Review of China’s Tebuconazole Commodities Performance in 2012

russ — Tue, 21 May 2013 02:52:47 +0000

Tebuconazole is an efficient, broad spectrum and strong systematic triazole fungicide used agriculturally to treat plant pathogenic fungi. It mainly used control of Rhizoctoniasolani, false smutonsoybean, wheat, rice, vegetables and fruits. Besides, it can promote plant growth, and increase yield.

- Market and key manufacturers

Sales of tebuconazole rose by 11.4% to $ 440 million in 2011. That’s down from a peak of $ 550 million in 2005. Bayer is the largest producer and distributor with the capacity of 4,000 tonnes / year. MakhteshimAganand India also produce the product. China is the largest manufacturing country with the capacity of 14,000 tonnes. In 2011, China’s tebuconazole output was 8,000 tonnes, among which some 80% was for export. The key markets for export are Europe, North America, South America and Asia Pacific.

The key manufacturers include Shanghai Shengnong, Jiangsu Sevencontinent Green Chemical Co., Ltd., Jiangsu Sword Agrochemical Co., Ltd., Jiangsu FengdengPesitcide Co., Ltd., etc.

- Price tendency

The tebuconazole technical price kept plummeted for several years from Yuan 150,000/ton in 2003 to the lowest of some Yuan 71,000/ton,which led 15% annual rise of application in tebuconazole, which drive the price increase.

- Events

- Registered formulation

SC，FS，WG，EW，ME，EC，WP.

—From 2012 China tebuconazole product report issued by CCPIA

Review of China’s Difenoconazole Commodities Performance in 2012

russ — Tue, 21 May 2013 02:49:47 +0000

Difenoconazole is a triazole fungicide which was developed by Syngenta, it’s widely used for its characters of novelty, efficiency and safety. Its global annal sales reached some $200 million, ranked 3^rd on the list of triazole fungicides. Difenoconazole inhibits biosynthesis of the cell wall polyhydric alcohols to prevent growth of fungi, such mode of action makes it a protective, therapeutic and systemic fungicide. Its security is relatively high in triazole fungicides. Difenoconazole is widely used in fruit and vegetable to prevent scab of cucurbits, grape bitter rot, black pox, white rot, leaf spot, powdery mildew, leaf spot, rust, stripe rust, scab, etc. It provides long-lasting preventive and curative activity against ascomycetes, basidiomycetes and deuteromycetes including alternaria, ascochyta, cercospora, cercosporidium, colletotrichum, guignardia, mycosphaerella, phoma, ramularia, rhizoctonia, septoria, uncinula, venturia spp and some seed-borne pathogens.
In recent years, the annal sales of difenoconazole were more than $100 million. Back in 2003, the annal sales was $110 million. Two years later, it increased to $135 million. In 2007, the annal turnover reached $195 million, till the year of 2009, this number exceeded $200 million, reached $210 million.

In the fourth quarter of 2010, the price of difenoconazole was 192000 yuan/ton,since then, the price began rising steadily to 210000 yuan/ton and floated up and down around this level. Currently, it shows a rapidly growth trend of domestic production, demand and export, which indicates that Difenoconazole is coming into a phase of rapid development in domestic. According to statistics, in the first half of 2012, the production of difenoconazole is 1065.29 tons, sales volume is 657.99 tons and export is 739.41 tons.

In recent years, the production capacity of difenoconazole expanded more quickly than before. Since Syngenta first registered in China, there has been a quick increase in domestic registered manufacturers. Up till now, there have been 13 pesticide enterprises registered for manufacturing difenoconazole technical products. Since most manufacturers which were built up during 2005 to 2007 were in small scale, like 100-150 tons per year, along with the good trend in domestic, many enterprises planed to expand and construct new plants. For instance, Gengyun Company of Jiangsu Province moved to International Chemical Industrial Park in Zhenjiang Economic and Technological Development Zone, the scale of production reached 1000 tons/year. Currently, the production capacity of difenoconazole is more than 3500 tons/year.

