"This research is an extension of CCM's market research report on The Future of Glyphosate Industry in China. Many talent consultants in CCM spent one year to work out this masterpiece.
Glyphosate has been in a leading position of herbicides in the world in the past few years; it is estimated that the global consumption of glyphosate is over 600kts at present and will increase by CAGR of over 12%.
China, now the largest production base of glyphosate technical in the world, has glyphosate capacity accounting for more than 40% of the global total. With the output expected to reach about 280kts and the export volume 250kts in 2008, China’s glyphosate supply and price will have great impacts on the global market.
Since February 2007, China's glyphosate price has been surging, from the average price of about RMB34,000/t in February to RMB42,000/t as of September 2007. However, this is far from the end of the price rise. The price has kept soaring, from RMB58,000/t at the end of 2007 to the unbelievably record high, RMB95,000~100,000/t as of May 2008. But in 2006, the average price was only about RMB26,000/t.
Attracted by the huge market potential and the promising prospects of glyphosate, more and more domestic enterprises are busy either expanding their production capacities, or setting up new glyphosate production lines. The global production capacity of glyphosate is shifting to China and China has become the largest production base of glyphosate technical in the world with a capacity of 304,900t/a in 2007, accounting for more than one third of the global productivity. The output and export volume of glyphosate in China reached 187kt and 165kt respectively in 2007. It is estimated that the total capacity of glyphosate in China will reach 630,900 tonnes to the end 2008, based on the expanding plans of the glyphosate players in China.
Then why the production capacity of glyphosate technical is concentrating into China and where the competitiveness of China’s glyphosate industry lies in? Whether most glyphosate producers in the domestic market undoubtedly earn considerable profit? Where its price will go next? What will influence China’s glyphosate industry and how this industry will develop in the future? …
In this research, CCM will give a detailed analysis on glyphosate industry in China to help the readers understand in depth the competitiveness of China’s glyphosate industry, and to help the readers, mainly the decision maker to decide: whether is right to invest glyphosate in China, where to pay attention and how to access this market.
- Introduction
Because of the expanding planting of genetically modified crops and the fast growth of the agriculture in developing countries, Glyphosate develops rapidly these years. It is estimated that the annual growth rate of glyphosate will keep at 14% in the next few years in the world, and the global demand of glyphosate will reach 900,000 tonnes in 2010. Attracted by the huge market potential and the promising prospects of glyphosate, more and more domestic enterprises are busy either expanding their production capacities, or setting up new glyphosate production lines. It is estimated that the global production capacity of glyphosate will shift to China in the future and the gap between demand and supply will be filled in the next two years.
The technology development is also quite rapid in China . There are two different pathways of glyphosate production in China : aminoacetic acid (AEA) pathway and iminodiacetic acid (IDA) pathway, about 60% of the domestic glyphosate producers take the AEA pathway and the rest 40% take the IDA route.
AEA pathway, as a traditional pathway in China , is widely applied in China 's glyphosate production, because of the easy availability of raw material and mature technology. Many glyphosate producers are close to glycine manufacturers, which means lower transport costs and guaranteed glycine supply . But th
1. CCM Data & Primary Intelligence
Glyphosate Competitiveness Analysis in
China
Researched & Prepared by:
Guangzhou CCM Information Science and Technology Co., Ltd
Guangzhou, P. R. China
July 2008
Copyright by Guangzhou CCM Information Science and Technology Co., Ltd (P. R. China)
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2. CCM Data & Primary Intelligence
Description:
This research is an extension of CCM's market research report on The Future of Glyphosate Industry in
China. Many talent consultants in CCM spent one year to work out this masterpiece.
Glyphosate has been in a leading position of herbicides in the world in the past few years; it is
estimated that the global consumption of glyphosate is over 600kts at present and will increase by
CAGR of over 12%.
China, now the largest production base of glyphosate technical in the world, has glyphosate capacity
accounting for more than 40% of the global total. With the output expected to reach about 280kts and
the export volume 250kts in 2008, China’s glyphosate supply and price will have great impacts on the
global market.
