Herbicides China News Vol.4 Issue 01 2011
Publications date: 14 Jan. 2011
Copyright Š CCM International Limited
Herbicides China News
Vol.4 Issue 01 2011
Content ■■ Overview................................................................................................... 1
2010 top 10 events in Chinese herbicide industry............................................................................................ 1 Overview of Chinese herbicide industry in 2010..............................................................................................2 China’s seven self-developed herbicides in the past ten years.........................................................................4
■■ Survey & Interview................................................................................... 5
Brief survey of crop protection in Leizhou Peninsula...................................................................................... 5
■■ Company Dynamics.................................................................................. 6
Lier Chemical purchases Jiangsu Kuaida.........................................................................................................6 Nantong Jiangshan sells Nantong Jiangtian’s share........................................................................................ 7 Henan Yingtai constructs acetochlor quietly....................................................................................................8 Fengshan Group consolidates leading trifluralin position...............................................................................8
■■ Market Analysis........................................................................................ 9
Dicamba attracts pursuers’ interest..................................................................................................................9 Metolachlor threatens acetochlor in China..................................................................................................... 10
■■ Supply & Demand.................................................................................... 11
Anhui Fengle expands tribenuron-methyl production....................................................................................11 Hubei Huida suspends bispyribac-sodium production...................................................................................11 All self-produced metamitron are exported in China..................................................................................... 12 Good Harvest-Weien to pursue 2,4-D............................................................................................................ 13
■■ Price Analysis.......................................................................................... 13 - Price Review........................................................................................................13
Monthly market prices of main crops in China, Jan. 2011............................................................................. 13 Monthly ex-factory prices of key raw materials, Jan. 2011............................................................................ 14 Monthly ex-factory prices of main herbicides, Jan. 2011............................................................................... 14 Monthly Shanghai port prices and FOB Shanghai of main herbicides, Jan. 2011..........................................15
- Pricing................................................................................................................. 15 Overview of Chinese glyphosate price in 2010................................................................................................15
■■ News in Brief........................................................................................... 16
Chinese herbicide technical output increases in Nov.2010............................................................................ 16 UN not to ask anti-dumping tax against Chinese glyphosate in 2011............................................................ 16 Fujian Sannong's relocation............................................................................................................................ 16 New herbicide products in 2011...................................................................................................................... 16 Chinachem to purchase MA Industries.......................................................................................................... 16
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Herbicides China News
Welcome to Jan. 2011 issue of Herbicides China News published by CCM International, a professional consulting company who has been extensively and intently focusing on dynamics of China’s herbicide industry. At the opening of 2011, we turn around to review Chinese herbicide industry in 2010 and find that the situation of Chinese herbicide industry is not so awful as we thought before. In the past one year, some aggressive events inspired our confidence such as Lier Chemical’s successful acquisition, Jiangsu Huifeng’s getting listed, the recovery of glyphosate market, etc. Meanwhile, warm winds blow into 2011. Nanjing Redsun’s reorganization, rebounding herbicide prices, Chinese government’s Twelve-Fifth Plan and so forth all imply the recovery of agrochemical market in China. But it is always necessary to have a careful attitude towards potential risks such as overcapacity and vicious competitiveness, because the way to innovation of Chinese pesticide industry is so long and rugged. In addition, in Dec. 2010, CCM International visited Leizhou Peninsula to inspect the local situation of agriculture and crop protection market. Hope the information obtained from the practical interview could bring you new and inspiring feeling. And the improvements on the issue in 2011 are always waiting for your kindly comments. Your suggestions are highly appreciated at econtact@ cnchemicals.com.
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Vol.4 Issue 01 2011
Headlines of Herbicides China News 1101 ■■Top 10 events in Chinese herbicide industry during 2010 are listed in this issue.
■■Fengshan Group constructs two production lines of 5,000t/a trifluralin and 300t/a prodiamine.
■■With hard work and sound regulations, there's no doubt that Chinese herbicide industry is going towards brilliant direction.
■■Dicamba development is driven by GM technology in the world.
■■During the past ten years (2000 - 2010), China has developed 7 herbicides. ■■According to CCM International's survey, herbicide is not popular as expected in Leizhou Peninsula, owing to large planting areas of sugarcane with low profit. ■■Lier Chemical’s acquisition of Jiangsu Kuaida was approved on Dec. 30th 2010. ■■Nantong Jiangshan sold Nantong Jiangtian’s 19.65% share to Nantong Industries. ■■According to one intelligence gained from locally official website of Puyang City, Henan Province, Henan Yingtai is planning a 10,000t/a acetochlor production line.
■■Domestic metolachlor threatens but can’t substitute acetochlor in the short term. ■■Anhui Fengle is constructing a new 300t/a tribenuron-methyl production line with confidence on future market. ■■Hubei Huida has suspended its bispyribac-sodium production for the Chinese Spring Festival in Feb.2011. ■■All metamitron products in China are exported to overseas market by only one domestic manufacturer, Hebei Wanquan. ■■Good Harvest-Weien plans to construct a 10,000t/a 2,4-D production line. ■■The prices of Chinese glyphosate products in 2010 witnessed stagnant situation.
Main companies mentioned in this issue www.cnchemicals.com
Herbicides China News
Vol.4 Issue 01 2011
■■ Overview 2010 top 10 events in Chinese herbicide industry
1
. On 31 January, Chinese government proclaimed 2010 No.1 Document of the Central Committee formally, attaching much importance again to three agricultural issues (agriculture, rural areas and farmers) in China. The document has listed the objects for agricultural development in 2010, including accelerating rural urbanization of counties, increasing agricultural input and subsidies, industrializing GM crops, etc.
No.1 Document is issued by Central Committee of Communist Party of China and the State Council every year, aiming to make guidance on agricultural development, etc. That means more attention to agriculture could indirectly boost Chinese herbicide development in 2010. 2. In Feb. 2010, Zhejiang Wynca Chemical Group Co., Ltd. (Zhejiang Wynca) held the Formal Operation Press Conference for new subsidiary namely Wynca Sunshine Agric Products&Trading Company Limited (Wynca Sunshine) in Kumasi, Ghana, indicating that Zhejiang Wynca started marching into West Africa market.
4. On 22nd June 2010, the Ministry of Finance and State Taxation Administration jointly promulgated The Note about Abolishment of Export Rebate of Some Commodities, showing that the export rebate on some commodities, including steel products, nonferrous metal, silver powder, alcohol and corn flour, pesticide, medicine and chemical products, as well as plastic, rubber and glass products, would be abolished on 15th July 2010.
Wynca Sunshine was registered in Ghana and has two subsidiaries, namely Sunshine Agric Manufacturing in Ghana and Sunshine Agricole in Cote d'lvoire, focusing on the manufacture of farming tools and sales of pesticides. 3. Jiangsu Changqing Agrochemical Co. Ltd. (Jiangsu Changqing) got listed on 16th April 2010. During this IPO, Jiangsu Changqing issued 25 million shares on the base of 73.92 million shares to raise approximately USD180 million. What’s more, the capital raised from the IPO is being invested into the company’s 5 key projects, including three herbicide projects, namely 1,200t/a fomesafen technical project, 300t/a nicosulfuron technical project and 500t/a clethodim technical project.
According to the note, the export rebate on glyphosate techncial products with two ECCN (Export Control Classification Numbers: 29310000411 and 29310000412) would be abolished, indicating that domestic glyphosate industry will suffer more pressure from intense competition in the short term, but will develop toward healthy direction in the future with the government regulation. 5. In Oct. Lianhe Chemical Technology Co., Ltd. (Lianhe Chemical) announced that two IPO projects were launched, namely 2,500t/a halogenated aromatic nitriles project and the construction of research centre for advanced technology, marking Lianhe Chemical’s IPO constructions have been finished completely.
