The Future of Glyphosate Industry in China by Guangzhou CCM Information Science & Technology Co., Ltd.

CCM Data & Primary Intelligence The Future of Glyphosate Industry in China The Fifth Edition

Researched & Prepared by:

Guangzhou CCM Information Science and Technology Co., Ltd Guangzhou, P. R. China

Jun 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: Glyphosate, a broad-spectrum herbicide, widely used to kill unwanted plants both in agriculture and in nonagricultural landscapes, 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 15%. 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. However, will China maintain its dominance in the glyphosate supply in the world? Will the export of Chinese glyphosate keep growing since it has already constituted over 70% of China’s total output? What will be the major factors influencing China’s export and towards what direction will they drive China’s glyphosate export? This report will answer all these questions. At present, China's glyphosate has been characterized for the following features, soaring glyphosate price, and huge profit in China's glyphosate producers, exploding capacity driven by these two factors mentioned above, changing technology landscape in China's glyphosate production etc. 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. What has caused the price hike? How does it influence domestic glyphosate production and the export? What are the comments from Chinese producers, traders, experts and raw material suppliers on this situation and how will they react to this price hike? When will the turning point be? CCM will provide an in-depth analysis in this report. Driven by the huge profits and increasing demand, many Chinese manufactures are expanding, launching or desiring to launch new glyphosate projects. It could be foreseen that production capacity of glyphosate in China will have a sharp rise in the next 2 years. The competition among Chinese glyphosate manufactures in China will become intense. Moreover, with the development of oversea producers, the competitions among countries will be fierce also. China is raising environmental threshold and environmental protection cost is increasing accordingly. So small-scale glyphosate production lines will be shut down. What is the future of glyphosate production in China? What's the competitiveness and competitive strategies of China's glyphosate in the future? With the price soaring of non-renewable resources and development of other herbicide or weed-control technology, in the far future, would glyphosate production centre shift away from China, or will the life cycle of glyphosate come to an end? In China, there are three pathways for glyphosate production including glycine route, IDAN route and DEA route. With sufficient supply of glycine and steady production, glyphosate production with glycine route, the route used in China only among all the glyphosate production countries, confronts almost no bottlenecks, except that it causes more water pollution than that by the other routes, and that the Website: http://www.cnchemicals.com Tel: +86-20-3761 6606

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CCM Data & Primary Intelligence production cost is also much higher than the other routes. Judged from the pollution and production cost, glyphosate production with glycine route should run down in the coming years. And the share of glyphosate produced by glycine route in China has decreased year by year, which seems to have proved such speculation. However, the output of glyphosate by glycine route increased rapidly in 2007, and the capacity of glyphosate by glycine route was also exploding in 2007 and 2008, and it will keep exploding in 2009. What has happened in China? What on earth has resulted in the change? What is the development trend? In this report, CCM will give a detailed introduction and summary about glyphosate production in the past, at present and in the future to help the readers understand the actual production of China's glyphosate. Owning to its excellent efficiency in weed control, glyphosate, is also the most widely used herbicide in China, similar to its situation in the world. China is a large agriculture country, with cultivated land area of 120 million hm2, over 70 million hm2 of which employ herbicides for weed control. However, China's glyphosate consumption encounters application limitations, competition from other herbicides, as well as peasants' preference. What is the situation of China's crop planting, glyphosate demand & market share in China, regional distribution of glyphosate use, peasants' preference on the choice of herbicides and competitive herbicides? This report will also reveal all these situation of current glyphosate use and demand in China. Main content: No.

Content

Page

Guideline

Executive summary

Introduction and methodology

Pesticide industry in China

I-1.1

Overview of crop planting situation

I-1.2

Brief introduction to history of pesticide industry

I-1.3

Overview of China's current pesticide production

I-1.4

Governmental policies on Chinese agriculture & pesticide industry

I-1.5

Pesticide Demand in China

I-1.6

Reviews of Chinese pesticide industry

Glyphosate upstream industry

II-1

Brief introduction to raw materials & intermediates involved in glyphosate

II-2

Introduction to major raw materials & intermediates of glyphosate

II-2.1

Yellow phosphorous in China

II-2.2

Phosphorus trichloride in China

II-2.3

Dimethyl phosphite in China

II-2.4

Formaldehyde in China

II-2.5

Glycine in China

II-2.6

Paraformaldehyde in China

II-2.7

Diethanolamine in China

II-2.8

Natural gas in China

II-2.9

Hydrocyanic acid in China

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CCM Data & Primary Intelligence II-2.10

