Driven by intensive market competition and their powerlessness in product profiting, some glyphosate technical manufacturers have quitted the glyphosate technical business, and the overcapacity has been slightly eased in China. However, the serious overcapacity and surplus supply remain a big problem in China's glyphosate industry, and intensive competition can't be greatly alleviated, according to CCM’s October Issue Glyphsoate China Monthly Report.
In late September 2011, some local media had reported that Anhui Shunong Agrochemicals Co., Ltd. (Anhui Shunong), once a well-known glyphosate technical producer in Anhui Province, was seeking for investors or buyers with a very low quotation (less than USD1 million). In early October 2010, CCM International was informed that Anhui Shunong had been already sold to a real estate company when contacting with Anhui Shunong.
According to CCM International's monitoring and relevant reports, Anhui Shunong has suspended glyphosate production for more than half a year, and most of the employees have been dismissed in Q2 2011. The company had 5,000t/a glyphosate technical facilities, and glyphosate revenue had approached USD17 million (RMB120 million) in 2008.
In fact, compared with some new glyphosate players, the market situation that Anhui Shunong encountered is not the worst. What's more, the company is an old glyphosate technical manufacturer and had gained considerable profit in 2008, and the company should have made strategic change for its further development when glyphosate market became worse in later 2008. The company hasn't positively responded to the market challenge and then become a victim of the long-term depressed glyphosate market in China.
The experience and final destiny may be a good example for small and medium-sized glyphosate technical manufacturers, especially those who have no any other key products except glyphosate and passively undergone the glyphosate market. The long-term (over two years) dreadful glyphosate market with under-valued price and stagnant demand have forced more and more small and medium-sized glyphosate manufacturers to give up glyphosate business, and manufacturers who keep glyphosate production lines also shift their focuses to other products.
According to a survey conducted by CCM International in mid-October 2011, more than 20 companies in China have laid aside or dismantled glyphosate technical production lines, and the total production capacity of glyphosate technical is about ……
Source: Glyphsoate China Monthly Report 1110
http://www.cnchemicals.com/Newsletter/NewsletterDetail_14.html
Content of Glyphsoate China Monthly Report 1110:
ChemChina completes the acquisition of MAI
Hubei Sanonda's glyphosate expansion ongoing slowly
Greenpeace warns glyphosate safety
Glyphosate safety issue arouses attention again
Chinese glyphosate manufacturers strive to seize market after the ban of 10% SL
China's glyphosate capacity decreases but intensive competition continues
Complexation extraction technology for glyphosate recovery from mother liquid
Yellow phosphorus price continues skyrocketing in October 2011
Glyphosate price keep uptrend in Oct.2011
Glyphosate export volume keeps stable in August 2011
Glyphosate China Monthly Report, a monthly publication issued by CCM International on 20th of every month, will keep track of latest dynamics, hotspots and competitiveness analysis, and forecasts on market trends of China’s glyphosate industry.
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