As the leading fomesafen manufacturer with capacity of 1,200t/a in China, Jiangsu Changqing’s competitiveness in herbicide business will be enhanced greatly after these three projects launched. And the construction of these three projects is ongoing at present.
Two months before the two IPO projects are lunched, the company started operating another IPO project normally, 600t/a cyhalofop-butyl project. 6. Jiangsu Huifeng Agrochemical Co., Ltd. (Jiangsu Huifeng) got listed in China’s A -share market on Nov. 9th 2010. With unit price for per share of USD7.3, Jiangsu Huifeng raised approximately USD0.18 billion by issuing 25 million shares this time.
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Herbicides China News
Vol.4 Issue 01 2011
It’s also reportedly said in the prospectus that the capital of USD95 million raised from the IPO would be invested into the company’s 6 key projects. Among them, 3 projects belong to the constructions of technical productions, including 3,000t/a prochloraz technical, 1,000t/a epoxiconazole technical and 10,000t/a bromoxynil octanoate technical. Jiangsu Huifeng, an appointed pesticide producer and founded in 1989, is well-known in home agrochemical market with the globally largest prochloraz capacity of 3,800t/a, and is the No.1 bromoxynil octanoate manufacturer in China meanwhile. In past three years, Jiangsu Huifeng achieved so excellent performance that the company’s net profit witnessed continuous growth year by year. 7. Released by official website, http://www.cninfo.com.cn/, at 6:30 on Dec. 2nd, Nanjing Redsun decided to suspend stock trade from the same day, primarily because China Securities Regulatory Commission (CSRC) will conduct examination for Nanjing Redsun’s assets reorganization recently. After four days, the examination was finished and Nanjing Redsun’s share resumed, signaling that Nanjing Redsun’s reorganization is drawing to an end. According to Nanjing Redsun’s original plan, three brother companies will be integrated into Nanjing Redsun, namely Nanjing Redsun Biochemical Co., Ltd., Anhui Guoxing Biochemical Co., Ltd. and Nanjing Redsun International Trade Co., Ltd. Coupled with share acquirement, three brothers’ assets and Nanjing NFP Group’s some pesticide resource will be injected into Nanjing Redsun.
8. On 19th Sept. 2010, a directory document named Pesticide Industry Policy was formally promulgated by Chinese government. The policy is made to accelerate the reorganization and maintain sustainable development of pesticide industry by relocating into chemical parks, controlling overcapacity, integrating production resource, pushing environmental protection, developing new technology and enhancing the government supervision, etc. In terms of herbicide industry, with achievement of the policy, the recovering pesticide industry will directly drive herbicide industry to boom. 9. At 5:40 a.m. on Dec. 8th, an accidental blast happened in Shandong Zhongshi Chemical Company (Shandong Zhongshi)’s plant located in Yanggu County, Shandong Province. Until about 18 o’ clock on Dec. 9th, the tragic fire was basically put out. It’s reportedly said that seven victims suffered from the accident, and are under stable condition at present. Moreover, the residents around the plant had evacuated to safety zone. With acetochlor capacity of 10,000t/a, Shandong Zhongshi was listed in top 20 amide herbicide manufacturers in China. Hence, negative influence from the fire accident may force local government to reinforce regulation on pesticide production in China. 10. By the end of 2010, it’s reportedly said that EU will not resume anti-dumping tax against Chinese glyphosate in 2011 after the anti-dumping application cancelled by The European Glyphosate Association in Sept. 2010. Before the cancellation, Chinese glyphosate manufacturers had to pay 29.9% anti-dumping tax to EU for Chinese glyphosate technical exported to EU.
Overview of Chinese herbicide industry in 2010
I
n 2010, both Chinese herbicide pursuers and the government made great effort to rescue the stagnant herbicide industry though it didn’t take effect at once. With hard work and sound regulations, there is no doubt that Chinese herbicide industry is going towards brilliant direction.
■■Manufacturers By reviewing Chinese listed agrochemical enterprises’ performance in 2010, it’s not difficult to realize that most of them witnessed poor business performance this year. But a few fortunate Chinese enterprises are patronized by good luck, such as Hebei Veyong Bio-chemical Co., Ltd. (Hebei Veyong).
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With brilliant performance in Q3 2010, Hebei Veyong overturned deficit resulted from weak performance in the first half of 2010. The company’s net profit witnessed sharp growth of about 1,500% year on year to USD1.4 million. Following nice performance in Q3 2010, it is estimated that Hubei Veyong will continue to achieve earning money in Q4 2010, based on the whole recovering pesticide market in China and the company’s sound operation. In fact, no mater how the performance is in 2010, almost all Chinese agrochemical enterprises have make great efforts to shake off the gloom resulted from the financial crisis and tried hard to adapt to the intense 2
environment. Getting listed in capital market, integrations between industrial enterprises, relocations into industrial park and investment into upstream or downstream productions and so forth are underway continuously in 2010. All these actions accord with development trend of Chinese pesticide, implying that these wise enterprises can witness nice prospect in the future, further signaling that the reorganization in Chinese pesticide industry is ongoing quietly. ■■Policies Aiming to accelerate the industrial reorganization, Chinese government also achieved many effective www.cnchemicals.com
Herbicides China News
Among them, the formal issue of Pesticide Industry Policy on 19th Sept. 2010 indicates that Chinese pesticide industry has already started innovation trip. Although the future is unknown at present, the gradually recovering market signals that there is a hopeful prospect. What’s more, external conditions for Chinese herbicide are turning better. Currently, EU decided not to resume anti-dumping tax against Chinese glyphosate. As for glyphosate manufacturers in China, it’s undoubtedly a good news. ■■Price Although many efforts on pesticide were made, on the whole, the prices of herbicide products in China still stayed at low level in 2010 over 2009. As usual, most prices of herbicides in 2010 are subject to the market disciplines, increasing during peak sales season. For example, impacted by severe financial crisis in 2009, the prices of glyphosate, paraquat and acetochlor all witnessed sharp drop during 2009, and the price downturn still continued in 2010. However, with recovery of herbicide industry in China, the prices of these three main herbicides mentioned above rose apparently at the end of 2010. ■■Production & Expansion Compared with that in 2009, the capacity expansion of herbicide production lines in China has slowed down in 2010, threatened by domestic overcapacity and overseas small demand. But Jiangsu, Shandong and Zhejiang are still the main herbicide production areas in China. In terms of herbicide varieties with capacity expansion, small breed herbicides with excellent effect, low CCM International Limited
Figure 1: Price trend of three main herbicides in China, 2009 & 2010 4,000
3,600
Monthly average price: USD/t
regulations in 2010, like the abolishment of glyphosate technical export rebate, price upregulation of some energy such as electricity and natural gas, No.1 Document of the Central Committee inclining on agriculture, etc.
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3,200
2,800
2,400
2,000 Jan. March 2009
May
July
Sept.
95% Glyphosate technical
Nov.
Jan. March 2010
May
42% Paraquat technical
July
Sept.
Nov.
