Paraquat Prices Likely to Rise in China in June – CCM
1 June 2015 Paraquat prices are likely to rise slightly in China during June, reversing a trend towards falling or stagnant prices since the start of the year.
A number of paraquat TK manufacturers have reported an increase in orders from overseas markets in May, with several companies stating that they are producing at near full capacity to meet current orders.
Insiders at Zhejiang Yongnong Chem. Ind. Co., Ltd. (Zhejiang Yongnong), Shandong Luba Chemical Co., Ltd. (Shandong Luba) and Nanjing Redsun Co., Ltd. (Nanjing Redsun), meanwhile, disclosed that they were unable to accept new orders until June.
With the supply situation so stretched, several suppliers have also revealed that they are considering raising their prices for 42% paraquat TK. CCM agrees that a price rise for paraquat TK is likely in the short term, with paraquat AS prices more likely to remain stable.
China’s paraquat market has showed signs of improvement for several weeks now since a sharp decline in prices between January and March. According to CCM’s price monitoring data, during the first half of May the average ex-works price of 42% paraquat TK in China was $2,649/t, a very slight increase on the average price during the second half of April ($2,643/t).
Prices for 20% paraquat AS have also remained stable in China since late March at just over $2,100/t.
Here is an update on the current production and sales situation of China’s major paraquat TK manufacturers:
- Hubei Xianlong’s production and sales of paraquat has remained stable during May. The company is not able to accept any new orders until the end of May due to the large number of orders it has received. The company stated that its production line is running smoothly.
- Hubei Sanonda indicated that it is not accepting new orders for the moment and at the same time it has suspended quotations. Its paraquat production is currently stable with a daily output of 60 tonnes. Hubei Sanonda also disclosed that its paraquat is selling well; besides, most of the paraquat it is currently producing is for old orders. Regarding when the company is likely to begin accepting new orders again, the insiders CCM spoke to were not able to give an exact answer.
- Nanjing Redsun stated that since it increased the operating rate of its paraquat TK production line in April 2015, its daily output has stabilized at around 80 tonnes. The company’s paraquat TK prices have also remained stable during this period. Nanjing Redsun states that sales are promising and that it is unable to accept new orders until June.
- Zhejiang Yongnong disclosed in late April that sales of its paraquat TK products were good and that it was not accepting new orders until June. The company added that its paraquat TK prices were steady and that its production equipment was running smoothly.
- Shandong Luba claims that the company has a full schedule for orders of paraquat TK in May and can no longer accept new orders; new orders will be taken in June.Currently, Shandong Luba’s production of paraquat TK is mainly for completing existing orders and has remained stable throughout early May, with a daily output of around 90 tonnes.
For more information about CCM and its coverage of China’s pesticides market, please visit www.cnchemicals.com, or get in touch directly by emailing [email protected] or calling +86-20-37616606.
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