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Glyphosate China Monthly Report

VOL.6 Issue 1406, June.26, 2014

Copyright © Guangzhou CCM Information Science & Technology Co.,Ltd

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Contents

HeadlineEditor's noteGlobal Dynamics

Monsanto embraces smartphone technology with New Weed ID AppCompanies' Dynamics

Zhejiang Wynca to build associated operation pattern of glyphosate and biological breedingSinochem Group to be actual controller of Jiangsu Yangnong indirectlyTechnical reformation project of Sichuan Fuhua approvedHubei Xingfa gains approval from CSRC on purchase of JInfanda’s 51% share of Hubei TaishengSCW to deal with IDAN processing device of Sichuan Hepu through listing system

Market AnalysisFour glyphosate manufacturers to pass EPVExport volume of China's glyphosate in Q1 2014Export price of China's glyphosate in Q1 2014Export value of China's glyphosate in Q1 2014Destinations of China’s exported glyphosate in Q1 2014Manufacturers of exported glyphosate in Q1 2014Name list of glyphosate manufacturers passing EPV remains unpublished in May 201420% paraquat AS undergoes same crazy as 10% glyphosate AS before exiting marketProduction condition standard of paraquat non-AS formulations to be launched

Price UpdateEx-works price of glyphosate technical in June 2014 down by 5.26% month on month

Export AnalysisExport volume of glyphosate technical in April 2014 increases slightly month on month

Brief NewsChina PMIDA market in the first week of June 2014 (3 June-6 June)China glycine market in the first week of June 2014 (3 June-6 June)China DEA market in the first week of June 2014 (3 June-6 June)China IDAN market in the first week of June 2014 (3 June-6 June)China yellow phosphorus market in the first week of June 2014 (3 June-6 June)China phosphorus trichloride market in the first week of June 2014 (3 June-6 June)China isopropylamine salt market in the first week of June 2014 (3 June-6 June)China paraformaldehyde market in the first week of June 2014 (3 June-6 June)China chloromethane market in the first week of June 2014 (3 June-6 June)China methylal market in the first week of June 2014 (3 June-6 June)

Glyphosate China Monthly Report 1406CCM Newsletter

www.cnchemicals.comCopyright Guangzhou CCM Information Science & Technology Co., Ltd.E-mail: [email protected]

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HeadlineZhejiang Wynca is planing to industrialize its research achievement of transgenic crops under mature conditions if policy permits,so as to build a distinctive associated operation pattern of glyphosate and biological breeding.

The technical reformation project of 33% glyphosate ammonium AS and supporting sewage treatment system of Sichuan Fuhuawas approved by Sichuan Environmental Protection on 22 May, 2014.

The total A.I. volume (100% glyphosate acid equivalent) of exported glyphosate related products in Q1 2014 increased by 53% and10% over Q1 2012 and Q1 2013.

Except from 51% glyphosate IPA, export price of other glyphosate products increased slightly in Q1 2014 year on year.

Export value of glyphosate exported from China still gained a double-digit growth in Q1 2014.

In Q1 2014, the US, Argentina and Brazil were still the main export destinations of China's glyphosate technical; China's glyphosateformulations were exported to more than 100 countries and regions and China's PAIDA were mainly exported to India, the US andArgentina.

Manufacturers exporting glyphosate technical were relatively concentrated. They were mainly Sichuan Fuhua Tongda Agro-chemical Technology Co., Ltd., Nantong Jiangshan Agrochemical & Chemicals Co., Ltd., and Zhejiang Wynca Chemical IndustryGroup Co., Ltd.; while manufacturers exporting glyphosate formulations were mainly Zhejiang Jinfanda Bio-Chemical Co., Ltd.,Zhejiang Wynca Chemical Industry Group Co., Ltd. and Shandong Weifang Rainbow Chemical Co., Ltd. in Q1 2014.

20% paraquat AS in China is undergoing the same crazy sales as 10% glyphosate AS before exiting the market. Since trading of20% paraquat is so hot that it is in short supply which accordingly causes the price to increase year by year.

Generally, ex-works price decline was experienced again by almost all glyphosate products in late May 2014 and early June 2014.Compared with May 2014, the ex-works price of glyphosate technical decreased by 5.26%, and that of glyphosate formulationswere down to different extents in June 2014.

Compared with March 2014, the export volume of glyphosate technical and glyphosate formulations both increased slightly in April2014, up by 1.47% and 7.76% respectively. In terms of export price, glyphosate technical, glyphosate formulations and PMIDA allincreased slightly.



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Editor's noteEx-works price of glyphosate technical had a month-on-month decrease since from April 2014. In the succeeding May and June, it

continued to drop month on month. So did other glyphosate formulations. On 13 June, 2014, the first batch name list of the

glyphosate (PMIDA) manufacturers passing Environmental Protection Verification (EPV) was released by the Ministry of

Environmental Protection of the People's Republic of China. Four manufacturers passed the EPV in this batch, including Zhenjiang

Jiangnan Chemical Co., Ltd.; Nantong Jiangshan Agrochemical & Chemical Co., Ltd. (Nantong Jiangshan); Youth Chemical Co.,

Ltd. and Hubei Taisheng Chemical Co., Ltd. Will this name list become a signal for a favorable turn of glyphosate price in the

coming months?

Note: 1. All tables and figures in this issue are calculated by the same RMB/USD exchange rate (1USD=6.1705RMB); 2. Nuances

in some data are mainly caused by rounding principle.



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Global DynamicsMonsanto embraces smartphone technology with New Weed ID App

Monsanto Canada Inc. expressed on 28 April, 2014 that gone were the days of taking a dog-eared field guide out to your quarter

section to try to identify a weed species. Now, it's as simple as pulling out your phone.

