Ptz Camera,Ptz High Speed Camera,Chain Store Inspection,Store Inspection Camera OP Retail (Suzhou) Technology Co., Ltd , https://www.opretailtech.com
The price of glycine has surged significantly since the beginning of the year, with industrial-grade glycine now selling at 15,000 yuan per ton—up 20% from the start of the year. Analysts believe this tight supply and demand situation is set to drive up glyphosate prices, which in turn could boost the performance of listed companies in the sector. This dynamic suggests that the glyphosate industry may see renewed activity in the coming months.
One of the main reasons for the sharp rise in glycine prices is the growing supply-demand imbalance. Environmental pressures have led to a reduction in production capacity, as many manufacturers struggle to meet stricter regulations. Additionally, the rising demand for glyphosate has further tightened the market for its key raw material, glycine. As glyphosate prices climb, so too does the demand for glycine, creating a positive feedback loop.
Environmental enforcement has become increasingly strict, particularly since last November. Several companies have been forced to halt operations due to non-compliance, reducing total production capacity by around 70,000 tons. Currently, only about 250,000 to 300,000 tons of glycine are being produced at full capacity. With a total production capacity of 562,000 tons, and demand for glycine reaching 310,000 tons, the market remains in short supply.
Leading companies in the glycine industry control more than half of the production capacity, with two major players each having over 50,000 tons of capacity. However, these two companies have recently stopped production due to environmental issues. Smaller firms, which typically produce 1 to 2 million tons annually, are struggling to keep up with rising environmental compliance costs. Wastewater treatment is a significant expense, with one-time investments exceeding 10 million yuan. Many small-scale producers can no longer afford these costs, forcing them to exit the market.
Moreover, the recent recovery in glycine exports over the past 14 years has also impacted the availability of industrial-grade glycine. With export demand picking up, domestic supply has become even tighter.
Analysts like Luo Ting from China CITIC note that glyphosate inventory levels remain low, and with the upcoming spring planting season in China and peak demand in North America, prices are expected to rebound sharply. The combination of low stock levels, rising input costs, and strong demand is likely to push glyphosate prices higher in the near term.
As glycine becomes scarcer and more expensive, it will directly impact the cost of producing glyphosate, leading to higher prices for the herbicide. This trend is expected to continue as environmental regulations tighten and smaller producers are gradually phased out. In this environment, larger, more efficient companies are well-positioned to benefit from the ongoing supply constraints and rising demand.