The long-term undervalued price and negative profit of glyphosate have led to the decrease in China's glyphosate technical capacity and lower operating rate of the less competitive manufacturers. The increasing proportion of glyphosate A.I. exports in the top glyphosate manufacturers has revealed the increase in industrial concentration of Chinese glyphosate industry in 2011, which will result in a better glyphosate market in 2012, according to CCM International's FebruaryIssueof Glyphsoate China Monthly Report.
Although it's hard to get every glyphosate manufacturer's actual output, the export volume from companies exporting glyphosate is a good reference for estimating the industrial concentration of Chinese glyphosate industry, as more than 83% of China's glyphosate products have been exported in the past ten years. In 2011, China has exported about 300,000 tonnes of glyphosate technical, which is estimated to account for 85% of China's total output.
In 2010, the total export volume of glyphosate A.I. manufactured by the top six companies accounted for 55.5%-61.3% of China's total exports (interval value is given because manufacturers of some records can't be identified).
But in 2011, the total export volume of glyphosate A.I. manufactured by the top six companies has taken up 66.5%-69.6% of China's total glyphosate A.I. exports.
In terms of export volume, the share of the top 10 glyphosate manufacturers accounted for 69.5%-76.8% in 2010, whilst the top 10 took up 82.4%-86.2% in 2011.
According to CCM International's analysis, glyphosate products exported in 2010 are manufactured by 54 manufacturers, and glyphosate products exported in 2011 are manufactured by 45 manufacturers.
The increase in industrial concentration has reflected the integration process of Chinese glyphosate industry, and there will be smaller and smaller space for the less competitive glyphosate manufacturers. It's predicted that industrial concentration will continue to increase in 2012, and there will be a more rational market.
Source: Glyphsoate China Monthly Report1202
http://www.cnchemicals.com/Newsletter/NewsletterDetail_14.html
Content of Glyphsoate China Monthly Report 1202:
Zhejiang Wynca involved in trouble of "chemical salt sold to edible salt market" case
Brazilkeeps high growth in adoption of GM crops in 2011
Australialodges anti-dumping petition on formulated glyphosate from China
Industrial concentration of Chinese glyphosate increases in 2011
Chinese glyphosate faces four challenges in 2012
A new method to treat glyphosate mother liquid and recycle its nitrogen and phosphorous elements
Glycine market keeps gloomy
Glyphosate price in February 2012
Glyphosate export significantly grows in December 2011
Overview of glyphosate export in 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.
About CCM
CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.
For more information, please visit http://www.cnchemicals.com.
CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China
Tel: 86-20-37616606