On 28 April, 2014, Monsanto released the Weed ID App which was the most innovative, weed identification tool in Canada. The

app hosts a library of more than 48 weeds, each accompanied by high-resolution images and detailed descriptions. It uses

characteristics like growth stage, shape and colour to categorize each weed and narrow search results. "The farming landscape is

changing and Monsanto aims to provide innovative solutions to help farmers adapt to this change," said Jenna Book, crop

protection marketing manager, in describing the value of giving farmers information right at their fingertips. "And the Weed ID App

is an easy-to-use, informative tool that farmers can use every day to support their weed management strategy. " The "Map It"

section on the app uses GPS coordinates to map and track weed pressures. This innovative technology lets farmers save key

historical information and identify year-over-year, on-farm trends. If the weed remains unidentifiable, the app directly links the farmer

to a Monsanto agronomist and Monsanto's CustomCare® technical support line. "The introduction of the Weed ID App is also

consistent with Monsanto Canada's commitment to provide sound agronomic recommendations, education and information to help

support good weed management practices and solutions," said Book. The Weed ID App is available for download from the App

Store and is iOS and Android compatible. The app is available in both English and French.

Companies' DynamicsZhejiang Wynca to build associated operation pattern of glyphosate and

biological breeding

Summary: Zhejiang Wynca is planing to industrialize its research achievement of transgenic crops under mature conditions if policy

permits, so as to build a distinctive associated operation pattern of glyphosate and biological breeding.

As Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca) declares, in recent years, it has been actively exploring the

development of relevant industries, as well as promoting its major business (pesticide products and organic silicon products

included). In May 2014, Zhejiang Wynca purchased 51% stock equities of Shandong Xinfeng Seed Co., Ltd. (Shandong Xinfeng)

and therefore became a dominant shareholder of Shandong Xinfeng, which makes Zhejiang Wynca enter regular breeding field. At

the same time, Zhejiang Wynca is launching the research of transgenic crop and will industrialize its research achievement under

mature conditions if policy permits, so as to build a distinctive associated operation pattern of glyphosate and biological breeding

(associated operation pattern). The associated operation pattern is namely the associated operation pattern of glyphosate and

seed. According to Zhejiang Wynca's pesticide specialization in glyphosate and the trend of global research on combination of

transgenic crops and pesticide, it seems that the feasible research of transgenic crop launched by Zhejiang Wynca will be on

transgenic crop which resist of glyphosate. Why is Zhejiang Wynca planning to develop such a pattern? There are mainly four

reasons as below.

First, the instable development of Zhejiang Wynca's major businesses. When the market is in good condition, especially the



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glyphosate market, total revenue of Zhejiang Wynca ranks in top twenty of sales volume of global pesticide. Pesticide's gross profit

margin, especially glyphosate's, achieves 60.00%, and organic silicon product's achieves 50.00%. However, when the market is in

bad condition, revenue and profit of Zhejiang Wynca drop sharply, even suffer a loss in operation profit. The gross profit margin of

pesticide reduces to merely 2.00%, and that of organic silicon product reduces to merely 16.00%. The instable development of

major business makes Zhejiang Wynca instable in capability of resisting market risks and its income and profit in an instable state.

Therefore, if Zhejiang Wynca plans to develop vigorously the associated operation pattern, it has to increase the input on biological

breeding. When biological breeding becomes a major business of Zhejiang Wynca, Zhejiang Wynca will be more capable to resist

market risks. Second, to develop a new profit growth point. In the past few years, profit level of China's seed industry is generally in

a stable and high state. To take Shandong Denghai Seed Co., Ltd., Anhui Win-All Seed Co., Ltd., Yuanlongping Agriculture Hi-tech

Co., Ltd., Gansu Dunhuang Seed Co., Ltd., Hefei Fengle Seed Co., Ltd. (Hefei Fengle), Grand Agriseeds Technology,Inc., and

Wanxiang Doneed Co., Ltd. as examples, the average gross profit margin of these seven companies in 2011, 2012, 2013 were

38.39%, 39.55% and 39.30% respectively. According to related researches in China's seed industry, China's consumption of crop

seed in previous years achieved 12.50 billion kilograms, but currently commodity rate of domestic seed is merely about 30.00%.

Presently, the marketing value of pesticide seed in China achieves USD8.10 billion, and its potential value achieves USD14.59

billion. In general, seed industry has intense competition, as well as great development prospect, which can be concluded from the

number of seed industry enterprises. So far, according to the China National Seed Industry Association, there are about 6,000

seed enterprises in China, and in the last few years it was approximately 8,700. Seed industry in China still compete mainly by

price, therefore Zhejiang Wynca will take the lead by providing transgenic crop seed resisting for glyphosate, a competitive means

with obvious differences, for China's seed industry. If Zhejiang Wynca succeeds in research on transgenic crop seed resisting for

glyphosate and the seed enters market lawfully, Zhejiang Wynca is expected to gain great profit.

Third, maximization of profit by extending the synergy effects of existing products. Currently, glyphosate and organic silicon, two

major products of Zhejiang Wynca, achieve the leading cost based on the circulation of chlorine. The associated operation pattern

launched by Zhejiang Wynca will also extend the synergy effects of existing products. In consequence of the associated operation

pattern, Zhejiang Wynca will be able to provide transgenic crop seed resisting for glyphosate, as well as glyphosate. Furthermore,

currently in China, channels for commodity circulation of pesticides and seeds are basically lapped, namely pesticides and seeds

utilize common dealers and retailers. Zhejiang Wynca has presently accumulated strong channels for circulation and sale, and its

pesticide products, especially glyphosate, have gained great popularity and fame among farmers. Therefore, if Zhejiang Wynca

succeeds in research on transgenic crop seed resisting for glyphosate, it will be able to utilize its channels for circulation and sale

for pesticides and then occupy the market successfully. Fourth, the associated operation pattern, probably is another development

tendency of pesticide and seed industry in the future. Pesticide and seed belong to front producing materials of farming industry,

and both are necessary for farming. In the last few decades, the development of pesticide industry and seed industry were

independent and had little cross impact on each other. However, in the recent decade, cross impact between the two industries is

getting frequent and great. More and more pesticide enterprises abroad develop transboundary seed business, and seed

enterprises develop pesticide business. Take Monsanto Company as an example. Before the 1980s, seed business was not

included in Monsanto's businesses, however, now Monsanto is the largest supplier of glyphosate and seed in the world.