Demand of difenoconazole increased quickly. In the past few years, since the factors of price and promotion, difenoconazole was mainly used on fruit and vegetable, the market was in a mode of equilibriumapp:addword:equilibrium. According to some regions’ Plant Protection Departments, three main factors may push the demand of difenoconazole. Firstly, in recent years, some main crop cultivars are poor in disease-resistance and some disease are serious. Secondly, the price of fruit and vegetable rises steadily, planting benefit is obviously good. Thirdly, although the price of difenoconazole is on a high level, its use is only one tenth to one fifth of thiocarbamates and dithane, thus the residue is relatively much lower. Plus, so far, no resistance cases have been reported on difenoconazole.

Now difenoconazole is registered on a peak time in China. 10% WDG was registered in China for scab on pears and black spot on cabbages in 1999, certificate No. LS99008. Companies began to develop this product ever since, till now there are more than 220 products under difenoconazole.

Currently registered difenoconazole single-TC formulations, see next form:

Review of China’s Mancozeb Commodities Performance in 2012

russ — Tue, 21 May 2013 02:40:54 +0000

Mancozeb is used to protect many fruit, vegetable, nut and field crops against a wide spectrum of fungal diseases, including potato blight, leaf spot, scab (on apples and pears), and rust (on roses). It is also used for seed treatment of cotton, potatoes, corn, safflower, sorghum, peanuts, tomatoes, flax, and cereal grains.

Market and key manufacturers

Sales of mancozeb rose by 8.8% to record high of $ 620 million in 2011. As of the end of 2011, the global mancozeb capacity is about 205,000 tons (off 80% ai.), of which, 150,000 tons are produced by international producers and 51, 000 tons are produced by domestic producers. The global output reached 140,000 tonnes against the sales volume of 135,000 tonnes.

China produced 45,000 tonnes mancozeb against sales volume of 44,000 tonnes , among which 35,000 tonnes for export in 2011. Markets for export include Europe, Africa, Asia and North America.

Key manufactures include the largest producer, UPL, Sabero, Indofil and domestic producers, Linmin Chemical, Hebei Shuangji Chemical, Dow(China), Nantong Baoye and Xi’an MPC Stock.

Price tendency

Mancozeb price remained some Yuan 22,000 /ton in 2012.

Events

Registered formulation

Mancozeb is available as dusts, liquids, water dispersible granules, as wettable powders, and as ready-to-use formulations.

From 2012 China mancozeb product report issued by CCPIA

Review of China’s Chlorothalonil Commodities Performance in 2012

russ — Tue, 21 May 2013 02:05:18 +0000

Chlorothalonil (2,4,5,6-tetrachloroisophthalonitrile) is a polychlorinated aromatic mainly used as a broad spectrum, nonsystemic fungicide, with other uses as a wood protectant, pesticide, acaricide, and to controlmold, mildew, bacteria, algae. It mainly used for vegetables, fruits, potatoes, rice, corn and non-agriculture including painting, electrical, leather, paper and so on.

market and main companies

Global demand for chlorothalonil remains 20,000 tonnes. The main market is distributed in the four high-end markets of US, Japan, France and Brazil. Combined these four markets accounted for over half of global market. Domestic demand is 2,000 tonnes. In 2011, export volume of chlorothalonil reached 13,500 tonnes, of which, technical accounted for 80%.

Main chlorothalonil producers: Jiangsu Xinhe Chemical Co., Ltd., JiangyinSuli Chemical Co., Ltd., Jiangsu Weunite Fine Chemical Co., Ltd. Combined capacity of the three companies is 18,000 tonnes, accounting for 84% of total national level.Syngenta is one of largest manufacturer with the capacity of 9,000 tonnes.

