Herbicides China Monthly Report(Herbicides China Monthly Report 202411)

In November, the herbicide market showed signs of an off-peak season, with supply and demand remaining relaxed. There are hopes for improved domestic and foreign demand, leading to mostly stable prices for herbicide products, which fluctuated slightly. The average ex-works price of Herbicide TC fell by 0.18% MoM. Most raw material costs stayed fairly steady. The overall industry utilisation rate has decreased, and the market continued to have a relaxed supply and demand situation.

Company dynamics: Jiangxi Zhonghe expands 5,700 t/a tembotrione production capacity with new project completion; Hubei Trisun's EI report for the 150,000 t/a L-glufosinate TC and formulation expansion project was publicised; Noposion Cropscience, Xingfa Group, Xinnong Chemical, Norsyn Technology, and Greatchem Chemicals achieved YoY increases in both revenue and net profit for the first three quarters; The U.S. Department of Commerce announced preliminary affirmative findings in its antidumping investigation into imports of 2,4-D from China and India.

Policy: On 4 November, 2024, the Ministry of Agriculture and Rural Affairs issued the Decision on Amending the Measures for the Administration of Pesticide Registration and Other Five Regulations (Draft for Public Comments), seeking public feedback. One of the most notable changes in this draft is related to the "one product, one certificate" policy. Under this new regulation, a pesticide product registered under the same certificate holder can only display a single trademark on its label.

Trade: From January to October 2024, total export volume and value of herbicide formulations from China increased by 30.98% and 4.95% YoY, respectively. In October, the export volume and value increased by 26.98% and 9.83% YoY, respectively.