Glyphosate carried long slump, continued to decline during the first half of this year. According to the Chemical Business Association on June 68 benchmark shows that the price of glyphosate in early January this year, 24,500 yuan / ton, the price dropped to 21,500 yuan in June / ton, a decline of 12.24%, a chemical product of the bottom plate.
Despite the large potential market demand, due to serious overcapacity in the next few years, capacity utilization and corporate profits will remain in the doldrums.
China's glyphosate export dependence is too high, exports accounted for 80% of production, changes in the international market a greater impact on China's glyphosate in 2010 gave the American drought in China's glyphosate export bring some impact. However, because the domestic production growth slowed, rising raw material prices,
fine chemicals suppliers, the export tax rebate cancellation, loss-making enterprises continue to increase, exports unprofitable enterprises are facing difficulties.
Glyphosate industry as a whole is running hard, profitability has dropped significantly. Jin and Yuan Securities research report pointed out that in 2010 gross profit margin of only 7.55% glyphosate, down 10.72 percent, is expected to abolish the export tax rebate and domestic overcapacity, 2011,
CAS 12018-10-9 , glyphosate business of the previous year.
As a leading enterprise pesticides, agricultural chemicals Yang [22.03 0.23% shares it] (600486, closing price of 22.49 yuan) poor performance, share price performance is not good. Jin and Yuan Securities analysts believe the sharp decline in profitability is affected by the glyphosate, a decline in performance of the company. The company announced first quarter net profit of 37.272 million yuan,
Copper ChromiteCC , earnings per share of 0.216 yuan, down 16.85%. Apart from the company's share price peaked in spring is a wave of selling pesticides climax, the rest periods in the down state, from the beginning to June fell 15%. Source: www.mhcfm.com
