“Glyphosate is the most consumed herbicide in China. It is predicted that the consumption volume of glyphosate will maintain stable growth in the coming few years.
According to the market reflection, glufosinate-ammonium has evoked heat discussion in China’s domestic market. However, when treating the future development of glufosinate-ammonium, China’s pesticide enterprises should be more rational. That is to say, they cannot expand the production capacity of glufosinate-ammonium blindly.
Regarding the the growing production costs, strengthening demand in the domestic and overseas markets, boosting domestic environmental pressure and shrinking production capacity in the glyphosate industry, the price of glyphosate technical is expected to go up in a short term.
According to the market feedback in April 2015, China’s glyphosate TC market remains tight in supply. Enterprises all delay their delivery date of glyphosate TC. On the contrary, the market supply of glyphosate formulations is more relaxed but the delivery date is also in 20 days later.
Along with the coming busy season of paraquat export, China’s major paraquat TK manufacturers start to stock up goods actively, improve operating rates or resume production.
On 8 April, 2015, the MOA issued the 2015 National Special Action Plan to Crack Down Fake Agricultural Means of Production, aiming to further intensify the supervision and punishment for agricultural means of production.
On 8 April, 2015, Guangxin Agrochemical’s IPO passed the review of CSRC and planned to issue no more than 47.06 million new shares. It is disclosed that Guangxin Agrochemical will list at the Shanghai Stock Exchange.
On 31 March, 2015, Nantong Jiangshan released its 2014 financial report. In 2014, the company totally achieved revenue of USD484.41 million (RMB2.98 billion), down 5.90% year on year; net profit reached USD32.84 million (RMB201.76 million), down 33.37% year on year. The main reason was the declining sales of glyphosate products.
Glyphosate has attracted much interest in the pesticide industry. Along with the changing market trend, China’s glyphosate manufacturers will adjust the production and sale prices of glyphosate.
Generally speaking, the ex-works price of glyphosate formulations all didn’t change in the first half of April 2015 compared with that in March 2015. But the ex-works price of glyphosate technical decreased by 2.52% month on month.
Compared to Jan. 2015, the export volume of glyphosate technical increased by 0.86% in Feb. 2015, and that of glyphosate formulations up by 8.51%. In terms of export price, glyphosate technical and formulations decreased by 7.64% and 3.81% respectively in Feb. 2015 month on month.
In the pesticide industry, glyphosate is always one of the herbicides attracts much interest. However, the weak overseas demand and the not high market price leave China’s glyphosate market in downturn. Entering in April 2015, the domestic glyphosate price goes towards stability with slight rise.
Nevertheless, the actual transaction volume of glyphosate TC is not large and most of glyphosate manufacturers incline main business to glyphosate formulations. For instance, Jiangsu Yangnong, Nantong Jiangshan, Good Havest-Weien and some domestic large glyphosate manufacturers mainly supply the glyphosate TC to self-production of formulations and for orders from old customers, accept a few orders or suspend accepting new orders. While some medium- and small-sized manufacturers launch overhaul in this period and suspend the supply, such as Shandong Qiaochang, Xuchang Dongfang and so on. This triggers tight supply in the glyphosate TC market to some extent.
At the same time, in April 2015, China’s major listed glyphosate enterprises release the 2014 financial report one after another. Of this, due to the weak demand in the glyphosate market and declining sale price, most of enterprises suffered from decline in the performance of glyphosate business in 2014. For example, Nantong Jiangshan’s revenue from glyphosate products witnessed a YoY decrease of 7.25%; although Zhejiang Wynca recorded a YoY increase of 7% in the revenue from glyphosate in 2014, the falling glyphosate price led to 14 percentage points drop in its gross profit margin from glyphosate business.
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