Publish time:5/7/2018 12:00:00 AM Source: CCM
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While most of China's
agrochemicals enterprises are running on low production rate, due to the
enforced environmental protection measurements by the government, the ones with
upgraded technology are the winners. Yangnong Chemical, one of the leading
glyphosate producers in China, was running full capacity in recent years, able
to run ahead of the less-advanced competition.
2017, due to the impact of China’s environmental protection policies,
production of many chemical raw material enterprises was limited, resulting in
a shortage of many pesticide chemical raw materials. As a result, raw material
prices had been rising, especially in H2 2017. Rising raw material prices brought
raw material cost pressures to the production of pesticides, pushing up the
market prices of many pesticides in 2017, according to market intelligence firm
affected by environmental protection policies and two central environmental protection
inspections in April and August 2017, production of some pesticide producers
was restricted, leading to tight supply. Difference between quoted prices and
transaction prices of pesticides in H2 2017 was much higher than that in H1
2017. Hype and bid-up sent the prices out of control, most domestic pesticide
prices showed uptrends and prices of some pesticide products skyrocketed in H2
glyphosate producers with the highest standards of production technologies are
easily the winners in the environmental pressure, as they are not affected by
forced production suspensions. One of this big winner is Yangnong Chemical,
which could achieve a utilization rate of 100%, a production that barely any
other enterprise could witness. Hence, the company was getting more popular for
international glyphosate buyers, as the supply remained stable and predictable.
to CCM’s research, Yangnong Chemical went into full-load production with a
capacity utilisation rate of 100% in 2017, thanks to larger environmental input
and better pollution control than its peers.
year, affected by environmental inspections, many agrochemical enterprises
suspended or cut production, leading to insufficient market supply.
Fortunately, depending on larger environmental input and better pollution
control than peers, as well as strong product demand, Yangnong Chemical
realised full-load production.
Chemical is one of leading glyphosate producers in China, IDA process
glyphosate capacity given at 30,000 t/a. The glyphosate production line ran at
100% in both, 2016 and 2017.
2017, glycine producers suffered from a declining operating rate, resulting in
short supply and the high price of glycine. As a result, glycine-process
glyphosate operating rate was also restrained. Glyphosate price was eventually
pushed up. In this context, IDA-process glyphosate producers and those who have
their own glycine production equipment have advantages.
19 pesticide enterprises were accredited as National Enterprise Technology
Centres in 2017–2018 by the National Development and Reform Commission (NDRC).
Many leading glyphosate enterprises, such as Yangnong Chemical, but also Hubei
Xingfa and Zhejiang Wynca are on the list.
government will provide preferential policies for the 19 enterprises on the
list to encourage self-dependent innovations. The National Enterprise
Technology Centre is set to recognise enterprises in the main industries of the
national economy, which have strong capability in technical innovation and
make the excellent performance as well as serve as a kind of role
model. The NDRC, the Ministry of Science and Technology, the Ministry of
Finance, the General Administration of Customs, and the State Administration of
Taxation take the responsibility to identify the enterprises, and the NDRC
takes the lead to guide the construction of the centres and the work related to
About the article
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