Glyphosate Price Keeps Stable in June 2012

Price growth of glyphosate technical and glyphosate formulations is mainly due to the provisionally tight supply. Many active glyphosate manufacturers claimed that they were producing products for contracted orders currently and they can't arrange glyphosate production for new orders until the end of June 2012 or even early August 2012. The maintaining of "high" glyphosate price and profitable glyphosate market have attracted some suspended glyphosate manufacturers to resume production. There are about 19 active glyphosate technical manufacturers in mid-June 2012 , according to CCM International’s June Issue of Glyphsoate China Monthly Report.

Some overseas buyers and domestic traders complain that Chinese glyphosate price has increased too much in H1 2012 and has maintained at the high level for several months. In fact, most Chinese glyphosate technical manufacturers can't obtain much profit from the price uptrend in H1 2012. Three listed glyphosate technical manufacturers including Zhejiang Wynca Chemical Industrial Group Co., Ltd., Nantong Jiangshan Agrochemical & Chemicals Co., Ltd. and Anhui Huaxing Chemical Industry Co., Ltd., all reported operating profit losses in Q1 2012. The increase of glyphosate technical price in H1 2012 is a rational improvement from the undervalued glyphosate price before. The gross profit margin of glyphosate technical under current "high" price is less than 8%.

Glyphosate raw material price experienced slight decrease in June 2012, due to the decrease cost in basic raw materials. The slow growth in global economy has caused the downtrend of petroleum price in the past months. The decreased glyphosate raw material price also indicates that the overcapacity of these raw materials in China is serious and the increasing operating rate of glyphosate can't promote raw material price.

It's predicted that current glyphosate price will last to early July 2012 because of the provisionally tight supply. However, there is no room for Chinese glyphosate price to rise in the near future, because the raw material cost has decreased, and more suspended producers would resume their production if glyphosate price rise, which may cause the surplus supply again.

Source: Glyphsoate China Monthly Report 1206

http://www.cnchemicals.com/Newsletter/NewsletterDetail_14.html

Content of Glyphsoate China Monthly Report 1206:

Zhejiang Wynca set foot in China's seed industry

Chongqing Sanxia to extricate from quagmire of glycine

Nantong Jiangshan to sell glycine-supply subsidiary

Zhejiang Wynca, Nantong Jiangshan and Anhui Huaxing all suffer loss in Q1 2012

Concept and differentiation of 78% glyphosate IPA SG on marketing

China to enforce inspection of 10% glyphosate AS

Farmers like to buy and pesticide retailers like to sell bulk glyphosate AS

Mixed formulation containing glyphosate and saflufenacil

Glyphosate price keeps stable in June 2012

Export volume of glyphosate technical increase but price change slightly in April 2012

Glyphosate China Monthly Report, a monthly publication issued by CCM International on 20^th of every month, will keep track of latest dynamics, hotspots and competitiveness analysis, and forecasts on market trends of China’s glyphosate industry.

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