Key words of the passage: yellow phosphorous; glyphosate; price; impact

Since the release of the article - Analysis of Glyphosate Price Trends, dated September 3, 2021, the market price of glyphosate has maintained upward trend. As of press time, the average price of glyphosate in China has reached Yaun80,300 while the market price on September 3 was RMB52,000, an increase of 53.8%. According to some of the Chinese manufacturers, price in next week may hit RMB85,000-86,000. Meanwhile, the price of yellow phosphorus, the raw material, has plummeted from its historic high at RMB60,000-65,000 per ton in mid-September to RMB37,000, a drop of 38%. The sharp price rise and price fall of yellow phosphorus does not seem to influence the price tendency of glyphosate.

Yellow phosphorus price rising and falling sharply in the past two months 

On September 1, 2021, the price of yellow phosphorus was RMB28,000 per ton. With the circulation of the Notification on the Energy Consumption Control from Yunnan Provincial Development and Reform Commission issued on September 11, as well as the provincial government executive meeting held on September 13 concerning control of high-polluting and high-energy consuming projects so as to achieve the energy consumption control target, all of a sudden, the price of yellow phosphorus soared to RMB65,000 per ton. After China’s National Day Holiday, when power supply has been gradually resumed, and also after the industry has had a clearer understanding of the yellow phosphorus market and the intentions of the government, the price of yellow phosphorus has quickly fallen, down to the current price of RMB37,000 per ton.

The impact of price fall of yellow phosphorus on the price trend of glyphosate 

Manufacturer in central China: Under current circumstances, there might still be room for price increases, but we wish such price rises are caused by the demand and supply inbalance instead of market speculations; 

Manufacturer in Southwest China: It is in essence an issue of contradiction between supply and demand, which results in a sharp price rise; We don’t see possibility of improvement in the supply and demand situation in a short period of time; 

Manufacturer in East China: Market demand is still strong; We are watching and will not quote price for the moment; 

Manufacturer in Southwest China: we don’t rig pricing; we follow market change.

Source: AgroPages