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China’s Glyphosate Industry Deteriorates (DOC)

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					China’s Glyphosate Industry Deteriorates


Tag: glyphosate, RMB appreciation, interest rate, loan interest, Chinese glyphosate industry cost,
glycine route, glyphosate technical, USD exchange rate, glyphosate price


Summary: The July issue of Glyphsoate China Monthly Report reveals that RMB
appreciation and the rising interest rate aggravate glyphosate industry in China.



Guangzhou China, July 29, 2011 - The July issue of Glyphsoate China Monthly Report
reveals that RMB appreciation and the rising interest rate aggravate glyphosate industry in China.


Chinese glyphosate industry suffers a lot from the decreased USD exchange rate against RMB,
also called RMB appreciation.


On July 20, 2011, the central parity exchange rate between USD and RMB dropped to 6.4592,
compared with that of 6.7812 in July 20, 2010. Providing glyphosate technical price is
RMB22,000/t, and the difference of one tonne of glyphosate technical is USD161.73
(22,000/6.4592 - 22,000/6.7812) when computed by the exchange rate of 6.7812 and 6.4592.


Overseas buyers are unwilling to completely burden the Chinese glyphosate exporters' loss
caused by RMB appreciation or USD depreciation, and thus the loss would only be shouldered by
both exporters and importers or completely burdened by the domestic manufacturers.


What’s worse, on July 6, 2011, Chinese government raised the loan interest for the third time this
year, which means the production cost of glyphosate will be increased.


Providing the investment in glycine route glyphosate with capacity of 10,000t/a is USD10 million
(Investment in IDAN route will be higher), and the loan interest will increase by USD0.111 million
(10, 000,000 * (7.05%.-5.94)). Calculated by the current operating rate of 30%, the increased cost
of one tonne of glyphosate technical caused by the increased loan interest rate could reach
USD37 (111,000/3,000).

The RMB appreciation and raised loan interest rate have posed much pressure to glyphosate
industry, making glyphosate technical producers harder to survive.



You will find more news about the industrial trend, company dynamics, market price, and future
forecast in the latest issue of Glyphsoate China Monthly Report.



The following highlights are covered in the latest issue of Glyphsoate China Monthly Report:
- Nantong Jiangshan preannounced its preliminarily estimated profit, reporting a profit loss of
USD3.64 million (RMB23.5 million).
-Zhejiang Wynca's endless technology innovation secures its leading position in glyphosate
industry
-Monsanto's Roundup incentive program is under investigation by the U.S. Security and
Exchange Commission.
-The deadline for ChemChina's acquisition to MAI has been extended to the end of September
2011.
-APG is considered as a promising substitution of tallow amine adjuvant.
-Chinese company recommends the joint application of glyphosate and paraquat
-RMB appreciation and heightened interest rate aggravate glyphosate industry.
-Glycine destiny is tied up with glyphosate for its high dependence on glyphosate consumption.
-Glyphosate price slightly decreases in July 2011 due to the slack season in overseas market.
-Glyphosate export volume decreases in May 2011, reflecting the stagnant overseas market.




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Description: The July issue of Glyphsoate China Monthly Report reveals that RMB appreciation and the rising interest rate aggravate glyphosate industry in China.