LONDON, June 29, 2016 /PRNewswire/ -- In May, China's glyphosate market still remains quiet. Although some mainstream suppliers tend to up-regulate the price, the depressed purchase market offsets the price fluctuation. Since now is the slack season for the sale of agrochemical products, both purchases and enquiries remain slack. It is predicted that the glyphosate price is unlikely to rebound in the short run.
Regarding the domestic market, although a large amount of glyphosate will replace the market shares left by paraquat AS, this is still hard to boost the overall price to go up. According to the Q1 financial reports and H1 performance predictions of 2016 released by related listing enterprises, they have to reduce the output to maintain the price due to the profit reduction and even losses.
In view of the export market, foreign purchasers still hold wait-and-see attitude towards the market. According to CCM's research, the export volume of glyphosate reported a large YoY fall in China in Q1 2016.
Sichuan Fuhua will issue bonds with no more than USD170.37 million (RMB1.10 billion) to qualified investors to make up for the debt and to supplement the working capital. As glyphosate is the main source of income for Sichuan Fuhua, the excess capacity and the step-down growth of downstream demand in the glyphosate market greatly impact the company's profitability in recent years.
Nantong Jianshan planned to acquire 80% of Jiangsu Changlong and 35% of Changlong Agrochemicals and raise supporting funds by issuing shares to no more than 10 designated investors privately. However, Nantong Jiangshan finally suspended the acquisition as it could not come to an agreement with Shenzhen Noposion on related core clauses.
Zhejiang Wynca suffered the first serious loss of the last decade in 2015, during which its net profit slumped by 636.69% YoY, that corresponds with a loss of USD41.33 million (RMB266.82 million). It has been ascertained that the one of the main reasons for the downfall of the company's performance was the slumping price of glyphosate.
Based on the large capacity scale and the cost advantage brought by complete industrial chain, Sichuan Hebang has become a top player in China's PMIDA market.
The glyphosate industry will embrace good news. The WHO/ FAO drew an conclusion that glyphosate is unlikely to pose a carcinogenic risk to humans from exposure through the diet.* News from the Summary Report of the Joint FAO/ WHO Meeting on Pesticide Residues issued on the official website of WHO on 16 May, 2016.
The pesticide industry is one of the main sources for industrial water pollution, therefore, glyphosate's mother liquor is an important factor leading to water pollution. For this reason, the MIIT issued the recycling technology for glyphosate's mother liquor, which is expected to be widely applied in the glyphosate industry.
As a whole, compared to the first half of April, the ex-works price of glyphosate TC remains relatively stable in the first half of May 2016.
In March 2016, the export volume of glyphosate TC and glyphosate formulations recorded a MoM rise of 49.05% and 65.18% respectively in China.
China's exports of glyphosate TC and formulations all witnessed YoY falls in Q1 2016.
At present, the blind production capacity expansion is putting glufosinate-ammonium in quite a predicament, as its profit margin has been drastically cut down, in certain cases even to zero.
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