Paraquat: global supply and demand and market conditions and future forecasts

Paraquat has been used globally for 58 years and has become one of the most effective and environmentally friendly herbicides in the world. It has played an important role in the promotion of agricultural no-till technology, prevention of soil erosion, and effective resistance to glyphosate resistance.


Global Paraquat Supply Status and Forecast

Global paraquat production capacity is mainly concentrated in Nanjing Red Sun, Syngenta, Shandong Luba, Zhejiang Yongnong and Sanonda. The Ministry of Agriculture and Rural Affairs Announcement No. 1745 and No. 2445 clearly require that from July 1, 2014, the registration and production license of paraquat aqueous solution shall be revoked, the production shall be stopped, and the overseas use registration of the aqueous solution of the parent drug manufacturer’s aqueous solution shall be retained. For export production, on July 1, 2016, the domestic sales and use of the liquid agent will be stopped. The registration certificate for paraquat sols expires on September 25, 2018, and no longer approves the domestic use registration continuation. Since September 26, 2020, the ban on the sale and use of paraquat sols in China is prohibited. The production capacity has been reduced successively, from the previous 200,000 tons to about 100,000 tons. With the trend of demand decreasing, it is expected that the global production capacity will be reduced to 60,000 tons.


Global Paraquat Market Status and Forecast

Since 2019, my country's paraquat market has "fallen in both volume and price" (Figure 1). At present, the mainstream quoted price in the market is 220 kilograms for 42% mother liquor 14,000-15,000 CNY/ton, the mainstream transaction price is 14,000-14,000 CNY/ton, and the 200-liter 20% liquid agent is 11,000-11,500 CNY/ton. kiloliter. The price of FOB in Shanghai Port of 220 kg of 42% mother liquor is 1,900-1,950 US dollars/ton; the price of FOB in Shanghai Port of 200-liter 20% liquid agent is 1,500-1,550 US dollars/kiloliter. Currently, the raw material pyridine upstream of paraquat has a higher inventory, suppliers cut prices, the actual transaction price is reduced, paraquat cost support is weakened, and some suppliers are still operating at low loads. The current prices of glyphosate, glufosinate and other herbicides are all There are upward adjustments to varying degrees, and the short-term price of paraquat is stable. At the end of 2019, the Thai government lifted the glyphosate ban, and paraquat was postponed for 6 months. However, considering the agricultural planting costs and other issues, whether the ban of paraquat will be implemented in the future remains to be seen.


The export situation and forecast of paraquat in my country

In 2018, my country's export value of paraquat was US$504 million, and the export volume reached 193,200 tons. It is expected that the export amount of paraquat will double in 2019 (Table 1). Paraquat is very valuable for the timely and timely stubble of tropical and subtropical farmers, especially in agricultural areas with high multiple cropping index. For example, Malaysia once banned it, and later banned it. Thailand, as a large country using paraquat, has a long-term policy that is unclear. The ban on restrictions in the country has put pressure on the paraquat market and is also an opportunity to replace non-selective herbicides. Australia, Indonesia and Thailand are still major importing countries, and related companies need to pay attention to the bans and restrictions in these countries.


Global Paraquat Market Status and Forecast

In 2018, the global market value of paraquat reached US$1.202 billion. The countries with a market value of over US$100 million were China, Brazil, Indonesia, and Thailand. Under the influence of China’s ban, restriction, and export licensing policies, the Chinese paraquat market was gradually Glyphosate, glufosinate and diquat are alternatives. In 2018, the global use of paraquat reached 79,000 tons, and the countries with a market exceeding 1,000 tons were Colombia, Thailand, Malaysia, Mexico, China, Brazil, Argentina, Australia, the United States, Guatemala, India, and Indonesia. Among them, China and Thailand exceeded 10,000 tons, Brazil is the third largest application country. From the perspective of the global paraquat crop market and application status, the field market and application are mainly concentrated on soybeans and corn, and the economic and non-agricultural markets are larger

Paraquat, as the world's second largest tonnage herbicide variety, reflects the huge market value of paraquat plant protection. From the previous case of paraquat being banned in Malaysia, the status of paraquat in herbicides can be seen. Of the 500 million growers in the world, about 75 million growers use paraquat. Among them, about 45% of the users are small farmers; about 60% of the world's paraquat is used in the Asia-Pacific region, which is the most important single-product herbicide in the Asia-Pacific market. Due to the high toxicity to organisms, no antidote and special treatment, paraquat oral (intentional, accidental) poisoning mortality is over 90%. However, paraquat is banned in more than 30 countries and regions around the world, and the market will continue to decrease in the future.