By Think Real - Since 2016, the domestic glufosinate-ammonium capacity has entered its fast expansion phase. Currently, Yongnong Biosciences Co., Ltd. has the glufosinate-ammonium capacity of around 3,000t/a; that of Lier Chemical Co., Ltd. is 5,000t/a and another 10,000t/a is under Environmental Impact Assessment (EIA); that of Hebei Veyong Bio-Chemical Co., Ltd. is 1,500t/a and it plans to expand it to 3,000t/a in the next 2-3 years.
 
There are some large pesticide producers that are involved or planning to be involved in the production of glufosinate-ammonium like Jiangsu Huifeng Agrochemical Co., Ltd. (Jiangsu Huifeng) and Fuhua Tongda Agro-chemical Technology Co., Ltd. (Fuhua Tongda).
 
Though the new capacity of the product is being released in the domestic market, Chinese enterprises are still under the restrictions of the technologies in relation to its production and treatment of waste water generated. As a matter of fact, there are still a lot of difficulties in the production technique of glufosinate-ammonium. Many middle and small enterprises can’t realize stable operation in their production devices and environmental protection devices, resulting in high production costs. They say that if the price of their glufosinate-ammonium is less than USD17,474/t (RMB120,000), it is hard for them to earn profits.
 
Moreover, the application costs of the product are also high for market promotion. Judging from the terminal market of the product, the largest block for the large-scale application for glufosinate-ammonium is the high price. In detail, the cost of glufosinate-ammonium is USD32.8-USD39.3/ha while those of glyphosate and paraquat are USD21.8-USD26.2/ha and USD15.3-USD19.7/ha respectively. It indicates that the popularization of glufosinate-ammonium is not as high as expected and more work should be done to improve users’ acceptance.
 
So far, the price of 95% glufosinate-ammonium technical is USD 23,298.8/t, up by 8.55% year on year. Along with the drop in the inventories of suppliers, the price is predicted to rise. According to some statistics, the rigid demand for 200g/L glufosinate-ammonium AS is at least 60,000-80,000 tonnes in 2017 and 12,000-16,000 tonnes by 100% technical.
 
It is predicted that by the end of 2017, more new production devices of glufosinate-ammonium technical will be launched, when the domestic supply and demand of the product may reach a dynamic balance. Therefore, it is predicted that glufosinate-ammonium price will increase and keep stable in 2017.