Nevertheless, pesticide enterprises developing seed business or seed enterprises developing pesticide business are still not

common in China. Among those enterprises, Hefei Fengle has made a great achievement. Hefei Fengle was specialized in seed

when established and then in 1988 it established Anhui Fengle Agrochemical Co., Ltd. (Anhui Fengle) which is specialized in



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pesticide. So far, the pesticide business of Anhui Fengle has gained a favorable development in China, and pesticide and seed

have become two major businesses of Hefei Fengle. At home and abroad, the phenomenon of pesticide enterprises developing

seed business or seed enterprises developing pesticide business will be more frequent and obvious. And the associated operation

pattern of Zhejiang Wynca will be probably another development tendency of pesticide and seed industries in the future.

Figure 1: Zhejiang Wynca's total revenue and operating profit and their growth rate, 2009-2013

Source: Zhejiang Wynca Chemical Industry Group Co., Ltd.

Figure 2: Zhejiang Wynca's pesticide revenue and organic silicon revenue and their growth rate, 2009-2013


Figure 3: Zhejiang Wynca's pesticide gross profit margin and organic silicon gross profit margin, 2009-2013



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Sinochem Group to be actual controller of Jiangsu Yangnong indirectly

Jiangsu Yangnong Chemical Co., Ltd. (Jiangsu Yangnong) launched an announcement on 24 May, 2014 declaring that Sinochem

Group's acquisition of Jiangsu Yangnong Chemical Group Co., Ltd.(Yangnong Group)'s 0.06% stock equities (100,000 stocks)

gained approval from China Securities Regulatory Commission. Having received the free transfer of 100,000 stocks from Jiangsu

Jinmao Chemical Pharmaceutical Group Co., Ltd., Sinochem Group holds 40.59% stock equities of Yangnong Group in total

directly and indirectly, becoming the biggest shareholder of Yangnong Group. Since Yangnong Group holds 36.17% stock equities

of Jiangsu Yangnong and it is the biggest shareholder of Jiangsu Yangnong, Sinochem Group will become the actual controller of

Jiangsu Yangnong indirectly. According to the announcement of Jiangsu Yangnong, within 12 months after this acquisition, it is

possible that Sinochem Group will increase its own and its associated companies' stocks equities of Yangnong Group to over 51%

by probable means of acquisition and capital expansion according to its performance.

Figure 4: Equity structure of Jiangsu Yanong and its major controllers before the transfer, 24 May 2014

Note: "SASAC" is short for the organization named the "State-owned Assets Supervision and Administration Commission of the

State Council".

Source: Jiangsu Yangnong

Figure 5: Equity structure of Jiangsu Yanong and its major controllers after the transfer, 24 May 2014



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Source: Jiangsu Yangnong

Technical reformation project of Sichuan Fuhua approved

Summary: The technical reformation project of 33% glyphosate ammonium AS and supporting sewage treatment system of

Sichuan Fuhua was approved by Sichuan Environmental Protection on 22 May, 2014.

On 22 May, 2014, Sichuan Environmental Protection launched a reply about the environmental impact assessment on the No. 208

construction project, approving the technical reformation project of 33% glyphosate ammonium AS and supporting sewage

treatment system of Fuhua Tongda Agro-chemical Technology Co., Ltd. (Sichuan Fuhua). The project's total investment reached

USD34.60 million (RMB213.50 million), of which environmental investment reached USD0.32 million (RMB2.00 million). The project

is to be carried out at Sichuan Fuhua's existing factories and Fuhua Agrochemical Park in Qiaogou Town, Wutongqiao District,

Leshan City, Sichuan Province. The project mainly includes stopping the establishment of sub-assembly lines of the original AS;

stopping using existing engineering sections of glyphosate TK; reforming workshops of 33% glyphosate ammonium AS; relying on

the available main and supporting devices like hydrogen peroxide tank, ammonia tank and boiler to build glyphosate TK treatment

devices with an output of 2000t/d, which include high temperature oxidation device, ordinary temperature oxidation device, salt

evaporative concentration device, phosphogypsum sintering equipment and supporting phosphogypsum stacking shed, etc. After

the implementation of the project, glyphosate technical's main manufacturing technique remains unchanged, and the whole product

scheme will change into glyphosate technical (120,000 t/a), 33% glyphosate ammonium AS (25,000 t/a), chloromethane (119,200

t/a), methylal (61,200 t/a), sulfate (40 t/a), industrial salt (90,000 t/a), phosphogypsum (14,400 t/a) and disodium hydrogen

phosphate 130 thousand t/a. from the original ones which are glyphosate technical (120,000 t/a), 33% glyphosate ammonium AS

(196,900 t/a), chloromethane (119,200 t/a), methylal (61,200 t/a), sulfate (300 t/a), industrial salt (66,100 t/a), phosphogypsum

(5,100 t/a).



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Hubei Xingfa gains approval from CSRC on purchase of JInfanda’s 51% shareof Hubei Taisheng

On 28 May, 2014, Hubei Xingfa Chemicals Group Co., Ltd. (Hubei Xingfa) announced to have received a notice from China

Securities Regulatory Commission (CSRC) which announced that after the examination of the 23rd working conference of 2014

held by Mergers and Acquisitions of Listed Company Audit Committee of CSRC on 28 May, 2014, the purchase of Hubei Xingfa

which issued shares to acquire Zhejiang Jinfanda Biochemical Co., Ltd. (Zhejiang Jinfanda)'s 51% shares of Hubei Taisheng

Chemicals Co., Ltd. (Hubei Taisheng) was approved with conditions. The stocks of Hubei Xingfa were resumed trading since 29

May, 2014. On 25 Jan., 2014, Hubei Xingfa announced that it had signed a transaction agreement with Zhejiang Jinfanda the day

before which was named Shares issue for Purchase Assets Agreement between Hubei Xingfa and Zhejiang Jinfanda. In the

agreement, Hubei Xingfa was planning to issue 94.60 million newly added shares to Zhejiang Jinfanda at the price of USD2.09

(RMB12.81) per share in order to purchase Zhejiang Jinfanda's 51% shares of Hubei Taisheng. The transaction volume reached

USD197.69 million (RMB1.21 billion) in total. Before the transaction, Hubei Xingfa's wholly owned subsidiary, Yichang Chulin

Chemical Co., Ltd. (Yichang Chulin), held 24% shares of Hubei Taisheng, so Hubei Xingfa will actually own 75% shares of Hubei

Taisheng after the transaction.

