Crop Protection China Monthly Report 2003:Impact of the COVID-2019 on AI

Publish time:4/2/2020 1:06:39 PM      Source: CCM
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COVID-19 epidemic has brought five major problems to China's pesticide industry and enterprises, including logistics disruption and agricultural technique service restriction.


Affected by COVID-19, the decline in export demand is expected to have a negative impact on lots of chemical products. However, the demand for agrochemical products may stay strong owing to the sluggish demand in the whole industrial chain.


COVID-19 has a significant impact on all walks of life. In order to ensure the work resumption and production resumption of the enterprises, China has introduced a number of policies. Premier Li Keqiang presided over an executive meeting of the State Council on 3 March, saying that the work resumption and production resumption of logistics industries, such as transportation industry and express delivery industry, should be expedited.


From Feb. to March, China’s ex-works price of glyphosate technical increased owing to increasing price of phosphorus trichloride. Also, suspended production at phosphides plants in Hubei Province led to a shortage of raw materials for phosphorus trichloride. And China’s ex-works price of glufosinate-ammonium technical increased. Affected by COVID-19, transportation was restricted. Relevant enterprises suspended production, resulting in a tight supply of glufosinate-ammonium technical. Besides, as the peak season for glufosinate-ammonium comes, the price is expected to increase.


Since 3 Feb., Hubei Xingfa's main production facilities have been in normal operation. The COVID-19 epidemic has certain impact on logistics in Hubei Province. However, thanks to enough stocks of important raw materials, production could go smoothly. So far, production of major products as phosphate, glyphosate, organosilicon, fertilizer has not been much affected by the epidemic. And during 21 Feb. to 5 March, it suspended production of silicone and glyphosate for regular maintenance. It is believed that the epidemic will not have a significant impact on the company's operation.