Guangzhou China Dec. 6, 2010 - In December, the glyphosate price rebounds again. Taking the glyphosate produced by Zhejiang Wynca Chemical Industry Group Co., Ltd. for example, its price increases by 22.5% with the price of USD 3690 /tonne.
In 2008, glyphosate price soared tremendously and reached the peak. However, due to capacity expansion and international financial crisis, the price declines rapidly and drops into trough then. At present, the whole glyphosate market is in recession. Although the glyphosate price rebounds a little, it is still hard for the producers to make a profit, for the low operating rate of the glyphosate raw materials makes supply decrease and leads to the rise in its price, which increases the cost of raw materials for the enterprises.
At present, the capacity of global glyphosate is 1.1 million tonnes, while the global demand is only 0.5 million tonnes. The total glyphosate capacity in China is 0.9 million tonnes, while the domestic demand is only 30,000~40,000 tonnes, about 0.3 million tonnes glyphosate for export. That is why above 50% of glyphosate production facilities have been suspended due to capacity expansion.
Because of the surplus production, it is hard for glyphosate price to rebound to pre-crisis levels. Most of glyphosate manufactures run at a loss and the whole glyphosate industry faces a reshuffle. The large glyphosate production enterprises will have great competitive advantage, while the small ones will be eliminated.
Source: CCM International