Glyphosate China Monthly Report(Glyphosate China Monthly Report 202303)

In March, China's "two sessions" and AgroChemEx (ACE) exhibition are underway. The ex-works price of glyphosate TC in China continued a downtrend, dropping from USD6,051.87/t (RMB42,000/t) in early the month to USD5,259.37/t (RMB36,500/t) at the end of March, with a decline of roughly 15%, which was even greater compared to the previous month.

In terms of company dynamics, amidst the downturn in the glyphosate market, many companies are still optimistic about the development of its future. Hebang Biotechnology proposed to raise capital for the 500,000 t/a PMIDA project; Albaugh announced the acquisition of Corteva's straight-goods glyphosate business; ADAMA reviewed Hubei Trisun's 79.25% glyphosate ammonium SG and glyphosate TC production systems, intending to further cooperate with Hubei Trisun in the glyphosate business; Fuhua Technology planned to reduce its holding in Nantong Jiangshan again mainly for the further development of Fuhua Tongda's glyphosate business, which may also serve as an effort to settle the competitive conflict with Nantong Jiangshan.

For upstream enterprises, domestic yellow phosphorus producers faced restricted production or even a suspension due to a tight electricity supply, especially in Yunnan Province. With little precipitation in most parts of Yunnan since 2023, Jan. and Feb. received significantly less rainfall than the same period in previous years. Meteorological drought is developing rapidly in local areas of Yuxi, Dali and Lijiang cities, which has led to a tight hydropower supply in Yunnan; Producers of glycine in the north also reduced output due to local dust storms and low demand.

The USD/CNY exchange rate used is USD1.00=CNY6.9400, sourced from the People's Bank of China on 1 March, 2023. All the prices mentioned in this newsletter will include the VAT, unless otherwise specified.