Since February 2007, China's glyphosate price has been surging, from the average price of about
RMB34,000/t in February to RMB42,000/t as of September 2007. However, this is far from the end of
the price rise. The price has kept soaring, from RMB58,000/t at the end of 2007 to the unbelievably
record high, RMB95,000~100,000/t as of May 2008. But in 2006, the average price was only about
RMB26,000/t.
Attracted by the huge market potential and the promising prospects of glyphosate, more and more
domestic enterprises are busy either expanding their production capacities, or setting up new
glyphosate production lines. The global production capacity of glyphosate is shifting to China and
China has become the largest production base of glyphosate technical in the world with a capacity of
304,900t/a in 2007, accounting for more than one third of the global productivity. The output and export
volume of glyphosate in China reached 187kt and 165kt respectively in 2007. It is estimated that the
total capacity of glyphosate in China will reach 630,900 tonnes to the end 2008, based on the
expanding plans of the glyphosate players in China.
Then why the production capacity of glyphosate technical is concentrating into China and where the
competitiveness of China’s glyphosate industry lies in? Whether most glyphosate producers in the
domestic market undoubtedly earn considerable profit? Where its price will go next? What will influence
China’s glyphosate industry and how this industry will develop in the future? …
In this research, CCM will give a detailed analysis on glyphosate industry in China to help the readers
understand in depth the competitiveness of China’s glyphosate industry, and to help the readers,
mainly the decision maker to decide: whether is right to invest glyphosate in China, where to pay
attention and how to access this market.
- Introduction
Because of the expanding planting of genetically modified crops and the fast growth of the agriculture
in developing countries, Glyphosate develops rapidly these years. It is estimated that the annual growth
rate of glyphosate will keep at 14% in the next few years in the world, and the global demand of
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3. CCM Data & Primary Intelligence
glyphosate will reach 900,000 tonnes in 2010. Attracted by the huge market potential and the promising
prospects of glyphosate, more and more domestic enterprises are busy either expanding their
production capacities, or setting up new glyphosate production lines. It is estimated that the global
production capacity of glyphosate will shift to China in the future and the gap between demand and
supply will be filled in the next two years.
The technology development is also quite rapid in China . There are two different pathways of
glyphosate production in China : aminoacetic acid (AEA) pathway and iminodiacetic acid (IDA) pathway,
about 60% of the domestic glyphosate producers take the AEA pathway and the rest 40% take the IDA
route.
AEA pathway, as a traditional pathway in China , is widely applied in China 's glyphosate production,
because of the easy availability of raw material and mature technology. Many glyphosate producers are
close to glycine manufacturers, which means lower transport costs and guaranteed glycine supply . But
the AEA pathway consumes a lot of alkali to recycle the solvent and catalyst, which increases the
equipment expenditure and utility. What's more, the product quality by this pathway is not as good as
that by IDA pathway. So in recent years, the AEA pathway is partly replaced by the IDA pathway.
However, some glyphosate producers adopting AEA pathway have innovated this pathway and made
better use of their by-products, so that the production cost can be reduced.
Although the raw material diethanolamine is mainly imported from some overseas countries and its
price is rising all the time, IDA pathway is widely applied in most newly-built glyphosate projects in
China these years, because of the comparative advantages in yield, production cost, environment
protection and investment, Recently Anhui Huaxing Chemical Industry Co., Ltd. researched and
developed a new Hydrocyanic acid-IDA-Glyphosate process, which extracts hydrocyanic acid from the
nature gas. When the production line is put into operation, the cost can be reduced by RMB3,000 per
tonne than the current level.
What is the detailed situation of the competitiveness of AEA pathway and IDA pathway? In what
aspects are they competitive? It is claimed by many people that the hydrocyanic acid process will be
widely applied and used in the domestic market, and the AEA pathway will be replaced by the IDA
pathway and the IDA pathway will be the dominant glyphosate producing pathway in the future. Is that
true? Why? If it is true, how long will the process of this substitution take? If it isn't, what are the factors
hampering this substitution? CCM will give a detail analysis in order to answer all these questions in
this report.