Iminodiacetonitrile in China

103

II-2.11

PMIDA in China

110

II-3

Impact of raw materials on glyphosate industry

122

III

China's glyphosate nowadays

124

III-1

History of glyphosate production in China

124

III-2

Registration situation of glyphosate in China

129

III-3

Production technology

132

III-3.1

Introduction to different pathways of glyphosate production in China

133

III-3.1-1

AEA pathway

133

III-3.1-2

IDA pathway

134

- DEA route

135

- IDAN route

135

III-3.2

Comparison of different pathways of glyphosate production

136

III-3.3

Development trend of technology in China

136

III-4

Current supply situation

137

III-4.1

Glyphosate technical

137

III-4.1.1

Overall situation of glyphosate technical producers

138

III-4.1.2

Production capacity

147

- Capacity by province

148

- Capacity by pathway

149

- Capacity expanding

149

Output

149

- Output by province

151

- Output by pathway

152

III-4.2

Glyphosate formulations

153

III-4.2.1

Overall situation of glyphosate formulations

158

III-4.1.3

III-4.2.2

Introduction to specific formulations

167

- Summary of glyphosate 10% solution

167

- Summary of glyphosate 41% solution

168

- Summary of soluble powder & WP forms of glyphosate formulations

170

- Summary of high content glyphosate water formulations

170

III-4.2.3

About the additive technology & Chinese weakness in formulation production

171

III-5

Trading of glyphosate in China

172

III-5.1

Pricing of glyphosate

172

III-5.1.1

Key factors influencing the price

172

III-5.1.2

Pricing in the past few years

173

III-5.1.3

Current pricing and pricing in the future

175

III-5.2

Import & export analysis

178

III-5.2.1

Import situation of glyphosate

179

III-5.2.2

Export situation of glyphosate

181

III-5.2.3

Antidumping issue of Chinese glyphosate

198

III-5.3

Active traders in China

200

III-5.4

Distribution channels of glyphosate in China

201

III-5.5

Position of imported products and overseas producers in China

205

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CCM Data & Primary Intelligence III-6

Mass balance between glyphosate and its upstream products

206

III-7

Demand for glyphosate

208

III-7.1

Global demand for China's glyphosate

208

III-7.1.1

Overview of global genetically modified crop

209

III-7.1.2

Estimated global demand for glyphosate

212

III-7.1.3

Overview of global glyphosate production

213

III-7.1.4

Roles of China's glyphosate in overseas markets

213

III-7.2

Domestic demand for glyphosate

214

III-7.2.1

Overview of Chinese glyphosate technical consumption

214

III-7.2.2

Position and market size of glyphosate in herbicide industry

216

III-7.2.3

Glyphosate formulations use in China

217

- Regional distribution of glyphosate use in China

217

- Use pattern of glyphosate formulations

222

- Seasonal factor in use of glyphosate in China

224

- Packing

225

- How to choose

225

- The weed which can not be killed

226

- Glyphosate mixed with other herbicide

226

- Use situation of glyphosate formulations in each major crops

227

Competitive landscape of Chinese glyphosate industry

241

IV-1

Production cost

241

IV-2

Governmental policies

241

IV-3

Technology innovation

243

IV-4

Marketing strategies

245

IV-5

Competitions to other herbicides

247

Prospects of Chinese glyphosate in the future

250

V-1

Key factors and driving forces for the development of glyphosate in China

250

V-1.1

Planting area of crops

250

V-1.1.1

GM crops

250

V-1.1.2

No-tillage crops

251

V-1.1.3

Total planting area of crops

252

V-1.2

Development trend of pesticide

253

V-1.2.1

Herbicides development in China

253

V-1.2.2

Influences of high price on the consumption of glyphosate

256

V-1.2.3

Consumption trend of herbicides

257

V-1.3

Production concentration into China

257

V-1.3.1

Current trend

257

V-1.3.2

Competitiveness of China's glyphosate industry

258

V-1.4

Policies

259

V-1.4.1

Trade regulations

259

V-1.4.2

Environmental regulations

260

V-1.4.3

Entry barriers

262

V-1.4.4

Regulations related to GM crops

263

V-1.5

Macro economic situation in China

264

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CCM Data & Primary Intelligence V-1.5.1