Price tendency

Chlorothalonilmarket was very competitive, the price was hovering between Yuan 28,000 -30,000/ ton(in term of active ingredient), it dipped compare with that in 2011.

Events

l Syngenta updating chlorothalonil label to meet new NSRL

l Research found that chlorothalonil environmental substance limitation to be re-evaluated.

l Continuous chlorothalonil plant ensures the stable production and quality.

Registered formulation

TC，WP，FU，SC，WDG，DP，OL

—From 2012 China chlorthalonil product report issued by CCPIA

Review of China’s Carbendazim Commodities Performance in 2012

russ — Tue, 21 May 2013 01:54:03 +0000

Carbendazim is a widely used, broad-spectrum benzimidazole fungicide and a metabolite of benomyl. It is also employed as a casting worm control agent in amenity turf situations such as golf greens; tennis courts etc. and in some countries is licensed for that use only.

The fungicide is used to control plant diseases in cereals and fruits, including citrus, bananas, strawberries, pineapples, and pomes.

The market of carbendazim is expanding as manynewly developed application areas emerged such asmildew proof in industry and so on.

- market and key manufacturers

Global carbendazim demand remains 30,000 tonnes, Brazil, Argentina and India are the main carbendazim consumers. Global sales of carbendazim grew by 5.3% to $ 200 million in 2011.

Main carbendazim producers: Jiangsu Lanfeng, Ningxia Wynca, Anhui Guangxin. Combined capacity of the three companies reaches 43,000 tonnes, accounting for 90% of total national level. National output and export volume reached 39,000 tonnes and 26,000 tonnes, respectively.AsLanFeng biochemical expanded capacity to 20,000 tonnes, Yangnong Ningxia Ruitai (10,000 tonnes) and Jintun joined in the industry, China’s carbendazim capacity is about 60,000 tons, with an increase of nearly 40% of the year.

Price tendency

Carbendazim price grow up at the start of the year and at the high of Yuan 30,000 /ton in February. However, it bigan to keep down after March due to the oversupply in domestic market and lower demand of international market. The price remained some Yuan 27,000 / ton in November.

Events

l Brazil and India’s import carbendazim declined sharply due to the dry weather

l Australia decided further restrictions for carbendazim

l Brazil Orange Growers to Halt carbendazim use

Registered formulation

TC，SC，WP，WG，FU

—From 2012 China carbendazim product report issued by CCPIA

Review of China’s Fungicide Azoxystrobin Performance in 2012

leah — Tue, 21 May 2013 01:21:52 +0000

Azoxystrobin is a systemic fungicide, active against Ascomycetes, Basidiomycetes, Deuteromycetes and Oomycetes. It has preventative, curative and translaminar properties and residual activity lasting for up to eight weeks on cereals. The product demonstrates slow, steady foliar uptake and moves only in the xylem.

The product can be mixed with Ambush, Bravo, Captan, copper hydroxide, Dominex, Dipel, Karate, Larvin, Fortress (D0059), Talstar and Thiodan.

Azoxystrobin effectively controlled damping-off and foliar diseases of vegetables (e.g. lettuce, tomatoes) and ornamentals (e.g. roses, carnations) in Northern Italy.

In 2000, this fungicide accounted for almost half of corn fungicide market in French, Germany and England. Of which sales reached $ 451 million in 2000, equivalent to 40 folds of sales of $ 12.5 million in 1996. Amistar (active ingredient is azoxystrobin) is the leading fungicide product in the world, and the main product of Syngenta. This product approved the registration in over 100 countries and over 120 crops including corn, rice, peanut.

Domestic market

Recently, with the expansion of the capacity, China is the one of largest producers with the capacity of 1500 tonnes per year. Ended by August 2011, there are over 10 producers in China together in Jiangsu, Shanghai and Guangdong.

