草甘膦中国月报(草甘膦中国月度报告202212)

In Dec., the ex-works price of glyphosate in China dropped and is expected to decrease further in Jan. 2023. The overall operating rate of domestic glyphosate TC producers remained low, mainly due to the few downstream orders.

In terms of company dynamics, Nantong Jiangshan proposed to acquire no less than 67% equity interest in Uniphos Chemicals to further expand phosphorus chemical industry chain and enhance comprehensive competitiveness; Fuhua Technology completed the holding reduction in Nantong Jiangshan; Jiangsu Kuaida's environment impact assessment on its new technical transformation project of 8,000 t/a glyphosate AS was publicised for public participation.

With the rapid growth in power consumption for heating under low temperatures, many regions took measures of off-peak power use, putting pressure on chemical production, especially on yellow phosphorus. Its ex-works price kept rising in Dec., with a downturn in the downstream demand; regions across the country successively overhauled the equipment and issued power outage announcements. Coupled with being caught in a wave of the COVID-19 pandemic, the production of some chemical producers was forced to suspend, and the others operated at low rates.

The USD/CNY exchange rate used is USD1.00=CNY7.1225, sourced from the People's Bank of China on 1 Dec. 2022. All the prices mentioned in this newsletter will include the VAT, unless otherwise specified.