It is predicted that Jiangsu Yangnong’s
5,000 t/a dicamba project will be put into regular production in H1 2015, which
will bring considerable income and profit to Jiangsu Yangnong.
Recently, some industry insiders believed
that Jiangsu Yangnong Chemical Co., Ltd. (Jiangsu Yangnong)’s dicamba project
(5,000 t/a) will be put into regular production in H1 2015. Jiangsu Youjia
Plant Protection Co., Ltd. (Jiangsu Youjia), the subsidiary of Jiangsu
Yangnong, will be responsible for implementing the project.
Ex-works prices of 98% dicamba TC in China, Jan. 2013–Dec. 2014
Source : CCM
According to the information released by
the Government Affairs Service Center of Rudong County, Jiangsu Province in
Dec. 2014, Jiangsu Youjia has completed the equipment installation and testing
for the dicamba project (5,000 t/a) in Sept. 2014, which was ready to enter
into commissioning. At the same time, its projects of bifenthrin (800 t/a),
fluazinam (600 t/a) and 3,3- dimethyl-4-pentenoic acid (5,000 t/a) were also
ready for trial production. (For more information of Jiangsu Yangnong’s dicamba
project, please refer to Jiangsu Yangnong to launch 5,000t/a dicamba TC
production line, Herbicides China News 1312.)
It is revealed that dicamba products will
be the strength of Jiangsu Yangnong’s future performance growth. In the near
future, the production capacity of the company’s dicamba project will be
completely released. At that time, the production capacity of Jiangsu
Yangnong’s dicamba TC will reach 6,200 t/a, which will ease the current tight
supply of dicamba. Meantime, industry analyst believed that the dicamba project
will bring considerable income and profit to Jiangsu Yangnong.
In view of the market price of dicamba, in
recent years, China’s dicamba price witnesses upward trend. According to the
price monitoring of CCM, the price of 98% dicamba TC was increased to
USD23,775/t in Dec. 2014 from USD19,031/t in Jan. 2012. If the price of dicamba
TC remains unchanged, coupled with that Jiangsu Yangnong’s dicamba production
line (5,000 t/a) realizes full production and products are completed sold, this
dicamba production line will help Jiangsu Yangnong earn USD119 million
annually. It is worth noting that according to the Taxation (2014) No.150, from
1 Jan., 2015, the export tax rebate rate of dicamba TC will increase to 13%
from 9%. That is to say, Jiangsu Yangnong will make more profit under the help
of the policy.
It is disclosed that the dicamba demand
will increase in the future, affected by the intensifying problem of glyphosate
resistant weeds, the approved dicamba transgenic trait of Monsanto Company in
the US and the upcoming commercialization of dicamba genetically modified
soybean and cotton varieties. Industry insiders predicted that the market
demand for dicamba will increase to about 50,000 tonnes from 15,000 tonnes in
the future. (For more analysis on future demand for dicamba, please refer to
Dicamba to be growth point in herbicide market, Herbicides China News 1407.)
Jiangsu Yangnong enjoys advantages in the
diacmba production in China. Firstly, since Jiangsu Yangnong’s dichloro-benzene
and trichloro-benzene (raw materials for dicamba) are purchased from parent
company Jiangsu Yangnong Chemical Group Co., Ltd. (Yangnong Group, the only
producer for dichloro-benzene and trichloro-benzene in China), the production
cost of diacmba is low. Secondly, Jiangsu Yangnong masters the complicated
technique of diacmba dichloro-benzene at high level, which reduced the
production cost to nearly the same as that of trichloro-benzene process.
Additionally, Jiangsu Yangnong invested much in the environmental protection to
ensure that the Three Wastes (industrial wastewater, waste gases and residues)
emission meets the standard.
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Tag: herbicide