Although the output is growing all the time, the global price of glyphosate has been rising. One tonne of
glyphosate was priced only at RMB28,000 last year, but the price has soared to nearly RMB50,000/t at
present, that is, November 2007. The main reason for the price hike of glyphosate this year is the
current demand and supply situation. Monsanto, a world renowned company, also the largest
glyphosate producer in the world, has stopped investing in its glyphosate production capacity
expansion, and has started to buy raw materials from China for their glyphosate production. Meanwhile,
the output from the domestic glyphosate producers can not satisfy the huge demand in the overseas
market. All these factors contribute to the tense supply and high price of glyphosate.
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With the price hike of glyphosate, more and more profit has been gained by domestic glyphosate
producers. The net profit was once several times of the production cost this year, although the current
production cost is much higher than that in the past. What is the actual cost structure of glyphosate in
active producers by different pathways? How does the production cost influence domestic glyphosate
production and sales? In this report CCM will give an in-depth analysis of the production technology
and production cost in some major glyphosate producers.
In recent years, the Chinese government imposes stricter and stricter rules on the agrochemicals
industry and environment protection, and the production cost of glyphosate including raw materials,
manufacturing cost and management cost is rising all the time. These factors will inevitably contribute
much to the development of glyphosate industry in China .
Under such circumstances, it needs to find out:
- What factors influence the development of glyphosate industry, especially the price and profit of
glyphosate?
- In the future, which pathway will be the dominant route in glyphosate production in China , and why?
Will AEA pathway be replaced by IDA pathway in the future? How is the prospect of hydrocyanic acid
process?
- What is the price trend?
- During the current and future production capacity expansion by domestic producers, whether most
glyphosate producers in the domestic market undoubtedly earn considerable profit at the moment?
How do policy adjustment, production cost rising and other factors influence the development of profit
in the future? Will the profit keep stable in the next few years?
- Which producer has the largest competitive advantage in China now?
- How does the prospect of glyphosate industry in the future?
CCM will give you a professional analysis to the above questions in this benchmarking research.
- What is the aim of this research?
CCM's research on glyphosate competitiveness analysis in China offers a comprehensive guide to the
current technology situation and production cost structures of Chinese manufacturers.
1) Analyze the factors influencing the competitiveness landscape of China’s glyphosate industry, such
as supply and demand dynamics, production pathways & technology level, raw materials supply,
macro-economic situation and government policies, to understand where Chinese glyphosate
competitiveness lies.
2) Research systematically the different processes for glyphosate production and the current
production situation of the Chinese producers in an effort to understand their production cost structures,
how the different production pathways compete with each other, and how the technology will evolve.
3) Set up model for glyphosate cost in China and make comparison to different cost structures of the
major producers in China.
4) Carry out comparison between the competitiveness of AEA pathway and IDA pathway, and analyze
the competitiveness landscape of glyphosate production in China.
5) Identify the key factors influencing the price of glyphosate and the internal relationship between the
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5. CCM Data & Primary Intelligence
key factors. And then set up glyphosate price model.
6) Based on the work mentioned above, make a forecast on the competitiveness of China’s glyphosate
in the next five years.
- Why to purchase the research?
1) To understand the current technology level, cost structure, price and profit in Chinese glyphosate
market.
2) To understand the competitive landscape of Chinese glyphosate producers.
3) To forecast the future development of glyphosate industry in China .
4) To help make decisions: whether is right to invest glyphosate in China ?
- Who should buy this research?
1) Glyphosate producers paying close attention to the Chinese technology level, cost structure, price
and profit of major competitors in China ;
2) Glyphosate buyers who purchase glyphosate from Chinese manufacturers;
3) Glyphosate investors who plan to enter China to build new plants;
4) Technology suppliers who own the latest or best production and processing technology, and want to
transfer their technology to Chinese glyphosate producers;
5) Research institutes who desire to know current technology level and research status in China ;
6) Analysts and consultants trying to gain insight into China 's fast-growing market for glyphosate
If you are interested in this research:
Please Contact Us for more information about this research!
