The price of glyphosate has surged this year due to strong demand, reaching approximately 60,000 yuan per ton—more than double the 28,000 yuan per ton recorded last year. Alongside this, rising crude oil prices have also contributed significantly to the upward trend in glyphosate costs. This combination of factors has not only driven up prices but also spurred increased investment and production expansion across the industry.
Major players such as Zhejiang Xin'an Chemical Industry Group, Nantong Jiangshan Agrochemicals, and Anhui Huaxing Chemical have all accelerated their capital increases and production expansions to meet growing demand. Notably, on December 3, two major Sichuan chemical companies, Chuanhua Co., Ltd. and Lutianhua Group, announced a joint investment of 110 million yuan to establish Shengpu Chemical Co., Ltd., focusing on producing raw materials for glyphosate, specifically iminodiacetonitrile.
Glyphosate is widely used in weed control for genetically modified crops, non-cultivated areas, and no-till farming. It remains the most effective herbicide globally, with no viable alternative currently available. The rapid growth of genetically modified corn and soybean cultivation in the U.S. and South America has led to a sharp increase in glyphosate demand this year.
Industry experts estimate global glyphosate demand reached around 500,000 tons this year. With continued expansion of farmland and increasing demand in Southeast Asia and China, this figure could rise to 1 million tons in the coming years. From 1996 to 2006, the global area under genetically modified crops expanded by 60 times, reaching 577 million hectares.
In addition to the growth in GM crop planting, the development of biofuels is also boosting glyphosate demand. Countries like the U.S. and Brazil are expanding biofuel feedstock plantations, including genetically modified energy crops used for ethanol and biodiesel, which further stimulates glyphosate usage.
Globally, the production of glyphosate relies heavily on oil and natural gas as raw materials. As crude oil prices remain high, so do glyphosate costs. In China, the main production method involves glycine and dimethyl phosphite, with most products exported. Therefore, international price increases directly affect domestic market prices.
According to recent data, leading glyphosate producers such as Xin'an, Jiangshan, and Huaxing Chemical have seen significant profit growth, with an average net profit increase of about 60% in the first three quarters of this year. To meet rising demand, these companies are expanding their production capacities: Jiangshan will increase from 20,000 to 42,000 tons, Xin'an from 55,000 to 75,000 tons, and Huaxing will reach 15,000 tons. Other companies like Sanonda and Yangnong Chemical are also building new glyphosate production lines.
Industry insiders believe that with high crude oil prices likely to persist and glyphosate supply shortages unlikely to be resolved quickly, the future profitability of domestic manufacturers looks very promising. This will continue to attract more investment in production expansion. However, challenges such as glycine shortages and limited capacity releases may keep glyphosate prices elevated for the foreseeable future.
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