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It is understood that since the 1990s, the large-scale planting of genetically modified glyphosate-resistant crops such as soybeans and corn has increased the global demand for glyphosate. In addition, due to the large-scale biofuel planting in countries such as the United States and Brazil in recent years, the planting area of ​​genetically modified energy crops that can be used to produce ethanol and biodiesel has increased significantly, and demand for glyphosate has been strong. In China, 70% of glyphosate is used for export, and the demand for glyphosate is very strong, so that pesticide companies generally benefit. Although the national export tax rebate rate for pesticides such as glyphosate was reduced to 5% on July 1st this year, the negative impact of the lowering of export tax rebate rate was basically absorbed by the increase in price of glyphosate. Driven by the international production cost of glyphosate, the price of domestic glyphosate has reached 60,000 yuan/ton in December. And at such a high price, it can't be bought. This phenomenon has attracted the attention of many companies, including chemical, fertilizer companies, and even oil companies. A fertilizer company in Yunnan proposed to rely on the abundant yellow phosphorus resources to produce glyphosate. In this regard, Wang Luxian believes that the production of raw materials from phosphorus to glyphosate is a very complicated process, and the technical requirements of glyphosate are very strict, and its "three wastes" treatment is also a big problem. In addition, if everyone is involved in a project, it will inevitably lead to aggravation of the contradiction between supply and demand and structural excess of the market. Businesses can't just look at the current market and go blindly, depending on where you compete with other companies and be fully prepared for ideology.
Wang Luxian reminded that the current domestic gross output of glyphosate is about 300,000 tons, with an annual production capacity of 600,000 tons. The production capacity is very large, and the new and expanded glyphosate projects of several large-scale pesticide production enterprises are already Construction. In the next five years, several glyphosate expansion projects will be completed in China. The domestic production capacity of glyphosate will increase by about 100,000 tons soon. As the market is constantly changing, companies that want to enter should consider comprehensively and invest prudently.
Various companies eye hot glyphosate high-priced market
Experts reminded that despite oversupply, overcapacity has been reported. On December 21, the reporter interviewed the pesticide expert and honorary chairman of the China Pesticide Industry Association, Wang Luxian, on the current trend of many companies wishing to invest in the glyphosate project. Wang Luxian reminded that if a large number of companies blindly enter, it will certainly cause structural excess of the glyphosate industry and market confusion.