LONDON, Nov. 21, 2016 /PRNewswire/ -- China's glyphosate market is still in bad shape in July 2016. According to CCM's price monitoring, glyphosate price keeps falling slightly and won't rebound in the short run. However, domestic major manufacturers still maintain relatively high operating rates, mainly because they don't want to lose any market shares in such a depressed market, which poses pressure on large inventory. In the meantime, prices of intermediates keep low and those of some raw materials may further reduce. Therefore, without any supports, glyphosate price is going to remain low.
Although paraquat AS had been banned in the Chinese market, it takes a certain time for glyphosate to completely substitute paraquat AS. Now China's sterilant herbicide market is in short-term disorder. One one hand, some enterprises are still selling paraquat AS illegally. On the other hand, in order to seize market shares, manufacturers will conduct sales promotion for substitutes.
China's glyphosate market is likely to rebound thanks to the implementation of environmental protection inspection, the ban of paraquat AS and enterprises temporarily suspending production for maintenance in summer.
After China's ban on paraquat AS, the sterilant market will be in disorder – price wars in substitute market; difficulty for farmers and distributors in choosing substitutes for paraquat AS; fake and inferior substitutes may come out.
It is known that Malta is going to ban the use of glyphosate. CCM holds the view that it is not likely for other countries to follow this move.
In H1 201 6, Lier Chemical's net profit increased by 1 0.64% YoY, mainly thanks to the rising output and sales volume of some technical products including glufosinate-ammonium. Notably, the company predicted that its net profit will rise by 0%-30% in Q1 -Q3 201 6.
Recently, Hubei Xingfa refuted opinions raised by some securities dealers that the company's performance would greatly improve if the glyphosate market recovers. As the current glyphosate market is in bad shape, whether the company can make profit from glyphosate remains to be seen.
China's glyphosate market was brisk from July 201 2 to June 201 4, a period from which many domestic enterprises gained considerable profits. Yunphos, however, missed this opportunity.
In H1 201 6, although the glyphosate market was depressed in general, there were still 35 new registrations of glyphosatecontaining pesticides in China.
In the first half of July 201 6, the ex-works price of glyphosate 95% TC was USD2,662/t (RMB1 7,775/t), down 0.1 4% MoM, hitting a record low again.
In May 201 6, glyphosate TC showed a MoM rise of 8.72% in export volume but a MoM fall of 1 .07% in export price in China.
In May 201 6, both export volume and export value of glyphosate 41 % IPA reported small MoM rises in China.
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