The Chinese government recently took out the dual control of energy consumption in enterprises and required strengthening the production control of the yellow phosphorus industry. The price of yellow phosphorus jumped directly from RMB 40,000 to RMB 60,000 per ton within a day, and subsequently directly exceeded RMB 70,000/MT. The market was detonated by this measure, which triggered a series of chain reactions. All production plants stated that they could not evaluate the impact of “dual energy consumption control” because they failed to lock in upstream raw materials. “.
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A total of 12 provinces, including Zhejiang, Jiangsu, Anhui, and Ningxia, were forced to cut off electricity due to dual control of energy consumption, insufficient power supply, and environmental protection and production restrictions. The production capacity of glyphosate was severely suppressed in October, and the production capacity is expected to increase a drop of more than 30%.
Since 2021, rising global food prices have boosted the scale of overseas planting, driving the growth of glyphosate demand. At the same time, the operating rate of foreign factories has decreased due to the epidemic, which has further reduced production. Global agricultural demand for glyphosate has been released to China, which has led to a surge in export demand and continuous rise in product prices. And for a long time in the future, China’s domestic agrochemical products will maintain high prices.
The sudden increase in the price of glyphosate and its pesticide products caught chemical factories and trading companies by surprise. Then we continuously updated the latest news of the Chinese domestic market to foreign customers. We chose to work with our customers to deal with the ever-changing market situation.