China’s Glyphosate Sector Develops Rapidly

By Guan Sen, Beijing University of Chemical Technology

Monsanto's patent on glyphosate expired in 2001, and that is when China’s glyphosate sector began to develop. Influenced by factors like usage habits, product cost and labor price, the application and development of glyphosate within China are relatively slow, so China exports more than 80% of glyphosate it produces. Due to an increased demand for glyphosate in the international market, China’s export volume of glyphosate has climbed dramatically. At present, the export value of glyphosate in China accounts for around 50% of the total value of exported pesticides and 70% of the total value of exported herbicides, respectively.
   Monsanto of the United States, the world's largest glyphosate manufacturer, suspended production on its a 100 thousand t/a line in 2006, causing the domestic price of glyphosate to start a multiyear climb. The glyphosate price surged from RMB30 thousand per ton by the end of 2006 to RMB82.1 thousand per ton in the first half of 2008.  Attracted by the drastic price rise, a large number of domestic companies constructed new glyphosate units or expanded their capacity.

Table 1 China’s Import of Glyphosate in Recent Years
Year    Import volume (kt)    Growth    Import value (US$ million)    Growth    Average import price (US$/t)    Growth
2007    32.4     -16.30     162     3.71     4 986.47     23.91
2008    31.3     -3.47     171     6.05     5 478.16     9.86
2009    40.0     27.79     173     0.75     4 318.67     -21.17
2010    39.6     -0.79     213     23.57     5 378.99     24.55
2011    26.5     -33.08     231     8.48     8 719.65     62.11

Table 2 China’s Export of Glyphosate in Recent Years
Year    Export volume (kt)    Growth    Export value (US$ million)    Growth    Average export price (US$/t)    Growth
2007    301.4     61.81     1 046     110.62     3 470.07     30.17
2008    449.8     49.26     3 279     213.53     7 288.89     110.05
2009    421.2     -6.36     1 189     -63.75     2 821.91     -61.28
2010    450.9     7.05     1 264     6.38     2 804.10     -0.63
2011    436.8     -3.13     1 438     13.74     3 292.42     17.41
(Jan.-Jun.) 2012    232.19     10.35    803.7     19.68     3 461.15     8.45

Table 3 China’s Major Glyphosate Exporters in the First Half of 2012
Ranking    Exporter    Import volume (ton)    Proportion %
1    Nantong Jiangshan Agrochemical & Chemical Co., Ltd    22 106.00     9.52
2    Jiangsu Youth Chemical Co., Ltd    12 512.00     5.39
3    Shandong Taihe Chemicals Co., Ltd    10 732.45     4.62
4    Zhenjiang Jiangnan Chemical Co., Ltd    10 276.21     4.43
5    Jiyuan Qingyuan Water Treatment Co., Ltd    7 806.99     3.36
6    Jiangsu Jianghai Chemical Group Co., Ltd    7 450.32     3.21
7    Zhejiang Wynca Chemical Industry Group Co., Ltd    6 755.33     2.91
8    Jiangsu Good Harwest-Weien Agrochemical Co., Ltd    6 292.45     2.71
9    Changzhou Wujin Fine Chemical Factory    6 088.13     2.62
10    Ningbo Generic Chemical Co., Ltd    6 067.60     2.61
11    Hubei Sanonda Foreign Trade Co., Ltd    5 388.64     2.32
12    Jingzhou Jianghan Fine Chemical Co., Ltd    3 773.85     1.63
13    Zhejiang Hangzhou Jinfanda Biochemical Co., Ltd    3 393.40     1.46
14    Changshu Hangmei Agricultural Chemicals Co., Ltd    3 192.00     1.37
15    Rhodia-Hengchang (Zhangjiagang) Specialty Chemical Co., Ltd    3 051.58     1.31


Glyphosate occupies a 30% share of the global herbicide market. In recent years the global glyphosate market has boomed and busted like a roller coaster. The glyphosate supply was tight and the price soared in 2007 and 2008 due to the drastic increase of demand for glyphosate. The supply far exceeded demand in 2009 and 2010, and the market was slack. Since the end of 2011, glyphosate prices have shown a restorative increase. At present, global consumption of glyphosate is more than 600 thousand tons, and the sales value is US$4.0 billion.
   Glyphosate is widely used in more than 130 countries around the world; however, the production of glyphosate is concentrated mostly in China, the United States, Argentina and Brazil. Glyphosate consumption is mainly concentrated in some big agricultural countries, especially big countries producing transgenic crops. The top three consumers are the United States, Argentina and Brazil. According to the statistics, the annual combined consumption of glyphosate in these three countries is more than 270 thousand tons of 95% glyphosate technical, accounting for over 40% of the world total.
   According to customs statistics, after reaching 40 thousand tons in 2009, China’s import volume of glyphosate decreased year-on-year and was only 26.5 thousand tons in 2011, whereas the export volume basically remained at over 400 thousand tons per year during the same period. The average export price fell from the peak level of US$7 288 per ton in 2008 to US$2 800 per ton, rebounded to US$3 292 per ton in 2011, and reached US$3 519 per ton in June 2012.
   At present, China exports glyphosate to more than 90 countries and regions in the world. According to customs statistics, from 2007 to the first half of 2012, China's glyphosate was mainly exported to the United States, Argentina and Brazil, which are big countries producing transgenic crops. In the first half of 2012, China exported 51 912.55 tons, 26 051.06 tons and 19 452.75 tons of glyphosate to the United States, Argentina and Brazil, respectively, accounting for 22.36%, 11.22% and 8.38% of the total.
   China became the world's largest glyphosate producer in 2007, and its international competitiveness was significantly enhanced. Nantong Jiangshan Agrochemical & Chemical Co., Ltd, the largest glyphosate exporter in China, exported 22 106 tons in the first half of 2012, accounting for 9.52% of the total.
   Since 2007, China has become the largest producer and exporter of glyphosate in the world, the domestic glyphosate sector has achieved rapid development and China’s international market share and competitiveness have been strengthened. However, most glyphosate producers in China only produce glyphosate technical – the humblest product of the glyphosate sector, having the lowest product added value.