92% Acetochlor technical
Source: CCM International
toxicity, low pollution, etc. grasped lots of Chinese manufacturers’ interest in 2010, such as cyhalofop-butyl, clodinafop-propargyl, glufosinateammonium, clethodim, mesotrione and so on. On the contrary, the capacity expansion of traditional herbicides like glyphosate and paraquat was not achieved too much, though these varieties are still positioned on the top of popular herbicides in China. ■■Consumption & market On the base of stably increasing consumption, the consumption structure of herbicide in China hasn’t greatly changed in 2010. But, abnormal climate in the first half of 2010 led to serious agricultural disasters, which impacted on total demand of herbicide in China. In addition, some governmental policies also impacted on herbicide market in 2010. For instance, the stop production of 10% glyphosate SL from 2010 on is resulted from governmental regulation. In terms of China’s herbicide export, the situation didn’t change too much in 2010, because recovering global market supported herbicide export demand. What’s more, Southeast Asian and America are the main destinations of China’s herbicides, with glyphosate enjoying the largest
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export volume. ■■Registration Chinese government’s strict regulations on glyphosate registration resulted in its declining registration number in 2010. According to the regulation implemented since 2008, large part of temporary pesticide registrations have turned to be more formal; the registration now can only be renewed every five years instead of one year. Thus, the extended renewal time leads to dropping registration number in China directly. Compared with that in 2009, the record high of 299 registrations in 2010 (the number of registrations in Jan. and April) is less than a half of 783 registrations in April 2009. ■■Prospect in 2011 Walking into 2011, Chinese herbicide industry will not only recover further from gloom casted by the financial crisis, but also encounter huger challenges, with pesticide industrial development ongoing in China. Whatever, there are many unknown factors in Chinese herbicide industry, and those manufacturers who desire to pursue more profit in intense competition should continue being careful and working hard to occupy one living place. In addition, it will undoubtedly
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Herbicides China News
Vol.4 Issue 01 2011
take the pesticide industry a long time to achieve the industrial reorganization. Thus, in coming 2011, herbicide even pesticide industry will still creep on the way of reorganization.
China’s seven self-developed herbicides in the past ten years
D
uring the past ten years (2000 - 2010), China has developed 32 pesticides, including seven patent herbicides which has gained registrations. Supported by Chinese government, accumulative sales value of these 32 pesticides exceeded USD0.29 billion.
As for herbicides, seven varieties are included, they are monosulfuran, monosulfuran-ester, pyribambenzpropyl, ZJ0702, H9201, methiopyrsulfuron and HW-02. ■■Monosulfuran & Monosulfuranester Registered by Tianjin Green Agrochemical S&T Co., Ltd. and developed by Nankai University, monosulfuran (PD20070368 for 10% WP, PD20070369 for 90% technical) and monosulfuran-ester (LS20041086 for 10%WP, LS20041087 for 90% technical, both expired) can inhibit ALS enzyme in plant cells to control most annual broadleaf weeds and some annual grassy weeds in wheat field. Comparatively, the activity of monosulfuran-ester is stronger than that of monosulfuran. Generally, 22.5g monosulfuran-ester AI can take nice effect in one hectare field. ■■Pyribambenz-propyl & ZJ0702 Both belonging to miazines herbicides, pyribambenz-propyl and ZJ0702 which could control annual grassy weeds and some broadleaf weeds in rape field were jointly developed by Zhejiang Chemical Industry Research
Table 1: Registration situation of pyribambenz-propyl and ZJ0702, 2011 Registration number LS20042529 LS20031547 LS20031544 LS20031546 LS20042530 LS20031545
Product Pyribambenzpropyl ZJ0702
O
SO2NHCHN
N N
Institute and Chinese Academy of Science. Although both two herbicides acquired registrations in 2003, all have expired. ■■H9201 Generally, H9201 is specially applied to controlling grassy and broadleaf weeds in carrot field. Developed by Nankai University in 2003, H9201 was firstly registered by Nantong Jiangshan Agrochemical& Chemical Co., Ltd. in 2005, namely 20% EC (LS20051935) and 95% technical (LS20051937). But two registrations had expired and new ones haven't achieved yet. ■■Methiopyrsulfuron Belonging to one new sulfonylurea herbicide, methiopyrsulfuron can be applied in wheat field to control dicotyledonous weeds and some monocotyledonous weeds such as barnyard grass. It was developed by Hunan Research Institute of Chemical Industry and registered in 2006 by Hunan Haili Chemical Industry
CH3
COOCH3
N
SO2NHCNH O
monosulfuran
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Company
10% SC 10% EC technical 10% EC 10% SC technical
Shandong Qiaochang Chemical Co., Ltd.
Source: CCM International
Figure 2: Chemical structure of monosulfuran & monosulfuran-ester, 2011
NO2
Content
N
Co., Ltd. (LS20060229 for 10% WP, LS20060244 for 95% technical, both expired). ■■HW-02 Registered as lawn herbicide by Shandong Qiaochang Chemical Co., Ltd. in 2007 (LS20071694 for 30% EC), HW-02 can control dicotyledonous weeds effectively and is safe for grassy plants. Besides the use in lawn field, HW-02 can also be used in fields of rice, wheat and corn. Generally, HW-02 with dosage of 30~40g AI per hectare can take nice effect on weed control. Aiming to drive self-developed pesticides to develop smoothly in China, , Chinese Alliance of Innovative Pesticide Technology was established in April 2010. It’s estimated that more than ten newly developed pesticides will gain registrations in China in the next ten years.
Figure 3: Chemical structure of methiopyrsulfuron, 2011
COOCH3
CH3
N SO2NHCONH
N
SCH3
OMe
monosulfuran-ester
4
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Vol.4 Issue 01 2011
■■ Survey & Interview Brief survey of crop protection in Leizhou Peninsula
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n Dec. 2010, CCM International visited Leizhou Peninsula located in the south of Guangdong Province to inspect the local situation of agriculture and crop protection, finding that sugarcane as a main economic crop in Leizhou Peninsula dominates local agriculture but consumes a relatively small volume of herbicides. So the total consumption volume of herbicides in Leizhou Peninsula is also very small.
Located in South China’s tropical zone, Leizhou Peninsula abounds in tropical economic crops like sugarcane, rubber, sisal, the primary agricultural crops. Especially, the planting areas of sugarcane account for over 70% of the total. The rice and wheat, main crops in China, could be harvested twice or three times in one year in Leizhou Peninsula, but their plant areas are very small. Therefore, general herbicide such as those applied in rice field have only a few consumers in Leizhou Peninsula. Theoretically, non-grain crop herbicides such as sugarcane herbicides could meet nice market in this area. Are non-grain crop herbicides really as popular as estimated in Leizhou Peninsula? With this question, CCM International arrived in Leizhou
Figure 4: MCPA with SPX formulation in package of 15mL, 2010
Source: CCM International
Peninsula on 5th Dec.2010 to collect first-hand information and survey local actual situation of agriculture and crop protection. In this survey, five large state farms which are located in south and north of Leizhou Peninsula are chosen. We found that more tropical crop varieties are planted in lower latitude areas and sugarcane predominates as the largest crop in this area. Surprisingly, herbicide market in Leizhou Peninsula is smaller than other places like North China. Even if sugarcane herbicides includes 2,4-D, atrazine and MCPA which own stable market share in China, on the whole, sugarcane herbicides also witnesses
Figure 5: Pineapple field in south of Leizhou Peninsula, 2010
cool market resulted from low profit in planting sugarcane. According to the workers in the five stare farms we have visited, the price of sugarcane in Leizhou Peninsula is relatively low, floating around RMB300~400/t (USD45~60/t). Thus, application cost of sugarcane herbicides is set intentionally to avoid deficit risk. In addition, althougth large part of farms have achieved the reform to family production responsibility system, the local government’s regulation on planting plan, such as the setting of hard measures, still exist, making annual net profit of contractors so small, which is also responsible for the small consumption volume of herbicides in this area, one officer in one of the five farms indicated. On the whole, with regard to sales situation of herbicides in Leizhou Peninsula, traditional herbicides applied in sugarcane fields like MCPA, atrazine and 2,4-D appear more frequently on the storage rack than glyphosate and paraquat. It’s proved by local farmers that glyphosate is seldom used during their planting. In fact, the price of sugarcane herbicides is at low level. The
Source: CCM International
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Herbicides China News
average price of sugarcane herbicides fluctuates around RMB2~5 (USD0.3~0.8) per packet of 15mL. Taking MCPA as an example, MCPA with SPX formulation in package of 15mL is priced at only RMB2 (USD0.3). In addition, the logo of Shandong Qiaochang Chemical Co., Ltd. can
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be seen frequently on the herbicide packages in Leizhou Peninsula. And the brands of famous companies like Sygenta and Nanjing Redsun Co., Ltd. can also be observed easily. Resulted from different planting structures of crops, pesticide sales structure in the southern area of Leizhou Peninsula is different from
that in the northern area. Because more crop varieties in southern area where banana is largely planted, fungicide is demanded more sharply here than in northern area. By contrary, herbicide is a dominant pesticide category in northern peninsula.