Main content:
No. Content Page
Executive summary 15
Introduction and methodology 37
I Introduction to this Work 40
Factors influencing the competitiveness landscape of China’s glyphosate
II 42
industry
II-1 Government policy 42
II-1.1 Promotion of genetically modified crops 42
II-1.2 Promotion of no-tillage land 43
II-1.3 Environmental and energy policy 44
II-1.4 Policy on import and export 47
II-1.5 Support on some important enterprises 48
II-1.6 Some policies for foreign invested enterprises 49
II-1.7 Other unfavourable policies for glyphosate investment 50
II-2 Economic environment for the development of glyphosate industry 51
II-2.1 China economy continuously develops with fast growth rate 51
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II-2.2 Income of Chinese peasants grows continuously and stably 52
II-2.3 Low labor cost 54
II-2.4 More population to feed but reducing peasants and shrinking cultivated land 56
II-2.5 Serious Inflation 57
II-2.6 RMB appreciation 59
II-2.7 Growth rate of export 61
II-2.8 Shortage of energy and raw material 63
II-2.9 Great demand for bio-energy 68
II-3 Situation of Chinese pesticide 70
II-3.1 Output and demand of pesticide 70
II-3.2 Adjustment of pesticide 72
II-3.3 Competition pattern of pesticide industry in China 73
II-3.4 Technology level and characters of pesticide industry 76
II-3.5 Profit tendency and the reason 77
II-3.6 Trend of pesticide industry 77
II-3.7 Advantageous and disadvantageous factors of pesticide industry development 78
II-3.8 Major obstacles of entering pesticide industry 79
II-4 Crop planting situation in the world 80
II-4.1 Conventional crop planting situation in the world 80
II-4.2 Planting situation of GM crops in the world 81
II-5 Crop planting situation in China 86
II-5.1 Conventional crop planting situation in China 86
II-5.2 Planting situation of GM crops in China 88
II-6 Entry Barriers of glyphosate industry 91
II-6.1 Policy 91
II-6.2 Capital 92
II-6.3 Production scale 92
II-6.4 Anti-dumping and technical barrier 92
II-6.5 Technology 93
II-6.6 Export channel 94
II-6.7 Environment barriers 95
II-6.8 No GLP lab and hard to register in other countries 95
II-6.9 High dependence on overseas market 95
II-7 Supply of glyphosate in China 96
II-7.1 Glyphosate technical 96
II-7.2 Glyphosate formulation 98
II-7.2.1 Overview of formulations species 98
II-7.2.2 Introduction of special formulations 98
II-7.3 PMIDA 100
II-8 Demand for Chinese glyphosate 104
II-8.1 Global demand for China’s glyphosate 104
II-8.1.1 Overview of global glyphosate production 104
II-8.1.2 Role of China’s glyphosate in global markets 104
II-8.2 Domestic demand for glyphosate 107
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II-8.2.1 Overview of Chinese glyphosate technical consumption 107
II-8.2.2 Glyphosate formulations use in China 109
II-8.2.2.1 Regional distribution of glyphosate use in China 109
II-8.2.2.2 Use situation of glyphosate formulations in each major crops 110
II-8.2.2.3 Use pattern of glyphosate formulations 111
II-8.2.2.4 Others 112
II-9 Supply situation of glyphosate raw materials in China 113
II-9.1 Raw materials of AEA pathway 114
II-9.1.1 Glycine 114
II-9.1.1.1 Introduction 114
II-9.1.1.2 Supply situation of glycine in China 115
II-9.1.2 Yellow phosphorous 122
II-9.1.3 Paraformaldehyde 126
II-9.1.4 Dimethyl phosphite 128
II-9.2 Raw materials of DEA route 130
II-9.2.1 Diethanolamine 130
II-9.2.2 Formaldehyde 135
II-9.3 Raw materials of IDAN route 138
II-9.3.1 IDAN 138
II-10 Production pathways & technology level 143
II-10.1 Summary of production, output by different pathways 143
II-10.2 Introduction to different pathways and their levels 147
II-10.2.1 AEA pathway 147
II-10.2.1.1 Description 147
II-10.2.1.2 Development of AEA pathway in China 148
II-10.2.1.3 Theoretical consumption of raw materials for AEA pathway 151
II-10.2.1.4 Advantages and problems 151
II-10.2.2 DEA route 152
II-10.2.2.1 Description 152
II-10.2.2.2 Development of DEA route in China 154
