We publish news from Psyche Chemicals monthly:
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2007-11-15

China faced another inflation in October

With rapidly growing price of pork, egg, cooking oil and other commodities, China has yet faced another bounce in inflation in October, parallel to August a year-on-year growth of 6.5 percent hitting a 10-year high. This showed that the price inflation still maintained at high level, forcing the Chinese central bank to further increase interest rates for the sixth time in this year.

According to Xinhua report, although there was a decline in September, but China’s CPI had yet rebound by 6.5 percent, up 0.3 percentage from last month. From January to October, accumulated overall consumer price level gained 4.4 percent. The rose of food price by 17.6% is a key factor that led October CPI.

2007-11-8

The production and use of methamidophos totally prohibited from Jan.1, 2008

The Ministry of Agriculture and the National Development and Reform Commission have decided to prohibit the production and use of methamidophos from Jan. 1, 2008.

All the enterprises will stop production,use and sales of these pesticides in china including tech and formulation. The equipments and devices will be demolished and the factory will stop the export to the other country.

2007-9-21

Psyche Chemicals attended 2007 Glyphosate Conference in Qinghai

The 2007 Glyphosate peak Conference was held in Xining, Qinghai province on 5th of September this year, Psyche Chemicals Mr. Yue has gladly attended the meeting.

In the report, it is said that the supply of Glyphosate is still considerably short due to the mass demand of consumption in the agricultural world. The total output of the technical product is around 300,000- 400,000 metric tons in China. However, there is an uptrend of nearly 10.8 metric tons next year.

Market price of Glyphosate will keep at high rate for certain period of time, and it is believed that the price will go down next year if the demand does not increase.

2007-8-20

CPI increase 5.6% in July, China faced the pressure of inflation

The National Bureau of Statistics of China published the CPI (consumer price index) of July on 2007-8-13 . After an increasing of 4.4% in June, July's CPI raised 5.6%, 4.6% higher than the same period of last year. This is the highest point in the passed ten years.

This 5.6% is composed of a 5.3% hike of in city and 6.3% in rural; a 15.4% hike in food price and 0.9% in non-food ; a 1.6% hike in consumer goods' price, 1.6% in service's price.

In the 15.4% hike of food price, grain price contributes 6.0%, grease 30.1%, meat and related goods 45.2%, egg 30.6%, aquatic product 5.4%, vegetable 18.7% and condiment 4.5%, but fruit's price drops 12.2%,.

From January to July, the CPI increased 3.5%, which is 2.3% higher than the same period of last year

Data from the National Bureau of Statistics of China on 2007-8-10 shows that July's PPI (producer price index) goes up 2.4%, lower than June's 2.5%

Totally, many factors pushed CPI up so fast, in which food price is the main power, price of real estate is another important reason, the hike of rural is higher than city, pressure from international market also shift to the domestic at last, etc.

2007-8-1

30 Illegal Enterprises Were Submitted To People's Bank of China and China Banking Regulatory Commission

Recently, State Environmental Protection Administration of China (SEPA), in association with People's Bank of China and China Banking Regulatory Commission suggested a list of regulations for environmental protection, through controlling risk of bank credit loan. This newly suggested report is aim to curb blind expansion of pollution-intensive industries, especially those high energy-consumption properties. Till now, 30 corporations including Bengbu Agrochemicals Factory, Tongling Tongguanshan Chemicals were first to be blacklisted. We believe that more names will be published soon or later.

SEPA emphasized Green Credit Policy as a modern trend to ensure environmental conservation and citizen civilization. All illegal enterprises which do not reach the target of environment protection regulations will not be sponsored with any kind of financial support from banking corporation. In consequence, many manufacturers will face mass financial pressure to operate normal production.

In 2006, China 's industrial added value is over 49% of its GDP, by the first half year of 2007, industrial added value gained another 18.5%. As a result, China is trying to control these rapid growing industries. (http://chinanews.com.cn)

2007-7-3

38 plants are closed by Chinese EPA temporarily

State Environmental Protection Administration of China published the name of 38 enterprises which cause serious pollution in area of Yangtzi River, Yellow River, Huaihe River and Haihe River. All plants are closed temporarily till their waste water could be treated successfully. In the future, the application of all newly invested enterprises in this area will limitedly approved. (http://www.zhb.gov.cn)

In the 38 enterprises, Sichuan Chuantou Electrometallurgy Co.,Ltd (CTEC) Yellow Phosphorus Plant is the biggest manufacturer of yellow phosphorous in China, and annual sales in 2006 is 83,300mt. (http://cna.chemnet.com), Inner Mongolia Haiji Chlor-alkali Chemical Co. Limited is a big manufacture of basic chemicals, such as Chlorine, Caustic Soda and Carbide. Shanxi Fengxi Fertilizer Group Co. limited linyi Branch is one of top 100 chemical plants in China, and producing Synthesized Amine 300,000mt, Urea 550,000mt, methanol 50,000mt, fertilizer 50,000 and liquid carbon dioxide 5,000mt, annual sales is around usd100,000,000. (http://www.sxwhaj.gov.cn). Wuhu Ronghui Chemical Co. Limited is second manufacturer of chlorine and alkali in Anhui Province and annual sales is more than usd100,000,000.

2007-6-29

Price of Carbendazim is rising at incredible speed

Anhui Bayi Chemical industry Co.,Ltd was temporarily closed by Chinese EPA because of bad environmental protection, which is one of the main producer of o-nitroaniline and o-phenylenediamine(OPDA) (http://www.zhb.gov.cn). Another producer also had an accident of production in the middle of June.

p-nitroaniline is co-product of o-nitroaniline, normal proportion is 2:1(p:o), and only Monsanto can improve it to 2:1(p:o). The inquiry for p-nitroaniline is reducing step by step in local market, manufacturers are transferring cost from o-nitroaniline to p-nitroaniline, and make price of o-nitroaniline keep rising.

o-nitroaniline is basic intermediate of Carbendazim. Combined the two reasons, price of Carbendazim is going up every week.

Tax refund for export is adjusted from July 1st.

Today Chinese Ministry of Financial (MOF) publishes a new policy on official website (http://www.mof.gov.cn), and from July 1st, tax refund rate of 2,628 commodities for export will be adjusted from 13% to 11% or 5%, and 553 commodities to 0%. The total 2,831 commodities are up to 37% of all Chinese export products listed by China Customs.

Rate of agrochemicals is down to 5%, which are classified as high energy-consumption, high pollution and high resource-consumption items. This adjustment could make a 6% rise of export price.

MOF says it is a structural adjustment of Chinese export products. Now Chinese government focus more and more on high-tech and low pollution industry and export policy shall lean to those commodities. We think tax refund of rate of chemicals seems to be adjusted lower again in the future.