Dichlorvos, trichlorfon, acephate, indoxacarb, carbofuran, diazinon and lambda-cyhalothrin have seen a significant downturn in demand and decreased market value;
Pymetrozine, imidacloprid, buprofezin, nitenpyram and thiamethoxam have seen market values decrease due to oversupply and stockpiling;
Emamectin benzoate TC value has increase by 25%, from 720,000 CNY to at 960,000 CNY;
Monosultap and Methidathion are subject to increased demand and have had their price inflate considerably as a result;
Imported pesticides are increasing market share
2013 – 2014 of Insecticides Indicate Market Downturn:
June and July are usually the best season for insecticide sales in China but Chinese pesticide companies are feeling the pinch after a significant decrease in sales figures compared to last year. Statistics have revealed that the poor sales have affected almost all products in the Chinese insecticide sector. The downturn in the industry has been attributed to a number of factors including unfavorable weather, over supply and greater use of imported pesticides.
Weather:
From the beginning of this spring, there has been a drought in Henan, Hebei and Shandong. Farmers have had no real need for insecticides and all but abandoned pest management causing insecticides sales to drop to almost zero in Northern China. The affected insecticides include imidacloprid, acetamiprid and lambda-cyhalothrin. The weather situation in Southern China although opposite to the north is not much better. The torrential rains in Guizhou and Hunan have reduced the demand for insecticides. Sales of dichlorvos, trichlorfon, acephate, indoxacarb, carbofuran, diazinon and lambda-cyhalothrin all decreased compared to the same period in 2013.Rice planthopper is a pest that affects rice cultivation and is particularly significant in Hunan and Jiangsu province. In comparison to previous years the insect has not posed any significant threat to rice cultivation in paddy fields and as such insecticides sales have dropped.
Stockpiles, Over Supply and Increased Competition for MNCs:
The price of pymetrozine, imidacloprid, buprofezin, nitenpyram and thiamethoxam declined due to a dip in sales and excess supply. For example, pymetrozine was introduced to the market in 2007 and since then its market share has steadily grown. Many pesticide producers have entered this market reflected in the large number of pymethrozine registrants in 2014. Currently, 8 companies have registered with ICAMA for TC while there are over 90 registrants of pymetrozine formulations. According to a distributor in Jiangsu, production by unregistered or non-certified producers has exceeded the capacity of the ICAMA registered companies, which caused a reduction in the price of pymetrozine TC to 140,000 CNY. This represents a decrease of 20% compared to the same period last year. The price of chlorpyrifos has dropped by 12% to 34,500 CYN over the past 4 month primarily because of excess supply and competition from Dupont’s patent product. Dupont has launched a series of marketing campaigns to promote its chlorantraniliprole over the past months to great success. The pyrethroids market has performed poorly since May. Prices of cyhalothrin and cypermethrin were flat at 160,000 CNY and 73,000 CNY respectively. Lambda-Cyhalothrin’s price was 260,000 CNY, slightly higher than the same period last year. The price of bifenthrin dropped by 10,000 CNY compared with last year. Most of the traditional pyrethroids were way down, which included: deltamethrin, fenvalerate, permethrin and etofenprox etc.
The Silver Lining: Price Increases for some Pesticides
Few insecticides exhibited any significant market growth in both volume and value. China banned the production and use of Avermectin paste (a byproduct during Avermectin TC production) in 2012, which fueled the price of Avermectin refined powder (TC) and further pushed up the price of Avermectin derivatives. Currently the price of Emamectin benzoate TC is at 960,000 CNY, up 25% percent from 720,000 CNY in the same period last year and price of Emamectin benzoate EW rose to 30,000 CNY. Monosultap has also performed well in the Chinese market. The outbreaks of borer and worm pests have become more severe in recent 4 years and many of the pests have become resistant to the traditional amide insecticides, which increased demand for monosultap. Meanwhile, Rotam lauched a monosultap/flubendiamide mixture and the combination has seen excellent sales growth. Combination insecticides were also highly recommended by state-owned agricultural extension groups in Jiangsu and have performed well. It is estimated that the demand would be over 800 tons. There are over one hundred monosultap associated pesticides registered with ICAMA and a dozen producers, but only 3 companies maintained the production of technical materials at present which includes Anhui Huaxing, Jiangsu Tianrong, and Hunan Haohua. Methidathion displayed excellent efficacy against mealy bug, mite, and bollworm on sunflower and peach. The insecticide is also experience excellent sales performances and price increases due to the increased demand. At present only 3 producers can currently produce the TC: Zhejiang Yongnong, Hangzhou Dadi and Syngenta.
