Chinese domestic paraquat to stop the use of new market space for glyphosate. At the same time, if the future can accelerate the promotion of genetically modified crops in China, there will be increased to lower demand for glyphosate.

Because the price of glyphosate has nearly 3 years of decline in the channel, the manufacturers and channel inventory is very low, with prices rising and coming South American consumption season, related restocking will strongly, then push prices up.

The supply side:

The environmental protection policy to suppress the rising cost of production, pushing prices. Global glyphosate capacity mainly concentrated in the United States and China China Monsanto 8 ~ 10 large agricultural companies. Monsanto has a production capacity of 250 thousand tons; the operating capacity of about 870 thousand tons.

Because the price of glyphosate has been low for a long time, so the domestic industry operating rate is low, part of the small capacity in production. Recently, the central organization of Environmental Protection Inspectorate stationed in various provinces and cities, environmental pressure, small production capacity is difficult.

With glyphosate downstream consumption and inventory requirements increase, industry operating rate and profit rate increased. At the same time, due to the local environmental protection policy limiting part of glyphosate upstream raw material production started recently, glycine and other raw material prices rise, pushing up the price of glyphosate.