Supply and demand

Domestic consumption of azoxystrobin in 2010 rose almost 30% close to 150 tonnes compared with 2009. Due to high price of azoxystrobin price compared with other fungicides, its market value reached over $ 10 million in 2010. The azoxystrobin price showed a downward trend in past few years, and will continue to decrease owing more capacity and more mature technology. According to statistics, the domestic production of azoxystrobin mainly for export, 2010 azoxystrobin are mainly exported to Uruguay, South Africa and Italy and other countries. Based on the advantage of the good efficacy and continues to expand in overseas markets, is expected to azoxystrobin in the next few years, China’s exports will continue to increase.

Is expected that the next five years, the production of the domestic azoxystrobin will remain more than 35% of the rate of growth; domestic demand will be about 20% of the increase continued to grow. Azoxystrobin products warming will lead to the development of the upstream industry chain (such as the trimethyl orthoformate products) and increase investment opportunities. To be sure, azoxystrobin will drive the entire fungicide industry development, promote the upgrading of fungicide products in China

China’s Pesticide Industry Performance in 2012

leah — Thu, 16 May 2013 05:10:31 +0000

China’s pesticide production increased by 19.0% to record high of some 3,549,000 tonnes in 2012 which ended December 31th, representing continued consecutive double digit growth, according to the data from National Bureau of Statistics of China.

Herbicides, the largest category, were considered as the main growth driver, with production increased by 42.5% to 1,648,000 tonnes, equivalent to 46.4% of total production. The growth of herbicide output is driven by higher demand for commodity herbicides such as glyphosate, 2,4-D and atrazine. Insecticide production fell by 12.0% to 813,000 tonnes, making up 22.9% of total production, while fungicide production dropped 7.1% to 144,000 tonnes, accounting for only 4.1% of total production.

Among them, Jiangsu province remained China’s leading region in terms of manufacturing volume, with 966,076 tonnes (+13.4%), accounting for almost one third of national production during the period. Month-to-month, Shandong province saw the largest growth in output, up 66.5% to 745,425 tonnes in 2012.

According to the data released by the Chinese General Administration of Customs, pesticide import/export in 2012 is shown in table 2.

It is shown from the table above that the imported and exported pesticide both increased in 2012. The volume of imported pesticide increased by 30.3% to 68,900 tonnes, which accounted for 1.9% of total domestic output; the value reached $592 million, increased by 21.2%, the imported average price decreased by 7.1% to $8,592.2/ton. Among them, imported insecticide price was highest, dipped by 4.1% to $ 15,070/ton; imported fungicides went up by 26.9%.

Volume of exported pesticide grew by 12.7% to 821,700 tons, the exported pesticide value increased by 18.2% to $2,860 million, and the exported average price rose by 5.0% to $3187.0/ton. The volume of exported pesticides accounts for 25.3% of the total output. Among them, exported herbicides volume grew by 19.4% to 598,700 tonnes, accounting for 66.7% of the total export, 36.3% of herbicide production. The exported herbicide value was $1,673 million; the average exported price was $3,240.4/ton, increased by 7.1%. As carbendazim exports declined nearly 50% due to the Brazil exported orange juice residue issues at the beginning of the year, fungicides exports volume and value continued to fall. The volume of exported fungicide decreased by 8.1% to 70,700 tonnes, accounting for 7.9% of the total exported volume, 49.1% of fungicide production; the exported fungicide value reached $337 million, down by 9.1%, the average exported price was $4,761.9/ton, decreased by 3.0%. The trade surplus grew up by 17.5% to $ 2,268 million.

According to the statistics of China National Bureau of Statistics, total 804 Chinese pesticide enterprises above designated size whose data were collated realized a total industrial output value of Yuan 25.4 billion in December 2012, with an increase of 37.6% on the same period last year. Sales of pesticides grew by 35.2% to Yuan 24.4 billion. Among them, output value and sales growth of biopesticides both exceeded 45%.