China economy continuously develop with fast growth rate

264

V-1.5.2

Growth rate of export reduced

266

V-1.5.3

Peasants' income grows continuously and stably

268

V-1.5.4

Low labor cost

270

V-1.5.5

More population and less peasants and cultivated Land

274

V-1.5.6

Serious Inflation

276

V-1.5.7

RMB appreciation

279

V-1.5.8

Short of energy and raw materials supply

281

V-1.5.9

Great demand for bio-energy

284

V-2

Challenges and opportunities for Chinese glyphosate industry

286

V-2.1

Opportunities

286

V-2.2

Risks

286

V-3

Future forecast on glyphosate in the next 5-10 years

287

V-3.1

Introduction

287

V-3.2

Forecasts to 2018

290

Competitiveness in global glyphosate markets

290

Demand

290

Production Capacity

291

Output

292

Export

293

Import

294

Conclusion, challenges, commercial opportunities and recommendation

295

VII

Appendix: Situation of Chinese manufacturers

297

VII-1

Glyphosate technical producers

297

VII-1.01

Zhejiang Xinan Chemical Industrial Group Co., Ltd.

297

...

VII-1.45

Shandong Wucheng Kangda Chemical Co., Ltd.

385

VII-2

Glyphosate formulation producers

387

VII-2.01

Guangxi Zizhu Chemical Co., Ltd.

387

... VII-2.20

Guangxi Guigang Songtian Chemical Co., Ltd.

0 405

Executive summary: (Note: The following summary is based on the situation in June 2008 and maybe different to what it is nowadays. Please be noted.) With the globalization of herbicide market, the Chinese herbicide industry is booming and plays a more and more important role in the world. China has been supplying more than XX of the global production of glyphosate. It exports XX percent of its production. China has been the largest production base of glyphosate technical in the world and it is estimated that the output of glyphosate technical (formulations included) in China was over XX kt and the export volume was up to XX kts in 2007. Over XX% of Chinaâ&#x20AC;&#x2122;s total production of Glyphosate is exported to

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CCM Data & Primary Intelligence over XX countries and regions worldwide. In recent years glyphosate has accounted for around XX% of total herbicide exports. In China there are some significant expansions in glyphosate plants. Many of those producing, for example, 10kt/a are talking of plans to expand to 20-30kt/a. But it is hard to predict the level of implemented increase in output in the second half 2008 and 2009. Glyphosate was invented by American agri-business giant Monsanto in the early 1970s, but came off-patent in 2000, sparking a massive rise in production in China, where most of the factories are in the Yangtze River delta (Jiangsu, Zhejiang, Shanghai) with Shandong, Anhui, Hubei, Fujian, Sichuan, and Chongqing in other regions also starting to attract investment. The total capacity of glyphosate technical in China in 2007 is XX t/a with a year-on-year growth rate being xx%. China has xx glyphosate producers with a total capacity of around xxt/a as of May 2008. Along with the increasing demand for glyphosate at home and abroad, the output of glyphosate technical in China grows year by year. The CAGR of glyphosate technical was xx% in 2003-2007, and the estimate of net glyphosate production reached xx tonnes in 2007. Stimulated by the huge market and the fat profits, many enterprises in China including Zhejiang Xinan, Nantong Jiangshan and Anhui Huaxing etc. are planning to expand their capacity to make glyphosate. There are also xx potential producers of glyphosate in the second half of 2008 or 2009. As calculated, about xx kt/a new production installations of glyphosate were put into commercial production in the first half of 2008 in China, and about xx kt/a and xx kt/a new production will come on stream in the second half of 2008 and 2009 respectively if all these potential projects will be undertaken and successfully put into production. Major producers include Zhejiang Xinan (xx t/a), Zhejiang Jinfanda (xx t/a) and Nantong Jiangshan (xx t/a) etc. At the same time, xx companies are proved to be potential players who will probably start to produce glyphosate technical since 2008. Total xx producers with the capacity of xx kt/a started glyphosate technical production in the end of 2007 and the beginning of 2008 including xx, xx, xx, xx, xx, xx and xx. ...... (The rest content of this report is omitted.) 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 CCMâ&#x20AC;&#x2122;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 pagesďź&#x161;