■■ Company Dynamics Lier Chemical purchases Jiangsu Kuaida Figure 6: Lier Chemical's daily stock price trend, 2010 (Dec. 24th - Dec. 30th)
Note: Monetary unit is RMB/share Source: Google.com/finance
O
n Dec. 30th 2010, Lier Chemical Co., Ltd. (Lier Chemical) proclaimed the information on cninfo.com.cn that China Securities Regulatory Commission (CSRC) had approved the acquisition of Jiangsu Kuaida Agrochemical Co., Ltd. (Jiangsu Kuaida)’s over 64 million shares with per share price of USD0.39 since Dec. 28th. It’s the last administrative procedure for the acquisition from Chinese government, indicating that Lier Chemical could complete the
purchase immediately. Although when Lier Chemical will achieve the deal is undercover, Lier Chemical’s share price witnessed sharp soar, stimulated by the good news about the approval from the government. According to Lier Chemical’s share price history on google website, the share price jumped by USD0.13 (RMB0.88) per share from that on Dec 29th to opening price of USD2.72/share (RMB18.00/ share) on Dec. 30th. In the whole day,
Annual performance: million USD
Figure 7: Jiangsu Kuaida’s annual performance, 2007 - 2009 Net profit
100
Revenue
80 60 40 20 0
2007
2008
2009
Source: CCM International
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Lier Chemical’s share price fluctuated on high level and closed on USD2.75/ share (RMB18.21/share) finally. It’s predicted that Lier Chemical’s share price will maintain the uptrend after the acquisition accomplished. As a relatively rapid way for the company’s further development, Lier Chemical’s acquisition of Jiangsu Kuaida will boost Lier Chemical’s competitiveness. Especially, Jiangsu Kuaida’s complementary dominance aroused Lier Chemical’s interest greatly. As mentioned in the purchasing report, Jiangsu Kuaida owns diverse product mix, complete production chain and convenient geo-position. All these advantages are severely necessary for Lier Chemical’s future development. Although Lier Chemical ranks No.2 among global chloropyridine herbicide producers by capacity and owns advanced Cyanopyridine Chloration Technology which can produce most key products of the company, namely clopyralid, picloram and fluroxypyr, www.cnchemicals.com
Herbicides China News
Vol.4 Issue 01 2011
with other domestic agrochemical companies, and the market share of its sulfonylurea herbicide products ranks No.1 in China.
the company’s product structure is still simple. What’s more, Lier Chemical with herbicide export as main business also needs a ready-made sales network in China to explore domestic market.
As phosgene manufacturer approved by Chinese government, Jiangsu Kuaida’s performance witnessed rise gradually, even though it was not as nice as expected in 2009 with a 19.59% drop in net profit year on year, due to the global financial crisis.
At present, Jiangsu Kuaida has more than 60 kinds of pesticide products which almost cover the whole domestic pesticide market with nice reputation. Especially, Jiangsu Kuaida’s herbicide business owns advantages compared
The reorganization course: 1) 2010.3.26 Lier Chemical applied for stock trade suspension for the purchase of Jiangsu Kuaida; 2) 2010.4.1 Lier Chemical’s broad meeting passed the purchasing proposal; 3) 2010.4.21 Jiangsu Kuaida’s broad meeting agreed to the purchase; 4) 2010.4.26 & 2010.6.3 Lier Chemical detailed the plan for the purchase; 5) 2010.6.22 Lier Chemical held general stockholders’ meeting and passed relative purchasing plans; 6) 2010.11.2 The purchase passed the environmental acceptance check from Environmental Protection Department of Jiangsu Province; 7) 2010.12.28 CSRC approved Lier Chemical to purchaseJiangsu Kuaida. (Relative news about Lier Chemical’s acquisition of Jiangsu Kuaida is provided in issue 1005 and 1010 of Herbicides China News)
Nantong Jiangshan sells Nantong Jiangtian’s share
A
fter Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. (Nantong Jiangshan)’s 19.65% holding share towards Nantong Jiangtian Chemicals Co., Ltd. (Nantong Jiangtian) is sold to Nantong Industries Holding Group Co., Ltd. (Nantong Industries), its holding share towards Nantong Jiangtian reduced to 22.23% from original 41.88%.
On Jan. 4th 2011, Nantong Jiangshan issued a bulletin about a deal between Nantong Jiangshan and Nantong Industries. As written in the bulletin, Nantong Jiangshan’s broad of directors had agreed to sell 19.65% holding share of Nantong Jiangtian to Nantong Industries. As Nantong Jiangshan’s second share holder with holding proportion of 28.45%, Nantong Industries spent approximately USD4.4 million finishing the deal. It’s investigated by CCM International that Nantong Jiangtian is a chemical intermediate manufacturer primarily engaged in production and sales of formaldehyde, paraformaldehyde CCM International Limited
Figure 8: Share structure of Nantong Jiangshan, Nantong Jiangtian and Nantong Industries, 2011
Nantong Industries Holding Group Co., Ltd. 28.45%
Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. 22.23%
Nantong Jiangtian Chemicals Co., Ltd.
19.65%
Source: CCM International
and methyl chloride. As one of Nantong Jiangtian’s founders, Nantong Jiangshan can gain relatively stable material supply, especially paraformaldehyde from Nantong Jiangtian. Ranking No.2 among Chinese glyphosate manufacturers with technical capacity of 70,000t/a, Nantong Jiangshan mainly adopts AEA route technology to run 30,000t/a technical capacity. As main material in AEA route production, the paraformaldehyde produced by Nantong Jiangtian is mainly supplied
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to Nantong Jiangshan. However, in the past one and a half years, Nantong Jiangshan’s performance didn’t show a sense of optimism. Only in the first half of 2010, the company experienced large deficit, with total revenue and net profit dropping by 10.4% and 490.7% year on year to approximately USD161 million and USD-0.81 million respectively. Although the global economy has been gradually recovering after 2009, Nantong Jiangshan’s weak business
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performance is estimated to continue in the second half of 2010. One possible reason why Nantong Jiangsu sold some Nantong Jiangtian’s share is that it wants to alleviate its deficit. But this conjecture hasn't been confirmed by
Nantong Jiangshan. Nantong Industries, a state-owned investment company, focuses on investment business covering chemicals, spinning, light industry, pharmaceuticals, machinery, etc.
Henan Yingtai constructs acetochlor quietly
O
ne latest intelligence shows that Henan Yingtai Chemical & Industry Co., Ltd. (Henan Yingtai)'s 10,000t/a acetochlor technical production line is on the agenda.
CCM International gained the intelligence about 10,000t/a acetochlor production line on the local official website of Puyang City, Henan Province, as all the constructions in 2010 are listed by local government on that wetsite. And according to the latest report on Dec. 15th 2010, all workshops and some assorted facilities are being constructed, implying that main construction of Henan Yingtai’s acetochlor production line has not been established. But CCM International’s further investigation into Henan Yingtai’s acetochlor production line was rejected due to secrecy obligation. "I don’t know anything about the 10,000t/a acetochlor production line." Said several insiders of Henan Yingtai. Some relative reports also released that Henan Yingtai is undergoing this acetochlor production line. And it’s estimated that the main acetochlor production line could be launched in the first quarter of 2011. ‘Actually, Henan Yingtai has no acetochlor products at present.’ A saleswoman of Henan Yingtai released honestly. However, on the base of CCM International's investigation, it could be confirmed that this production line is under construction now.
