Environmental Inspections to Bolster Chinese Glyphosate Prices in 2017

 

Chemical industry research firm CCM predicts that that the price of glyphosate technical will fluctuate between $3,309 and $4,748/t in China in 2017, bolstered by ongoing environmental inspections that will keep the price of raw materials and glyphosate technical itself high in the new year.

Advertisement

The production limitations and environment protection systems implementations are not limited to the pesticides industry, but to many high-polluting industries in China. Hence, the overseas market is likely to accept overall higher prices from China, which can keep the price high in general, CCM said.

OPEC members’ limiting of oil production by raising the price of oil will also have its effect on pesticide production worldwide. Higher oil prices cause higher production costs of pesticides, including glyphosate technical. So, an international price increase of glyphosate technical can be the result, in which case the Chinese producers are very likely to follow the price rise with their own products.

According to CCM, output of glyphosate in China is not going to be expanded in 2017. Glyphosate is part of the restricted list of the NDRC, which will not allow new participants to join the market. Environmental inspections will continue, which also leads to a stable output of glyphosate technical with a rise in the short term. Finally, bad news about glyphosate leads to decent demand for this pesticide worldwide. Within China, the ban of paraquat AS prompts a search for substitutes, including glyphosate technical.

Top Articles
ADAMA Reports Fourth Quarter and Full Year 2023 Results

What’s more, glyphosate producers have to be aware of other herbicide-tolerant systems, which can be a substitute for glyphosate in 2017. Dicamba is one of the main competitive products to glyphosate, mainly used in the USA for example.

Hide picture