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II Glyphosate upstream industry II-1 Brief introduction to raw materials & intermediates involved in glyphosate production As glyphosate is produced by both AEA pathway and IDA pathway in China, the raw materials are diverse. Yellow phosphorus is a public raw material needed by both AEA pathway and IDA pathway, and the supplying situation of yellow phosphorus largely influences the production of glyphosate. Figure II-1-2 Glyphosate by different pathways and value chain of key raw materials

CI2

AEA pathway IDA pathway PCI3 DMP H3PO3 DEA Methanol

Formaldehyde

Glyphosate

PMIDA

IDA HCI

Ammonia

Formaldehyde

Glycine Chloroacetic acid urotropine

Glycolonitrile

HCN

Natural gas

IDAN

II-2.5 Glycine in China Glycine is an important raw material for glyphosate production with AEA pathway, and about XXXXX tonne of glycine of industrial grade is needed to produce 1 tonne of glyphosate. Table II-2.5.1-2 Industrial grade glycine producers in China as of May 2008 (tonne) No.

English name

Status

Capacity

Output

May 08

'07

Location

XXXXXXXXXXXXXXXX

active

XXXX

XXXXXXX

XXXXX

XXXXXXXXXXXXXXXXXXXXXXXXX

active

XXXXXX

XXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

active

XXXX

XXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

active

XXXXX

XXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXX

active

XXXXXX

XXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXX

active

XXX

XXXXX

XXXX

XXXXXXXXXXXXXXXXXXXXXX

active

XXXXXXX

XXXXX

XXXX

XXXXXXXXXXXXXXXXXXXXXXXXXX

active

XXXXXX

XXXXX

XXXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXX

active

XXXXX

XXXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXX

active

Jiangsu

5,000

2,000

XXXXXXXXXXXXXXXXXXXXXXXXXXXXX

active

XXXX

XXXXXXXXXXXXXXXXXXXXXXXXXX

active

XXXXX

XXXX

XXXXXXXXXXXXXXXXXXXXXXXX

active

XXXXX

XXXX

XXX

XXXXXXXXXXXXXXXXXXXXXXXXXXXXX

active

XXXXX

XXXX

XXX

XXXXXXXXXXXXXXXXXXXXXXXXXXX

stopped

XXXXX

XXX

XXXX

XXXXXXXXXXXXXXXXXXXXXXX

potential

XXXXX

XXXXXX

XXXXX

Total

III-4.1.1 Overall situation of glyphosate technical producers The number of active glyphosate technical manufacturers in 2008 increases compared to that in 2007. As of May 2008 there are totally XX active manufacturers, who produce both glyphosate technical and its formulations as well in China, but the number was much smaller in 2006 and 2007, which was only XX and XX respectively.

Table III-4.1.1-2 Overview of glyphosate technical manufacturers in China-2 No.

Pathway

Raw material

'08

'07

Capacity (tonne)

Output (tonne)

