Nantong Jiangshan Coping with Glyphosate Anti Dumping Investigation
Nantong Jiangshan is now positively preparing to respond to the glyphosate anti-dumping investigation from Brazil.
Published on: Mar 3, 2016
Transcripts - Nantong Jiangshan Coping with Glyphosate Anti Dumping Investigation
Nantong Jiangshan Coping with Glyphosate Anti-dumping InvestigationJune 17, 2011, CCM - Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. (NantongJiangshan), the second largest glyphosate player in China, announced on 4 June 2011 that it isnow positively preparing to respond to the glyphosate anti-dumping investigation initiated byBrazilian 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 glyphosateoriginating from China it is levying now can no longer offset the damage brings to glyphosateplayers in Brazil. Aiming to protect the interests of domestic glyphosate players, Brazil governmentdecided to launch anti-dumping mid-term review investigation on glyphosate originating fromChina."We only learned of the news on anti-dumping investigation on 31 May 2011 and the company isnow busy collecting data to decide whether to be inspected or not," an insider from NantongJiangshan reveals.However, whether Nantong Jiangshan decides to be inspected or not, the determination will bequite a Sophies Choice. If Nantong Jiangshan agrees to be inspected, it would be likely to face ahigher 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 thetax rate reached 35.8% in 2003 ~ 2007. The validity period of the measure lasted for five yearsand almost totally blockaded Chinese glyphosate export to Brazil.In Feb. 2008, Brazil launched sunset review investigation against Chinese glyphosate and it finallypassed a resolution to lower the tax rate of glyphosate anti-dumping duty to 2.1% from 35.8%. Thevalidity period lasted for another five years. However, before coming to the end of the validityperiod, i.e. 2013, Brazil government again intends to initiate lifting the anti-dumping tax rate ofglyphosate originating from China.Since Brazil is the third largest glyphosate export destination of China, the launch of anti-dumpinginvestigation on Chinese glyphosate this time will largely impact the overseas business ofdomestic glyphosate players, especially Nantong Jiangshan.Nantong Jiangshan is ranked as the second largest glyphosate player in China and its glyphosatecapacity in 2010 reaches 70,000t/a, about 10,000t/a less than that of Zhejiang Wynca ChemicalIndustry Group Co., Ltd. (Zhejiang Wynca). Nantong Jiangshans 2010 revenue of glyphosatereaches USD133.08 million, accounting for 43.59% of its total revenue.According to the data from General Administration of Customs of the Peoples Republic of China(China Customs), China exports about 19,927 tonnes of glyphosate to Brazil in 2010. The mainexporter is Nantong Jiangshan and its export volume of glyphosate to Brazil reaches 15,722tonnes, accounting for 78.9% of Chinas total export volume of glyphosate to Brazil in 2010.Nantong Jiangshan, like most of the glyphosate players in China, has suffered greatly in the pasttwo years due to the downturn of glyphosate industry and the global financial crisis. The companyturned 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-dumpinginvestigation initiated by Brazil this time may be another challenge to Nantong Jiangshan.Source: Crop Protection China News 1111http://www.cnchemicals.com/Newsletter/CropProtectionChinaNews.shtmlContent of Crop Protection China News 1111:Nantong Jiangshan coping with glyphosate anti-dumping investigationStock trade of Fujian Sannong shakes off STShenghua Biok caught in environmental scandalJiangsu Huifeng suspected of generating pollutionChina to buy 25% equity of Belaruskali potassium producerJiangsu Lanfeng sets up subsidiary in Western ChinaZhanjiang City: large and chaotic pesticide market calls for regulationChina pesticide import volume down but value up in Q1 2011Drought has little impact on summer grainCrop Protection China News, a semimonthly publication issued by CCM International on 15thand 30th(31th) of every month, aims to gain a deep insight into Chinese market, supply the latestmarket data and strategy support, analyze the newest legislation and policy and grasp the futuremarket trend.Please visit http://www.cnchemicals.com for more information or contact us email@example.comCCM International Ltd.Guangzhou CCM Information Science & Technology Co., Ltd.17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070,China