CCM: Review I: China’s sterilant herbicide market embraces renewal 04-21-2016

In 2015, glyphosate and paraquat, representatives of sterilant herbicides, are facing the risk of being eliminated because of the stringent environment safety regulations. Which herbicide will become the leading product in the future sterilant herbicide market has become a focus of discussion among industry insiders.


Since the resistance to glyphosate has increased and many weeds including Canadian fleabane have high resistance, the 2015 glyphosate market remained depressed with price drops. The glyphosate technical price has declined to a historical low. The mainstream transaction price has dropped to USD2,844.75/t (RMB18,500/t). Many herbicide enterprises namely Zhejiang Wynca Chemical Industry Group Co., Ltd., Nantong Jiangshan Agrochemical & Chemical Co., Ltd. and Jiangsu Yangnong Chemical Co., Ltd. recorded significant falls in both their revenue and profit from their glyphosate business. In order to reduce the resistance to glyphosate, enterprises are mixing glyphosate with other selective herbicides like dicamba.


In 2015, paraquat AS was reclassified as a highly poisonous substance, which heavily impacted the depressed paraquat market. At present, the sales of paraquat are sluggish both at home and abroad and the ex-works price of 42% paraquat TK has fallen to USD1,845.25/t (RMB12,000/t). At the same time, the development progress of non-AS paraquat is also stagnant. For instance, the registrations of 50% paraquat SG (expiry date: 8 Nov., 2015) and 20% paraquat GW (expiry date: 25 Sept., 2018) from Shandong Luba Chemical Co., Ltd. and Nanjing Redsun Co., Ltd. respectively are unlikely to be renewed. Paraquat is likely to disappear from the market in China.




From 1 July, 2016, China will ban the sale and use of paraquat AS. Although the Ministry of Agriculture of the People’s Republic of China will still allow the export of paraquat AS for paraquat TK manufacturers, the market share left by paraquat AS will be filled by its competing products - glufosinate-ammonium, diquat, glyphosate and some mixed formulations.

 

Glufosinate-ammonium and diquat will become key products in the sterilant herbicide market, especially the former. At present, many enterprises including Zhejiang Yongnong Chem. Ind. Co., Ltd., Lier Chemical Co., Ltd. and Hebei Veyong Bio-Chemical Co., Ltd. are investing into the glufosinate-ammonium market. The coming 5 years will be the fast development period for glufosinate-ammonium.


However, it will take some time for the glufosinate-ammonium market to completely open up. High market price, extremely high production process standards, limited output and environmental pressure are restraining the development of glufosinate-ammonium.


Since diquat is a similar product to paraquat, it will have good opportunities after paraquat AS is banned. The next few years will also be the fast development period for diquat. However, because diquat is similar to paraquat, it may follow a similar development path to paraquat in the future. In any case, diquat can obtain large market shares once paraquat withdraws from the market. But how far it can go is still unknown.

 

CCM believes that:

That paraquat will withdraw from China’s sterilant herbicide market is irreversible.

The influence of glyphosate will weaken because weeds are becoming more resistant to glyphosate.

In the long term, glufosinate-ammonium is very likely to become the major product in China’s sterilant herbicide market since it is a good substitute for paraquat and glyphosate.

Diquat will become the major substitute for a while after paraquat AS withdraws from the market.

 

To sum up, in 2016, China's sterilant herbicide market will embrace a renewal because of the big changes that happened in the market in 2015.

 

Ex-works price of 42% paraquat TK and 95% glyphosate TC in China, 2015


                                                                              Source: 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: glyphosateparaquatsterilant herbicides


Subscribe to our Newsletter



Next Press