In the year of 2012, accumulative total industrial output value of pesticide rose by 24.4% to Yuan 244.0 billion, and sales of pesticides increased by 23.2% to Yuan 236.3 billion. Due to higher domestic demand, fast growing market overseas and higher price, the profit of pesticide industry grew by 40.0% to Yuan 17.5 billion. The industry loss fell by 28.5% to Yuan 650 million, which showed the better performance this year.

Features of the pesticide industry:

1. Production and sales both increased in the year, the output up to a new high of 3.55 million tonnes. Pesticide production fully met the demand for agricultural production.

2. Pesticide product structure further improved. Market driven substitutes of highly toxic insecticides were produced, particularly those insecticides used in rice production. Water-based and solid pesticide formulations aiming at improving efficacy and safety were increasingly.

3. The economic benefit of the industry climbed 40.0% attributed to the higher demand for agchem.

4. The role of the multinationals’ formulation products has gradually become dominant, while the sale of domestic products has been restricted to some extent.

CCPIA will hold AgroChemEx Ukraine on 7&8 July 2013 in Rus Hotel Kiev

leah — Fri, 12 Apr 2013 01:04:45 +0000

Backgroud of this project:

This event is organized by China Crop Protection Industry Association, and sponsored by Ukrainian Fumigation and Plant Protection Association in the support of Plant Protection of Ukraine, Ministry of Agriculture and Food of Ukraine.

To introduce good quality agrochemical products in Ukrainian market, which is in line with the MOU in the field of plant protection product sector between China Crop Protection Industry Association and Ukrainian Fumigation and Plant Protection Association signed Feb 22, 2012, China Crop protection industry association shall bring 40+ Chinese companies with good reputation, to attend this event this time.

Why should Attend?

l All the exhibitors are those who are really interested to explore the East European market with their good & right products, and they’re quite ready to do business.

l Except for the Chinese suppliers, you can also expect to meet professional business man in this industry from Ukraine, Russia, and other East European countries.

l This event is really at your doorstep, and you needn’t pay for anything to meet so many quality potential customers.

Program: 8 of July 2013

Time	Forum	Buyer-Seller Meeting
09.00 – 10.30	/	Stall construction/ decoration
10.30 – 11.00	Registration (conference hall RUS Hotel)	Stall construction/ decoration
11.00	Inauguration. Welcoming of the Minister of Agrarian Policy and Food of Ukraine.	Open
11.15 – 12.00	Speeches of: China Crop Protection Industry Association (CCPIA); Ukrainian association of fumigation and plant protection; Plant Protection Institute of the National Academy of Sciences of Ukraine.
12.00 -13.00	Speeches of Chinese companies crop protection
13.00-14.00	Lunch
14.00 – 15.40	Report by the Ministry of Agrarian Policy and Food of Ukraine. Subject: status of agriculture in Ukraine.
15.40 – 16.20	Report by the State Veterinary and Phytosanitary Service of Ukraine. Topic: Overview of turnover of plant protection in Ukraine.
16.20 –16.40	Coffe-break
16.40 -17.20	Report by the Institute of Plant Protection of the National Academy of Sciences of Ukraine. Subject: latest methods of pest control
17.30	The grand banquet in honor of the opening of the Forum

Program: 9 of July 2013

Time	Forum	Buyer-Seller Meeting
10.00 – 10.40	Supervision by Customs on imported pesticide and the tax rate	Open
10.40 – 11.20	Registration procedures in CIS countries
11.20 – 12.00	Introduction about Ukraine Farm size and its operation situation
12.00 – 12.30	Summarizing. The signing of agreements on cooperation
12.30 – 16.00	/
16.00 -17.00	/	Stall Withdrawn

Sellers List (Registered until 31th, March)

JIANGSU YANGNONG CHEMICAL GROUP CO.,LTD.

SINOCHEM AGRO CO.,LTD.

SHANDONG WEIFANG RAINBOW CHEMICAL CO.,LTD.