Company 2005

2006

2007

2008

2004

2005

2006

2007

VII-1.01

XXXXXXXXXXX

XXX

XXXXX

VII-1.02

XXXXXXXXXXXXX

XXX

XXXXX

XXXX

XXXXX

VII-1.03

XXXXXXXXXXX

XXX

XXXXX

XXXX

XXXXX

XXXX

VII-1.04

XXXXXXXXXXXXX

XXX

XXXXX

XXXX

XXXXX

XXXX

XXX

XXXXX

VII-1.05

XXXXXXXXXXXX XXX

XXXX

XXXXX

XXXX

XXX

XXXX

XXXXX

XXX

XXXX

XXX

XXXXX

XXXX

XXXXX

XXX

XXXX

XXXXX

XXX

XXXX

VII-1.06

XXXXXXXXX

VII-1.07

XXXXXXXXXXX

XXX

VII-1.08

XXXXXXXXXXXX

XXX

XXXXX

VII-1.09

XXXXXXXXXX

XXX

XXXX

XXXXX

VII-1.10

XXXXXXXXXXX

XXX

XXXXXXXXXX

XXXX

XXXXX

XXXX

VII-1.11

XXXXXXXXX

XXX

XXXXX

XXX

XXXX

XXXXX

VII-1.12

XXXXXXXXXXXX

XXX

XXXXX

XXXX

XXXXX

XXXX

VII-1.13

XXXXXXXXXXXXX

XXX

XXXXX

VII-1.14

XXXXXXXXXXX

XXX

XXXXX

10,000

XXXXX

XXXX

XXXXX

VII-1.15

XXXXXXXXXXXXX

IDA

XXXX

5,000

XXXXX

XXXX

XXX

XXXX

VII-1.16

XXXXXXXXX

AEA

XXXXX

5,000

XXXXX

XXXX

XXXXX

VII-1.17

XXXXXXXXXXX

IDA

XXXX

8,000

XXXX

XXXXX

XXX

XXXX

XXXXX

VII-1.18

XXXXXXXXXX

IDA & AEA

XXXXXXXXXXX

5,000

XXXX

XXXXX

XXXX

XXX

XXXX

VII-1.19

XXXXXXXXXXXX

IDA

XXXX

XXXXX

XXXX

XXXXX

VII-1.20

XXXXXXXXXXXXX

IDA

XXXX

XXXXX

XXXX

XXX

Table III-4.1.1-1 Number of glyphosate producers in China, by province No.

Province

2003

2005

2006

2007

2008

XXXXXX

XXXXXXX

XXXXXXXX

XXXXX

XXXXXX

XXXXXXXX

XXXXXXXXX

Hunan

Fujian

Ningxia

Hebei

XXXXX

XXXXXXX

Total

2001

Capacity by pathway

Table III-4.1.2-2 Capacity of glyphosate technical in China by different pathway (tonne) Year/ Pathway

2001

Capacity

XXXXXX

2002

2003

2004

XXXXX

2005

2006

2007

2008

XXXXXX

AEA XX

Producers DEA

Capacity

route

Producers

IDAN

XXXXX

XXX

Capacity

XXXXX

route

Producers

PMIDA

Capacity

route

Producers

Capacity

XXXXX

XXXX

Capacity

XXXXXX

XXX

XX XXXXX

XXXXX

XX XXXXX

XXXXX

XXX

XXXX

XXXXXX

IDA

Other Total

Producers

Capacity expanding

Stimulated by the huge market and the fat profits, many enterprises in China including XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX etc. are planning to expand their capacity to make glyphosate. There are also XX potential producers of glyphosate in the second half of 2008 or 2009. As calculated, about XXkt/a new production installations of glyphosate were put into

commercial

production

the

first

half

2008

China,

and

about

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXXX Table III-4.1.2-3 Capacity expanding of glyphosate technical in China, 2008-2009 (tonne) -1 Status No.

Company

End 2008 2008 (A)

'08

B-A

2009 (C)

C-A

Pathway

(B)

