Guangzhou, Guangdong -- (SBWIRE) -- 06/20/2011 -- Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. (Nantong Jiangshan), the second largest glyphosate player in China, announced on 4 June 2011 that it is now positively preparing to respond to the glyphosate anti-dumping investigation initiated by Brazilian Ministry of Development, Industry and Foreign Trade Secretariat on 19 May 2011.
Main reason for the investigation declared by Brazil is that the anti-dumping duty on glyphosate originating from China it is levying now can no longer offset the damage brings to glyphosate players in Brazil. Aiming to protect the interests of domestic glyphosate players, Brazil government decided to launch anti-dumping mid-term review investigation on glyphosate originating from China.
"We only learned of the news on anti-dumping investigation on 31 May 2011 and the company is now busy collecting data to decide whether to be inspected or not," an insider from Nantong Jiangshan reveals.
However, whether Nantong Jiangshan decides to be inspected or not, the determination will be quite a Sophie's Choice. If Nantong Jiangshan agrees to be inspected, it would be likely to face a higher tax rate; if it declines, it may have to give up Brazilian market.
Actually, Brazil has started to levy anti-dumping duty on Chinese glyphosate since 2003 and the tax rate reached 35.8% in 2003 ~ 2007. The validity period of the measure lasted for five years and almost totally blockaded Chinese glyphosate export to Brazil.
In Feb. 2008, Brazil launched sunset review investigation against Chinese glyphosate and it finally passed a resolution to lower the tax rate of glyphosate anti-dumping duty to 2.1% from 35.8%. The validity period lasted for another five years. However, before coming to the end of the validity period, i.e. 2013, Brazil government again intends to initiate lifting the anti-dumping tax rate of glyphosate originating from China.
Since Brazil is the third largest glyphosate export destination of China, the launch of anti-dumping investigation on Chinese glyphosate this time will largely impact the overseas business of domestic glyphosate players, especially Nantong Jiangshan.
Nantong Jiangshan is ranked as the second largest glyphosate player in China and its glyphosate capacity in 2010 reaches 70,000t/a, about 10,000t/a less than that of Zhejiang Wynca Chemical Industry Group Co., Ltd. (Zhejiang Wynca). Nantong Jiangshan's 2010 revenue of glyphosate reaches USD133.08 million, accounting for 43.59% of its total revenue.
According to the data from General Administration of Customs of the People's Republic of China (China Customs), China exports about 19,927 tonnes of glyphosate to Brazil in 2010. The main exporter is Nantong Jiangshan and its export volume of glyphosate to Brazil reaches 15,722 tonnes, accounting for 78.9% of China's total export volume of glyphosate to Brazil in 2010.
Nantong Jiangshan, like most of the glyphosate players in China, has suffered greatly in the past two years due to the downturn of glyphosate industry and the global financial crisis. The company turned to gain in 2010 with the aid of Nanjing Government and it also predicted its dim view on glyphosate business in 2011 in its 2010 Financial Report. The glyphosate anti-dumping investigation initiated by Brazil this time may be another challenge to Nantong Jiangshan.
Source: Crop Protection China News 1111
http://www.cnchemicals.com/Newsletter/CropProtectionChinaNews.shtml
Content of Crop Protection China News 1111:
Nantong Jiangshan coping with glyphosate anti-dumping investigation
Stock trade of Fujian Sannong shakes off ST
Shenghua Biok caught in environmental scandal
Jiangsu Huifeng suspected of generating pollution
China to buy 25% equity of Belaruskali potassium producer
Jiangsu Lanfeng sets up subsidiary in Western China
Zhanjiang City: large and chaotic pesticide market calls for regulation
China pesticide import volume down but value up in Q1 2011
Drought has little impact on summer grain
Crop Protection China News, a semimonthly publication issued by CCM International on 15th and 30th(31th) of every month, aims to gain a deep insight into Chinese market, supply the latest market data and strategy support, analyze the newest legislation and policy and grasp the future market trend.
Please visit http://www.cnchemicals.com for more information or contact us at econtact@cnchemicals.com
CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China