ZHEJIANG SHENGHUA BIOK BIOLOGY CO.,LTD.

SINOCHEM NINGBO (GROUP) CO.,LTD.

SHANDONG SINO-AGRI UNITED BIOTECHNOLOGY CO.,LTD.

NINGBO TIDE IMP.& EXP.CO.,LTD.

JIANGSU FLAG CHEMICAL INDUSTRY CO.,LTD.

TRUSTCHEM CO.,LTD.

Jintan Jinwang Packing Sci-Tech Co.,Ltd.

FORTUNE AG CO.,LTD

HubeiShenchang Chemical Import and Export Co.,Ltd

Shandong Cynda Chemical Co.,Ltd

ZIBO NAB AGROCHEMICALS LIMITED

Agrodragon Co.,Ltd

HEIBEI SHUANGJI CHEMICAL CO.,LTD

SHANGHAI HEBEN-EASTSUN MEDICAMENTS CO.,LTD

Hangzhou Qingfeng Agrochemical Co.,Ltd

Shenzhen Noposion Agrochemicals Co., Ltd

Hangzhou Udragon Chemical Co.,Ltd.

Shandong Binnong Technology Co., Ltd

Jiangsu Good Harvest-weien Agrochem

CCPIA will organize AgrochemMyanmar on November 7-8, 2013

leah — Tue, 19 Mar 2013 01:52:42 +0000

Agriculture is considered as “the base for all-round development of other economic sectors” of Myanamar. The three major objectives of the agriculture sector are to achieve surplus in paddy production, to achieve self-sufficiency in edible oil, and to step up the production and export of pulses and industrial crops. It is also the major sector that contributes to GDP of Myanmar, covers the export earnings of 40% and provides employment to more than 60% of workforce.

The raw materials for domestic agro-based industries heavily depend on agriculture. The country is now proactively seeking for more conditions to improve, add value and regain its preeminence in the world’s agricultural markets. This will generate vast emerging potential for investors in agrochemical sector to expand or set up their business in Myanmar, both in upstream and downstream processing. For future prospect, Myanmar set up the millennium development goals targeting 2015 and significant progress has been achieved in various sectors including agriculture.

Myanmar Agrochemical and Crop Care Expo 2013 is the response to the recognition of huge investing opportunities in agrochemical and crop care industry which collaborates with agriculture. The tradeshow will provide a useful commercial platform for exhibitors and visitors from all related fields to cooperate and build up a firm position for their business in the growing market of Myanmar.

Name: AgrochemMyanmar (International Exhibition & Conference on Agrochemical & Crop Care for Myanmar)

Time: November 7 -8, 2013

Venue: TATMADAW Exhibition Hall

Organizer: China Crop Protection Industry Association

Co-organizer: CNCIC China

Supporters:

The Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI)

Myanmar Rubber Producers’ Association

Myanmar Onion, Garlic and Curlinary Crops Production and Exporting Association

Myanmar Agro Based Food Processors and Exporters Association

Myanmar Fruit and Vegetable Producer and Exporter Association

Myanmar Farm Crop Producer’s Association

Exhibit Profile

Chemical Pesticides: Insecticide, Herbicide, Fungicide, Intermediates, Ecological Chemical Pesticides, Biological Pesticide, Technology, Pesticide Production, Pesticide Processing Technology

Chemical Fertilizer: Nitrogen Fertilizer, Potash Fertilizer, Phosphate Fertilizer, Biological Fertilizer, Compound Fertilizer, New Specialized Fertilizers

Crop Protection&Agrochemical Bio-Engineering Technology: Plant Growing Regulator, Transgenic Products, Agricultural Bio-engineering Technology

Agrochemical Machinery: Equipment for Agrochemical Products, Spraying Machine, Agricultural Plastic, Farming Machine, Horticultural Grass Mown, Sprinkler Machine, Irrigating Equipment, Package Equipment