As to Henan Yingtai’s other products, Henan Yingtai is engaged in production and sales of aniline chemicals primarily. If 10,000t/a acetochlor production line is launched, acetochlor product will be the first pesticide of Henan Yingtai. Meanwhile, Henan Yingtai will also be in the leading rank of acetochlor manufacturers in China with the planned 10,000t/a production line. Currently, over five acetochlor manufacturers' capacities succeed 10,000t/a in China. As the most popular herbicide in the world, acetochlor has grasped largest market share among selective herbicides applied in China in the past many years. Thanks to its wide weed control spectrum and low application cost, acetochlor is usually used for pre-emergent control of annual weeds and some broadleaf weeds in the fields of rice, corn, cotton, peanut, soybean, etc. And the peasants use acetochlor to mix with herbicides efficient in broadleaf weed control, such as bensulfuron-methyl and prometryn. With depressed herbicide market caused by the financial crisis, acetochlor, like popular herbicides such as glyphosate, also experienced a hard period in 2010. The average price of acetochlor, which fluctuated around USD2,789/t, is still lower than the price level in 2008 (Herbicide China News 1008: Low acetochlor price to continue).
Fengshan Group consolidates leading trifluralin position
I
n a bid to share a slice of cake from Chinese herbicide industry, Fengshan Group also joins into the group who usually expand their dominant production to consolidate competitiveness. As No.1 trifluralin manufacturer with capacity of 3,000t/a in China, Fengshan Group is constructing another new trifluralin production line with capacity of 5,000t/a now.
Prodiamine, one of dinitroaniline herbicides including trifluralin, is also
CCM International Limited
being pursued by Fengshan Group at the same time. According to Fengshan Group’s EIA announcement on Nov. 24th 2010, Fengshan Group plans to launch these two production lines of 5,000t/a trifluralin and 300t/a prodiamine in Dafeng Port Economic Zone. According to its original plan the two production lines with investment of USD7.5 million are expected to be launched in H2 2011. "But there are still too much works because the whole 8
project was set out not long before." Said Mr. Hu who is in charge of the project from Fengshan Group. And he explained that the EIA application has not been approved by local government and the whole project is under civil construction currently. After trifluralin production line launched, Fengshan Group’s trifluralin capacity will reach 8,000t/a and keep top position in China. And the prodiamine production can make use of trifluralin production line as the www.cnchemicals.com
Herbicides China News
Vol.4 Issue 01 2011
production technology of prodiamine is similar to that trifluralin production. In fact, two production lines were arranged to be launched around the period when Chinese herbicide market booms again in 2011, which means that it is possible for Fengshan Group to enjoy the recovering global environment in the future with dominant business. Primarily exported to overseas market, trifluralin technical (grade: 96%) was firstly introduced into China by Sipcam S.p.a, Italy, in 1987. As of Jan. 2011, Fengshan has achieved two
trifluralin registrations, namely 96% technical (PD20050165) and 48% EC (PD20060091). On the whole, total 142 trifluralin registrations are achieved by 68 manufacturers in China.
Group, current price of trifluralin technical floats around USD4,600/t. And CCM International thinks that friendly price of trifluralin will make it enjoy nice market in the future.
Generally, trifluralin is mainly used for selectively pre-emergence control of annual grassy weeds and some broadleaf weeds in fields of soybean, cotton, rape and so forth. In China, trifluralin is mainly used to control weeds in cotton fields with average AI dosage of 1000g per hectare.
Located in Dafeng City of Jiangsu, Fengshan Group is a top pesticide producer in China and is engaged in research, production and marketing of agrochemical products. With pesticide technical capacity of 30,000t/a, Fengshan Group’s herbicides products include trifluralin, nicosulfuron, quizalofop-P-ethyl, etc.
According to a salesman of Fengshan
■■ Market Analysis Dicamba attracts pursuers’ interest
W
ith dicamba-tolerant crops pushed by global top agrochemical companies such as Monsanto and BASF, dicamba draws more pursuers' attention in global GM innovation wave.
‘Several projects across platforms and crops designed to improve farmers’ on-farm productivity and profitability advanced phases today as part of Monsanto Company’s (NYSE: MON) annual pipeline update. The company highlighted, in particular, key projects in its yield and stress pipeline collaboration with Germany-based BASF Plant Science, which last year was expanded to include wheat. Yield and stress projects advancing phases this year include Nitrogen-Utilization Corn, Second-Generation Higher-Yielding Soybeans and Higher-Yielding/Stress Tolerant Wheat.’ One news about Monsanto’s dynamics was reported by MultiVu on Jan. 6th 2011. And some words about Stress Tolerant drew CCM International’s attention. As mentioned in the news, the Monsanto and BASF collaboration had developed several stress tolerant crops during former cooperation, namely glyphosate/dicamba-tolerant crops. CCM International Limited
Although dicamba didn’t witness golden period in the past years like glyphosate in 2008, dicamba-tolerant crops are developed one by one in the world, making global limelight focus on dicamba gradually. It’s reasonable to think that dicamba may be the second glyphosate in the future. But, actually, dicamba is not well developing in domestic market. More expensive than general wheat herbicides, dicamba is primarily exported to overseas market. Only in H1 2010, over 30% of annual full-load output was exported with average price of USD12,000t/a. Generally speaking, peak export season of dicamba is from Oct. to next March in China. And Chinese dicamba manufacturers don't stop production in the whole year except June and July, the time for inspection and maintenance.
What’s more, Jiangsu Shenghua had suspended dicamba production due to complex factors including pollution problem (Herbicide China News 1012: Jiangsu Shenghua suspends dicamba plant). It means that dicamba output in China reduces further and dicamba pursuers with stronger competitiveness can take a larger market share. Although it’s not sure whether dicamba-tolerant crops could be approved to enter China, dicambatolerant crops developed by GM technology will drive dicamba to flourish further all over the world. In addition, coupled with technology innovation, it’s hopeful to lower unfriendly price of dicamba in China.
With high technology barriers, dicamba also faces stricter requirement on environmental protection in China, so only three dicamba technical manufacturers exist in China at present, namely Zhejiang Shenghua Biok Biology Co., Ltd., Youth Chemical Co., Ltd. and Jiangsu Shenghua Pesticide Co., Ltd. (Jiangsu Shenghua) with total capacity of 3,500t/a. 9
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Herbicides China News
Vol.4 Issue 01 2011
Metolachlor threatens acetochlor in China
A
s a small breed amide herbicide in China, metolachlor owns predominant advantages over acetochlor and may substitute acetochlor in the future. But acetochlor will still dominate domestic market in the short term with huge market share of about 10%.
With the pesticide industry taking steps toward environmentally friendly development, acetochlor, the most popular amide herbicide in China, is encountering large challenge from other competitors and stricter requirements on environmental protection after it has been applied for about 30 years. As one competitor of acetochlor, metolachlor is easily listed into potential substitute with higher safety and weaker resistance. Metolachlor, an amide herbicide which is primarily applied to controlling annual gramineae weeds in fields of soybean, corn, peanut, maize and paddy, ranks No. 4 among popular amide herbicides all over the world. Firstly registered by Syngenta Corporation in 1988 as metolachlor 72% EC with the trade name of Dual, metolachlor attracted domestic agrochemical pursuers’ interest gradually in subsequent twenty years. In 1998, Hangzhou Qingfeng Agrochemical Co., Ltd. (Zhejiang
Table 2: Application dosage of metolachlor and acetochlor on soybean and corn, 2010 Crop field
metolachlor 72% EC (g/ha. AI)
acetochlor 90% EC (g/ha. AI)
Soybean
5~9
3.5~4.4
Corn
6~12
6~7.2
Source: CCM International
Qingfeng) registered metolachlor technical firstly in China. At present, over 10 technical manufacturers is actively producing metolachlor in China with total capacity of more than 20,000t/a. According to the authoritative statistics, in China, metolachlor achieved sales value of USD5 million in 2009 with market share of 0.4%. Comparatively, the application dosage of metolachlor and acetochlor is almost the same but control spectrums are different. Apparently, metolachlor could control more varieties of weeds. What's more, relative research indicates that metolachlor is safer and more environmentally friendly than acetochlor with the same dosage. A research about soil adsorbability releases that the residue of acetochlor resided is more easily left in soil than that of metolachlor.
