CCM: China's glyphosate market remains bleak in April 2016 07-19-2016

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.

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.


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