Herbicides China Monthly Report(Herbicides China Monthly Report 202210)

In Oct., many herbicides TC had stable ex-works price. In general, downstream demand for herbicides TC was weak this month. The prices of glufosinate-ammonium TC and glyphosate TC edged down slightly, but the price of 2,4-D TC went up due to growing raw material costs.

As to company dynamics, Ningxia Hanrun has planned to build large-scale clethodim TC capacity, and Hangzhou Nutrichem has wanted to expand its S-metolachlor TC capacity. Jiangsu BZBD has revealed its plan to build new capacity for carfentrazone-ethyl TC, clomazone TC, bixlozone TC and sulfentrazone TC. Meanwhile, news came that Nanjing Red Sun's 10,000 t/a diquat dichloride lines and Veyong Bio-chemical's 5,000 t/a glufosinate-ammonium lines had started trial run.

As winter heating season is around the corner, many local governments have rolled out electricity plans for this particular period. Due to energy shortage in Europe, chemical enterprises in China have paid special attention to local electricity plans this year. Since late Sept., meetings on electricity consumption have been held in multiple cities, trying to drafting feasible plans to guarantee civil-use energy while impact industrial production as little as possible. Some cities have even come up with their plans in the summer, the peak season for electricity consumption.

The USD/CNY exchange rate in this newsletter is USD1.00 = CNY7.0992 on 10 Oct., 2022, sourced from the People's Bank of China. All the prices mentioned in this newsletter will include the VAT, unless otherwise specified.