II-10.2.2.3 Theoretical consumption of raw materials for DEA route 156
II-10.2.2.4 Advantages and problems 156
II-10.2.3 IDAN route 157
II-10.2.3.1 Description 157
II-10.2.3.2 Development of IDAN route in China 158
II-10.2.3.3 Theoretical consumption of raw materials for IDAN route 159
II-10.2.3.4 Advantages and problems 159
II-10.2.4 Comparison of different pathways 160
II-10.3 Glyphosate formulation producing technology 160
II-10.3.1 Description 160
II-10.3.2 Development of glyphosate formulation producing technology in China 161
II-10.3.3 Theoretical models for glyphosate formulations 163
Other factors influencing the competitiveness landscape of China’s glyphosate
II-11 166
industry
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II-11.1 New situation of glyphosate 166
II-11.2 Marketing strategies 168
II-11.3 Competitions with other herbicides and foreign glyphosate 168
III Analysis of major glyphosate producers in China 171
III-1 Zhejiang Xin’an Chemical Industrial Group Co., Ltd. 171
III-1.1 Introduction 171
III-1.2 Financials 172
III-1.3 Products 174
III-1.4 Existing capacity and expanding plan 175
III-1.5 Glyphosate 176
III-1.5.1 Production and market situation of glyphosate 176
III-1.5.2 Cost analysis of glyphosate 180
III-2 Nantong Jiangshan Agrochemical & Chemical Co., Ltd. 182
III-2.1 Introduction 182
III-2.2 Financials 183
III-2.3 Products 185
III-2.4 Existing capacity and expanding plan 187
III-2.5 Glyphosate 187
III-2.5.1 Production and market situation of glyphosate 187
III-2.5.2 Cost analysis of glyphosate 189
III-3 Anhui Huaxing Chemical Industry Co., Ltd. 192
III-3.1 Introduction 192
III-3.2 Financials 193
III-3.3 Products 195
III-3.4 Existing capacity and expanding plan 195
III-3.5 Glyphosate 196
III-3.5.1 Production and market situation of glyphosate 196
III-3.5.2 Cost analysis of glyphosate 198
III-4 Jiangsu Yangnong Chemical Group Co., Ltd. 200
III-4.1 Introduction 200
III-4.2 Financials 201
III-4.3 Products 203
III-4.4 Existing capacity and expanding plan 204
III-4.5 Glyphosate 205
III-4.5.1 Production and market situation of glyphosate 205
III-4.5.2 Cost analysis of glyphosate 208
III-5 Hubei Sanonda Co., Ltd. 210
III-5.1 Introduction 210
III-5.2 Financials 211
III-5.3 Products 213
III-5.4 Existing capacity and expanding plan 214
III-5.5 Glyphosate 215
III-5.5.1 Production and market situation of glyphosate 215
III-5.5.2 Cost analysis of glyphosate 216
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III-6 SWOT analysis of the five glyphosate manufactures 218
IV Competitiveness landscape of glyphosate production in China 219
IV-1 Competitiveness of AEA pathway 219
IV-2 Competitiveness of IDA pathway 221
IV-2.1 DEA route 221
IV-2.2 IDAN route 223
Comparison between the competitiveness of AEA pathway and IDA pathway
IV-3 224
and conclusion
V Index model for glyphosate price 226
V-1 Influencing factors for glyphosate price 227
V-1.1 Production cost 227
V-1.2 Supply/demand situation 228
V-2 Price Index model for glyphosate 231
V-3 Identification 233
VI Forecast on the competitiveness of China’s glyphosate in the next five years 235
VI-1 Research hot points 235
VI-2 Development trend of pathways 238
VI-3 Change trend of production cost 239
VI-3.1 Change trend of some major raw materials 239
- DMP 240
- Glycine 241
- DEA 243
- IDAN 244
VI-3.2 Change trend of production cost 245
VI-4 Change trend of supply & demand situation 247
- Operation rate 247
- Export dependence 247
- Ratio of total export to glyphosate technical export 248
VI-5 Glyphosate price fluctuating trend 248
VI-6 Estimation on profit in Chinese manufacturers 249
VII Conclusion and commercial opportunities 251
VII-1 Conclusion 251
VII-2 Commercial opportunities 252
Executive summary:
The competitiveness landscape of China’s glyphosate industry is embodied on the following factors,
such as government policy, economic environment, crops planting situation, entry barriers, demand
and supply, raw materials supply and technology level.
