Glyphosate follow-up market supply will remain tight

Affected by the booming industry and high prices, the concept stock of glyphosate broke out again on the 16th. The industry believes that the follow-up market supply of glyphosate will remain tight, and it is expected that prices will continue to rise.

Business statistics show that as of July 16, the glyphosate commodity index was 168.74, a record high since September 1, 2011, an increase of 68.74% from the lowest point of 100.00.

According to Sun Mingming, an analyst at Glyphosate, a branch of the company's chemical branch, glyphosate SMEs generally cut operating rates due to environmental pressures. At present, the mainstream factories are operating at full capacity, and the average operating rate of SMEs is about 5-60%. “It is understood that currently, there are about 17 enterprises that have stable start of glyphosate and the market production capacity is between 500,000-600,000 tons.”

“From the demand side, the recent Australian anti-dumping investigation against glyphosate in China and the approval of the Ministry of Agriculture for the issuance of three genetically modified soybeans in China have all contributed to a better demand for the glyphosate market. In addition, August is also a tradition. The sales season for glyphosate," she said, "while the market for glycine, yellow phosphorus, and paraformaldehyde continues to weaken, the cost pressure on glyphosate companies has eased."

Sun Mingming believes that environmental protection factors have disturbed the stable market. At present, the industry's mentality is unstable, and the price is very willing. In August, the sales season and the overhaul of equipment and equipment will be superimposed. The market supply will continue to be tight. Coupled with the gradual expansion of downstream demand, it is expected that grass will grow in the short term. Glyphosate industry is booming and prices are mainly bullish.

Xinan Co., Ltd. (600596.SH), the representative office of Mr. Wang said that the current supply of glyphosate is very tight, the price continues to rise, the company's second quarter performance will certainly have a good impact. He also believes that the supply of glyphosate is still under pressure in the follow-up market.

“At present, environmental protection verification pressure is high and small businesses are under pressure in particular, but whether or not it can prompt the industry to reshuffle has yet to be observed,” he said.

Due to environmental pressure and other factors, the price of glyphosate began to rise from the end of February, and in April, it was the highest point in history in the past two years. The share price of Jiangshan (600389.SH) has also risen by more than 100% since the end of February. Xinan shares have risen by about 30% and Yangnong Chemicals has reached about 90%. On the 16th, Xin'an shares rose 6.51%, Jiangshan shares rose 6.45%.