The glyphosate price is hitting a historical low now and most of manufacturers
are on the edge of loss. Reviewing the year 2015, the whole glyphosate market
was enshrouded by weak demand, continuously dropping price and oversupply.
China's new Laws on Environmental Protection was officially implemented in
2015, which restrained the production of pesticide manufacturers and medium-
and small-sized enterprises. As the international crude oil price keeps
falling, the market price of glyphosate also declined. The glyphosate price is
hitting a historical low now and most of manufacturers are on the edge of loss.
Reviewing the year 2015, the whole glyphosate market was enshrouded by weak
demand, continuously dropping price and oversupply (newly-added capacity
entered the market).
Jan.
China's glyphoste market remained bleak in the first month of 2015, which
was not a good beginning for the whole year. According to CCM's price
monitoring, the average ex-works price of 95% glyphosate TC was USD3,646/t,
down 28.79% year on year. Generally, domestic and overseas purchasers should
have stocked up goods for the sales of the coming year when Chinese Spring
Festival is approaching. However, purchasers held wait-and-see attitude towards
the market in year 2015. The main reason was that some enterprises were
expanding their capacities after suffering a round of capacity expansion in
2014. Overseas market considered that the market price would drop again along
with the capacity expansion. Therefore, the market purchase was bleak.
Feb.
Most glyphosate manufacturers entered the equipment maintenance period and
suspended good supplying when the Spring Festival came in the second half of
Feb. 2015. Part of them planned to resume production in March, causing to
supply reduction in Feb. Compared to the bleak market in Jan., the transactions
in the market were relatively active in Feb.
March
The 16th China International Agrochemical & Crop Protection Exhibition
(CAC Shanghai) was held in mid-March. Over the years, the market price of
glyphosate will usher in price boom before the CAC Shanghai. But the average
ex-works price of 95% glyphosate TC was only about 3,577/t in March, a slight
MoM rise of 3.92%. Although the production of pesticide manufacturers and
medium- and small-sized enterprises were restrained by the new Law on
Environmental Protection, the operating rate of glyphosate still rose
significantly under the good market expectations.
April
The market demand for glyphosate was unsatisfactory while the supply
increased obviously, which weakened that upward momentum of price. In this
month, the transactions were slack and the transaction volume did not improve
in the glyphosate market. Accordingly, the market price dropped. The average
ex-works price of 95% glyphosate TC was about USD3,426/t, down 4.22% month on
month. The drop had exceeded that of March.
May
Traditionally, this month should be the sales season for the glyphosate
market. However, the transactions were bleak and the transaction price kept
falling. As the State Council issued the Action Plan on Water Pollution Control
on 2 May, pesticide industry became the 10 key industries for remediation. In
May, the People's Procuratorate of Zhejiang made the first-instance
judgment that Zhejiang Jinfanda Bio-Chemical Co., Ltd. was fined USD11.53
million (RMB75 million) for environmental pollution. But this case had no big
impact on the production of pesticide enterprises.
June
The glyphosate market was still sluggish with few orders completed. The
traditional sales season for pesticides came to an end. The market price of
glyphosate further reduced. The average ex-works price of 95% glyphosate TC
reduced by USD26/t month on month.
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.
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: glyphosate