Summary: In the first half of August, the operating rate of glyphosate TC producers in China increased MoM, mainly driven by the order growth from domestic and overseas markets. While the unstable purchases, falling profits and other unfavourable factors may lead the operating rates to maintain at a low level in Sept.
In the first half of August, the operating rate of glyphosate TC producers in China increased by 16% MoM to 52%, among which Jiangsu Yangnong Chemical Group Co., Ltd., Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. and Hubei Xingfa Chemicals Group Co., Ltd. all raised their running rates to different degrees, mainly due to the increase in domestic and overseas orders for glyphosate TC during July-August. However, in Sept., the rate is expected to remain at a low level.
For one, the producers are still very cautious in production and maintained a low operating rate. As the order growth is unstable, the glyphosate TC producers lack confidence in selling goods in the future market, and have no plan to produce more Glyphosate TC as stock, just adjusting the operation by order. Specifically,
-
Sichuan Hebang Biotechnology Co., Ltd. And Fuhua Tongda Chemical Co., Ltd. have been subject to certain limitations in the production of glyphosate TC due to the tightening in the supply of electricity as a result of the Sichuan Universiade.
-
Hubei Trisun Chemicals Co., Ltd., Henan HDF Chemical Co., Ltd., Jingma Chemicals Co., Ltd. and other producers are also running at a low rate.
For another, entering August, the domestic and overseas demand for glyphosate TC is waning. Especially, in the case of traders selling goods at low prices, purchasers became more wary of making purchases, and their attitude gradually changed from positive to wait-and-see. With much uncertainty in the market, producing in large quantities rashly could exposes producers to more risk.
In addition, both raw material and energy costs were high in August, which was not conducive to the glyphosate TC producers gaining more profits in production. According to glycine-route glyphosate producers, in mid-August the gross profit of glyphosate production was calculated to be 1%–2% lower than that at the beginning of the month, mainly due to the increase in prices of raw materials such as liquid chlorine and methanol.
Table Operating rate of major Chinese glyphosate TC manufacturers, early to mid-Aug., 2023
|
No.
|
Manufacturer
|
Abbr.
|
Operating rate
|
|
1
|
Jiangsu Yangnong Chemical Group Co., Ltd.
|
Jiangsu Yangnong
|
65%
|
|
4
|
Nantong Jiangshan Agrochemical & Chemicals Co., Ltd.
|
Nantong Jiangshan
|
60%
|
|
2
|
Fuhua Tongda Chemical Co., Ltd.
|
Fuhua Tongda
|
55%
|
|
3
|
Sichuan Hebang Biotechnology Co., Ltd.
|
Hebang Biotechnology
|
50%
|
|
5
|
Hubei Xingfa Chemicals Group Co., Ltd.
|
Xingfa Group
|
50%
|
|
9
|
Anhui Guangxin Agrochemical Co., Ltd.
|
Anhui Guangxin
|
50%
|
|
6
|
Henan HDF Chemical Co., Ltd.
|
Henan HDF
|
45%
|
|
7
|
Zhejiang Wynca Chemical Industrial Group Co., Ltd.
|
Zhejiang Wynca
|
45%
|
|
8
|
Jiangsu Good Harvest-Weien Agrochemical Co., Ltd.
|
Jiangsu Good Harvest
|
45%
|
|
Average operating rate
|
52%
|
Source: CCM
More information can be found at CCM Glyphosate China Monthly Report.
About CCM:
CCM is the leading market intelligence provider for China's agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of content solutions, from price and trade analysis to industry newsletters and customized market research reports. 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.