Under the influence of multiple factors, my country’s glufosinate ammonium market price will continue to rise in 2021

Glufosinate-ammonium is a non-selective herbicide that appears as white crystals and is easily soluble in water. Glufosinate-ammonium mainly has a contact killing effect. By inhibiting glutamine synthetase activity in plants, glutamine synthesis is blocked, ammonium ions accumulate, chloroplasts disintegrate, inhibit plant photosynthesis, and then lead to the death of weeds. Glufosinate-ammonium production processes include the Format-Strecker method, the thermal cracking-ACA method and the aluminum method-Strecker method. Among them, the Format-Strecker method is currently the mainstream domestic production process.

Glufosinate-ammonium was first developed by the German company Hoechst (now part of Bayer) and achieved large-scale commercialization in the 1990s. In 2017, Bayer sold Liberty herbicide (glufosinate-ammonium) and related businesses to BASF. Currently, glufosinate-ammonium Ammonium phosphine has become a key component of BASF’s agrochemical business. Glufosinate-ammonium has two optical isomers, L-type and D-type. Currently, the racemic product with D:L=1:1 is the mainstream product in the glufosinate-ammonium market.

According to the “China Glufosinate Ammonium Market Analysis and Development Prospects Research Report 2022-2026” released by the Industrial Research Center, 2010- In 2020, global glufosinate-ammonium production and sales maintained a steady growth trend. By 2020, glufosinate-ammonium production has reached about 36,000 tons, with a market size of nearly 1.1 billion US dollars, and an average annual compound growth rate of 12.8% from 2010 to 2020. Globally, glufosinate-ammonium production capacity is mainly concentrated in China, India, Germany, the United States and other regions. China is the world’s largest glufosinate-ammonium producer, accounting for approximately 60% of global production capacity.

Glufosinate-ammonium is one of the mainstream herbicides. In 2020, affected by the COVID-19 epidemic, the supply of glufosinate-ammonium intermediates was insufficient, resulting in a tense relationship between supply and demand of glufosinate-ammonium, and the market price of glufosinate-ammonium increased steadily. Entering 2021, affected by factors such as the epidemic and dual energy consumption controls, the operating rate of glufosinate-ammonium companies is low, and the shortage of supply has caused the price of glufosinate-ammonium to rise sharply. As of the end of January 2022, the ex-factory price of glufosinate-ammonium is 340,000 About yuan/ton. Affected by factors such as rising raw material prices, release of market demand, and slowdown in production capacity release, there is still room for growth in the market price of glufosinate-ammonium.

In terms of production companies, global glufosinate-ammonium production companies mainly include foreign companies such as BASF and UPL, as well as domestic companies such as Leer Chemical, Shandong Yisheng, Yongnong Biology, and Weiyuan Biochemical. Among them, Leer Chemical is the largest glufosinate-ammonium producer in China. As a manufacturing enterprise, the company currently still has glufosinate-ammonium related construction projects. It is expected that BASF will close some of its production bases in 2022, and its market share may be occupied by other companies. Against this background, Leer Chemical will gradually become the world’s leading glufosinate ammonium company.

Industry analysts said that glufosinate-ammonium is one of the three major non-selective herbicides in the world. It has broad spectrum and low toxicity. , easy to degrade, and highly lethal. Against the background of upgrading market demand, the glufosinate-ammonium market has a large space for development. my country is the world’s largest glufosinate-ammonium producer. With the increase in domestic projects under construction and proposed, and the closure of production capacity of international companies, my country’s share of the global glufosinate-ammonium market is expected to further increase.