Herbicides China Monthly Report

The pesticide sector is currently grappling with a surplus in production capacity, leading to a general decline in the prices of active ingredients, although some have stabilised. The government is actively steering the industry towards green and innovative development, charting a course for its transformation.

In July, a number of listed pesticide companies have issued their financial forecasts for the first half of 2024, with the majority anticipating a decline in profits compared to the same period last year. For instance, Hebang Biotechnology's projected drop in profits is primarily attributed to the ongoing reduction in the prices of glyphosate and glufosinate, yet this has not deterred the company from expanding its global capacity for these chemicals.

In response to the surplus of glufosinate-ammonium, strategies vary between domestic and international companies. Within China, the expansion of production capacity for the TC and its intermediates continues, exemplified by the self-inspection approval of Inner Mongolia Miraculous' 100,000 t/a glufosinate-ammonium TC and intermediate project, and the environmental assessment publicity for Guangda Lier's 25,000 t/a methyldiethoxyphosphine technological transformation project. Conversely, the German chemical conglomerate BASF has declared the shutdown of two factories dedicated to the production of glufosinate-ammonium TC and formulations.

Policy-wise, the responses from the Ministry of Agriculture and Rural Affairs to the pesticide industry, along with the Fine Chemical Industry Innovation and Development Implementation Programme (2024–2027) issued by the Ministry of Industry and Information Technology and other departments, indicate an ongoing commitment to regulate the administrative management of the pesticide sector. Efforts are being made to phase out outdated capacities, refine regional distribution, enhance the development and application of eco-friendly pesticide technologies, and foster a sustainable shift in the industry. The ultimate goal is to establish a green, secure, and efficient pesticide industry chain.