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Demand to stimulate the expansion of glyphosate Nowadays, glyphosate, a broad-spectrum herbicide, is the largest pesticide in the world, accounting for 30% to 35% of the total herbicide market. A good market situation will promote the further expansion of China's glyphosate industry in 2008. Market experts predict that this year's production capacity will double over the previous year to nearly 800,000 tons. The largest glyphosate manufacturer in China is Zhejiang Xin'an Chemical Company. In 2007, the company expanded its production of glyphosate plants by 30,000 to 50,000 tons, which is driven by the demand of international and domestic markets.
A senior market person at Anhui Huaxing Company believes that global glyphosate will maintain its best-selling position in the next three years. There are three main reasons: First, the recovery and development of agriculture in many countries in South America and Asia in 2008, the demand for glyphosate increased rapidly; Second, the United States Monsanto Company with the largest production of glyphosate in the world under the pressure of environmental protection, At the beginning of this year, it gave up its investment in further expansion of glyphosate, and its supply will not continue to grow this year. Third, China's strong demand for agricultural products and the rapid expansion of the planting area of ​​genetically modified crops have become an important factor in the rapid growth of demand for glyphosate.
The relevant personages of several agrochemical enterprises in Hefei said that in addition to the factors of supply exceeding demand, the increase in the price of raw materials is also an important factor in promoting the price increase of glyphosate. Compared with the same period of 2007, the prices of many major raw materials of glyphosate rose by an average of over 40%. In particular, diethanolamine, a major raw material for the production of glyphosate by the diethanolamine method, is not only priced at around 20,000 yuan per ton, but also very high. A tight chemical product, some domestic glyphosate manufacturers have to purchase diethanolamine from the international market.
In addition, the increase in transportation costs and environmental protection investment has also contributed to the increase in the price of glyphosate. The rise in oil prices directly contributed to the increase in shipping costs. In 2007, after the occurrence of the “Taipei Cyanobacterial Incident†in Wuxi, Jiangsu Province, the state increased the supervision of the environmental protection of pesticide companies. The domestic pesticide production enterprises had to increase investment in environmental protection facilities, thereby increasing the production costs of pesticide products such as glyphosate. , Which in turn pushed the price of glyphosate to rise.
Middlemen push prices to rise Faced with the high returns of the glyphosate market both at home and abroad, China’s middlemen have discovered their business opportunities with a keen sense of smell. According to industry insiders, glyphosate has significantly increased prices in recent times, which has stimulated the enthusiasm of domestic pesticide distributors. The active involvement of middlemen not only stimulated the enthusiasm of domestic glyphosate manufacturers, but also directly stimulated the market price of glyphosate to the high-end sprint of 100,000 yuan. A glyphosate primary dealer in Anhui said that their glyphosate is currently shipping at a price of 92,000 yuan and has not been obstructed by users. From this they estimated that glyphosate will soon be expected to rush to the $100,000 mark.
It is understood that China's glyphosate manufacturing enterprises basically have no right to speak, and the dominant position of market sales is in the hands of pesticide dealers everywhere. Glyphosate powder is added to facilitate storage and transportation, and high profits have attracted pesticide dealers to increase their reserves of glyphosate. An industry insider in Zhejiang believes that in early March of this year, the sales price of glyphosate foreign trade reached 96,000 yuan, largely due to the dealer's boost. It is understood that Anhui Huaxing Chemical Company recently formed its own pesticide sales team to divide the sales of glyphosate into a profitable cup.
The government will increase supervision. In 2008, the state will pay more attention to energy conservation and emission reduction. The policy will regulate the environmental assessment and safety assessment of pesticides such as glyphosate, as well as the registration, licensing and fixed-point production qualification of pesticide production. It will become more and more strict. The time required for policy approval procedures is generally longer, and it takes about 1 to 2 years. For the domestic new generation of glyphosate manufacturers, not only face capital and administrative barriers, environmental protection requirements and access to raw material exports will also be a major obstacle.
At present, China is actively drafting an upsurge in the expansion of Ganlin, and the outlook for the industry is widely viewed by the market. The future growth of the industry also needs to be further explored. The responsibility of the government is to regulate the production and sales channels of pesticide products such as glyphosate and conduct a rigorous review of environmental protection, safety, and other aspects to make it healthy. In this context, the long-term development of the glyphosate industry will be strongly supported.
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