Visitors Profile

Agrochemical Wholesalers & Retailers

Chemical Product Exporters & Importers

Mass Agrochemical Product Users

Mass Agrochemical Technology Users

New Agricultural Product & Technology Applied Organizations

Terminal Users of New Agricultural Products & Technology

Related Correlative Enterprises & Organizations

Cost of Participation

Option 1: Raw Space @ USD 355 per sqm (min. 36 sqm)

Option 2: Shell Scheme @ USD 385 per sqm (min. 9 sqm)

*The prices are tax exclusive

Contact:

China Crop Protection Industry Association

Room 913,Building 16, Anhuili 4th Area, Chaoyang District 100723, Beijing

Tel/fax:+86(10)84885907

Email:ccpia_lijuan@126.com

CNCIC China

No. 5, Yinghua East St., Hepingjiebeikou, Beijing 100029

Tel: +86 10 6444 4135 Fax: +86 10 6441 8362

Email: ying@expo.cncic.gov.cn

MINH VI Exhibition & Advertisement Services Co., Ltd (VEAS)

8th Floor, Mekong Tower, 235-241 Cong Hoa St.,

Ward 13, Tan Binh Dist., Ho Chi Minh City, Vietnam

Tel: +84-8 3842 7755 Fax: +84-8 6293 6024

Email: info@veas.com.vn

Exhibitor List (Until Apr. 7^th):

Stall No.	Company
C016	CHANGZHOU EASTCHEM INTERNATIONAL CO.,LTD
D006	FORTUNE AG CO.,LTD
D008	HEIBEI SHUANGJI CHEMICAL CO.,LTD
D010	BOF AGROCHEMICAL CO.,LTD
D019	SINOCHEM AGRO CO.,LTD.
D020	Hefei World Chemical Industry Co.,Ltd
D026	SHANDONG SINO-AGRI UNITED BIOTECHNOLOGY CO.,LTD.
E016	Hubei Shenquan Trade Co.,Ltd
E020	HUNAN HAILI CHEMICAL INDUSTRY CO.,LTD
E025	Jiangsu Sevencontinent Green Chemical Co.,Ltd
E026	SINOCHEM NINGBO (GROUP) CO.,LTD.
E029	SHANGHAI HEBEN-EASTSUN MEDICAMENTS CO.,LTD
E030	Union-agrochem Crop Protection Technology Co.,ltd
E033	SHANDONG SHENGPENG PESTICIDE CO,.LTD
F008	Jintan Jinwang Packing Sci-Tech Co.,Ltd.
F016	ZIBO NAB AGROCHEMICALS LIMITEDSHANGHAI TOPCHEMS INDUSTRY CO.,LTD
F019	Shandong Cynda Chemical Co.,Ltd
F020	NINGBO CYCLE CHEMICAL CO.,LTD
F025	Jingbo Agrochemicals Technology Co., Ltd.
F026	Flagchem International Co.,Ltd
F029	ZHEJIANG RAYFULL CHEMICALS CO.,LTD
F033	Nanjing Essence Fine-Chemical Co.,Ltd
F034	Anhui Jukai Agrochemical Co.,Ltd
G019	NANJING BESTGREEN CHEMICAL CO.,LTD

National Policy, Market Dynamics Create Changes in China

leah — Fri, 22 Feb 2013 02:42:29 +0000

CCPIA’s Sun Shubao reflects on a year of impressive progress for the Chinese agchem market.

February 11, 2013

By Sun Shunbao

With the Chinese government’s strengthened support of agriculture since the beginning of 2012, the demand for pesticides has grown steadily in China. Agrochemical output rose 19.3% to reach 2.87 million tonnes in the first 10 months of 2012. Although output of insecticides and fungicides both showed decreases of 7.9% and 9.4%, respectively, compared to the same period in 2011, herbicide production showed a significant 42.5% jump, driven by good sales of glyphosate and 2,4-D, and reached 1.32 million tonnes in total.

