Pesticide market won't fluctuate with the trend of raw materials

2015-03-16

 After entering the winter, pesticide prices have been falling, which known as pesticide off-season, some raw materials prices also have an impact on pesticide market, but the pesticide market is not about the trend of raw materials.

Recently, the international crude oil prices and the domestic refined oil price "stumble", fell to its lowest in nearly four or five years.At the same time, glyphosate prices fell to the bottome price. There are concerns that the drop in oil prices will lead to the pesticide market prices lower pesticide industry.

In fact, the falling in oil prices does not pose a direct impact on the price of glyphosate, the most direct and also the most important reason of glyphosate downward price is the expansion of foreign glyphosate production, the domestic export volume sharply reduce TC production, in the national pesticide export favorable circumstances, glyphosate now "have enemies in front and rear".It seems thatglyphosate prices could fall further later.Crazy expansion leads to the serious oversupply of production capacity, is the arch-criminal glyphosate "diving".

Pesticide as petroleum chemical deep processing of end products, although the price has a positive correlation with oil prices, but because of pesticides and intermediates industry tons less consumption of crude oil, the influence of liquid chlorine, yellow phosphorus, liquid caustic soda, fluorite price would be larger.While the core factors affecting pesticide price is not the price of raw materials price.The past data shows, the high prices did not bring much impact to the pesticide and intermediates industry, even if there is a shock only began to rise in the price of oil phase, because the downstream fine chemical products prices relative to lag behind the rise in the price of crude oil prices fell, the same also lags behind the original oil prices.Therefore, regardless of high oil prices, whether or low oil prices, oil prices impact on pesticide market prices are very little.

At present, the pesticide production and sales season approaching, insecticide imidacloprid, acetamiprid original price has remained stable, The market of herbicide24-D began to pick up and rose 6%comparing with the previous period.

Compared with the drop in oil prices, factor in the support of the pesticide market more.As part of the rigid demand, increase product market; some products production capacity is too small, the market in short supply; environmental pressure, many original drug production enterprise or shutting down, or relocation, the normal production is not effectively release; safety pressure, enterprises underemployment; dangerous goods transportation management strengthening, logistics costs increase; the increase in manpower costs; etc. increase the financing, financing cost.The stronger the influence of these factors on pesticide prices.

In a word, the core effect of pesticide market prices and corporate profits is not a factor of rising raw materials prices, not even the market demand or not, but the pesticides and device performance overall technical level.Pesticide industry should be good "point the stock, incremental point" context, pay attention to the quality of development, stimulate growth momentum.Through the upgrading of technology, management, mechanism innovation and the industrial structure should be pesticide enterprises, promote the healthy development of enterprises, especially to strengthen the independent innovation and technology upgrading, maintaining the status quo.At the same time, the pesticide industry should strengthen the agrochemical service consciousness, initiative to extend the industrial chain to the vast rural areas.In the new situation, should have new thinking, new measures, new way, can remain invincible in the fierce competition in the market.


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