Prices of niche herbicides rising in China

According to a market research into some of the listed companies recently done by Chinese market research firms, prices of some niche herbicides have started to go up and moved toward short supply.
 
Recently Shenghua Biok raised its dicamba price by Yuan 1,000 / ton, which is 1% up; its FOB price rises by US$500 / ton, which is 2.3% up and purchase orders have been placed up to mid-June. At present the Chinese agrochemical companies Shenghua Biok and Yangnong Chemicals have respectively got a dicamba capacity of 2,000 tons and 1,000 tons while the 2,000-ton capacity of Changqing Agrochemicals is scheduled for operation in 1st half of 2013.

Glufosinate-ammonium , another rare specie has also appeared toward the same trend. Yongnong Chem is currently the only enterprise that has achieved the industrialization of the product while Lier Chemical has got only 600-ton capacity which is still under construction.

An analysis reveals the recent change of the market situation of niche herbicides to be attributable to the continued price rise of glyphosate. As a substitute for glyphosate, the market potentials of dicamba and glufosinate-ammonium will be further proved.
 
Since China’s abolishment of PMIDA, the raw material of glyphosate, export tax refond from January 2013, the glyphosate export quote has started to go up. The more stringent industry administration and environmental inspection coming next might be of a continued contribution to the glyphosate price.