Frbiz reports glyphosate prices will rebound

In 2010, the economic environment for pesticide enterprises will experience major changes. The pesticide industry took a downturn in 2009, partly because the fall in the prices of agricultural products led to a significant reduction in agricultural production, both in China and abroad. On the other hand, funds are tight for the production of enterprises, they have initiative to lower their profits in order to generate cash flow, which may arouse vicious competition in the market.

At present, agricultural product prices are rising sharply, stimulating the demand for pesticides, and also enterprises have rich capital reserves, and therefore no incentive to lower prices.

At the end of the quarter, the price of glyphosate is expected to rebound sharply and break RMB 30,000 / ton.

Due to the very low prices of Chinese and foreign stocks, short-term supply will be tight, and prices are expected to hit record highs. The Chinese governments approval of genetically modified rice and corn cultivation, strong oil prices and the low carbon economy, among other factors, will play a supporting role in the stabilizing of glyphosate prices.