Chinese manufacturers often introduce their new capacity below market value. For example, the price for glufosinate AI dipped to EXW 37 USD/Kg, which is lower than the recent market price of EXW 41 USD/Kg when Lier Chemical and Yongnong Chem made new product available to buyers. And by the end of 2022, Veyong is expected to release additional glufosinate into China’s ag market. The increased inventory is accelerating the drop in cost for glufosinate AI, which was already experiencing a downward pricing trend.
 
Even with the price drops, there is still room for the herbicide’s key producers to decrease prices even further due to weak global demand. Even so, it’s recommended global sourcing teams make procurement decisions continuously because lower prices for glufosinate could dilute the previous high-cost AIs on retailers’ balance sheets. Meanwhile, it can also decrease the risk of a Black Swan event.
 
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