Monthly average price: USD/t
Figure 9: Price trend of acetochlor and metolachlor in China, 2010 4,000 3,800
Compared with consumption volume and period of acetochlor applied in China, less metolachlor is used by Chinese peasants. It means that greater weed resistance to acetochlor makes it less effective than metolachlor. In addition, having been applied for a long time, the residual problem of acetochlor is severer than that of metolachlor, inhibiting acetochlor's development in domestic market. Although acetochlor is being threatened by many competitors including metolachlor in China, its stable consumption groups and low price promise will guarantee its position of top popular amide herbicide in the long term. Compared with metolachlor average price of USD3,800/t, acetochlor is cheaper, with the price fluctuating around USD2,800/t in 2010. As for lots of consumers in China, acetochlor with similar effect and lower price is more adaptable, though its environmental pollution is higher and phytotoxicity is greater. On the whole, acetochlor is facing greater challenge from metolachlor, but it still take metolachlor a long time to be a substitute of acetochlor completely.
3,600 3,400 3,200 3,000 2,800 2,600 Jan.
Feb.
March
April
Acetochlor (92%)
May
June
July
Aug.
Sept.
Oct.
Nov.
Dec.
Metolachlor (97%)
Source: CCM International
CCM International Limited
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Herbicides China News
Vol.4 Issue 01 2011
■■ Supply & Demand Anhui Fengle expands tribenuron-methyl production
A
nhuiFengle Agrochemical Co., Ltd. (Anhui Fengle), the subsidiary of Fengle Seed Co., Ltd, is expanding tribenuron-methyl production currently by constructing a new 300t/a technical production line. Although the 300t/a tribenuronmethyl production line is still under construction at present, Anhui Fengle is confident in the future sales of tribenuron-methyl products.
"Tribenuron-methyl is Anhui Fengle’s prime product," Sales Manager surnamed Lin introduced, "and we own export qualification of tribenuronmethyl." According to the introduction, Anhui Fengle’s tribenuron-methyl is usually exported to Europe rather than South Asia. Because tribenuron-methyl is generally applied in wheat field to control annual and perennial broadleaf weeds, domestic sales of Anhui Fengle’s tribenuron-methyl is concentrated in North China. Although the company’s tribenuronmethyl output is only 250t/a in 2009, a half of its total capacity, resulted from the financial crisis, Anhui Fengle is so optimistic about future market of tribenuron-methyl that it is
implementing the 300t/a expanding plan.
is to trial the new production line with small output in May 2011.
Having been applied for years in China, tribenuron-methyl's advantages are expected by most of industrial experts and pursuers. Tribenuronmethyl is not only safe but also very active to succeeded crops like cotton, soybean, corn, etc. Generally, only 10~20 gram tribenuron-methyl can take effect on controlling weeds in one hectare field.
On Dec. 17th 2010, one EIA announcement about Anhui Fengle’s 300t/a tribenuron-methyl production line was issued on official website of Hefei Environmental Protection Bureau. As written in the bulletin, the new production line is located in Hefei Circular Economy Park with total investment of USD3 million.
As of Jan. 2011, there are 233 active tribenuron-methyl registrations in China. Among them, the number of technical registrations exceeds 20. With herbicide industry in China recovering completely and developing further in 2011, tribenuron market will witness nice prospect. Meanwhile, Anhui Fengle could grasp the chance with tribenuron-methyl capacity of 800t/a after present 300t/a expanding capacity launched. But it needs some time to finish the construction of new production line. According to one insider of Anhui Fengle, EIA of the production line was just approved recently and next step
Up to now, Anhui Fengle has achieved three tribenuronmethyl registrations including 92% technical (PD20070552), 75% WG (PD20070642) and 10% WP (PD20081290). What’s more, tribenuron-methyl 10% WP is well sold in home market and 92% technical is quoted at USD22,000/t by Anhui Fengle. Anhui Fengle is a subsidiary of listed Hefei Fengle Seed Co., Ltd., which is mainly engaged in crop seeds and agrochemical businesses. And Anhui Fengle’s agro-chemical products are the second largest business of Fengle Seed.
Hubei Huida suspends bispyribac-sodium production
H
ubei Huida Technology Development Company (Hubei Huida)’s 200t/a bispyribacsodiumproduction line has suspended operation recently even though it has been launched for only several months. It's estimated that the production will be resumed after Chinese Spring Festival in Feb.2011, the most important traditional festival in China, and till then large-scale production will be achieved instead of the small output before. According to CCM International’s investigation, Hubei Huida has no bispyribac-sodium in stock at present. And Hubei Huaida's suspension of bispyribac-sodium CCM International Limited
production is confirmed by Beijing Insight Finechem Co., Ltd. (Beijing IFC), the parent company of Hubei Huida. "The bispyribac-sodium production line will not be resumed until Chinese Spring Festival,"said the Sales Manager surnamed Guo of Beijing IFC, "and bispyribac-sodium 95% technical is the main variety produced by this 200t/a product line." Of course some formulation products will also be produced to meet customers' demand. But Manager Guo refused to disclose the prices of bispyribac-sodium 11
products because it has no inventory. As introduced by Manager Guo, the output of this bispyribac-sodium production line was still small though the 200t/a production line had been launched for several months. After Chinese Spring Festival, Hubei Huida will heighten operating rate of the bispyribac-sodium production line as planned. Although Manager Guo didn't explain, it could be concluded that the reason why Hubei Huida adapted low operating rate after the production line launched is that Hubei Huida takes a cautious attitude towards bispyribac-sodium. www.cnchemicals.com
Herbicides China News
Vol.4 Issue 01 2011
Actually, it's the first time for Hubei Huida to produce bispyribac-sodium. Hence, it produces bispyribac-sodium with caution and plans to export its bispyribac-sodium for overseas mature market.
and it’s also believed to have promising market in the future. Up to now, only three companies have achieved bispyribac-sodium technical registration in China, not including Hubei Huida. (Please review Herbicides China News 1010)
As for domestic agrochemical market, bispyribac-sodium developed by Kumiai Chemical Industry Co., Ltd. is considered to be a new herbicide
Absorbed by leaves or roots of plants, bispyribac-sodium has excellent effect on controlling grasses, sedge and broad-leaved weeds, especially
barnyard grass. It’s reported that barnyard grass in the first to seventh growth period could be controlled effectively by bispyribac-sodium with dosage of only 15 ~ 45g per hectare. Hubei Huida, located in Jianglin County, Jingzhou City, Hubei Province, is a chemical manufacturer mainly engaged in production of herbicide and plant growth regulator.
All self-produced metamitron are exported in China
"W
e just accept foreign orders." Said one salesman of Hebei Wanquan Hongyu Chemical Co., Ltd. (Hubei Wanquan), the only one metamitron manufacturer in China now with capacity of 1,500t/a. According to the salesman's introduction, all Hebei Wanquan’s metamitron products are exported to West Europe, North America and North Africa.
Table 3: Registration of metamitron in China, as of Jan. 2011 Registration number
Content
Expiration time
LS20080072
70% WG
2012.01.04
LS20080074
98% technical
2012.01.04
LS20091019
98% technical
2011.04.13
Manufacturer Hebei Wanquan Hongyu Chemical Co., Ltd. Hebei Wanquan Hongyu Chemical Co., Ltd. Rosi Chemical Co., Ltd.
