In April 2016, China's glyphosate market still remains depressed. Currently,
glyphosate TC manufacturers still facing pressure on inventory and the demand
of overseas market has not improved yet. Under this situation, purchasers hold
wait-and-see attitude towards the future market, thus the suppliers are
sufficient.
As a result, the glyphosate market will not meet a significant
rebound in a short run. Notably, though the price of yellow phosphorus (raw
material for glyphosate) increases slightly, the glyphosate price still
maintains lower than USD2,787/t (RMB18,000/t). According to CCM's research, the
average ex-works price of 95% glyphosate TC is USD2,783/t in April 2016,
USD16/t higher than last month and down by 20.64% YoY.
Although the market is bleak, no one wants to reduce market shares. Mainstream
manufacturers keep maintaining stable operating rates even some of them face
difficulties in business.
Production and sales of major glyphosate enterprises in China in April 2016:
Zhejiang Jinfanda Bio-Chemical Co., Ltd. stabilizes the glyphosate price and
keeps receiving orders. Thereinto, the Shanghai Port price of 95% glyphosate
TC, 41% glyphosate IPA, 62% glyphosate AS and 75.5% glyphosate ammonium GR is
USD2,787/t (RMB18,000/t), USD1,471/t (RMB9,500/kl), USD1,781/t (RMB11,500/t)
and USD2,864/t (RMB18,500/t) respectively.
Sichuan Hebang Biotechnology Co., Ltd. mainly consumes the inventories in April
and has no public quotation. It's production device of glyphosate TC is still
under suspension with the specific resumption date untold.
Jiangsu Yangnong Chemical Co., Ltd.'s glyphosate price remains stable. The FOB
price of 95% glyphosate TC is about USD3,600/t. At present, its production
device runs smoothly and the company can accept new orders.
Nantong Jiangshan Agrochemical & Chemical Co., Ltd.'s production device of
glyphosate runs smoothly but the company does not make public quotation. New
orders can be accepted while the transaction price should be negotiated.
Sichuan Fuhua Tongda Agro-chemical Technology Co., Ltd. stabilizes the
glyphosate price in this month. The Shanghai Port price of 95% glyphosate TC is
USD2,787/t (RMB18,000/t). The company can accept new orders as its production
device runs smoothly.
Jiangsu Good Harvest-Weien Agrochemical Co., Ltd. can accept new orders for
glyphosate since the production device runs steadily. But the company does not
publicly disclose the quotation. And the actual transaction price of products
should be negotiated.
In Q1 2016, downstream purchasers demanded glyphosate TC for replenishment
affected by the New Year's Day holiday and the Spring Festival holiday. Some
suppliers received new orders, boosting the shipment of manufacturers and
easing part of inventory pressure. However, since some purchasers have stocked
up goods before the Spring Festival, they did not need to purchase after the
holiday.
Affected by the weak market demand, purchasers still hold wait-and-see
attitude. Domestic purchasers only replenish a small amount of goods each time
based on demand. Thus the purchase volume is small even in the busy season.
Though there are enquiries from overseas market, seldom of them close a deal.
During the Spring Festival, individual factories suspended production or
reduced the operating rate and they resumed production in succession after the
holiday. Therefore, as the market supply is sufficient, some enterprises reduce
the price to relieve inventory pressure. As a result, glyphosate price
rebounded for a short time in Q1 2016, then started to drop in March.
Forecast:
The glyphosate price will linger over the present level in a short run. Even
though the market demand will continue weakening, there is still rigid demand
for glyphosate.
The transaction volume will still improve even if enterprises
are purchasing based on demand. But since the inventories are sufficient,
manufacturers won't greatly reduce the operating rate, and the stable raw material
price cannot provide supports, the glyphosate market will still be weak in the
coming future.
Ex-factory price of 95% glyphosate TC in China, Jan. 2015-April 2016
Source: CCM
This article comes from Herbicides China News 1604, CCM
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. CCM is a brand of Kcomber Inc.
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