Price of yellow phosphorus stopped falling and rebounded, market changes intensified

Yellow phosphorus price has started to rise again after a sharp decline. Today, the transaction price of yellow phosphorus price ranges between RMB 40,000-43,000, net ex-works, which is a 12% rise over RMB 37,000 in the previous report. According to the information obtained by AgroPages, the main reason for this round of price rise lies on the cold weather of the winter time, whereas coal stocks held in power plants are less than 3 days while Guizhou’s coal productions are required to be supplied to power plant as a priority to ensure power plants to hold stocks for more than 7 days. So, power supply to yellow phosphorus production is restricted, production is running at low load, bearing in mind that production of 1 ton of yellow phosphorus needs 15,000 kWh of electricity. 

Moreover, it is said that glycine manufacturers in Hebei Province started to suspend production from this week, being able to make supplies only to regular customers. Supply is short, whilst pricing is chaotic, which is negotiated on a case-to-case basis. In Shandong Province, glycine production has stopped one after another, supply becomes unstable. The latest market price of glycine exceeds RMB35,000, which used to be RMB27,000 only 10 days ago, which is almost a 30% rise.

The latest glyphosate transaction price in part of Chinese market has reached RMB85,000 per ton. After the publication of the previous report – “Yellow plus price go down, glyphosate price on the rise,” a lot of overseas clients have consulted AgroPages about the glyphosate and glufosinate price trend. Among the queries, a Malaysian client is quite representational, having expressed anxiety about the survival of local farmers. In Malaysia, 2/3 of the agricultural land is used for palm cultivation and palm oil is the largest industry. Although the price of palm oil hit a record high this year, fertilizer and pesticide prices skyrocketed. Hence, Farmers’ survival is not optimistic. The glyphosate package at 20L 41% produced by local manufacturers sells at RMB 400, which is roughly RMB 548 or $85.6, in consistence with the glyphosate technical price of RMB 60,000-65,000 per ton, or $9,300 per ton. The issue is very few customers would accept this price; lots of local farmers have had to go for manual weeding. Some farms have not purchased glyphosate for months, but the glyphosate technical price is still rising. It is reported to have gone up to RMB85,000, what can farmers do? The Malaysian client is very anxious about the price rise, estimating that Monsanto may be the only profitable company at the price level, the other local companies are not competitive anymore. 

In addition, Brazilian readers gave feedback. Brazil has ushered in the rainfall and soybean cultivation is advancing steadily, but the problem is, for example, there is a 30% shortage of glyphosate in the region, because lots of international companies are not honoring contract, or are requesting price rise or are unbale to deliver sufficient quantities. At present, the prices of agricultural inputs are rising too high, the financing stress on enterprises is increasing significantly. In case that the prices of farm products are not maintained at a high level in the future, there will be a big impact on Brazilian agriculture. 

If you are experiencing difficulties as mentioned above or if you wish to know more about the true picture of the supply chain, welcome to contact and communicate with AgroPages. We will forward your worries and concerns to upstream industry sectors.

Erwin Xue

Email: erwin@agropages.com

Mob: 0086 13750884233

More to read:

1.Yellow phosphorus price going down; glyphosate price still on the rise

2.Double control of energy consumption, power and production limit, the price of glyphosate breaks through RMB 80,000/ton

3.Hurricane Ida affects electricity supply of Monsanto’s American factory, what glyphosate market outlook and price trend are expected? 

On 2021 China Pesticide Exporting Workshop, experts from Xingfa Group, CAC Group and Lier Crop Science made discussion on supply, price trends and future market development of China's non-selective pesticide products. Watch the dialogue video: