2,4-D technical prices in China have fallen 12% since
late March, but a combination of headwinds is making a price rebound unlikely
in the short run, according to analysts CCM.
Prices rose as high as USD2,724/t in April when
seasonal demand was at its peak, according to CCM’s price monitoring data. But by
June this figure had dropped to USD2,516/t and 2,4-D manufacturers such as Zhejiang Jingma Chemicals Co., Ltd., CAC Shanghai Chemical Co., Ltd. and
Shandong Keyuan Chemical Industry Co., Ltd. all reported lowering prices.
A number of factors are
contributing to the fall in prices. Firstly, June to August is the traditional
slack season for China’s 2,4-D industry, when domestic demand is usually at its
But this year demand from
overseas is also low, making it impossible for manufacturers to mitigate slow
domestic sales through exports. Industry insiders have reported that demand
from South America and Africa is currently very weak.
The insiders also disclosed
that India has re-entered the 2,4-D technical market and is offering lower
prices than China. If this is true, this could put Chinese traders under
What’s more, Changzhou
Wintafone Chemical Co., Ltd. will resume production of 2,4-D later this month after completing the relocation of its plant, which will increase supplies and put further downward pressure on prices.
And the 2,4-D industry as a whole has been affected to a certain extent
by the IARC’s report classifying the herbicide as ‘possibly’ carcinogenic to
Currently, supply and demand is being kept relatively balanced by the low
operating rates in China’s 2,4-D industry as producers struggle to cope with
the much stricter environmental regulations introduced this year. Several
large-scale manufacturers have had to shut down production completely as a
result of the policy, according to CCM’s research.
When and how many of these producers are able to resume production will
also have an impact on future prices.
CCM will continue posting regular
updates on this story in E-Journal,
our real-time intelligence service for China’s agrochemicals market.
For more information about CCM and
our coverage of China’s agrochemicals market, please visit www.cnchemicals.com, or get in touch
directly by emailing firstname.lastname@example.org
or calling +86-20-37616606.