SCW to deal with IDAN processing device of Sichuan Hepu through listingsystem

On 31 May, 2014, Shichuan Chemical Works Group Ltd. (SCW) released an announcement, claiming that SCW hoped to withdraw

its funds as soon as possible to solve the excessive investment on its wholly-owned subsidiary, Sichuan Hepu Chemical Co., Ltd.

(Sichuan Hepu) thoroughly. SCW planned to deal with the IDAN processing device (underlying asset) which had a capacity of

40,000 t/a and was under construction at the present through the listing system at the Southwest United Equity Exchange. The

proceeds would be used as compensation for the debt that Sichuan Hepu owed SCW. According to the evaluation by China

Alliance Appraisal Co., Ltd, the estimated value of the underlying asset on the base date of 31 March, 2014, was USD16.53 million

(RMB101.99 million). The base price of underlying asset listed was going to be no less than USD16.53 million (RMB101.99

million). Compared with the book value, this price underwent an impairment loss of USD1.25 million (RMB7.73 million) with a

decrease of 7.04%.

Table 1: Details of the IDAN processing device of Sichuan Hepu

�No. Project Quantity, set Book value, million USD

1 Production device of 37% formaldehyde, 50k t/a 1 63.93

2 Circulating water equipment 1 20.36

3 Boiler 1 28.66

4 Electrical equipment 1 113.38

5 Refrigeration equipment 1 47.85

6 Air compression station equipment 1 51.37

7 Lifting equipment 1 1.96

8 Pipeline & valve 1 63.47

9 Instrument 1 49.72

10 Safety protection equipment 1 8.49



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11 Hydrocyanic acid production equipment and steel structure 1 181.86

12 Glycolonitrile production equipment 1 150.25

13 Diacetonitrile production equipment 1 129.31

14 Ammonium sulfate production equipment 1 39.62

15 Environmental monitoring equipment 1 1.02

16 Video-surveillance equipment 1 4.40

Total book balance / 955.65

Less: depreciation reserves / 278.65

Total net book value / 676.99

Source: SCW

Market AnalysisFour glyphosate manufacturers to pass EPV

On 13 June, 2014, the first batch name list of the glyphosate (PMIDA) manufacturers passing Environmental Protection Verification

(EPV) was released by the Ministry of Environmental Protection of the People's Republic of China. Four manufacturers passed the

EPV in this batch, including Zhenjiang Jiangnan Chemical Co., Ltd. (Jiangnan Chemical); Nantong Jiangshan Agrochemical &

Chemical Co., Ltd. (Nantong Jiangshan); Youth Chemical Co., Ltd. (Youth Chemical) and Hubei Taisheng Chemical Co., Ltd.

(Huibei Taisheng). What worth mentioning here is that Jiangnan Chemical is a wholly-owned subsidiary of the list company,

Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca); Nantong Jiangshan itself is a list company; Youth Chemical is

a holding subsidiary of the list company, Jiangsu Yangnong Chemical Co., Ltd. and Hubei Taisheng is a joint stock company of the

list company, Hubei Xingfa Chemicals Group Co., Ltd. (Hubei Xingfa). While nowadays, Hubei Xingfa was purchasing Zhejiang

Hangzhou Jinfanda Chemical Co., Ltd. (Zhejiang Jinfanda)'s 51% shares of Hubei Taisheng. So after this transaction, Hubei

Taisheng will become a holding subsidiary of Hubei Xingfa.

Table 2: Name list of the four glyphosate (PMIDA) manufacturers passing the EPV

No. Manufacturer Manufacturing route Main product

1 Zhenjiang Jiangnan Chemical Co., Ltd. (Jiangsu Province) AEA Glyphosate

2 Nantong Jiangshan Agrochemical & Chemical Co., Ltd. (Jiangsu Province) AEA & IDA Glyphosate & PMIDA

3 Youth Chemical Co., Ltd. (Jiangsu Province) IDA Glyphosate & PMIDA

4 Hubei Taisheng Chemical Co., Ltd. (Hubei Province) AEA Glyphosate

Source: Ministry of Environmental Protection of the PRC

Export volume of China's glyphosate in Q1 2014

Summary: The total A.I. volume (100% glyphosate acid equivalent) of exported glyphosate related products in Q1 2014 increased

by 53% and 10% over Q1 2012 and Q1 2013.



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In Q1 2014, China exported 74,678 tonnes of glyphosate technical, 143,488 tonnes of formulated glyphosate products and 19,225

tonnes of PMIDA. The total A.I. volume (100% glyphosate acid equivalent) of exported glyphosate related products in Q1 2014 was

about 136,200 tonnes, up by 53% and 10% over Q1 2012 and Q1 2013.

The high growth of glyphosate export in Q1 2014 indicated its increasing overseas demand. It's noteworthy that the export volume of

glyphosate technical in Q1 2014 decreased by 7% over the corresponding period of last year, but the export volume of glyphosate

formulation in Q1 2014 increased by about 37% over Q1 2013, showing the increasing acceptance of China's formulated

glyphosate products in overseas countries.

Regardless of the steady increase of demand for China's glyphosate in overseas in 2014 compared with 2013, it is predicted that

the overall operation rate of Chinese glyphosate industry is about 60% due to the strict environmental protection verification in

China.

Figure 6: Export volume and its growth rate of glyphosate A.I. in Q1 2012/2013/2014

Source: CCM and China Customs

Figure 7: Export volume comparison of glyphosate technical, glyphosate formulation and PMIDA in Q1 2012/2013/2014


Export price of China's glyphosate in Q1 2014

Summary: Except from 51% glyphosate IPA, export price of other glyphosate products increased slightly in Q1 2014 year on year.



