CCM: Review of China’s 2015 glyphosate market (II) 04-12-2016

China’s glyphosate market did not get out of downturn in H2 2015. Although most of manufacturers tried to stabilize the glyphosate price, the price still dropped by 4.97% year at the end of 2015.


In H2 2015, China’s glyphosate market did not get out of downturn. Although most of manufacturers did not reduce the glyphosate price and build momentum for the coming peak demand season. Therefore, from Aug. to Nov., the average ex-works price of glyphosate TC stabilized at the same level. However, the price recorded a YoY drop of 4.97% at the end of 2015.


July
The market was still in downturn with weak demand, few orders and low price.


Aug.
More and more manufacturers entered the equipment overhaul period to cope with the stagnant market. Although the price is at low level, it still remained stable. Also, the devaluation of the RMB boosted the export market to some extent. What’s more, the production of chemical enterprises and logistics were strictly limited by the Tianjin blast and the coming military parade of 70th anniversary of the victory of the Chinese people’s war of resistance against Japanese aggression and the world anti-fascist war. These helped increase the price of chemicals. 


Sept.
As more and more enterprises suspended their production, the supply volume of spots declined. Furthermore, most of glyphosate manufacturers started to increase the quotations of related glyphosate product to prepare for the 16th AgroChem to be held in Shanghai in Oct. But the actual transaction price did not increase.



Oct.
Since part of industry insiders still expected the market to recover, the market supply slightly rose. Meantime, Sichuan Hebang Biotechnology Co., Ltd. announced to put its 50,000 t/a glyphosate TC production equipment into trail production, which posed pressure on the supply market. It was difficult for the glyphosate price to rise under the increased supply and depressed raw material market.


Nov.
As winter came, pesticide industry encountered the off-season commercial reserve period. Nevertheless, pesticide distributors did not have high enthusiasm for it. The purchases were slack still. What's more, the price was hard to rise because the new capacities have entered the market. The average ex-works price of 95% glyphosate TC was USD3,039/t, the same over that in Sept. and Oct.


Dec.
Hubei Xingfa Chemicals Group Co., Ltd. successfully put 60,000 t/a glyphosate TC expansion project into trail production. In this month, the glyphosate market still remained depressed. What's worse, overseas orders further decreased due to the coming Christmas and New Year holiday. Domestic price continued falling to USD2,888/t (95% glyphosate TC), down 4.97% month on month and down 27.75% year on year. Purchasers kept expecting the market to improve.




About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta.

 

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.


Tag: glyphosate

 


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