Source: CCM International
By looking up metamitron registration record in China, CCM International found that Rosi Chemical Co., Ltd. (Rosi Chemical) also has achieved metamitron registration. But, in fact, Rosi Chemical hasn’t begun to produce metamitron. "Rosi Chemical has developed metamitron production technology not long before," one insider of Rosi Chemical explained, " it still needs some time to start formal metamitron production with large output." It means that metamitron market in domestic market is still blank at present. Although CCM International tried to find the reason why Hebei Wanquan’s metamitron is only for export, Hebei Wanquan refused to answer our confusion due to secrecy obligation.
CCM International Limited
"We have regular clients purchasing metamitron products." The salesman of Hebei Wanquan told us. It’s revealed that Hebei Wanquan’s metamitron products are more popular in overseas market, thus, the orders have been booked till 2011 Chinese Spring Festival. Generally, Hebei Wanquan’s annual output could exceed 1,000t/a. In terms of Rosi Chemical’s metamitron, it is likely to be sold in domestic market in the future. But relative information involving certain production line was unknown at present.
by plant roots and is usually applied to pre- and post-emergent control of weeds in sugar beet field throughout the growing period of weeds with high activity, low toxicity and low residue. Hebei Wanquan, founded in 1997, is a private company who is mainly engaged in production and sales of metamitron and clethodim. As a export-oriented enterprise, Hebei Wanquan’s clients centralize in Europe, America, Southeast Asia, etc.
Figure 10: Chemical structure of metamitron
Belonging to triazine herbicides, metamitron is developed by Bayer CropScience LLC. in 1975. As an inhibitor in photosynthesis process, metamitron can be easily absorbed
12
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Herbicides China News
Vol.4 Issue 01 2011
Good Harvest-Weien to pursue 2,4-D
R
ecently, Jiangsu Good HarvestWeien Agro Chemical Co., Ltd. (Good Harvest-Weien) starts to pursue 2,4-D by constructing a 10,000t/a 2,4-D production line. Although the 2,4-D production line has not been installed, Good HarvestWeien’s behavior implies domestic agrochemical manufacturers’ increasing attention to 2,4-D.
On Dec. 3rd 2010, one EIA bulletin about Good Harvest-Weien’s 2,4-D production line was issued on Nantong Environmental Protection Bureau’s official website, indicating that the construction gained local government’s agreement to be initiated. Accompany with 2,4-D production line, 500t/a MCPA production line will also be set out meanwhile. According to the bulletin, these two production lines will be invested with USD10.9 million totally. Located in Good Harvest-Weien’s current address, Bingjiang Fine Chemical Park, Qidong City in Jiangsu Province, and the 10,000t/a 2,4-D production
will take use of existing assorted facilities, such as waste treatment.
in recent years, including glyphosate, dicamba, 2,4-D.
Now the whole construction still stay in primary phase so that Good Harvest-Weien has no 2,4-D products yet. Actually, it’s the first time for Good Harvest-Weien to explore 2,4-D business. After formal production achieved, Good HarvestWeien’s 2,4-D business will be centralized in domestic market at first.
Partially pushed by Monsanto’s glyphosate-tolerant crops, glyphosate witnessed a flourish period in 2008. Similar to glyphosate, 2,4-D may meet a booming market after Dow’s 2,4-D-tolerant crops popularized gradually, though GM crops have not been accepted completely by most countries in the world now.
Even though Good Harvest-Weien will not make great efforts to explore overseas 2,4-D market in the short term, the construction reflects the company’s ambition to pursue this hot product.
Hence, 2,4-D is drawing global agrochemical manufacturers' attention . As a domestic herbicide pursuer, Good Harvest-Weien’s construction is in the contemplation.
The fast development of 2,4-D-tolertant crops has been raising overseas 2,4-D manufacturers' enthusiasm. Accompany with global developing trend of herbicide industry, domestic agrochemical manufacturers have also begun to pursue some herbicides related to GM technology
Good Harvest-Weien, located in Qidong City, Jiangsu Province, is a joint stock company engaged in the production and sales of insecticides and herbicides. And herbicides produced in Good Harvest include glyphosate, phenmedipham and desmedipham.
■■ Price Analysis - Price Review Monthly market prices of main crops in China, Jan. 2011 Jan. 11 Crop
USD/t
Dec. 10
RMB/t
USD/t
Jan. 10
RMB/t
USD/t
2009
RMB/t
Planting area (103 ha.)
Chinese output (103 tonnes)
Indica rice
349
2,301
480
3,200
409
2,793
29,680
195,800
Japonica rice
423
2,794
581
3,870
504
3,440
-
-
Wheat
316
2,084
307
2,045
295
2,018
24,210
114,950
Rapeseed
591
3,900
591
3,941
603
4,120
7,200
13,500
Corn
297
1,962
291
1,940
260
1,776
30,460
163,000
Soybean (oil)
561
3,700
603
4,020
540
3,690
8,800
14,500
Soybean (food)
606
4,000
653
4,350
586
4,000
-
-
1,227
8,100
1,126
7,500
1,245
8,500
4,233
13,607
308
2,030
339
2,260
310
2,120
1,016
3,640
Peanut Broomcorn Source: CCM International
CCM International Limited
13
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Herbicides China News
Vol.4 Issue 01 2011
Monthly ex-factory prices of key raw materials, Jan. 2011 Raw material/intermediates Phosphorus trichloride (99%)
Jan. 11 USD/t
Dec. 10
RMB/t
USD/t
Jan. 10
RMB/t
USD/t
RMB/t
788
5,200
870
5,800
857
5,850
Glycine (98%)
1,894
12,500
1,951
13,000
1,757
12,000
Iminodiacetonitrile (92%)
1,667
11,000
1,876
12,500
1,831
12,500
Chloroacetic chloride (99%)
1,106
7,300
1,246
8,300
1,245
8,500
Pyridine (99.9%)
4,546
30,000
4,502
30,000
4,613
31,500
Cyanuric chloride (> 99.3%)
1,667
11,000
1,876
12,500
1,933
13,200
Paraformaldehyde (95%)
727
4,800
-
-
-
-
Dimethylamine (40%)
576
3,800
-
-
-
-
Isopropylamine (99%)
2,030
13,400
-
-
-
-
Source: CCM International
Monthly ex-factory prices of main herbicides, Jan. 2011 Technical
Jan. 11 USD/t
Dec. 10
RMB/t
USD/t
Jan. 10
RMB/t
USD/t
RMB/t
Glyphosate (95%)
3,437
22,680
3,479
23,180
3,615
24,680
Paraquat (42%)
2,300
15,180
2,203
14,680
2,223
15,180
Acetochlor (92%)
2,906
19,180
2,849
18,980
2,780
18,980
Atrazine (97%)
2,830
18,680
3,029
20,180
2,956
20,180
Tribenuron- methyl (95%)
17,377
114,680
18,712
124,680
18,260
124,680
Metolachlor (97%)
4,118
27,180
3,854
25,680
3,761
25,680
Butachlor (92%)
3,361
22,180
3,329
22,180
3,029
20,680
Pendimethalin (95%)
7,528
49,680
7,606
50,680
7,276
49,680
Trifluralin (95%)
4,952
32,680
3,854
25,680
3,541
24,180
Quizalofop- P-ethyl (95%)
24,195
159,680
23,965
159,680
22,361
152,680
Fenoxaprop- P-ethyl (95%)
33,286
219,680
32,970
219,680
30,709
209,680
Oxyfluorfen (97%)
19,346
127,680
19,163
127,680
18,993
129,680
Nicosulfuron (95%)
31,771
209,680
-
-
-
-
Bensulfuron-methyl (96%)
20,862
137,680
-
-
-
-
Fluroxypyr (96%)
22,680
149,680
-
-
-
-
Clomazone (95%)
15,407
101,680
-
-
-
-
Fomesafen (95%)
14,346
94,680
-
-
-
-
