Chinese Trifluralin Meets White-hot Supply/Demand

Recent trifluralin in China meets intense supply/demand due to the insufficient output and white-hot purchase during peak sales season, which contributes so much to price boom of Chinese trifluralin in Oct. 2011, according to CCM’s October Issue of Herbicides China News.

In the price monitoring of trifluralin, CCM International found that most trifluralin technical manufacturers declined to offer quotation of trifluralin technical due to the lack of spot goods. And those manufacturers who are willing to accept deals expressed that the new orders must queue to the next year, 2012.

"Trifluralin technical production lines in our company are running at full capacity now." Almost all active technical manufacturers expressed like this in CCM International's investigation.

One sales manager of Fengshan Group Co., Ltd., whose trifluralin technical reached 8,000t/a, detailed that their trifluralin technical production reached full load immediately after it restarted in Sept. 2011, one month behind the regular period of check and maintenance during July and Aug. every year.

Aiming to make sure smooth supply during the peak season, generally, Chinese trifluralin manufacturers produce trifluralin one month earlier than the peak season, namely in Sept. But overseas demand usually overwhelms the domestic supply in peak season, resulting in relatively intense supply/demand. Especially contributed by the inflation in China this year, trifluralin price rushes high in 2011.

Trifluralin technical price in early Oct. exceeded USD6,200/t, up almost USD700/t over the average price in Sept. 2011. On the whole, trifluralin technical price in China keeps aggressive in recent months. It's predicted that this price uptrend of trifluralin technical in China will continue in the remaining months of 2011.

As emphasized by those trifluralin manufacturers who quoted technical price, recent quotation of trifluralin technical can't remain stable in a long term. In other words, this quotation will still fluctuate in an estimate, impacted by the white-hot supply/demand.

In terms of those who suspended trifluralin production, unstable material expenses are mainly responsible for their idle trifluralin production. One salesman from Shandong Qiaochang Chemical Co., Ltd. (Shandong Qiaochang) explained that relative material prices fluctuate so frequently that Shandong Qiaochang also suspends the production in order to avoid the risk of deficit.

Because of the inflation and choppy overseas economic market, in fact, Chinese herbicide manufacturers endure large cost pressure in 2011. Besides trifluralin, almost all herbicides keep at a high price level in 2011. As indicated in CCM International's price monitoring, the ex-work price of trifluralin technical in Oct.2011 is about USD2,500/t higher than that in the corresponding period of 2010.

It can be predicted that the future price of trifluralin technical in Nov. and Dec. will change slightly because most active manufacturers in China have stopped quoting price. What's more, this white-hot supply/demand of trifluralin in China will continue until 2012.

Source: Herbicides China News 1110

http://www.cnchemicals.com/Newsletter/NewsletterDetail_11.html

Content of Herbicides China News 1110:

Nantong Jiangshan repressed by deficit risk

Jiangsu Changqing celebrates fomesafen expansion

Shandong Jingbo pursues fomesafen aggressively

Jiangsu Jialong achieves diuron relocation

Lianhe Technology invests in fluorine-containing chemicals

Fengshan Group enhances herbicide product mix

Acetochlor is in short supply in Sept.2011

Isoxaflutole: A strong potential competitor in Chinese corn herbicides

Chinese trifluralin meets white-hot supply/demand

Anhui Fengle runs new tribenuron-methyl capacity

Glyphosate supply intense in Fuhua Tongda

Nantong Jiangtian expands paraformaldehyde capacity

Jiangsu Huifeng phases 10,000t/a bromoxynil octanoate construction

Glyphosate technical meets price upturn

Qufu Hongly stops pyridine project

Sanonda's 10,000t/a pyridine base construction ongoing

Herbicides China News, a monthly publication issued by CCM International on 15^th of every month, provides you with the latest occurrences, exclusive analysis on the market trend as well as professional reviews on competitiveness of companies, products and relative industries in China’s herbicide industry.

(Guangzhou China, October 18, 2011)