Paraquat prices continue to rise

In recent days, the paraquat market has quietly warmed up for some time. The average price of paraquat broke through the pressure of maintaining a price of RMB14,200/t for up to 16 months, and went up to RMB15,000/t. The value of paraquat has been rising since July of this year, compared with the same period of last year. Nearly 1% to 7% higher. "Although the recent paraquat prices have continued to rise, the introduction of the No. 1745 announcement has announced that paraquat water will gradually withdraw from the domestic market." Fang Yao, an analyst at Baichuan Information Pesticide Industry, reminded reporters.

Fang Yao told reporters that the recent rise in paraquat prices was mainly attributed to three reasons: First, because the relevant departments believe that paraquat added with auxiliaries such as emetics should be treated according to the formulation, 42% of paraquat mother liquor was exported in August this year. The tax rebate rate was lowered from 9% to 5% by the customs. For this reason, companies need to make up for tax rebate losses through appropriate measures. Second, in January and late September, the Ministry of Commerce issued the No. 55 announcement, which decided on the origin of the tax rebate. Japan and India imported pyridine for anti-dumping investigation. As the most important cost of paraquat, pyridine accounts for about 70% of the total cost. Although it is still in the anti-dumping investigation period, the price of domestic pyridine market has also been slowly raised; Finally, as the second largest herbicide after glyphosate, paraquat and glyphosate have a certain degree of substitution. Since last June, the price of glyphosate has experienced a rise of about 15 months. The rise in dry prices has played a role in boosting the economy.

At the beginning of April this year, the Ministry of Agriculture, the Ministry of Industry and Information Technology, and the General Administration of Quality Supervision, Inspection and Quarantine jointly issued Circular No. 1745, deciding to stop the approval of the production of new mother drugs and preparation plants for paraquat from the date of release; waters will be stopped on July 1, 2016. The agent is sold and used domestically. In this regard, Fang Yao said frankly: “In 2012, low-level water agents withdrew from the market. For first-line manufacturing enterprises, investing in manpower and material resources for equipment transformation and discovering new business opportunities were the top priorities; for second-tier manufacturers, what was the study? It is imperative to seek profit and avoid disadvantages in order to survive the days when the environmental protection threshold is increasing."

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