Glyphosate

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Since last year's surge in prices of chemicals, most notably the species than glyphosate. Since the strong international demand, the market price of glyphosate to the beginning of the year from less than 30,000 yuan / ton all the way up to the recent more than 8 yuan / ton. Prices to attract the wealth effect caused by a large number of companies have launched domestic glyphosate project. But several experts pointed out that the current investment boom may cause the market structural surplus, which contains the risk is not small.
prices soaring international demand and promote
as high efficiency, low toxicity, and destroying nature of the herbicide, glyphosate use more than 25 years. In recent years, genetically modified crops resistant to glyphosate in the large-scale promotion, making it more convenient application of glyphosate rapidly growing market demand, continue to replace other classes of herbicides, pesticides have been sold for many years occupied the top of the world. Glyphosate consumption in 2006 reached 50 million tons, expected global demand for glyphosate will be about 18% of average annual growth rate, by 2010, global demand will reach 100 million tons. Glyphosate 70% of the Chinese for export and domestic large number of traditional pesticide companies benefiting from.
Monsanto will not expand its glyphosate business capacity, especially in other countries turned to China sourcing, resulting in domestic demand for glyphosate, prices also surged. As the world's largest producer of glyphosate, Monsanto's production capacity of about 20 tons / year,vibram five finger kso, accounting for about 20% of the global total production capacity. But the industry has revealed to our reporter, currently the company's annual production capacity has dropped to 10 million tons, another 10 tons capacity in China and other countries have begun to shift.
is worth noting that the price of glyphosate has led to rising prices of raw materials of glycine, the latter from 1.4 yuan / ton up to 20,000 yuan / ton. And despite the country on July 1 last year,alife everybody mid, glyphosate and other pesticides will be the export tax rebate rate down to 5%, but in the context of glyphosate prices, the export tax rebate rate down by the negative impact of rising prices of basic digest grass Gan is still very tight supply phosphine. This phenomenon has inspired more enterprises to invest in equipment, launched the enthusiasm of glyphosate. highlights the large expansion of domestic enterprises
worry
It is understood that the current domestic production in 30 years of glyphosate million tons,original louis vuitton, annual production capacity of 60 million tons, production capacity is quite large, and several large-scale pesticide glyphosate business in new and expansion projects have started. The next 5 years, China will have several glyphosate expansion project is completed, the domestic glyphosate production capacity will soon increase by another 10 million tons. change the current state of this supply and demand imbalance, and the impact on the price of glyphosate. According to him, glyphosate is not high investment barriers, in addition to certain environmental requirements, launched and expanded production capacity is relatively easier. As more and more production of glyphosate projects, future, once the excess capacity to race to the bottom of the behavior may occur, when investment risk may emerge.
honorary chairman of the China Pesticide Industry Association, the first king of law is also a media interview earlier, said phosphorus from raw materials to the production of glyphosate is a very complex process, and glyphosate, .
an analyst at Essence Securities noted that the method of using chloroacetic acid glycine glyphosate produced a large number of pollutants need to deal with environmental protection, so energy conservation policy on the industry chain will have a greater impact. Such as Jiangsu Province last year closed thousands of small businesses in the chemical glyphosate, there are a number of manufacturers.
uncertain future price
present, the domestic production of glyphosate are Xin'an shares of listed companies, country shares Huaxing Chemical Industry, Fujian Agriculture and so on. The companies plan to expand production capacity on which Xin shares expansion plans in 2008 to 8 million tons, and Argentina A Dannuo Huaxing Chemical joint venture to build 4 million tons PMIDA project will be put into operation in 2008 and 2009. However, some pesticides are also listed the current crazy market of glyphosate is still wary. Deputy General Manager of shares Xin Shanghai Securities News reporter in an interview that the company's production capacity development plan is to do a good job in previous years, not because price inflation was a crash of glyphosate new capacity, Now only 3 million, we will continue to do so to this industry.
The company previously announced shows shares Glyphosate Xin current capacity of 70,000 tons flour / year, of which about 70% of exports. In 2007, the actual output of about 5 million tons. New plant south of glyphosate two 2.5 million tons / year project is currently under construction, is expected to be completed in the second quarter of 2008 production, when the company production capacity of 8 tons / year. Glyphosate in 2008 the whole company is expected to yield more than 70,000 tons.

but Changjiang Securities analysts believe that although the domestic glyphosate production capacity will be gradually put into production the next two years, the price of the second half of next year there will be some downward pressure, but because of the fast-growing international demand for rigid support , coupled with domestic environmental pressures increase, the price will be high glyphosate support, not much room down.
08 年 glyphosate industry faces three major risks
Beijing BCT Information Centre study showed that the domestic industry is currently facing three major glyphosate risks: First, the raw material bottlenecks will constrain production in the short-term release. Glyphosate by glycine synthesis of multi-method,herve leger sale, and the present, China mainly relies on imports of glycine, glycine supply shortage. Next few years, driven by the expansion of glyphosate, glycine strong demand. However, due to technological level and production of glycine subject to cost pressures, the next few years the capacity expansion of converting glycine to achieve balance between supply and demand. 2008 is expected to glycine production capacity of about 10 million tons, while production capacity of approximately 30 million tons of glyphosate, glyphosate supply and demand gap to increase production capacity constraints highlighted the role of the release.
Secondly, can easily lead to future large-scale expansion of excess capacity. Glyphosate prices rose due to the recent, and many enterprises are eager to have a share in the glyphosate market, the desire to put into the project glyphosate. Can be expected, once the blind into a large number of enterprises will inevitably lead to a structural surplus production capacity of glyphosate and the market chaos.
Third,timberland womens, increased foreign dependence is not conducive to industrial safety. Most of my expansion of domestic energy to meet the needs of the international market, so changes in the international market of glyphosate glyphosate industry in China will have a profound impact.