In mid-February, China’s main glyphosate TC producers raised their prices by
amounts ranging from USD72.20 (RMB 500) per ton to USD 101.08 (RMB 700) per
ton. Manufacturers in central China moderately reduced their operating rates
after the Chinese New Year holiday, while suppliers in the west increased
prices due to significantly restricted transportation in many areas. The
short-term price of glyphosate TC is expected to continue to grow, although
demand remains low.
In mid-February,
the average ex-works price of China’s glyphosate TC was around USD (RMB 21,000)
per ton, with offers from major buyers increasing by amounts from USD72.20 (RMB 500) per ton to USD 101.08 (RMB 700) per
ton. Demand remained stable and low both within China and abroad, but
prices showed an upward tendency when many businesses opted to postpone their
resumption of work after the Chinese New Year holiday due to the COVID-19
outbreak. In addition, nationwide road blocks put into effect in order to
control the outbreak have further contributed to price increases. Producers in
central China moderately reduced their operating rates after the festival,
while suppliers in the west raised their prices due to many major roads in
western China being closed.
Glyphosate producers and suppliers
wait patiently, hesitate to do business
A large amount of glyphosate inventory remains on the market, with main
producers continuing to create supply. Glyphosate TC price will likely remain
stable and grow mildly, as both suppliers and purchasers are currently showing
cautious and hesitant attitudes, with concern over subsequent epidemic
situations. It is expected that suppliers will continue to raise prices if
transportation becomes more difficult in order to maintain profits, and it is
expected that many purchasers may wait to see if transportation logistics
become easier before buying.
While the coronavirus outbreak has pushed up the price of glyphosate TC, it
remains unclear what effect this will have on the pesticide industry. For now,
the production and price are directly affected by raw materials and transport
factors. The impact of the coronavirus on the glyphosate market will be more
obvious in the coming peak season.
Glyphosate soars in Chinese market,
but receives tepid global reception
In
the Shenzhen stock market, the prices of stocks related to glyphosate soared in
mid-February, likely as a response to the recent increases in price. Similarly,
the market sector for agricultural chemicals and veterinary medicines showed
strong performance overall. In particular, stocks in Shenzhen Noposion Agrochemicals Co., Ltd., Jiangsu Huifeng Joint-Stock
Co. Ltd., Zhejiang Qianjiang Biochemical Co. Ltd., and Sino-Agri Leading
Joint-Stock Co. Ltd. showed dramatic increases in prices. However, in the
global market, glyphosate is gradually becoming less popular. In January, the
government of Bangladesh formed an action plan to stop the use of glyphosate as
an agricultural herbicide in favor of more environmentally-friendly
alternatives. Furthermore, most European countries show the same hesitation to
use glyphosate, and use of the herbicide in Europe is heavily regulated. Many
countries have found the herbicide glufosinate ammonium to be a safer alternative to glyphosate
while still providing the same effectiveness in killing weeds. With current
trends, glyphosate will likely play a less and less significant role in the
global marketplace.
For more information
on China’s glyphosate market, please check our Glyphosate
China Monthly Report.