Paraquat AS is going to be banned from the Chinese market and the price of paraquat still keeps falling. Currently, there are no more positive factors
supporting the the paraquat TK market for it to recover, however, the demand
from overseas markets is still strong.
Source: Baidu
So will the paraquat market undergo new
changes after 1 July, 2016 when the paraquat AS will be banned from the market?
Will paraquat market still remain depressed or will the price keep falling? Or
will the market be prosperous in the coming peak season after undergoing a
period of output reduction in the slack season?
Most of provincial agricultural departments have made related arrangements concerning
China's ban of paraquat AS. They all made it clear that all paraquat AS
products will be removed from the shelves before 30 June, that they will
no longer sell the remaining ones and that they plan to return or destroy
them from 1 July.
In addition, other paraquat formulations that are allowed to
be sold and used shall be managed as high-toxicity pesticides and sold by
real-name designated units.
In H1 2016, the demand for paraquat TK from overseas market has no large growth
and even weakens in some regions. Although the exports of paraquat TK and AS
will not be affected by the ban of paraquat AS, foreign purchasers still
continue to force down the purchase price.
What's more, as China's paraquat now
mainly relies on export, the slack demand from export market keeps stopping the
domestic paraquat price to rise. "Recently, Southeast Asian market, one of
China's paraquat export destinations, is bearing the pressure from drought and
the slow shipment of paraquat formulations forces purchasers to adopt wait-and-see
attitudes.
However, since the market still remains depressed,
and according to previous years, some paraquat TK manufacturers will suspend
production for maintenance during slack season. Therefore, paraquat
manufacturers will reduce their output in later period," revealed industry
insiders.
It should be noted that the Ministry of Agriculture of the People's Republic of
China (MOA) planned to re-classify paraquat as a highly poisonous substance and
will no longer accept nor approve its field test and registration
application; also, the MOA will no longer accept nor approve the registration
renewal of paraquat except for that of TK manufacturers for export and by then paraquat
will definitely exit the Chinese market and will only be able to rely on
export. In response to this, domestic enterprises will reduce the output, and
then the decreasing market supply may spur up the price.
In mid-June 2016, the domestic paraquat price still keeps falling sharply.
According to CCM's price monitoring, the ex-works price of 42% paraquat TK was
USD1,477/t in the first half of June 2016, dropped by19.20% if compared with the
USD1,828/t in Jan. 2016 and by 43.50% if compared with the USD2,614/t in June
2015.
Monthly ex-works price of 42% paraquat TK in China, 2015-2016
Source: CCM
This
article comes from Herbicides China News 1606, CCM
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Tag: herbicides paraquat