having been eliminated in the international market, is still being widely used in China’s glyphosate industry. However, the percentage of capacity and output of glyphosate by AEA pathway has been reducing all the time these years. Being complained for the serious pollution in the production, many large-scale glyphosate producers adopting AEA pathway in China have spent much energy and money improving this method and have made great progress. The main breakthroughs can be described as follows: 1. Optimizing the process and improving the yield rate. 2. Adopting continuous production process and introducing advanced equipments 3. Adopting DCS control system to realize optimized operation 4. Reclaiming the by-products such as methylene dichloride and dimethoxymethane 5. Reclaiming the raw materials …….. IDA pathway has been developing rapidly in recent years in China for its advantages of low cost, environmentally friendly performance and relatively not so huge investment. As of May 2008, there are xx companies adopting the IDA pathway, among which, xx adopting DEA route and xx adopting IDAN route. The typical companies include XXX, XXX, XXX, XXX and XXX etc. As the supply of the raw materials DEA and IDAN are quite tense in China, the capacity enlargement of the glyphosate producers adopting IDA pathway has been affected. However, some DEA and IDAN producers have enlarged their capacities and output. Therefore, the tense supply of these raw materials might be relieved in a short term. The advantages of IDA pathway will be exhibited fully in China. ……….
Character of CCM' Report: The aim of this report is to provide powerful assistance to the strategy group and the management team in making correct decision as how to penetrate the ever-increasing China market and how to catch the maximum commercial opportunities. The report is formulated independently by CCM’s professional market researchers, based on the first-hand and primary data which are analyzed by scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and presented in a logic way.
Sample pages：
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II-10.2.1.2 Development of AEA pathway in China After several years’ development, AEA pathway has made great progress in operation process and equipment, the technology has become mature and the quality of the product also has become quite stable. The main breakthroughs can be described as follows:
………. Table II-10.2.1.2-1 Comparison between continuous hydrolysis process and batch hydrolysis process in Nantong Jiangshan Style of reactors Item Batch hydrolysis process Annual output/tonne Reactor number Operator number Production efficiency of each reactor /(t/ a) Productivity per worker (t/ a)
Continuous hydrolysis process
XXXXXX
XXXXXX
X
X
XX
XX
XXXXXXX
XXXXX
XXXXX
XX
II-10.2.1.3 Theoretical consumption of raw materials for AEA pathway
………. Table II-10.2.1.3-1 Theoretical consumption of raw materials for AEA pathway in May 2008 Unit consumption
Unit price of May. 2008
Unit Cost(RMB/t
(t/t glyphosate)
(RMB/t glyphosate)
glyphosate)
Raw materials 1
Glycine(Industrial grade)
XXXXX
35,000.00
XXXXXXXXX
2
Paraformaldehyde (37%)
XXXXX
8,730.00
XXXXXXXX
3
Triethylamine (99.5%)
XXXXX
13,000.00
XXXXXXXX
4
Methanol (95%)
XXXXX
4,000.00
XXXXXXXX
5
Dimethyl ester
XXXXX
40,000.00
XXXXXXXXX
6
Hydrochloric acid (30%)
XXXXX
750.00
XXXXXX
Total
……….
XXXXXXXXX
II-10.2.4 Comparison of different routes Table II-10.2.4-1 Comparison of different routes Routes
Strong points
Shortcomings
Developin
Typical
g trend
company
Current situation
XXXXXXXXXXXXXX
XXXXXXXXXXXXXX
XXXXX
XXXXXXX
XXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXX
XXXXXXXXXXXX
XXXXXXX
XXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXX
XXX
XXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXX
XXXXXX
XXXX
XXXXXXX
XXXXX
AEA pathway
XXXXXXXXXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXX
XXX
XXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXX
XXXXXXX
XXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXX
XXXX
XXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXX X
XXXXXX
XXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXX
XXXX
XXXX
IDAN
XXXXXXXXXXXXXX
XXXXXXXXXXXXXX
XXXXXX
XXXXXXX
XXXXXXX
route
XXXXXXXXX
XXXXXXXXXX
XXXXXXXXXXXX
XXXXXX
XXXXXX
DEA route
XXXXXX
XXXXXXXX
XXXXXXX
