Glyphosate prices in China hit two-year high in Q3 driven by environmental protection pressure, robust demand before falling in Q4 on weakening demand, falling raw material prices

Mathew Kearney

BEIJING , December 31, 2013 (China Economic Information Service) – China's pesticide market is likely to maintain its high climate in 2014 as ecological agriculture and higher environmental protection threshold will provide good opportunities for green pesticide development.

Boosted by rising demand, industrial structure adjustment, stricter environmental protection policies and decreasing stocks, the pesticide industry profitability has increased significantly so far in 2013 and is the best in history.

Glyphosate and paraquat have seen the biggest price rises among the domestic pesticide products since the beginning of 2013 mainly because the country's environmental protection measures helped check pesticide enterprises' increase in production capacity and this led to slightly tight supply.

Driven up by environmental protection pressure and robust demand, glyphosate prices were going up in the first three quarters of 2013 and hit a two-year high. However, falling raw material prices and weakening demand pressed down pesticide product prices in the fourth quarter. On December 27, glyphosate prices stood at 34,350 yuan/metric ton (tonne), down 6.28 percent from the beginning of the month.

As China's agricultural development in 2014 will focus on ecology-friendly agriculture and new operating system, high-efficient and low-toxicity pesticide enterprises are anticipated to benefit from policies, analysts say. Controlling the total amount of fertilizers and promoting the use of compound fertilizers and low-toxicity pesticide will become a trend.

Industry insiders note the listed low-toxicity pesticide companies such as Shenzhen Noposion Pesticide Co. (002215.SZ), Jiangsu Changqing Agrochemical Co. (002391.SZ) and Jiangsu Yangnong Chemical Co. (600486.SH) will benefit from the ecological agriculture concept. (Edited by Liu Xiaoyun, liuxy08@xinhua.org)

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