Chinese company down regulated the price of Glufosinate TC again

On July 12, Shijiazhuang Richem announced to drop glufosinate TC price to Yuan 119 thousand/ton, which hit a record low.

Under the supports of Huifeng Agrochemical, Richchem’ production capacity of glufosinate is skyrocketing. By the end of this year, Richchem will has the glufosinate capacity of 8,000 t/a and will continue expand capacity in the future.  

In the background of paraquat banned, glufonisate has the advantage of good quality as alternative products of paraquat. Since 2015, glufonisate companies at home and abroad have continued expanding capacity. In terms of China, Yongnong Chem has capacity of producing about 3,000 t/a, Lier Chem has the total capability of 3,600 tons, and start to plan a new project with a totalcapacity of 17,600 t/a, Sichuan Fuhua Tongda’ project with a capacity of 12,000 t/a has been filled, Inner Mongolia Jiaruimi Fine chemical are constructing glufonisate project with a capacity of 3,000 t/a.

Demand of glufonisate is lagging for market reason, which causes oversupply. The glufonisate’s price decline to RMB 119 thousand/ton from 350 thousand /ton in 2015.

Insiders think some companies of glufonisate with competitive disadvantages will shut down if the price of glufonisate will continue to decline.