At the beginning of this year, the ministry of agriculture made a public announcement of Glyphosate. This regulation specifies that for any SL formulation contained 30% lower active ingredient will be forbidden after Dec. 31st, 2009. As one of the leading products in this area, Glyphosate 10% SL would be the most affected. As a matter of fact, some people in the industry believed that due to the existing huge stock and its competitive prices, 10% SL would still be popular next year, and even possible to take a considerable market share.

In addition, Monsanto was reported to drop down Glyphosate prices significantly in 2009. However, it may only have little effect on domestic market other than the high-end market, like European and American. On the contrary, the prices may rebound in the boom season next year as the market demand rises.
(http://www.ny114.cn/jyxw2.asp?sy_id=8901&sy_type=1)

By Joy

In Year 2006, due to the rising price of international crude oil, Monsanto (US) had closed their Glyphosate’s 100,000 tons production line. Chinese pesticide market experienced a crazy ‘roller coaster’ likewise situation.

Price of Glyphosate Tech was RMB20,000 per ton at the beginning, it had risen all way up to RMB110,000 per ton in May 2008. Whem Monsanto resumed their production, domestic price in China began to decrease. Meanwhile, under the global economic crisis, both international and domestic market deflated, the price of Glyphosate Tech had decreased to RMB20,000 per ton at the end of 2008.

To reflect the dramatically vibration of Glyphosate’s price, in addition to the international economic crisis, blind expansion and non-rational investment are the key factors. Most factories launched new production lines for Glyphosate, even those who wasn’t belong to pesticide industry joined in the competition, which resulted in excess of capacity. At present, Chinese Glyphosate’s registered production capacity is about 50 million tons per year. The domestic consumption is about 5 million tons, while global Glyphosate’s market demand is only 60 to 80 million tons per year. The condition of market limits the price of Glyphosate. For now, export price of Glyphosate is only RMB21500 ~ 22000per ton in China, and recently the price of main raw materials are still climbing up in consequence of the rising price of international crude oil. We believe Glyphosate is overcapacity in China.

By Jane

The Chinese Pesticide technical (100% basis) output came up to 181 thousand tons in September, which saw a year-on-year rises on 29.2 percent. The total output for the first three quarters this year obtained 168.5 thousand metric tons, whereas, it was only 152.1 thousand metric tons in the same period of 2008, up 10.8 percent in total. （http://www.ny114.cn/jyxw2.asp?sy_id=8892&sy_type=1）

By Joy