Based on the above discussion, we conclude that the AEA pathway is still competitive in China. But as the supply of DEA and IDAN becomes sufficient and their quality is as good as that from some overseas countries, the IDA route is sure to have a larger market share in the future. II-10.3.3 Theoretical models for glyphosate formulations ………. Table II-10.3.3-1 Raw materials consumption of 10% glyphosate-ammonium Raw materials
Unit consumption(t/t)
Price(RMB/t)
(1)
X
400
XXX
XXXX
8,000
XX
XXX
90,000
XXXXX
XXX
800
XX
Mother liquid(4％) Additive
Glyphosate technical（95％） Ammonia Total
(3)
Unit Cost(RMB/t)
XXXX
XXXXX
II-11.2 Marketing strategies Table II-11.2-1 Marketing strategies of Chinese glyphosate industry Strategy
Content
Focus on export
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Promoting Brand
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXX
Promoting
high XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
content XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX formulation Cooperation
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXX
Perfecting sales XXXXXXXXXXXXXXX network XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXX OEM
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
III-1.5.2 Cost analysis of glyphosate -
Production cost
Table III-1.5.2-1 Estimation on raw material costs of glyphosate in XXXXXX in May 2008 Unit
Unit Cost Price (RMB/t)
consumption (t/t)
(RMB/t glyphosate)
Glycine(Industrial grade)
XXXX
XXXXXXXXX
XXXXXXXXX
Paraformaldehyde (96%)
XXXX
XXXXXXXX
XXXXXXXX
Triethylamine (99.5%)
XXXX
XXXXXXXXX
XXXXXXXX
Methanol (95%)
XXXX
XXXXXXXX
XXXXXXXX
Dimethyl ester
XXXX
XXXXXXXXX
XXXXXXXXX
Hydrochloric acid (31%)
XXXX
XXXXXX
XXXXXX
Raw materials cost
Total
XXXXXXXXX
Table III-1.5.2-2 Estimation on manufacturing cost of glyphosate in XXXXXX in May 2008 No
Item
Unit Cost (RMB / t glyphosate)
1 Raw materials cost
XXXXXXXXXXXXXXXXXXXX
2 Utilities
XXXXXXXXXXXXXXXXXXXXXX
3 Labour
XXXXXXXXXXXXXXXXXXXXXXX
4 Package
XXXXXXXXXXXXXXXXXXXXXXX
5 Maintenance
XXXXXXXXXXXXXXXXXXXXXXX
6 Depreciation
XXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXX
Total
Table III-1.5.2-3 Estimation on management costs of glyphosate in XXXXXX in May 2008 No.
Item
Unit Cost (RMB /t glyphosate)
1
Salary cost of management staffs and other auxiliary staffs
2
Materials cost for management
3
Interest on loan
XXXXXXXXXXXXXXXXXXXXXXX
4
Transportation cost
XXXXXXXXXXXXXXXXXXXXXXX
5
Amortisation of intangible asset
XXXXXXXXXXXXXXXXXXXXXXX
6
Distribution cost
XXXXXXXXXXXXXXXXXXXXXXX
7
Cost for three-waste treatment
XXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXX
Total
Table III-1.5.2-4 Estimation on production costs of glyphosate in XXXXXX in May 2008 In 2008 No
Item
Unit Cost (RMB / t glyphosate)
1 Manufacturing cost
XXXXXXXXXXXX
2 Management costs
XXXXXXXXXXXXX XXXXXXXXXXXX
Total
-
Profit
Table III-1.5.2-5 Profit estimation of glyphosate in XXXXXX in May 2008 Item
RMB/t glyphosate
1.Total income
Remark XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXX
Price Other income
XXXXXXXXXXXXXXXXXXX XXXXXX
2.Expense Total production costs
XXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXX
Taxes
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXX
3.Gross profit 4.Profit tax 5.Profit after tax
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXX XXXXXXXXXXXXX XXXXXXXXXXXX
XXXXXXXXXXXXXXXXX XXXXXXXXXXXXXX XXX XXXXXXXXXXXX XXXXXX XXXXXXXXXXXXX
IV-3 Comparison between the competitiveness of AEA pathway and IDA pathway and conclusion Table IV-3-1 Competitiveness comparison between the AEA pathway and IDA pathway Raw material Route
Process
Theoretical cost
Current application
Bottleneck
supply XXXXXXXXXXXXX XXXXXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXX
XXXXXX
XXXXXXXXXXX
XXXXXXXXX
AEA pathway XXXXXXX XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXX
XXXXXXXXXXXX
XXXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXX
XXXXXXXX
XXXXXXXXXXXX
XXXXXXXXXXXXX
DEA route XXXXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXX
XXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXX XXXXXXXXXXX
IDAN route
XXXXXXXXXXXXX
XXXXXXXXXXXXXX XXXXXXXXXXXX
XXXXXXXXXXX
XXXXXXX XXXXXXXXXXXX
XXXXXXXXXX
XXXXXXXXXXX
Figure V-1 Price model of glyphosate technical
Price Model Production cost of each route Production cost Output of each route Capacity
Price
Output
Output
Input
Import Demand & Supply intensity Export Market Demand Accidents Others
All the original data in this segment are mainly sourced from CCM’s database and custom’s data……….