Total export output for the first nine months reached 0.75 million tonnes, accounting for 26.2% of total production. Total export value rose 17.3% to $2.36 billion. The unit price of exported products rose slightly. High value-added formulation products exports climbed, increasing access to the high-end markets in Europe and America.

Compared to the export data, the import data looks even better. Imported pesticide value rose 23.2% to $0.48 billion. China imported 54,200 tonnes in the first nine months, which breaks down to $8,879 per tonne. The improvement of import trade was also illustrated by the increased business of multinational companies.

The role of the multinationals’ formulation products has gradually become dominant, while the sale of domestic products has been restricted to some extent. Take the example of the rice planthopper occurrence this year. The prevailing product applied was Bayer’s Merit, and domestically, pymetrozine and buprofezin.

In the competition to prevent rice stem borer and rice caseworm, domestic chlorpyrifos, triazophos and acephate have totally lost ground to their multinational rivals: DuPont’s Rynaxypyr, Bayer’s Belt and Syngenta’s Virtako. This also explains partly why insecticide production has declined.

New policies are giving the industry a great push forward. The revised Pesticide Management Ordinance to be put into place by the end of this year will focus on five aspects as perfecting registration management, strengthening production, quality control, higher operation threshold, promoting safe use of pesticide and clarifying the responsibilities of each regulatory authority. In particular, the permit for pesticide operation will be introduced, which will facilitate an order distribution market. Other policies relating to specific products will have an impact on the production and sales of this industry, and will definitely promote the product structure upgrade.

Pesticide Policy Affects Glyphosate

The first product to be affected by the Pesticide Management Ordinance is glyphosate. Since the beginning of the year, the price of glyphosate has risen slowly, culminating in a 35% rise through November. All of this relates directly to the ban of glyphosate AS with active content below 30%. This ban implied higher environmental protection costs for glyphosate manufacturers that raised the cost of production. In addition, many outdated facilities were forced to close due to the stringent environmental regulations. These two factors lowered overall output.

To avoid the 2008 glyphosate bubble repeating itself, CCPIA’s glyphosate task force is trying to keep the relevant administration departments posted about the real situation of the industry.

One negatively impacted product is paraquat, which has the second-largest output in China. The Ministry of Agriculture’s joint notice 1745 will phase out paraquat completely as of July 1, 2016, due to increased poisoning and suicide cases in China. Since May, approval of new plants for producing paraquat technical and formulation has been ceased, and applications for registration and production permits of paraquat technical and aqueous solution (AS) have been terminated. From July 1, 2014, registration and production permits of paraquat AS will be cancelled, while the registration of paraquat AS produced by paraquat technical enterprise will continue solely for export purpose.

To help paraquat producers deal with a tough situation, CCPIA Paraquat Stewardship Alliance Working Group adopted actions, such as assisting in setting up a 24-hour poison information hotline, educating farmers on safe paraquat use, and offering training on medical staff’s knowledge about paraquat poisoning. It also helped enterprises to develop new formulations. For example, until now, the water soluble granule formulation developed by Shandong Luba has the registration license, while the gel formulation developed by Red Sun has almost finished the registration procedure. These measures are expected to extend the product life cycle of paraquat.

There is also now a heated discussion about what is next for the abamectin ointment following the ban last year by the MOA. The abamectin ointment problem is expected to trigger a price hike in a series of insecticides such as emamectin benzoate, which has already experienced higher prices since June 2012 for technical-grade. Now the CCPIA abamectin task force has researched content of abamectin ointment, hoping to find a solution.

It can be easily deduced that resource costs have inevitably increased in the agrochemical industry, and this will be a general trend in the future. Taking into consideration the appreciation of the RMB and higher labor costs, CCPIA believes that a struggling global economy and changing domestic market will provide and increasing number of challenges for the agrochemical industry in 2013.