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Risk Analysis in Chinese Glyphosate Industry in 2011

 

Guangzhou, Guangdong -- (SBWIRE) --06/23/2011 -- CCM - In the 2011 Market & Technology Forum for China Glyphosate Industry held in Leshan City, Sichuan Province during April 21~22, 2011, Cheng Hongshan, market researcher from CCM International Ltd., who represents the third party researcher, addressed a speech titled Risk Assessment Model for Glyphosate Industry and Its Application on Chinese Market (2011) Analysis, which has concluded that Chinese glyphosate industry still faces high risk in 2011, especially in the industry's operating situation.

According to Mr. Cheng, the risk assessment model developed by CCM International in H2 2010 is the company's accumulative and integrated intelligence in glyphosate industry. The model equips with Analytic Hierarchy Process (AHP) to evaluate the whole Chinese glyphosate industry. The evaluation is divided into three layers, namely overall layer (target layer), intermediate layer (criterion layer) and base layer (indicator layer).

Regarding Policy Risk

According to CCM International's analysis, compared with 2010, the risk level in terms of policy in 2011 will decrease, but it is still under medium risk level. China has released Pesticide Industry Plan in Nov. 2010, and China is likely to release detailed measures or policies to accelerate industry integration and heighten the ratio of qualified pesticide production.

It's forecasted that more than 95% of glyphosate production in China should be qualified production in 2011. So the risk of rate of qualified production is low and scored at 95 (full score is 100), according to the risk assessment model's scoring criteria. It's predicted that the proportion of environmental expenditure in total glyphosate production cost will increase to about ……

Source: Glyphosate China Monthly Report June 2011
http://www.cnchemicals.com/Newsletter/GlyphosateChinaMonthlyReport.shtml

Content of Glyphosate China Monthly Report June 2011:
China's top glyphosate manufacturers experiences loss in Q1 2011
Sichuan Fuhua eyes cyclic economic industrial chain development
ChemChina's acquisition for MAI draws to completion
Chinese glyphosate technical remains competitive in the world
Professionals propose development directions for Chinese glyphosate industry
Risk analysis in Chinese glyphosate industry in 2011
Characters of global glyphosate capacity distribution
Drivers for glyphosate route development in China
Glyphosate price slightly decreases in May 2011
Glyphosate export volume rebounds in March 2011

Editor’s Note:

In May 2011, most glyphosate products maintain price downtrend, aggravating the depressed glyphosate market. All the glyphosate technical manufacturers suffer loss, and many companies choose to lower operating rate while some companies suspend glyphosate technical production.

In late April, the Q1 2011 financial performance reports of listed glyphosate technical manufacturers have shown that Chinese top glyphosate technical manufacturers Zhejiang Wynca, Nantong Jiangshan and Anhui Huaxing suffered profit loss in the first quarter this year. Especially for Zhejiang Wynca, it's the first time for the company to report a negative operating profit. And the ugly performance of listed glyphosate manufacturers has also reflected the survival plight.

The original reasons for the plight of Chinese glyphosate industry are obvious, and many professionals suggest that industry integration should be accelerated and manufacturers should strengthen industry self-discipline. During April 21~22, 2011, Market & Technology Forum of China Glyphosate Industry was held in Leshan City, Sichuan Province; speakers have addressed interesting speeches on the technology and market trend of Chinese glyphosate industry. This issue has covered some interesting views in the forum.

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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