Glyphsoate China Monthly Report 1503 (12 issues per year)

On 11-13 March, 2015, the 16th China International Agrochemical & Crop Protection Equipment Exhibition (CAC 2015) was held in Shanghai New International Expo Centre. CCM participated in the exhibition and found that the orders at the exhibition did not match the expectation. Take glyphosate market as an example. Most of China’s glyphosate purchasers held wait-and-see attitude while manufacturers were optimistic about the price trend of glyphosate in the future. This is mainly because the new Environmental Protection Law was implemented and China’s pesticide industry is undergoing big adjustment. On one hand, under the implementation of the new law, enterprises increase inputs in environmental protection, thus the production costs are raised; on the other hand, those enterprises who cannot meet the standards will be eliminated, which reduce part of capacity. In 2015, more and more pesticide enterprises are suspending production and some large-scale ones are seizing the change to expand the capacity. Therefore, the glyphosate market still needs further observation in 2015.

Note: 1. All tables and figures in this issue are calculated by the same RMB/USD exchange rate (USD1=RMB6.1475);
2. Nuances in some data are mainly caused by rounding principle.

HEADLINE

MIIT announced to reject the newly-added pesticide projects of 17 enterprises including Zhejiang Huayuan.

China issued the Catalog of Hazardous Chemicals (2015), which will be implemented on 1 May, 2015. There are 2,828 products listed in the catalog, including some pesticide products such as acetochlor.

Monsanto Fund has been launching charity project in China. Its Monsanto China Green Village Project was settled down in Shandong Lingcheng in March 2015. Monsanto Fund will invest USD200,000 million in constructing the safe drinking water projects in 7 villages such as Hejia Village and Sanlihe Village in Lingcheng and the projects are predicted to finish before the end of Aug. 2015.

In this issue, CCM will introduce the commercial registration status and industrial production permits of China’s eight glyphosate manufacturers with large production capacity of glyphosate technical. They are Sichuan Fuhua, Zhejiang Wynca, Nantong Jiangshan, Hubei Taisheng, Jiangsu Good Harvest-Weien, Zhejiang Jinfanda, Youth Chemical and Hebi Nonglin. Though the commercial registrations of these eight leading glyphosate manufacturers, we can learn about their amount of registered capitals and the difference between their business scopes and so on.

The total A.I. volume (100% glyphosate acid equivalent) of exported glyphosate related products in 2014 was 490,998 tonnes, increasing by 2% over 2013.

In 2014, China totally outputted 3.74 million tonnes of pesticides and exported 1.64 million tonnes; the export volume of pesticide accounted for 43.86% of the output.

On 11-13 March, 2015, CCM learned from CAC 2015 that the current glyphosate market is witnessing predicament. Based on the analysis, in the future, China’s glyphosate market will recover but the prices will not increase greatly.

On 1 Jan., 2015, China regulated the export tax rebate rates of 481 pesticide products, which brings different influences to China’s pesticide industry.