Glyphosate industry upturn

After three years of deep adjustment in the glyphosate industry, the supply and demand structure has changed, and the upward trend of the industry's economy has gradually emerged. After the roller coaster-type trend, the glyphosate industry entered a deep-adjustment period of more than three years. The industry has been shuffled, the small-capacity plant has been phased out due to long-term idleness, effective production capacity has dropped significantly, and the supply and demand structure has changed significantly. Since 2012, the price of glyphosate has risen from the previous year's 24,000 yuan / ton to the current 37,000 yuan / ton, or more than 50%, the industry boom has gradually shown.

10% of the preparations launched the market, inhibiting the increase in the operating rate of the industry, providing a relatively loose market environment for the glyphosate industry upward trend. Ministry of Industry and Information Technology No. 1158 forced the 10% formulation of the domestic 90% glyphosate consumer market to completely withdraw from the market in 2012, cutting off the last straw on which small businesses depended for survival. At the current high price of 37,000 tons / ton, the industry operating rate is still only about 59%, providing a relaxed market environment for the glyphosate industry continued upward trend.

With stricter environmental protection, the concentration of glyphosate industry continues to increase, benefiting leading enterprises with scale and technological advantages. According to the latest statistics, as of July 10, 2012, there are about 130 glyphosate companies registered in China, 17 of which have a capacity of not less than 10,000 tons (60% of total production capacity), of which production capacity is not less than 30,000. There are seven more tons (40% of total production capacity), including companies such as Jinfanda, Xinan, Jiangshan, and Yangnong Chemical. There are about 110 remaining production capacity of less than 10,000 tons (40% of total production capacity).

As most of the smaller glyphosate manufacturers do not have the sewage treatment capacity, resulting in extremely serious environmental pollution, with the continuous strengthening of domestic environmental protection, these more than 110 small businesses are bound to be eliminated in the future or have the scale and technical advantages. Leading companies will merge and the industry concentration will continue to increase, which will help improve the competitiveness of leading enterprises.