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The export price of most glyphosate products in Q1 2014 enjoyed slight growth over Q1 2013. The price of the top two

specifications with the largest export volume, namely glyphosate technical and 41% glyphosate IPA, increased by 2% and 7%

respectively year on year. The increasing price of glyphosate products is mainly due to the increasing cost and heightened

industrial concentration rate, thus strengthening the bargaining power of glyphosate suppliers in China.

Figure 8: Export prices comparison of glyphosate products and PMIDA in Q1 2012/2013/2014


Export value of China's glyphosate in Q1 2014

Summary: Export value of glyphosate exported from China still gained a double-digit growth in Q1 2014.

The total export value of glyphosate was USD830.82 million in Q1 2014, up by 106% and 16% over Q1 2012 and Q1 2013,

respectively. In other words, export value of glyphosate exported from China still gained a double-digit growth in Q1 2014. The

significant growth can be attributed to two reasons. Firstly, the total export volume of glyphosate A.I. witnessed a great growth in Q1

2014 year on year. Secondly, export price of most of the glyphosate products increased slightly companied with that of 2013.

Figure 9: Export value and its growth rate of glyphosate A.I. in Q1 2012/2013/2014


Figure 10: Export value of glyphosate products and PMIDA in Q1 2014



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Destinations of China’s exported glyphosate in Q1 2014

Summary: In Q1 2014, the US, Argentina and Brazil were still the main export destinations of China's glyphosate technical; China's

glyphosate formulations were exported to more than 100 countries and regions and China's PAIDA were mainly exported to India,

the US and Argentina.

Destinations of China's exported glyphosate technical in Q1 2014 were relatively concentrated in three American countries, namely

the US, Argentina and Brazil. They have the largest planting area of GM crops and imported about 60% of China's total exported

glyphosate technical in Q1 2014. The total volume exported to the top eight countries accounted for about 81% of the total.

Destinations of China's exported glyphosate formulations in Q1 2014 were disperse. Glyphosate formulations were exported to

more than 100 countries/regions in Q1 2014, and the total volume exported to the top eight destinations was about 56% of the total.

Destinations of China's exported PMIDA in Q1 2014 are concentrated in India, the US and Argentina, and the import volume of

these three countries accounted for about 95%.

Figure 11: Export destinations of glyphosate technical, Q1 2014


Figure 12: Export destinations of glyphosate formulation, Q1 2014



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Figure 13: Export destinations of PMIDA, Q1 2014


Manufacturers of exported glyphosate in Q1 2014

Summary: Manufacturers exporting glyphosate technical were relatively concentrated. They were mainly Sichuan Fuhua Tongda

Agro-chemical Technology Co., Ltd., Nantong Jiangshan Agrochemical & Chemicals Co., Ltd., and Zhejiang Wynca Chemical

Industry Group Co., Ltd.; while manufacturers exporting glyphosate formulations were mainly Zhejiang Jinfanda Bio-Chemical Co.,

Ltd., Zhejiang Wynca Chemical Industry Group Co., Ltd. and Shandong Weifang Rainbow Chemical Co., Ltd. in Q1 2014.

In Q1 2014, the exported glyphosate technical products were manufactured by 21 companies and the exported formulated

glyphosate products were manufactured by 29 companies. The top suppliers of glyphosate technical in Q1 2014 included Sichuan

Fuhua Tongda Agro-chemical Technology Co., Ltd., Nantong Jiangshan Agrochemical & Chemicals Co., Ltd., Zhejiang Wynca

Chemical Industry Group Co., Ltd., Zhejiang Jinfanda Bio-Chemical Co., Ltd. and Jiangsu Yangnong Chemical Group Co., Ltd., etc.

The top suppliers of glyphosate formulations in Q1 2014 included Zhejiang Jinfanda Bio-Chemical Co., Ltd., Zhejiang Wynca

Chemical Industry Group Co., Ltd. and Shandong Weifang Rainbow Chemical Co., Ltd., etc.

Table 3: Main manufacturers of exported glyphosate technical in China, Q1 2014

Company Share

Sichuan Fuhua Tongda Agro-chemical Technology Co., Ltd. 23%



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Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. 15%

Zhejiang Wynca Chemical Industry Group Co., Ltd. 14%

Zhejiang Jinfanda Bio-Chemical Co., Ltd. 13%

Jiangsu Yangnong Chemical Group Co., Ltd. 12%

Jiangsu Good Harvest-Weien Agrochemical Co., Ltd. 6%

Jiangsu Jurong Chemical Co., Ltd. 4%

Others 13%


Table 4: Main manufacturers of exported glyphosate formulations in China, Q1 2014

Company Share



Shandong Weifang Rainbow Chemical Co., Ltd. 12%


Changshu Pesticide Factory Co., Ltd. 6%



Others 29%


Name list of glyphosate manufacturers passing EPV remains unpublished inMay 2014

A rumor prevailed in the market that the name list of glyphosate manufacturers passing Environmental Protection Verification (EPA)

would be probably published by the Ministry of Environmental Protection of the People's Republic of China in May 2014. However,

the name list hasn't been published yet till early June. On 29 May, 2014, according to China Securities Journal, a relevant official of

China Crop Protection Industry Association said that hopefully, the name list of glyphosate manufacturers which have passed EPA

would be published in the near future. Yet no relevant staff of the Ministry of Environmental Protection of the People's Republic of

China has made any prediction about when the name list would be announced. Therefore, when the name list of glyphosate

manufacturers passing EPA will be published remains unknown.

20% paraquat AS undergoes same crazy as 10% glyphosate AS before exitingmarket

Summary: 20% paraquat AS in China is undergoing the same crazy sales as 10% glyphosate AS before exiting the market. Since

trading of 20% paraquat is so hot that it is in short supply which accordingly causes the price to increase year by year.

