草甘膦中国月报(草甘膦中国月度报告1803)

In early-to-middle March, glyphosate technical prices still kept high in China, but then started to fall. Purchasers didn't show high enthusiasm for procurement, resulting in few orders. Both formulations and technical suppliers reflected that the market was flat. As the "Two Sessions" ended and the production cuts in "26+2" cities during winter also came to an end, there was no policy yet to greatly affect production of pesticides and chemicals in the short term, and glyphosate technical operating rate remained at regular levels. At present, there are 13 glyphosate companies in smooth production, including 4 in Central China, 1 in Northeast China, 5 in East China and 3 in Southwest China, with operating rate at 66% in the Central, 57% in the East, and 71% in the Southwest respectively. In regards to raw materials, prices of yellow phosphorus and glycine both showed downtrend, which cannot support glyphosate technical prices. However, as environmental protection inspections will be stricter in 2018, glyphosate technical prices are likely to soar although there is no stimulus now.

The USD/RMB exchange rate in this newsletter is USD1.00=RMB6.3352 on 1 March, 2018, sourced from the People's Bank of China. All the prices mentioned in this newsletter will include the VAT, unless otherwise specified.