CCM: China's herbicide market suffers depression during peak season in H1 2016 08-03-2016

Generally, the first half of the year means peak season for the production and sales of pesticides in China, but this year the whole market remains depressed, which badly affected the herbicide market.

Source: Bing

The transaction prices of paraquat, glyphosate and glufosinate-ammonium kept falling and, although transaction volumes of the latter two showed uptrend thanks to the filling up of some market shares left by paraquat AS, glyphosate and glufosinate-ammonium markets were still sluggish.


- Glyphosate


Recently, the United Nations and the World Health Organization reported that there is no actual danger for glyphosate to cause cancer to human but, despite that, the future of glyphosate still remains to be seen in the EU market. In June 2016, the European Union (EU) decided to re-authorize glyphosate for further 18 months, and in July, EU countries accepted related limiting conditions for using glyphosate.

If glyphosate is banned after 18 months, then its circulation and development in the world will be greatly impacted – the sales will be hindered in the EU market and other countries might follow the EU's example and ban glyphosate.


At the moment, the glyphosate market is still in bad shape, with a sufficient market supply but a weak downstream demand especially from overseas. CCM predicted that the market is going to stay depressed in the long term with rigid demand. Consequence of that, the price will stay low.


- Glufosinate-ammonium


Although glufosinate-ammonium price hit a record low, the transaction volume of TC did rise to some extent and as soon as paraquat AS exited the market, glufosinate-ammonium formulations started enjoying higher cost performance with mounting registrations.

However, the rapidly expanded production capacity leads to serious oversupply. Currently, domestic main glufosinate-ammonium manufacturers are Zhejiang Funong Bio-technology Co., Ltd., Sichuan Lier Chemical Co., Ltd., Hebei Veyong Bio-Chemical Co., Ltd., Inner Mongolia Jiaruimi Fine Chemical Co., Ltd. and so on. Most of them have plans for capacity expansion.


- Paraquat


Industry insiders are worried about the future of paraquat as it is likely to be banned by the international market. Now, domestic enterprises have to take measures to cope with the continuously falling paraquat price. Shandong Luba Chemical Co., Ltd. has disclosed to invest a large sum in developing pyridine series, while Nanjing Red Sun Co., Ltd. has decided to reduce paraquat TK capacity to 20,000 t/a and vigorously develop downstream products of pyridine.

- Amide herbicides


Although the market recovered in early 2016 with price rebound, price fell back at the end of Q2 along with the coming slack season. At the moment, market prices of mainstream amide herbicides like acetochlor TC, metolachlor TC, metolachlor TC and pretilachlor TC stand still.


As summer comes, domestic pesticide TC market enters slack season, but the demand for sterilant herbicides and wheat herbicides is still strong. Notably, some products are likely in tight supply because environmental protection calls for capacity reduction. As a result, in Q3, seasonal products that are in demand will draw great attention, and their prices may fluctuate.


This article comes from Herbicides China News 1607, 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.


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Tag: Glyphosate  Paraquat  pesticides  herbicide


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