Glyphosate price hit 10-year new high, expected to continue in the short term

With the glyphosate price rising again last week, 95% of suppliers of glyphosate powder have increased their quotation up to RMB50,000-55,000 per ton, with exports quoted at US$8,000 per ton FOB, according to an intelligent agency in China. 

The actual transaction price is RMB49,000-50,000 per ton while exports are at $7,900-7,950 per ton FOB, which has hit a new high since 2010.

Concerning the market going forward, industry analysts believe the prices of agricultural products are rising, and the downstream demand is strong, whilst productions at the supply side are being restricted by the pandemic abroad in addition to the rising prices of upstream raw materials. Therefore, the continued price rise of glyphosate was foreseen in the short term.

In the recent past, some small and medium-sized glyphosate manufacturers, such as Jiangxi Jinlong Chemical Co., Ltd and Fujian Sannong Pesticide Co., Ltd, have been shut down or restructured one after another. In this context, glyphosate production capacity in China has been reduced by more than 300,000 tons/year, whilst only around 10 manufacturers are still running today. By the end of 2020, the total annual capacity of glyphosate in China was 670,000 tons.