VII-1.01

XXXXXXXXXXX

active

XXXXXXX

XXX

VII-1.05

XXXXXXXXXXXXX

active

XXXXXXX

XXX

VII-1.06

XXXXXXXXX

active

XXXXXXX

XXX

VII-1.07

XXXXXXXXXXX

active

XXXXXXX

XXX

VII-1.08

XXXXXXXXX

active

XXXXXXX

XXX

VII-1.09

XXXXXXXXXXXXX

active

XXXXXXX

XXX

VII-1.11

XXXXXXXXX

active

XXXXXXX

XXX

VII-1.13

XXXXXXXXXXXX

active

XXXXXXX

XXX

VII-1.18

XXXXXXXXXXXX

active

XXXXXXX

XXX

VII-1.21

XXXXXXXXXXX

active

XXXXXXX

XXX

VII-1.26

XXXXXXXXX

active

XXXXXX

XXXXXXX

XXX

VII-1.27

XXXXXXXXX

active

XXXXXX

XXXXXXX

XXX

VII-1.30

XXXXXXXXXX

active

XXXXXX

XXXXXXX

XXX

VII-1.37

XXXXXXXXX

active

XXXXXX

XXXXXXX

XXX

VII-1.40

XXXXXXXXXXXX

active

XXXXXX

XXXXXXX

XXX

VII-1.46

XXXXXXXXX

idle

XXXXXX

XXX

VII-1.47

XXXXXXX

potential

XXXXXXX

XXX

VII-1.48

XXXXX

potential

XXXXXXX

XXX

VII-1.49

XXXXXXXXX

potential

XXXXXXX

XXX

VII-1.50

XXXXXXXXX

potential

XXXXXXX

XXX

VII-1.51

XXXXXXXXXXXX

potential

XXXXXX

XXXXXXX

XXX

VII-1.52

XXXXXXXXXXXX

potential

XXXXXXX

XXX

VII-1.53

XXXXXXXXX

potential

XXXXXX

XXX

VII-1.54

XXXXXXXXXX

potential

XXXXXXX

XXX

VII-1.55

XXXXXXXXX

Potential

XXXXXX

VII-1.56

XXXXXXXXX

potential

XXX

VII-1.57

XXXXXXXXXXX

potential

XXX

XXXXXXX

Total

XXXXXXX

III-4.2 Glyphosate formulations III-4.2.1 Overall situation of glyphosate formulations -

Overview of formulations species

The solubility of glyphosate technical is quite weak (1.2% at 25℃). But glyphosate salts have good solubility in the water without losing the activity. E.g. the solubility of both glyphosate isopropyl ammonium (IPA) and glyphosate sodium is 500g/L, and the solubility of glyphosate

ammonium is 300g/L. Thus in actual application, glyphosate is converted into the following formulations: Water formulation XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXX Table III-4.2.1-1 Glyphosate formulation species and number of producers in China Number of producers Specifications 2003

2005

2006

2007

XXXXX

XXXXXXXXXXXXXXXXXXXXXXXXXX

XXXXX

XXXXXXX

XXXXXXXX

XXXXXXX

XXXXXX

XXX

XXXXXXXXXXXXXXXXXXXXX

XXXXXXX

41%IPA

XXX

48%IPA

62%IPA

XXXXX

III-5.2 Import & export analysis China began to export glyphosate since 1991. Originally the Chinese people only export glyphosate 95% technical. The export in 1992 was less than 100 tonne. Table III-5.2-1 Import & export of glyphosate technical and formulations, 2002-2007 (tonne) Export

Import

Year Technical

41%IPA

62%IPA

41%IPA

2002

XXXXXX

XXXXX

2003

XXXXXX

XXXXX

2004

XXXXXX

XXXXX

2005

XXXXXX

XXX

XXXXX

2006

XXXXXX

XXX

XXXXX

2007

XXXXXXX

XXXXXX

XXX

XXXXX

III-7.1.4 Roles of China’s glyphosate in global markets Table III-7.1.4-1 Situation of China’s glyphosate output in global market, 2005-2007 (tonne) Year

Global output

Output

Output of PMIDA

Total*

2005

XXXXXX

XXXXXXX

XXXXXX

XXXXXXX

XXXXXX

2006

XXXXXX

XXXXXXX

XXXXXX

XXXXXXX

XXXXXX

2007

XXXXXX

XXXXXXX

XXXXXX

XXXXXXX

XXXXXX

Total* including the glyphosate technical and converting PMIDA to glyphosate technical

III-7.2 Domestic demand for glyphosate III-7.2.1 Overview of Chinese glyphosate technical consumption As China seldom imports glyphosate technical, CCM considers that all of domestic glyphosate formulation is made from domestic glyphosate technical. For describing the export and domestic consumption situation of Chinese glyphosate technical, CCM calculates output and export (including 10% SL, 41% IPA, 62% IPA, 95% and other specifications) volume by 95% technical. The data and the chart are displayed as follows: Table III-7.2.1-1 The consumption pattern of glyphosate technical (tonne) 2004

2005

2006

2007

Item Quantity

Percentage

Quantity

Percentage

Quantity

Percentage

Quantity

Percentage

Output

XXXXXX

XXXXXXX

For Export

XXXXXX

XXXXXXX

XXXXXX

For formulation*

XXXXXX

For formulation* including the formulation consumed in China and exported