SinoHarvest News

• Date: February 26-28, 2013
• Venue: Shanghai New International Expo Center
• Booth No.: 1A49

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According to the Chinese Institute for the Control of Agrochemicals of Ministry of Agriculture (ICAMA), ended by December 11th, China import & export volume of pesticides grew by 14.6% to 1.66 million tonnes and the value increased by 26.9% to $8.5 billion. China exported the pesticides to 181 countries, which is flat over that in 2011.

Among them, export volume of pesticides rose by 14.3% to 1.61 million tonnes and export value grew by 28.1% to $7.93 billion. Import volume of pesticides grew by 26.3% to 53,800 tonnes, which the growth dipped by 5.2% in 2011. Imported value grew by 12.5% to $568 million, which is lower than the growth of 13.8% in 2011.

According to Ye Jiming, deputy director of ICAMA, the following three features are noticeable: first, China's import & export of pesticides to maintain rapid growth; second, the growth of import & export value showed significantly higher than the growth of export volume; third, the growth of import & export value of pesticides is higher than the total national value of import and export trade.

Source: Agropages.com Jan. 15, 2013

Poland imposed new bans on the cultivation of certain genetically modified strains of maize and potatoes, a day after an EU required green light for GM crops took effect.

The centre-right government of Prime Minister Donald Tusk imposed farming bans on German BASF's Amflora strain of potato and US firm Monsanto's MON 810 maize or corn, according to a government statement Wednesday.

The ban on specific strains essentially uses a legal loophole to circumvent the EU's acceptance of such products.

Global environmental watchdog Greenpeace hailed the move, which will take effect on January 28.

"The government has kept its promises," Greenpeace Poland said in a statement.

Tusk had vowed to ban genetically modified (GM) crops in November on the heels of a Senate approval for the registration and sale of GM crops, which had been banned in Poland until then.

According to Tusk, under EU rules lawmakers had been forced to pass the blanket approval for GM crops which came into effect on January 1.

 Agropages.com Jan. 8, 2013

The Chinese pesticide industry has invested 2.08 billion Yuan in fix asset in the month of August 2010, jumped by 86.0% year on year. The investment on chemical pesticide was 1.27 billion, up 71.7%, while investment on biopesticide was 0.81 billion Yuan, up 113.6%, both continued a downward from July.

The cumulative investment for the period of January to August this year was 16.77 billion Yuan, which accounting for 38.5% of the planned investment, posted a 36.2% rise. The biopesticide industry has invested 6.96 billion Yuan, grown by 70.8%, and the proportion for total pesticide has increased by 8.4% to 41.5%, while the investment on chemical pesticide was 9.81 billion Yuan, up 19.1%.

During period of January to August, 388 investment projects were under constructed, up 6.0%.

The number of the newly undertook projects as grown by 6 to 240, including 150 chemical pesticide projects and 90 biopesticide projects. The number of the completed projects was 154, grown by 36, thereinto 109 projects on chemical pesticides and 45 for biopesticide.

Source: Agropages.com2010-11-26 

Mr. Luo Haizhang, the president of China Crop Protection Industry Association, the former chairman and general manager of China agrochemical company Hubei Sanonda.

Since the beginning of this year, glyphosate continued to play the leading role in the Chinese market, the price increased significantly in the year. According to the statistics ended by September 25, price of technical glyphosate through glycine route grew up over 50% to Yuan 35,000 over Yuan 23,000 at the beginning of the year.
 
According to the survey, main glyphosate manufacturers in China are generally in the performance of the orders in previous 2 or 3 months for the end users, formulators or overseas distributors, and basically not any stock are available for sell.

The increased price of glyphosate is also impacting on the overseas terminal market. For Argentina, the price of glyphosate grew by 20% to $4/Kg in September, comparing with $3.2-3.3/Kg in July/August, which affects the price of agriculture products a lot. The overseas buyers’ new inquiries also bring a very strong signal to boost the price of glyphosate.
But the short supply situation of glyphosate will be relieved and the price will be stable, the main reasons are:

1. China banned glyphosate AS with content below 30% which is prepared by glyphosate mother liquor. That implied higher environmental protection costs for glyphosate manufacturers and making the price increasing. In addition, many outdated companies were left due to the stringent environmental regulation, resulting in the output fell.

2. Since last year, market demand for chloromethane reduced due to the recession of the organosilicon industry, leading to decline in the price of chloromethane. As the byproduct, chloromethane issue limits the output of glyphosate manufacturers with glycine device.

3. As the price fell in late of 2008, creating a downward spiral on profit for quite a while, many struggling small and medium-sized glyphosate manufacturers were left one by one. The inventory reduces while the output decreases.

So, the output fell significantly and inventory reduced in circulation due to high cost of production, in turn making the merchant replenishment leading to the price rebound. As merchants buy on the way up not on the way down, the product supply cannot keep up with the pace of price adjustment in a short time, resulting in such short supply.