Source: CCM International
CCM International Limited
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Herbicides China News
Vol.4 Issue 01 2011
Monthly Shanghai port prices and FOB Shanghai of main herbicides, Jan. 2011 Shanghai Port Price Jan. 11
Technical
USD/t
FOB (Shanghai)
Dec. 10
RMB/t
USD/t
Jan. 10
RMB/t
USD/t
RMB/t
Jan. 11
Dec. 10
USD/t
USD/t
Glyphosate (95%)
3,485
23,000
3,527
23,500
3,661
25,000
3,573
3,617
Paraquat (42%)
2,349
15,500
2,251
15,000
2,270
15,500
2,392
2,296
Acetochlor (92%)
2,955
19,500
2,897
19,300
2,827
19,300
2,983
2,925
Atrazine (97%)
2,879
19,000
3,077
20,500
3,002
20,500
2,909
3,101
17,425
115,000
18,760
125,000
18,307
125,000
17,100
18,402
Metolachlor (97%)
4,167
27,500
3,902
26,000
3,808
26,000
4,166
3,906
Butachlor (92%)
3,409
22,500
3,377
22,500
3,076
21,000
3,426
3,394
Pendimethalin (95%)
7,576
50,000
7,654
51,000
7,323
50,000
7,492
7,567
Trifluralin (95%)
5,000
33,000
3,902
26,000
3,588
24,500
4,979
3,906
Quizalofop- P-ethyl (95%)
24,244
160,000
24,013
160,000
22,408
153,000
23,752
23,526
Fenoxaprop- P-ethyl (95%)
33,335
220,000
33,018
220,000
30,756
210,000
32,621
32,311
Oxyfluorfen (97%)
19,395
128,000
19,211
128,000
19,040
130,000
19,022
18,841
Nicosulfuron (95%)
31,820
210,000
-
-
-
-
31,143
-
Bensulfuron-methyl (96%)
20,910
138,000
-
-
-
-
20,500
-
Fluroxypyr (96%)
22,728
150,000
-
-
-
-
22,274
-
Clomazone (95%)
15,455
102,000
-
-
-
-
15,178
-
Fomesafen (95%)
14,395
95,000
-
-
-
-
14,143
-
Tribenuron- methyl (95%)
Note: Shanghai port price = ex-factory price plus transport fee from production plant to Shanghai port Shanghai FOB price = port price + handling and THC + trading companies' profit – export rebate Source: CCM International
- Pricing Overview of Chinese glyphosate price in 2010 imilar to that in 2009, the prices of Chinese glyphosate products in 2010 also witnessed stagnant situation. However, with global economy recovering gradually, glyphosate prices witnessed slight increase at the end of 2010.
As usual, the whole situation of glyphosate prices didn’t change too much in 2010. With one drop during Jan. to May and one rise during June to Dec. respectively, average prices of glyphosate products still kept at a low level. Take glyphosate technical for example, top price in Jan. 2010 reached only USD3,660/t, just USD199/t over the valley price in Dec. 2008.
Figure 11: Ex-factory price trend of glyphosate products in China, 2010 4,000 3,500 Monthly average price: USD/t
S
3,000 2,500 2,000 1,500 1,000 500 0 Jan.
Feb.
10% SL
March
April
May
41% IPA
June
62% IPA
July
Aug. 50% WP
Sept.
Oct. 75.7%WP
Nov.
Dec. Tech.
Source: CCM International
CCM International Limited
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Herbicides China News
Vol.4 Issue 01 2011
What’s more, the changes in prices of glyphosate products in 2010 are still caused by supply/demand relationship primarily. Due to alleviation supply of energy and material, glyphosate prices witnessed continual drop after winter. And glyphosate technical price didn’t decrease to valley of USD2,828/t until May 2010.
rebound.
future.
Little different from other varieties of glyphosate products, glyphosate 10% SL price has been increasing slightly in 2010, with the increase floating in the range of USD500/t. In Dec. 2010, the price of glyphosate10% SL approached top of USD670/t.
Compared with that of glyphosate 10% SL, the price of glyphosate 41% IPA is higher. In 2010, the average price of glyphosate 41% IPA fluctuated around USD1,700/t.
Thanks to the peak selling season (Feb. - May) and coming winter, coupled with the whole recovering environment, glyphosate prices started to rebound after the valley price. Actually, global pesticide market began meeting recovery in 2010. The gradually increasing overseas demand, the abolishment of glyphosate export rebate and rising prices of materials also drove glyphosate prices to
In addition, according to Chinese government's regulation considering pollution problem, that is, glyphosate 10% SL pollute environment more serious than glyphosate 41% IPA, and glyphosate 10% SL will be prohibited to produce in China's herbicide market from Jan. 2011. Hence, glyphosate 41% IPA might substitute glyphosate 10% SL to be the Chinese popular formulation of glyphosate in the
Although domestic glyphosate overcapacity still exists at present, the whole recovering environment, increasing material price and swelling overseas demand are driving glyphosate prices to recover from gloom casted by the financial crisis in 2009. Thus, it’s predicted that the price level of glyphosate in 2011 will be higher than that in 2010.
■■ News in Brief Chinese herbicide technical output increases in Nov. 2010
C
urrent statistics indicate that domestic herbicide technical output in Nov. 2010 increased by 20.9% year on year to 99,000 tonnes, accumulatively reaching 0.99 million tonnes in 2010.
UN not to ask anti-dumping tax against Chinese glyphosate in 2011
E
U will not resume anti-dumping tax against Chinese glyphosate in 2011 after the anti-dumping application cancelled by the European Glyphosate Association in Sept. 2010. Before the cancellation, Chinese glyphosate manufacturers had to pay 29.9% anti-dumping tax to EU for Chinese glyphosate exported to EU.
Fujian Sannong’s relocation
O
n Nov. 4th 2010, Fujian Sannong Group Co., Ltd. issued a bulletin that the company had gained partial compensation of about USD49 million from local government due to the whole relocation into Huangsha Chemical Industry Park in Sanming City. According to the bulletin, the whole relocation will be finished at the beginning of 2011.
CCM International Limited
New herbicide products in 2011
I
t's reported from Agrow that ten new herbicide products are expected in 2011, they are listed as below:
1. Callisto Xtra® (Mixed formulation including mesotrione and atrazine) from Syngenta, applied in corn field; 2. Peak® (Prosulfuron mainly) from Syngenta, corn field; 3. TripleFlex® (Acetochlor, flumetsulam, and clopyralid) from Monsanto, corn field; 4. Warrant® (Acetochlor) from Monsanto, soybean and corn; 5. Kixor® (Pyribenzoxim mainly) from BASF, corn, soybean and wheat; 6. TripleFlex® (Acetochlor, flumetsulam, and clopyralid) from Monsanto, corn field; 7. Cleansweep D® & Cleansweep M® (Buctril and 2,4-D & Starane and 2,4-D) from Nufarm, wheat; 8. Huskie® (Buctril and pyrasulfotole) from Bayer, wheat; 9. PowerFlex® (Pyroxsulam mainly) from Dow, wheat; 10. Pulsar® (Fluroxypyr and dicamba) from Syngenta, wheat.
Chinachem to purchase MA Industries
A
ccording to MA Industry's official report, Chinachem and Koor Industries, parent company of MA Industries, the leading generic pesticide company in the world, reached agreement that Chinachem would purchase 60% share of MA Industries with projected capital of USD1.44 billion. The formal contract was planned to be finished in H1 2011.
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Journalist: Bobby Liu Editor: Micheal Li Editor in Chief: Ann Liang Publisher: Zhonghui Wu
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