Limited by environmental
protection measurements, China’s glyphosate manufacturers were running on less
than half operation rate in 2017, reducing supply significantly. The beginning
of 2018 shows the beginning of a recovery, but the situation will likely remain
In the year 2017, about 170,000 t/a of glyphosate capacity was suspended for Chinese manufacturers. The reason can be found in Beijing’s fight against environmental pollution and the resulting inspections of companies. Especially heavily polluting industries, the one pesticides belong to, are at the centre of China’s production suspensions for the greater good.
With new environmental inspections in China's major pesticide production regions, the upward trend of glyphosate price has continued in the second half of 2017. The traditional peak season for glyphosate as well as huge mergers in the industry was supporting the development.
Top 5 glyphosate technical producers with production capacity in China, 2017
Compared to small- and medium-sized enterprises, large Chinese firms have multiple advantages, laying mostly in finance and technology segments. The current stringent environmental measurements are more beneficial for large enterprises since they weaken the smaller competition and enable even larger market shares.
Glyphosate is the largest export commodity in China’s pesticide segment. For that, China's glyphosate industry highly depends on the overseas market, exporting about 85% of its output.
The major export destinations of Chinese glyphosate technical are Argentina, the USA, Brazil, Malaysia, and Indonesia while the major destinations of glyphosate formulations are Thailand, Australia, Vietnam, the USA, and Ghana.
Global glyphosate market
to industry insiders, the global glyphosate market is likely to exceed 6
billion by the next six years. Increasing high-quality food demand along
with the need to increase yield for feed production are the key
trending factors driving the glyphosate market. Increasing awareness for plant
growth enhancers to improve the farm yield will also support the market growth.
In the Asia-Pacific region, glyphosate is mostly used for crop protection of maize, wheat, tea, sunflower, sorghum and cotton to enhance the crop yield of farmers. Other potential application includes farming, parks, orchards, vineyards and forestry. China glyphosate market is the largest worldwide and its size was worth more than USD400 million in 2015, resulting out of the increased food consumption by a growing middle class combined with limited arable land availability, that farmers are trying to get the most yield out of.
About the article
The information for this article is coming from CCM, China’s leading market intelligence provider for the fields of chemicals, agriculture, food and feed.
Follow us on Twitter: @CCM_Kcomber