Glyphosate prices rise, boosting industry leaders' performance

Since mid-to-late May, glyphosate, the world's most widely used herbicide, has seen a gradual price increase. Industry data shows that as of middle June, the market average price of 95% glyphosate technical powder has risen by 2.6% compared to early May.

Most of China's glyphosate products are exported, and the period from June to August marks the peak season for herbicide exports from China to South America. Looking ahead, with the increasing cultivation area of genetically modified crops and the gradual phasing out of other herbicides like paraquat, the market demand for glyphosate is expected to continue growing, which is likely to enhance the performance of industry leaders.

Why Are Glyphosate Prices Rising?

Glyphosate accounts for about 30% of the global herbicide market. Reviewing its price trend in recent years, glyphosate prices peaked at over 80,000 yuan per ton at the end of 2021, before gradually declining. Currently, glyphosate prices and profit margins are at historically low levels. On the demand side, downstream demand remains stable with active inquiries, and some leading companies have orders scheduled through July. As of June 5, domestic glyphosate inventory was approximately 51,200 tons, a year-on-year decrease of nearly 8%, indicating significant destocking.

On the supply side, global glyphosate technical capacity was about 1.183 million tons in 2024, with a high industry concentration. There are approximately 10 major producers globally, with Bayer's Monsanto an annual capacity of about 370,000 tons, and the remaining capacity mainly concentrated in China.

It is worth noting that recent reports suggest that Bayer is preparing a plan to address large-scale lawsuits related to its herbicides. If unsuccessful, Bayer may seek bankruptcy for Monsanto.

Will Glyphosate's Market Outlook Improve This Year?

Industry insiders generally agree that the recent price increase is mainly due to increased downstream demand and market expectations of future supply changes. Experts believe that the recent price rise is partly due to long-term low prices, which makes the current increase reasonable. Additionally, the release of previous orders to meet South American shipping schedules has led to busy production schedules. In the long term, the potential bankruptcy of Monsanto could reshape the industry landscape.

Many industry experts indicate that as the overseas pesticide destocking cycle nears its end and procurement patterns normalize, glyphosate demand has been steadily recovering. In the long run, with the expansion of genetically modified crop cultivation and the phasing out of other herbicides like paraquat, the market demand for glyphosate is expected to grow further.

Industry Leaders Set to Benefit

China's glyphosate production is highly concentrated. Key players include Xingfa Group (with an annual capacity of 230,000 tons), Fuhua Chemical (180,000 tons), Wynca (80,000 tons), Jiangshan Agrochemical & Chemicals (70,000 tons), and Hebang Biotechnology (50,000 tons).

A representative from Xingfa Group's securities department stated to investors that the company's glyphosate orders are currently saturated, and the price increase is expected to have a positive impact on performance.

According to Xingfa Group's 2024 annual report, the company has a glyphosate technical capacity of 230,000 tons per year, the largest in China, and a formulation capacity of 101,000 tons per year. After years of development, the company has mastered advanced glyphosate production technology and environmental protection techniques, achieving a leading domestic position. The company's wholly-owned subsidiary, Trisun Chemical, has successfully had its glyphosate technical international standard FAO Specification 284/TC reviewed and officially released by the United Nations Food and Agriculture Organization (FAO), becoming the first in China to do so.

Fuhua Chemical, with an annual capacity of 180,000 tons of glyphosate technical, ranks third globally and second in China. Over more than 20 years, Fuhua Chemical has developed a vertically integrated circular industrial chain from mineral resources to chemical intermediates and terminal chemicals, achieving the recycling of elements such as chlorine, hydrogen, phosph,orus and sodium. The company has leading indicators for raw material and energy consumption, resulting in significant economic, environmental, and social benefits. In 2025, Fuhua Chemical achieved a key milestone in green and low-carbon development, with its glyphosate and methane chloride carbon footprint accounting being TÜV SÜD-certified, making it one of the first Chinese agrochemical low-carbon products recognized by the EU. 

Xinan Chemical has an annual capacity of 80,000 tons of glyphosate technical. Through technological innovation and the purchase of external technical products for formulation, the company's annual sales volume is equivalent to approximately 100,000 tons of glyphosate technical, with a formulation conversion rate of over 70% and leading sales performance in the industry. The company has a global sales network, with both glyphosate technical and formulation market shares among the industry leaders.

The Lansheng Bioteh· 2025 China Pesticide Exporting Workshop (CPEW), will be held in Hangzhou, China on July 10-11. This is the largest and most influential agrochemical seminar in the industry. This session will discuss how Chinese companies break through overcapacity and develop high-quality industries. Global audiences are welcome to register for the conference and have face-to-face exchanges with manufacturers and traders.

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