Chinese glyphosate technical market was lackluster in April 2018 as overseas markets entered the low season, while raw material prices kept rising and glyphosate technical producers suffered mounting pressure, according to a report by data and business intelligence provider CCM.
Yet, Chinese producers did not cut operating rates, and some even increased production, CCM said.
Based on input-output ratio, glyphosate technical producers still have considerable profits, CCM said. Currently, 13 glyphosate technical companies are operating smoothly: 4 in Central China, 1 in North China, 4 in Jiangsu Province, 1 in Zhejiang Province, and 3 in Southwest China. Operating rate in Central China remains at 66%, East China reached 62%, and Southwest China reached 71%. In East China, operating rate gradually rises, from 57% to 62% in late March, leading to improving market supply.
In Q2 2018, the chemical market entered the slack season, with glycine prices reflecting increased regulations. However, the glycine operating rate was dropping in spite of abundant orders.
“Rising glycine prices will undoubtedly pose pressure on producers without their own glycine production equipment. For those who can produce glycine by themselves, that would be an opportunity. For example, Inner Mongolia Tenglong and Sichuan Fuhua Tongda with supporting glycine equipment, can save production cost and earn more profits from the high market price of glyphosate,” CCM said.
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