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Insecticides China News Sample - Published by CCM International Ltd

Insecticides China News Sample - Published by CCM International Ltd



Insecticides China News is a monthly report with 12 issues per annum published by CCM International Limited. It's your gateway to know what is happening in China Market. Key columns include company ...

Insecticides China News is a monthly report with 12 issues per annum published by CCM International Limited. It's your gateway to know what is happening in China Market. Key columns include company dynamics,raw materials, intermediates, supply & demand, price updates, registration, etc. If you are interested in this newsletter or ask for the latest sample, please contact emarket6@cnchemicals.com or 86-20-38767072.



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    Insecticides China News Sample - Published by CCM International Ltd Insecticides China News Sample - Published by CCM International Ltd Document Transcript

    • Insecticides China News Vol.2 Issue 11.2009 Insecticides Insecticides Insecticides Copyright © CCM International Limited
    • Insecticides China News Vol.2 Issue 11.2009 Content ■ Company Dynamics ..................................................................................... 1 Lianyungang Nanlong to construct thiodicarb plant.............................................................................................1 Most pesticide producers witness net profit decline .............................................................................................1 Shandong Zhicheng to expand abamectin capacity to 900t/a ............................................................................. 2 Jiangsu Weunite constructing 1,000t/a nitenpyram plant .................................................................................. 3 Hunan Haili to construct 10,000t/a carbamate insecticides .............................................................................. 4 ■ Raw materials and Intermediates ................................................................ 4 Chongqing Huage to construct 39,300 t/a chloropyridine plant ......................................................................... 4 ■ Supply and Demand .................................................................................... 5 Chlorpyrifos: the most promising insecticide ....................................................................................................... 5 JPRI to expand fufenozide registration in rice ..................................................................................................... 6 Dicofol excluded from dual-high product list ....................................................................................................... 7 Outlook for 2009 China insecticide market.......................................................................................................... 8 Chlorpyrifos export sees small growth in H1 2009 .............................................................................................. 8 Guangxi: big pesticide market .............................................................................................................................. 9 ■ Price Updates ............................................................................................. 11 Monthly price of key raw materials in Nov. 2009 ............................................................................................... 11 Monthly factory price of main insecticides in Nov. 2009 ................................................................................... 11 Monthly Shanghai port price and FOB Shanghai of main insecticides in Nov. 2009 ........................................12 Average market price of main crops in China (30 Oct. 2009) ............................................................................12 ■ Pricing ........................................................................................................ 12 Abamectin price rebounds ................................................................................................................................................ 12 ■ Registration ................................................................................................13 Insecticide registration situation in Oct.2009 ...................................................................................................13 Emamectin-benzoate registration soars in China ...............................................................................................14 ■ Pest ............................................................................................................15 Rice leaf roller occurs severely in Jiangsu ......................................................................................................................... 15 ■ News in Brief ............................................................................................. 16 Pesticide import volume up 29% in Sep.2009 ................................................................................................................... 16 Jiangsu Changlong to relocate 11,450 tonnes insecticide production lines ................................................................... 17 Number of pesticide companies to reduce 30% in 2015 .....................................................................................17 China plans to reform pesticide storage institution ..................................................................................................... 17 Operating income of Zhejiang Qianjiang down 18.6% in Q3 ....................................................................................... 17 China Crop Protection Summit Malathion in China 2010 - Methidathion Production & Market Coming Reports: - will be launched in Shanghai in China - Seed and Seed Treatment China China during 18th March and 19th Report March, 2010. Ready Trade Reports: - Future Pespective of Gene - Imidacloprid Production and Modified Crops in China Ready Market Reports: Export in China Jan.2008 -Jul.2009 - Crop Protection China Market: - Bifenthrin Production and Export CCM newsletters related to Opportunities and Challenges in China Q1 2009 Insecticides: - Future of Green Biotechnology in - Methomyl Production and Export - Crop Protection China News China in China 2008-Jun. 2009 - Herbicides China News - The Survey of Fipronil in China - Abamectine Production and - Fungicides China News - Production and Market of Export in China 2008-Jun. 2009 - Glyphosate China Monthly Report CCM International Limited I www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 Welcome to the November issue Headlines of Insecticides China News 0911 of Insecticides China News 0911, Lianyungang Nanlong is planning to JPRI is ready to expand fufenozide specially published by CCM construct a 1,000t/a thiodicarb plant in registration in rice in 2009. International, who has been late 2009. extensively and intently focusing on Dicofol is no longer included in the dual- the dynamics of