The Announcement No. 1745, jointly released on 24 April, 2012 by the Ministry of Agriculture of the People's Republic of China

(MOA), the Ministry of Industry and Information Technology of People's Republic of China (MIIT), and the General Administration of

Quality Supervision, Inspection and Quarantine of the People's Republic of China, disclosed that from 1 July, 2014, the registration

and production permit of paraquat AS will be withdrown, and its production shall stop, while production for export is permitted for TK

manufacturers; also the domestic sales and application of paraquat AS will stop on 1 July, 2016. In China, 20% paraquat AS is the



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only paraquat AS in the domestic market. Since the Announcement No. 1745 was launched, 20% paraquat AS in China is

undergoing the same crazy sales as 10% glyphosate AS before exiting the market. Since trading of 20% paraquat is so hot that it

is in short supply which accordingly causes the price to increase year by year. Before the Announcement No. 1745 was launched,

the price of 20% paraquat AS in 2011 in China was representative. According to the China Crop Protection Industry Association

(CCPIA) and other market statistics, the average ex-works price of 20% paraquat AS in China was USD1,802/t in 2011, then rose

to USD1,836/t in 2012 with slight variation. But the price in 2013 grew to USD2,716/t, 48% higher than that in 2012. Afterwards

from Jan. to May 2014, the average ex-works price was up to USD3,419/t, 86% higher than that in 2012. It can be seen that since

Announcement No.1745 was launched, the trading of 20% paraquat AS is hot; the demand for 20% paraquat AS exceeds its

supply and the price of it rises year by year. Apparently, 20% paraquat AS in China is undergoing the same crazy sales as 10%

glyphosate AS. According to the Announcement No.1185, jointly launched by MOA and MIIT on 25 Feb., 2009, 10% glyphosate AS

would withdraw entirely from the market after 1 Jan. 2012. As a result of that, the price of glyphosate changed radically. So in terms

of price, the year 2008 was abnormal for glyphosate industry. Therefore, before the Announcement No. 1185, the price of 20%

glyphosate in 2007 was representative. According to CCPIA and other market statistics, the average ex-works price of 10%

glyphosate AS of China was USD402/t in 2007, then decreased to USD399/t in 2009 with slight variation. However, the price in

2010 rose to USD537/t, 34% higher than that in 2009. Afterwards in 2011, a year before the entire withdrawal, the average ex-

works price of glyphosate AS was up to USD604/t, 51% higher than that in 2009.

Figure 14: Ex-works price of 20% paraquat AS, 2012-2013, Jan. 2012-May 2014

Source: CCM

Figure 15: The ex-works price of China's 10% glyphosate AS, 2009-2011



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Source: CCM

Since 10% glyphosate AS withdrew from market in 2012, various glyphosate formulations, represented by a formulation of 30%

glyphosate acid, have taken over the market share left by 10% glyphosate AS. It is because at that time domestic glyphosate

manufacturers have prepared well for dealing with the withdrawal of 10% glyphosate AS. The core of the preparation is to improve

producing technique and raise the content of glyphosate acid to at least 30%.

The withdrawal of 10% glyphosate AS has provided reference for 20% paraquat AS, but after all, the challenges they faced are

different. The main challenge for 20% paraquat AS is how to change its formulations, while that for 10% glyphosate AS is how to

increase its ingredient. With 20% paraquat AS' market withdrawal, bigger challenges will come to large and small domestic

paraquat manufacturers, because so far neither the research nor practical application of paraquat AS' substitute is satisfactory.

Production condition standard of paraquat non-AS formulations to belaunched

On 11 June, 2014, a forum about production condition standard of paraquat non-AS formulations was held by the Ministry of

Industry and Information Technology of the People's Republic of China (MIIT) in Beijing. Many insiders and more than ten major

domestic manufacturers were invited and took part in discussion in the forum. The forum focused on the production conditions,

major product guideposts and production feasibility of paraquat water soluble granule and water soluble gel. It is predicted that

production condition standard of paraquat non-AS formulations will be launched in the near future.

Price UpdateEx-works price of glyphosate technical in June 2014 down by 5.26% month on

month

Summary: Generally, ex-works price decline was experienced again by almost all glyphosate products in late May 2014 and early

June 2014. Compared with May 2014, the ex-works price of glyphosate technical decreased by 5.26%, and that of glyphosate

formulations were down to different extents in June 2014.

Ex-works price decline was experienced again by almost all glyphosate products in late May 2014 and early June 2014. Compared

with May 2014, the ex-works price of glyphosate technical decreased by 5.26% in June 2014, and that of glyphosate formulations

declined to different extents. As for glyphosate raw materials, ex-works price of DEA remained stable, and that of glycine, IDAN,



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PMIDA and yellow phosphorus decreased to different extents, especially for glycine, whose ex-work price in June 2014 went down

by 26.15% month on month.

In detail, ex-works price of glyphosate technical (95%) in June 2014 was about USD4,749/t (RMB29,250/t) with a MoM decrease of

5.26%, which was mainly attributed to its weak market demand. Besides, glycine's ex-works price declined sharply in June 2014,

which was one of the most important factors for glyphosate technical's ex-works price decline in June 2014.

The ex-works prices of glyphosate formulations decreased to different extents in June 2014. The ex-works prices of glyphosate

41% IPA, glyphosate 50% SP, glyphosate 62% IPA and glyphosate 75.7% WSG was USD2,273/t (RMB14,000/t), USD2,679/t

(RMB16,500/t), USD2,760/t (RMB17,000/t) and USD4,303/t (RMB26,500/t) respectively, down by 6.67%, 5.71%, 5.56% and

5.36% respectively.

As for raw materials and intermediates for glyphosate in June 2014, the ex-works prices of DEA barely changed month on month,

while yellow phosphorus, glycine, IDAN and PMIDA at a price of USD2,480/t (RMB15,300/t), USD1,952/t (RMB12,000/t),

USD1,708/t (RMB10,500/t) and USD2,358/t (RMB14,500/t) respectively, down by 0.65%, 26.15%, 2.78% and 4.61% respectively

month on month. Notably, glycine's ex-works price experienced decline in June for the first time in 2014, which was attributed to the

weak demand of downstream product, glyphosate technical.