………..
- Production pathways & technology level
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There are two pathways for glyphosate production in China including IDA pathway and AEA pathway.
According to the difference of raw materials, IDA pathway can also be subdivided into two categories,
which are DEA route and IDAN route.
Because of its simple flowchart and mature technology, AEA pathway is easy to be mastered by most
companies, plus the easy availability of raw materials in China, the AEA pathway, though having been
eliminated in the international market, is still being widely used in China’s glyphosate industry. However,
the percentage of capacity and output of glyphosate by AEA pathway has been reducing all the time
these years.
Being complained for the serious pollution in the production, many large-scale glyphosate producers
adopting AEA pathway in China have spent much energy and money improving this method and have
made great progress. The main breakthroughs can be described as follows:
1. Optimizing the process and improving the yield rate.
2. Adopting continuous production process and introducing advanced equipments
3. Adopting DCS control system to realize optimized operation
4. Reclaiming the by-products such as methylene dichloride and dimethoxymethane
5. Reclaiming the raw materials
……..
IDA pathway has been developing rapidly in recent years in China for its advantages of low cost,
environmentally friendly performance and relatively not so huge investment. As of May 2008, there are
xx companies adopting the IDA pathway, among which, xx adopting DEA route and xx adopting IDAN
route. The typical companies include XXX, XXX, XXX, XXX and XXX etc.
As the supply of the raw materials DEA and IDAN are quite tense in China, the capacity enlargement of
the glyphosate producers adopting IDA pathway has been affected. However, some DEA and IDAN
producers have enlarged their capacities and output. Therefore, the tense supply of these raw
materials might be relieved in a short term. The advantages of IDA pathway will be exhibited fully in
China.
……….
Character of CCM' Report:
The aim of this report is to provide powerful assistance to the strategy group and the management
team in making correct decision as how to penetrate the ever-increasing China market and how to
catch the maximum commercial opportunities. The report is formulated independently by CCM’s
professional market researchers, based on the first-hand and primary data which are analyzed by
scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and
presented in a logic way.
Sample pages:
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11. II-10.2.1.2 Development of AEA pathway in China
After several years’ development, AEA pathway has made great progress in operation process
and equipment, the technology has become mature and the quality of the product also has
become quite stable. The main breakthroughs can be described as follows:
……….
Table II-10.2.1.2-1 Comparison between continuous hydrolysis process and batch hydrolysis
process in Nantong Jiangshan
Style of reactors
Item
Batch hydrolysis process Continuous hydrolysis process
Annual output/tonne XXXXXX XXXXXX
Reactor number X X
Operator number XX XX
Production efficiency of each reactor /(t/ a) XXXXXXX XXXXX
Productivity per worker (t/ a) XXXXX XX
II-10.2.1.3 Theoretical consumption of raw materials for AEA pathway
……….
