Hebei Lansheng Biotech Co., Ltd.
Beijing Multigrass Formulation Co., Ltd.

China's glufosinate, glyphosate prices hit new high, vendors refraining from taking orders due to shortage of stocksqrcode

Dec. 25, 2020

Favorites Print
Forward
Dec. 25, 2020

China's glufosinate, glyphosate prices hit new high, vendors refraining from taking orders due to shortage of stocks

The winter herbicide market is at present experiencing purchases for replenishment as the prices of glyphosate and glufosinate in the Chinese market have reached a new high in the year, with glyphosate increasing 32.86% and glufosinate by 54.55%.


As of December 18, the average domestic market price of glyphosate rose from Yuan20,700/ton on June 1 to Yuan27,300/ton, 32% up in less than six months. The price of glufosinate rose from Yuan127,000/ton on June 1 to Yuan175,000/ton on December 18, which is an increase of more than 37%.


Reasons for the continued price rise of the two herbicides


The continued price rise of the two herbicides is attributable to the short supply and the price rise of upstream raw materials.


As regards glyphosate, decreased production and increased demand are one of the main reasons for the price rise. The floods in Sichuan in the third quarter of this year reduced the glyphosate production in Fuhua and Hebang, resulting in a general decrease in production during the year and a declined level of stocks. 


On the other hand, the prices of upstream raw materials have gone up, such as glycine, yellow phosphorus, liquid chlorine, methanol, paraformaldehyde and PMIDA. Reportedly, technical material manufacturers are unable to take orders at present and will instead receive orders for scheduled delivery at a later date.


As regards glufosinate, according to the monitor of authoritative institutions, there has been no new capacity being brought on stream. From the raw material perspective, the price rise of raw materials such as yellow phosphorus will continue to back up the price rise of glufosinate.


What is the future trend of the two herbicides?


Market players hold the view that the ban on paraquat in many countries has provided a growth space for glyphosate and glufosinate. Meanwhile, the first and fourth quarters of each year are usually the peak seasons of the herbicide market. In case there is no increase in production capacity while demand increases both from domestic and overseas market, the supply of the two herbicides will remain hot and short.


Both herbicides have appeared in short supply


China is the main producer of glyphosate, with a total capacity of about 700,000 tons. Among the listed companies, Xingfa Group has an annual capacity of 180,000 tons accounting for about 25%. Wynca has 80,000 tons, Jiangshan has 70,000 tons, Guangxin has 60,000 tons, Hebang has 50,000 tons and Yangnong has 40,000 tons. Analytic institutions generally believe that the price rise of glyphosate will benefit the correction of the profitability of listed companies.


According to information at www.sci99.com, the production load of domestic glyphosate manufacturers has remained stable over recent times. The manufacturers are mostly racing to implement the earlier purchase orders, as manufacturers have little stocks now, whilst traders have got limited stocks.


At present, the glyphosate production plant of Xingfa Group is operating at full load to implement the earlier orders. Limin’s subsidiary Veyong Biochemical possesses 1,450 tons of glufosinate annually, whilst the company is planning to increase the capacity by 3,000 tons, which will enable it to capture a larger market share. 


AgroPages has learned from Veyong Biochemical that at present the company's glufosinate technical plant is under construction, and the company has temporarily refrained from taking orders. In general, there is a shortage of glufosinate stocks in the market. 


Source: AgroNews

Picture 0/1200

More from AgroNews

Magazine

Annual Review 2020 2020 India Pesticide Suppliers Guide
2020 Market Insight Chinese issue of 2020 Market Insight
2020 CRO & CRAO Manual Chinese issue of 2020 Biologicals Special
Subscribe Comment

Subscribe 

Subscribe Email: *
Name:
Mobile Number:  

Comment  

Picture 0/1200

Subscribe to daily email alerts of AgroNews.