The new tax rebate cancellation policy released by Ministry of Finance which will be effective from July 15th involved some part of steel products, nonferrous metals and work materials, silver powder, alcohol, maize starch, as well as some plastic/glass/rubber and Chemical products.

Pesticides (Such as: Glyphosate, Dalapon, Tabatrex, chlorfenvinphos, sulfotep) and phosphorus chemicals (Such as: phosphate, polyphosphate, phosphate), as well as basic chemical raw materials ( such as phenols, hydrazine hydrate, and benzene series) are all include in the list. Of these products, all of them used to enjoy tax reimbursement at 5% ~ 17% rates. The whole price level will be directly pushed up.

Let’s focus on the impact of pesticide market caused by this new policy. Beyond any doubt, Glyphosate has now been in the limelight since its tax rebate has dropped down from 9% to a big zero. Especially for those Glyphosate export-oriented enterprises, such as Anhui Huaxing Chemical Industry, Nantong Jiangshan Agrochemical, not to mention Zhejiang Wynca Chemical, things become very tough. Aside from this effect, the prospection of appreciation of RMB and anti-dumping policy has made things worse still. From current situation, chinese glyphosate manufacturers are downwind by the loss of price advantage in the fierce competition with international companies.

On the other side, the cancellation of dimethyl carbate, Dalapon, Hexachloroacetone, Acequinocyl, erbon has considered to have no big influence on export business owe to small export quantity. Since all of these high toxic substances are listed in POPs, we suspect that this policy is a clear signal for the government to forbidden the export and thus the production of high pollution materials and finally lead to the development and application of more environment friendly chemical products.

Ref: http://www.chinapesticide.gov.cn/doc10/10062509.html, http://www.chinapesticide.gov.cn/doc10/10062907.html

By Cherry

European Chemicals Association (ECHA) once published a report about under which kind of conditions chemicals can be registered as intermediates, also when distributors should submit the completed dossiers. (Registration of intermediate needs less dossier than chemicals). This report represented the comments of ECHA,EU committee and members of EU.

The contents of the report are based on the views of ECHA, REACH and CARACAL in charge of the CLP legislation. The industry circle commentted according to these views, and the report is also including those comments made by them. However, “This explain comes from EU committee and ECHA, but Industry circus does not agree with that” says Erwins Annys the authorized expert of ECHA and instructor of REACH..

Meanwhile, Erwins also supplement that some catalyst and chemical reactants used in production reveal two problems. If the catalyst or reactants could be regarded as intermediate while registration is submitted, it depends on exact conditions.

Furthermore, ECAH has already re-clarify the definition of intermediate，“Intermediate is under the purpose of manufacturing chemicals, not every reactants could be defined as Intermediate, the critical point is react into another reactants itself.

This report will be published in the latest amendment of “Direction of Intermediate”. but it will not revised until 30^th Nov 2010. We will see a more completed REACH after clarified the different interpretation of intermediate formally.

By Ben

The following is the statistics of Chinese pesticides import and export figures during the first quarter of 2010. As before, the first season is a thriving one, from January to March, the total import volume was 17,100 tons, 10.32% more than the previous season. Along with the new tax refund policy, there was a substantial appreciation of export volume. During January to March, export volume was 166,200 tons (24.68% more than last season), and the sum was USD489, 000,000 (25.01% more compared to previous season).

The export volume was mainly contributed by herbicides and insecticides with 86,500 tons and 25,300 tons respectively. In comparison with the total pesticides export volume, herbicides constituted to 52.03% and insecticides accounted for 15.24%. Both increased more than 10% compared to last season.

Now the summer is coming. We might face an off-season of the pesticides business due to the reason that most factories in China would close some production lines for inspection or to avoid bad odour especially irritative in summer. Anyway, Psychem would be here all the time to offer customers all walks of the world the current situation.

(Data quoted from Ifeng.com)

By Jane