Table II-10.2.1.3-1 Theoretical consumption of raw materials for AEA pathway in May 2008
Unit consumption Unit price of May. 2008 Unit Cost(RMB/t
Raw materials
(t/t glyphosate) (RMB/t glyphosate) glyphosate)
1 Glycine(Industrial grade) XXXXX 35,000.00 XXXXXXXXX
2 Paraformaldehyde (37%) XXXXX 8,730.00 XXXXXXXX
3 Triethylamine (99.5%) XXXXX 13,000.00 XXXXXXXX
4 Methanol (95%) XXXXX 4,000.00 XXXXXXXX
5 Dimethyl ester XXXXX 40,000.00 XXXXXXXXX
6 Hydrochloric acid (30%) XXXXX 750.00 XXXXXX
Total XXXXXXXXX
……….
12. II-10.2.4 Comparison of different routes
Table II-10.2.4-1 Comparison of different routes
Developin Typical
Routes Strong points Shortcomings Current situation
g trend company
XXXXXXXXXXXXXX XXXXXXXXXXXXXX XXXXX XXXXXXX XXXXXX
XXXXXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXX XXXXXXX XXXXX
AEA
XXXXXXXXXXXXXX XXXXXXXXXXXX XXX XXXXXXX
pathway
XXXXXXXXXXXXXX XXXXXXXXXXXX XXXXXX XXXX
XXXXXXX XXXXX
XXXXXXXXXXXXXX XXXXXXXXXXXXXX XXXXXXXXXXXX XXX XXXXXXX
XXXXXXXXXXXXXX XXXXXXXXXXXXX XXXXXXXXXXXX XXXXXXX XXXXXXX
XXXXXXXXXXXXXX XXXXXXXXXXXXXX XXXXXXXXXX XXXX XXXXXXX
DEA route
XXXXXXXXXXXXXX XXXXXXXXXXXX X XXXXXX
XXXXXX XXXXXXX
XXXXXXXXXXXXXX XXXXXXXXXXXXXX XXXXXXXXXXXX XXXX XXXX
IDAN XXXXXXXXXXXXXX XXXXXXXXXXXXXX XXXXXX XXXXXXX XXXXXXX
route XXXXXXXXX XXXXXXXXXX XXXXXXXXXXXX XXXXXX XXXXXX
XXXXXXXX XXXXXXX
Based on the above discussion, we conclude that the AEA pathway is still competitive in China.
But as the supply of DEA and IDAN becomes sufficient and their quality is as good as that from
some overseas countries, the IDA route is sure to have a larger market share in the future.
II-10.3.3 Theoretical models for glyphosate formulations
……….
Table II-10.3.3-1 Raw materials consumption of 10% glyphosate-ammonium
Raw materials Unit consumption(t/t) Price(RMB/t) Unit Cost(RMB/t)
(1)
Mother liquid(4%) X 400 XXX
Additive XXXX 8,000 XX
XXX
Glyphosate technical(95%) XXXX 90,000 XXXXX
(3)
Ammonia XXX 800 XX
Total XXXXX
13. II-11.2 Marketing strategies
Table II-11.2-1 Marketing strategies of Chinese glyphosate industry
Strategy Content
Focus on export XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
Promoting Brand XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXX
Promoting high
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
content
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
formulation
Cooperation XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXX
Perfecting sales
XXXXXXXXXXXXXXX
network
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXX
OEM XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
III-1.5.2 Cost analysis of glyphosate
- Production cost
Table III-1.5.2-1 Estimation on raw material costs of glyphosate in XXXXXX in May 2008
Unit Unit Cost
Price (RMB/t)
consumption (t/t) (RMB/t glyphosate)
Glycine(Industrial grade) XXXX XXXXXXXXX XXXXXXXXX
Paraformaldehyde (96%) XXXX XXXXXXXX XXXXXXXX
Raw materials
Triethylamine (99.5%) XXXX XXXXXXXXX XXXXXXXX
cost
Methanol (95%) XXXX XXXXXXXX XXXXXXXX