It is estimated that the ex-works price of glyphosate in July 2014 will remain stable or slightly decrease. On 13 June, 2014, the first

batch name list of the glyphosate (PMIDA) manufacturers passing Environmental Protection Verification (EPV) was released by the

Ministry of Environmental Protection of the People's Republic of China. Four manufacturers passed the EPV in this batch, including

Zhenjiang Jiangnan Chemical Co., Ltd.; Nantong Jiangshan Agrochemical & Chemical Co., Ltd.; Youth Chemical Co., Ltd. and

Hubei Taisheng Chemical Co., Ltd. But the impact for China's glyphosate market including glyphosate products' price brought from

the release of first batch name list of the glyphosate (PMIDA) manufacturers passing EPV isn't clear. There is a certain fact is that

the second EPV against China's glyphosate (PMIDA) industry will carry out soon. At present, most glyphosate manufacturers in

China are much cautious, so it's estimated that the operating rate in China's total glyphosate industry will be still low.



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Table 6: Ex-works prices of glyphosate formulations, 2014 01H1-2014 06H1

Spec.2014 01H1 2014 02H1 2014 03H1 2014 04H1 2014 05H1 2014 06H1

USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t

Glyphosate 41% IPA 2,458 15,000 2,603 15,900 2,652 16,250 2,641 16,250 2,436 15,000 2,273 14,000

Glyphosate 50% SP 2,835 17,300 2,947 18,000 3,003 18,400 2,991 18,400 2,842 17,500 2,679 16,500

Glyphosate 62% IPA 2,949 18,000 3,193 19,500 3,264 20,000 3,251 20,000 2,923 18,000 2,760 17,000

Glyphosate 75.7% WSG 4,588 28,000 4,748 29,000 4,815 29,500 4,795 29,500 4,547 28,000 4,303 26,500

Note: 1. The price change is calculated from RMB quotations. 2. Prices are monitored on 11-15 Jan.-June 2014. 3. 2014 01H1

refers to mid-Jan. 2014 and other times all adopt this rule.

Source: CCM

Table 7: Ex-works prices of glyphosate raw materials, 2014 05H1-2014 06H1

Product2014 05H1 2014 06H1

Price change MOMUSD/t RMB/t USD/t RMB/t

Yellow phosphorus 2,502 15,400 2,480 15,300 -0.65%

DEA 1,998 12,300 1,993 12,300 0.00%

Glycine 2,640 16,250 1,952 12,000 -26.15%

IDAN 1,754 10,800 1,708 10,500 -2.78%

PMIDA 2,469 15,200 2,358 14,500 -4.61%

Note: 1. The price change is calculated from RMB quotations. 2. Prices are monitored on 11-15 May-June 2014. 3. 2014 05H1

refers to mid-May 2014 and other times all adopt this rule.

Source: CCM

Export AnalysisExport volume of glyphosate technical in April 2014 increases slightly month

on month

Summary: Compared with March 2014, the export volume of glyphosate technical and glyphosate formulations both increased

slightly in April 2014, up by 1.47% and 7.76% respectively. In terms of export price, glyphosate technical, glyphosate formulations

and PMIDA all increased slightly.

Export volume

The export volumes of glyphosate related products in April 2014 included 24,925 tonnes of glyphosate technical, 4,622 tonnes of

PMIDA and 59,285 tonnes of glyphosate formulations. Compared with March 2014, the export volume of glyphosate technical and

glyphosate formulations in April 2014 increased by 1.47% and 7.76% respectively.

Compared with the same period of last year, the export volume of glyphosate technical in April 2014 increased by 2.53%,

glyphosate formulation increased by 58.27%, but PMIDA decreased 33.51%.

In April 2014, China exported about 48,600 tonnes of glyphosate A.I. (100% glyphosate acid equivalent), up by 2.69% month on

month.



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Export price

Export prices of glyphosate technical, PMIDA and glyphosate formulations in April 2014 slightly increased by 2.76%, 0.75% and

1.85% month on month respectively.

Export prices of glyphosate technical, PMIDA and glyphosate formulations in April 2014 slightly increased by 3.52% year on year,

1.90% year on year and 11.74% year on year respectively.

Export destinations

China exported glyphosate products to 100 countries/regions in April 2014, of which 32 countries/regions imported glyphosate

technical from China. The top six export destinations of glyphosate technical were the US, Brazil, Argentina, Indonesia, Australia

and Malaysia. These six destinations accounted for 75% of the total export volume of glyphosate technical in April 2014.

China exported glyphosate 41% IPA to 80 countries/regions in April 2014. The top four destinations by export volume, namely

Nigeria, Thailand, Vietnam and Ghana, accounted for 57.57% of the total export volume of glyphosate 41% IPA.

China only exported glyphosate 51% IPA to Australia in April 2014. The export volume was 2,163 tonnes, up by 246.63% month on

month.

China exported glyphosate 62% IPA to 31 countries/regions in April 2014, and the top five export destinations were Indonesia,

Thailand, Russia, South Korea and Taiwan, accounted for 60.45% of the total export volume of glyphosate 62% IPA.

China exported glyphosate 75.7% WSG to 28 countries/regions in April 2014, the top three export destinations were Argentina,

Brazil and Cote d'Ivoire, which imported 4,303 tonnes from China and representing 77.87% of the total export volume.

China exported PMIDA to 5 countries in April 2014. The export volume to India and the US accounted for 52.19% and 23.63% of

the total export volume respectively.

Manufacturers

In April 2014, the exported glyphosate technical products were produced by 20 companies, and the exported glyphosate

formulations were produced by 28 companies.

The top-ranked exporters of glyphosate technical were Sichuan Fuhua Tongda Agro-chemical Technology Co., Ltd., Zhejiang

Wynca Chemical Industry Group Co., Ltd., Jiangsu Yangnong Chemical Group Co., Ltd., Nantong Jiangshan Agrochemical &

Chemicals Co., Ltd. and Zhejiang Jinfanda Bio-Chemical Co., Ltd. etc.