Crop planting is seriously affected by unusual drought in North American region in the first half year. So it is the shortage of storage which leads to the current unbalanced demand and supply relationship instead of growing market demand. As the manufacturers’ production capacity of glyphosate shall be updated after M&A and company restructuring, it is estimated that the current situation shall not last very long.

The higher glyphosate price excludes market speculation; it should be understood as the price is rising again reasonable. It’s not likely for the sharp upward movement in price, because the shortage is caused by increased market demand but the limited production capacity of the main manufacturers.

Source: Agropages.com Oct. 8, 2012

Paraquat HS classification debate was settled on recent days. According to a notification from authorities of the Ministry of Agriculture, the Institute for the Control of Agrochemicals of the Ministry of Agriculture (ICAMA) shall update the paraquat HS classification from 13 August 2012, i.e. paraquat technical which was previously classified in Chapter 29 shall change to be classified in Chapter 38.

Paraquat technical (40%) is classified and put into the category of Chapter 38 by the Customs Tariff publicized by the General Administration of Customs of China. From now on, the Release Document to pesticide manufacturer and foreign trade companies issued by the Institute for the ICAMA shall show the HS code in Chapter 38 to ensure the consistency between the Release Document and the export declaration documentation allowing for a smooth proceeding of Customs clearance procedure.

From this day on, paraquat technical export shall be declared following HS code in Chapter 38.

Source: Agropages.com Aug. 20, 2012

Due to continued glyphosate price increase, share price of listed companies in relation to glyphosate business have recently risen up against stock market. These companies include Jiangshan Agrochemical, Liuguo Chemical, Wynca, Yangnong Chemical, Sanoda, etc.

Glyphosate price started to go up since last August and has increased quickly this year. At present the price of glyphosate original powder stays at around Yuan 27,000/ton, which is Yuan 6,000 up over the price of Yuan 21,000/ton in August 2011, being nearly 30% up. Since 2012, the price went up approximately by Yuan 3,250/ton, which is 15% up.

As of 16th July, glyphosate price ex-works ranged between Yuan 27,000/ton and 28,300/ton, which is Yuan 1,000 – 2,300 up in one month time over the ex-works price of Yuan 26,000/ton in early June. According to statistics, the glyphosate capacity increased by 22% while price went up, there has been a continued short supply. 

Glyphosate experienced a price hike in 2008, at that time all glyphosate producers in China expanded their capacity, which then resulted in an oversupply situation with the price slumping from the peak of Yuan 120,000/ton in 2008 to Yuan 19,000/ton in the first quarter of 2009, hence falling into a 3-year long phase of adjustment.

An analysis from securities experts shows that the total glyphosate capacity under normal operation in 2011 was roughly 800,000 tons while the capacity which was shut down for 1 – 2 years and above 2 years amounted respectively to 140,000 tons and 70,000 tons. Once glyphosate price starts to shoot up, the capacity in shutdown at present will be resumed. In case of continued implementation of stringent environmental regulation, glyphosate price will be likely to break through Yuan 30,000/ton (13% rise), or may even go up to a maximum of Yuan 34,000/ton (28% rise); but in case of lack of environmental enforcement to waste water control which results in resumed production by environmentally non-conformable producers, glyphosate price may wander at about Yuan 29,000/ton (9% rise).

Source: Agropages.com Aug. 7, 2012

According to Announcement No.1744 of the Ministry of Agriculture of China issued on 24th, April 2012, China has decided to implement a restrictive measure on paraquat product to ensure the safety for production and use of paraquat.

Hence approval of new plants for producing paraquat technical concentration and formulation production is ceased. Applications for field trial, registration and production permit of paraquat technical concentration and aqueous solution are also terminated.

From 1 July 2014, paraquat aqueous solution registration and production permit shall be cancelled while technical concentration aqueous solution registration is maintained only for export purpose. Sales and use of aqueous solution product in China shall be terminated from 1 July 2016.

Furthermore, paraquat producers are requested to apply for a re-check of labels, changing documents of pesticide registration and production permit. Labels shall add information such as first-aid telephone numbers and warning notices; pesticide registration certificate and the initial approval documents shall add name of technical concentration producers, etc.

Pesticide registration and approval documents which are not amended shall not be maintained after 1 January 2013. Products are not relabeled shall not be allowed for sale; products with initial labels which are already on sale can be sold until 31 December 2013.

The Announcement requests all producers to strictly follow the standards for production of paraquat to ensure product quality with sufficient quantity of emetic, odorant and colorant; aftersales service such as paraquat use-directive and first-aid instruction shall be enhanced; the use of small opening diameter packaging bottle to be accompanied with necessary medical-purpose active carbon is encouraged.

Source: Agropages.com May. 2, 2012