Dimethyl ester XXXX XXXXXXXXX XXXXXXXXX
Hydrochloric acid (31%) XXXX XXXXXX XXXXXX
Total XXXXXXXXX
14. Table III-1.5.2-2 Estimation on manufacturing cost of glyphosate in XXXXXX in May 2008
No Item Unit Cost (RMB / t glyphosate)
1 Raw materials cost XXXXXXXXXXXXXXXXXXXX
2 Utilities XXXXXXXXXXXXXXXXXXXXXX
3 Labour XXXXXXXXXXXXXXXXXXXXXXX
4 Package XXXXXXXXXXXXXXXXXXXXXXX
5 Maintenance XXXXXXXXXXXXXXXXXXXXXXX
6 Depreciation XXXXXXXXXXXXXXXXXXXXXXX
Total XXXXXXXXXXXXXXXXXXXXX
Table III-1.5.2-3 Estimation on management costs of glyphosate in XXXXXX in May 2008
No. Item Unit Cost (RMB /t glyphosate)
1 Salary cost of management staffs and other auxiliary staffs XXXXXXXXXXXXXXXXXXXXXXX
2 Materials cost for management XXXXXXXXXXXXXXXXXXXXXX
3 Interest on loan XXXXXXXXXXXXXXXXXXXXXXX
4 Transportation cost XXXXXXXXXXXXXXXXXXXXXXX
5 Amortisation of intangible asset XXXXXXXXXXXXXXXXXXXXXXX
6 Distribution cost XXXXXXXXXXXXXXXXXXXXXXX
7 Cost for three-waste treatment XXXXXXXXXXXXXXXXXXXXXXX
Total XXXXXXXXXXXXXXXXXXXXXX
Table III-1.5.2-4 Estimation on production costs of glyphosate in XXXXXX in May 2008
In 2008
No Item Unit Cost (RMB / t glyphosate)
1 Manufacturing cost XXXXXXXXXXXX
2 Management costs XXXXXXXXXXXXX
Total XXXXXXXXXXXX
- Profit
Table III-1.5.2-5 Profit estimation of glyphosate in XXXXXX in May 2008
Item RMB/t glyphosate Remark
1.Total income XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXX
Price XXXXXXXXXXXXXXXXXXX
Other income XXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
2.Expense XXXXXXXXXXXXXXXXXXXXXXXXX
Total production costs XXXXXXXX
Taxes XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
XXXXXXXXXXXXXX XXXXXXXXXXXXXXXXX
3.Gross profit XXXXXXXXXXXX XXXXXXXXXXXXXX
4.Profit tax XXXXXXXXXXXXX XXX XXXXXXXXXXXX
5.Profit after tax XXXXXXXXXXXX XXXXXX XXXXXXXXXXXXX
15. IV-3 Comparison between the competitiveness of AEA pathway and IDA pathway and
conclusion
Table IV-3-1 Competitiveness comparison between the AEA pathway and IDA pathway
Raw material
Route Process Theoretical cost Current application Bottleneck
supply
XXXXXXXXXXXXX
XXXXXXXXXXXXX XXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXXXX XXXXXXXXXXXXX
AEA pathway
XXXXXXXXXXXXX XXXXXXXXX XXXXXX XXXXXXXXXXX XXXXXXXXX
XXXXXXX
XXXXXXXXXXXXX XXXXXXXXXXXXX
XXXXXXX XXXXXXXXXXXXX
XXXXXXXXXXXXX XXXXXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXXXX XXXXXXXXXXXXX
DEA route
XXXXXXXXXXXXX XXXXXXXX XXXXXXXX XXXXXXXXXXXX XXXXXXXXXXXXX
XXXXXXXXXXXXX XXXXXXXXXXXXX
XXXXXXXXXXX XXXXX
XXXXXXXXXXXXX XXXXXXXXXXXXX
XXXXXXXXXXX XXXXXXXXXXXXXX
IDAN route XXXXXXXXXXXXX XXXXXXXXXXXX XXXXXXX
XXXXXXXXXXX XXXXXXXXXXXX
XXXXXXXXXX XXXXXXXXXXX
Figure V-1 Price model of glyphosate technical
Price Model
Production cost of each route
Production cost
Output of each route
Capacity
Price
Output
Output
Input
Import
Demand & Supply intensity
Export
Market Demand
Accidents
Others
All the original data in this segment are mainly sourced from CCM’s database and custom’s
data……….