The top-ranked exporters of glyphosate formulations were Zhejiang Wynca Chemical Industry Group Co., Ltd., Zhejiang Jinfanda

Bio-chemical Co., Ltd. and Shandong Weifang Rainbow Chemical Co., Ltd. etc.

Table 8: Export volume of glyphosate products in China, March/April 2014

ProductExport volume, tonne Change

April 2014 March 2014 April 2013 MoM YoY

Technical 24,925 23,957 24,309 1.47% 2.53%



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PMIDA 4,622 6,794 6,951 -31.97% -33.51%

Formulation 59,285 55,015 37,459 7.76% 58.27%


Table 9: Export prices of glyphosate products in China, March/April 2014

ProductExport price, USD/kg Change

April 2014 March 2014 April 2013 MoM YoY

Technical 5.59 5.44 5.40 2.76% 3.52%

PMIDA 2.68 2.66 2.63 0.75% 1.90%

Formulation 2.76 2.71 2.47 1.85% 11.74%


Figure 16: Export destinations for glyphosate technical in China, April 2014


Table 10: Main manufacturers of exported glyphosate technical in China, April 2014

Company Share



Jiangsu Yangnong Chemical Group Co., Ltd. 13%




Jiangsu Jurong Chemical Co., Ltd. 4%

Others 18%


Table 11: Main manufacturers of exported glyphosate formulations in China, April 2014

Company Share



Shandong Weifang Rainbow Chemical Co., Ltd. 12%





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Changshu Pesticide Factory Co., Ltd. 6%


Others 29%


Brief NewsChina PMIDA market in the first week of June 2014 (3 June-6 June)

In the first week of June 2014 (3 June–6 June), ex-works price of PMIDA decreased in China influenced by the weak market

demand for glyphosate. Main quotation of PMIDA in East China was USD2,399/t–USD2,431/t (RMB14,800/t–RMB15,000/t).

China glycine market in the first week of June 2014 (3 June-6 June)

In the first week of June 2014 (3 June–6 June), market price of glycine reached USD1,945/t (RMB12,000/t) in China, dropped by

USD729/t (RMB4,500/t) month on month. The price has become normal again. The main reason for the decrease of glycine price

was the weak market demand for the down-stream product, glyphosate technical.

China DEA market in the first week of June 2014 (3 June-6 June)

In the first week of June 2014 (3 June–6 June), main quotation of DEA (diethanolamine) in China was USD1,993/t (RMB12,300/t).

Although DEA's market price tends to rise, current slow demand recovery and sufficient DEA stock at home make it hard to realize.

Besides, falling price of upstream raw material EO (ethylene oxide) and weak trade atmosphere increase difficulties for DEA's

price rising. It is predicted that China DEA market will remain stable in the coming weeks.

China IDAN market in the first week of June 2014 (3 June-6 June)

In the first week of June 2014 (3 June–6 June), price of IDAN (iminodiacetonitrile) dropped slightly in China. Transaction price of

92% IDAN was around USD1,669/t (RMB10,300/t) and mainstream transaction price of 96% IDAN was USD1,702/t–USD1,718/t

(RMB10,500/t–RMB10,600/t). At present, intense market competition causes unusual sensitivity from major IDAN suppliers on

price. Besides, due to the weak market demand for downstream product glyphosate, IDAN's price is unlikely to rise in the coming

weeks.

China yellow phosphorus market in the first week of June 2014 (3 June-6June)

In the first week of June 2014 (3 June–6 June), ex-works price of yellow phosphorus dropped slightly month on month to about

USD2,431/t (RMB15,000/t). It is forecasted that price of yellow phosphorus will come down along with the arrival of rain season.



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China phosphorus trichloride market in the first week of June 2014 (3 June-6June)

In the first week of June 2014 (3 June–6 June), price of phosphorus trichloride dropped slightly year on year. In particular, price of

phosphorus trichloride dropped to USD778/t–USD794/t (RMB4,800/t–RMB4,900/t) in Jiangsu and Zhejiang Provinces; USD794/t–

USD810/t (RMB4,900–5,000/t) in Anhui Province and price of phosphorus trichloride was stable at USD810/t–USD843/t

(RMB5,000/t–RMB5,200/t) in Jiangxi Province. Main reasons for the decreasing price were weak downstream market demand and

the falling price of upstream raw material.

China isopropylamine salt market in the first week of June 2014 (3 June-6June)

In the first week of June 2014 (3 June–6 June), market price of isopropylamine salt was about USD1,945/t (RMB12,000/t) in East

China. Present price of isopropylamine salt may down in the coming weeks due to the limited market demand for downstream

products of glyphosate and atrazine.

China paraformaldehyde market in the first week of June 2014 (3 June-6 June)

In the first week of June 2014 (3 June–6 June), market price of paraformaldehyde in China remained stable in general. Mainstream

price of paraformaldehyde in East China was USD891/t (RMB5,500/t); mainstream price of granular paraformaldehyde was

USD908/t–USD1,005/t (RMB5,600/t–RMB6,200/t) and mainstream market price of powdery paraformaldehyde in Central China

was around USD924/t–USD956/t (RMB5,700/t–RMB5,900/t).

China chloromethane market in the first week of June 2014 (3 June-6 June)

In the first week of June 2014 (3 June–6 June), market price of chloromethane dropped lightly year on year in general. Mainstream

price of chloromethane in East China was about USD357/t (RMB2,200/t). Chloromethane's market demand and price will remain

stable in the coming weeks predictably.

China methylal market in the first week of June 2014 (3 June-6 June)

In the first week of June 2014 (3 June–6 June), market price of methylal in China remained stable in general. Mainstream price of

methylal in East China was stable at USD438/t–USD470/t (RMB2,700/t–2,900/t). It is forecasted that methylal's market demand

and market price will remain stable in the coming weeks.



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Journalist: Shuanglin HeEditor: Ivy XianChief Editor: Ohgao. Ou, Shuanglin HePublisher: Guangzhou CCM Information Science &Technology Co.,Ltd

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