Summary: In mid-June, the operating rate of glyphosate TC producers in China fell to about 38%, primarily because downstream demand had not yet recovered. However, some producers planned to increase their operating rates in late the month, and ex-works prices for glyphosate TC stabilised, implying to some extent that demand for glyphosate TC is gradually recovering.
In mid-June, the operating rate of glyphosate TC producers in China fell to about 38%, with most running at less than 50%. Some even suspended production for maintenance, for example, Zhejiang Wynca Chemical Industrial Group Co., Ltd.'s production facility in Jiangnan has been halted temporarily, and Anhui Guangxin Agrochemical Co., Ltd. has completely shut down production, trading with stockpiled products. The main reason for the decline is that downstream demand has not yet recovered, still less than the supply of glyphosate TC in China. The producers kept relatively high inventory and, with the prices at low levels, they cut output to mitigate the oversupply.
Nevertheless, some glyphosate TC producers plan to raise their operating rates in late the month. On the one hand, the increase in overseas orders during June made the domestic stocks of glyphosate TC gradually digested; on the other hand, the ex-works prices of major raw materials such as glycine and PMIDA were not high, and yellow phosphorus, which saw a price rise some time ago, also resumed its downtrend. The lower cost of glyphosate production facilitated the producers' production incentives.
There are also some producers who are not optimistic about the development of the glyphosate TC market in the near future, as the overall demand stays subdued and overseas orders are growing mainly for restocking. However, the ex-works price of glyphosate TC has turned from decline to stability, which to a certain extent implies that the demand for glyphosate TC is gradually reviving.
Table Operating rate of major Chinese glyphosate TC manufacturers, mid-June, 2023
|
No.
|
Manufacturer
|
Abbr.
|
Operating rate
|
|
1
|
Jiangsu Yangnong Chemical Group Co., Ltd.
|
Jiangsu Yangnong
|
55%
|
|
2
|
Fuhua Tongda Chemical Co., Ltd.
|
Fuhua Tongda
|
45%
|
|
3
|
Henan HDF Chemical Co., Ltd.
|
Henan HDF
|
45%
|
|
4
|
Sichuan Hebang Biotechnology Co., Ltd.
|
Hebang Biotechnology
|
45%
|
|
5
|
Nantong Jiangshan Agrochemical & Chemicals Co., Ltd.
|
Nantong Jiangshan
|
40%
|
|
6
|
Hubei Xingfa Chemicals Group Co., Ltd.
|
Xingfa Group
|
40%
|
|
7
|
Zhejiang Wynca Chemical Industrial Group Co., Ltd.
|
Zhejiang Wynca
|
40%
|
|
8
|
Jiangsu Good Harvest-Weien Agrochemical Co., Ltd.
|
Jiangsu Good Harvest
|
40%
|
|
9
|
Anhui Guangxin Agrochemical Co., Ltd.
|
Anhui Guangxin
|
Production suspended
|
|
Average operating rate
|
38%
|
Source: CCM
More information can be found at CCM Glyphosate China Monthly Report.
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