Herbicides China Monthly Report

Overall demand for herbicides TC has decreased and herbicides have been in an off-season. Many products had lacklustre trade, but some still saw their price go up this month. In June, MoM price changes of major herbicides TC in China averaged a positive 0.16%, up 0.22 percentage points on a monthly basis. Major herbicide raw materials had mixed price trends. Specifically, the price of liquid chlorine was still on the decline, but the price drop slowed down.

Regarding company dynamics, Dingyuan Jiahe has proposed to add 1,000 t/a fluorochloridone capacity, Jiamusi Heilong has planned to construct 2,000 t/a glufosinate-P capacity, and Nantong Changqing's 5,000 t/a S-metolachlor line has come into trial run.

Regarding latest policy, Jiangsu provincial government solicited public views and suggestions on the Opinions on Accelerating High-Quality Development of Chemical Industry in Jiangsu Province till 17 June. The province aims to have over 55% of chemical enterprises moved into chemical parks by 2027.

Regarding registration, ICAMA released information of pesticide products that it had planned to approve of registration (6th-batch this year), include 71 herbicide products. The majority of the to-be-approved herbicide products are of low toxicity and the most popular form is EC. Clomazone is the most popular active ingredient.

Besides, from Jan. to May 2024, total export volume and value of herbicide formulations from China grew by some 62% and 6% YoY, respectively. In May alone, the export volume and value expanded some 73% and 36% YoY, respectively.

The USD/CNY exchange rate in this newsletter is USD1.00 = CNY7.1086 on 3 June, 2024, sourced from the People's Bank of China. All the prices mentioned in this newsletter will include the VAT, unless otherwise specified.