China’s insecticide Most listed pesticide producers continue high product list issued by GAQSIQ. But it industry. to witness profit decline in Q3 2009. In is difficult for dicofol to resume previous order to increase their profit, most listed position in pesticide market. Affected by global economic pesticide producers reduce their operating depression, China’s pesticide costs. According to China Customs, China has industry witnesses a downturn accumulatively exported about 4,842 Shandong Zhicheng, a domestic key tonnes chlorpyrifos in H1 2009, up in 2009, especially in H1 2009, abamectin producer, is enlarging its featuring both the price and export 7.52% year on year , with export value of abamectin capacity from current 450t/a fall of pesticides. Among the 3 USD23.67 million. to 900t/a. categories of pesticides, market for Chinese pesticide industry witnesses a insecticide is the worst in 2009. Jiangsu Weunite is constructing 1,000t/ downturn in 2009 . Among the 3 categories a nitenpyram plant which will enable the of pesticides, market for insecticide is the Currently, chlorpyrifos and company to foray into pesticide business. worst in 2009. abamectin are still hot in registration and production in China, for their Hunan Haili commences the construction Guangxi plays an important role in China promising markets. For instance, of 10,000t/a carbamate insecticides plant pesticide market. In China, Guangxi’s Shandong Zhicheng plans to expand in Changde Deshan Development Park on demand for pesticide ranks the tenth, with abamectin production line. Sep. 25th, 2009. The construction mainly market size of about USD220~290 million. aims to pave the way for the company’s relocation. Abamectin price greatly rebounds in Besides, lowly toxic and self- China in early Nov. 2009, mainly driven by developed insecticides, like Chongqing Huage is planning to construct supply fall. fufenozide, gradually have seized a 39,300 t/a chlorpyridine plant, which larger market shares in insecticide consists of 21,800 t/a pyridine base 248 companies registered 350 insecticides market than ever before, thanks to facilities and 29,300t/a chlorpyridine in China in Oct.2009. governmental support and good facilities. The registration for bifenthrin has soared efficacy. With the quit of 5 highly toxic insecticides, in 2008 and 2009. During 2009 and beyond, we will especially the countrywide ban on fipronil since Oct. 1st 2009, chlorpyrifos Ocurrence of rice leaf roller has been cover a wide variety of issues related is recognized as the most promising becoming more and more serious in to insecticide market in China, insecticide. Jiangsu during the past decade including company dynamics, supply and demand, price monitoring, related policies/ registration, raw Main companies covered in this issue materials and intermediates, etc. If there are specific topics you would like to see us cover or would like to investigate any of the subjects covered in more details, please contact us - CCM International. CCM International Limited II www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 ■ Company Dynamics Lianyungang Nanlong to construct thiodicarb plant N anlong (Lianyungang) Chemicals Company (Lianyungang Nanlong) is planning fields. As of Oct. 2009, 8 companies had registered thiodicard technical, including Shandong Huayang about three times of USD7,331/t (RMB50,000/t) for methomyl. to launch construction of a 1,000t/ Technology Co., Ltd (Huayang Mr. Shao reveals that China’s export a thiodicarb plant in late 2009. The Technology), Sinochem Ningbo rebate on thiodicarb had been project has passed environmental Chemicals Co., Ltd., Jiangsu Repont cancelled on August 1st , 2008. As impact assessment by now, Pesticide Co., Ltd., Shandong one of its raw materials, methomyl according to the company. Libang Chemicals Co., Ltd., Bayer belongs to dual-high products Cropscience Co., Ltd., etc. (Please refer to Insecticides China Mr. Li, sales manager of News 0806). Overseas demand for Lianyungang Nanlong, reveals that With annual output of 2,000 tonnes methomyl is not large, and only predecessor of this company was methomyl technical, Huayang several hundred tonnes is exported Jiangyin Longdeng Chemicals Co., Technology is the largest methomyl every year. Ltd. (Jiangyin Longdeng) founded producer and a key thiodicarb in 1992. Owing to the breakout of producer in China. According to Mr. Lianyungang Nanlong’s investment cyanobacteria incident in Taihu Lake Shao, foreign trade manager from in thiodicarb production faces in 2007, Jiangyin Longdeng was the company, only 2~3 companies great risk, because the government forced to relocate to Lianyungang are engaged in thiodicarb production will restrict methomyl production Chemicals Industry Park, and in China, as it is difficult to control through pollution treatment, bank meanwhile renamed as Lianyungang the production process. loan, export tax rebate, etc. In the Nanlong, with registered capital of long run, thiodicarb production may about USD7.5 million. Thiodicarb is considered as the have the same fate as methomyl, as update product of methomyl, it is made from methomyl. Some According to Mr. Li, the company with advantage of lower toxicity. producers have already been forced is mainly engaged in methomyl But for its higher price, domestic to quit production, with market technical production now and demand for thiodicarb is much left to other producers or to other almost all of its methomyl products smaller and nearly all thiodicarb insecticides. are exported. produced in China is for export. Thiodicarb quotation from Huayang In China, thiodicarb is mainly used Technology is about USD21,994/ to control cotton bollworm in cotton t (RMB150,000/t) in Oct. 2009, Most pesticide producers witness net profit decline I nsecticide business in most listed pesticide producers continues to witness profit decline in Q3 2009. Co., Ltd (Jiangsu Yangnong) reduced to USD2.97 million in Q3 2009 from USD11.46 million in Q2 dropped 14% in end Sep.2009 compared to early Jul.2009, and the prices of triazophos and However, In order to increase their 2009. Net profit of Hubei Sanonda imidacloprid also slightly has net profit, most listed pesticide Co., Ltd (Hubei Sanonda) and decreased in the end Sep.2009., producers reduce their operating Shandong Huayang Technology which has directly impacted costs. Co., Ltd (Huayang Technology) has operating profit. also markedly dropped in Q3 2009 According to Q3 reports, most listed compared to Q2 2009. Besides, owing to slight occurrence producers in insecticide industry of insect pests in peak period of have witnessed reduction of net The net profit decrease was caused insecticides consumption, most profit from Q2 2009 to Q3 2009, by the price decrease and sales insecticide consumption volume owing to low sales price of pesticides volume fall of most insecticides. markedly reduced in Q3 2009, and demand shrinkage of home which affected insecticide sales and abroad market. For instance, In Q3 2009, most pesticide prices volume of pesticide producers. net profit of Nanjing Redsun Co., kept consecutive decrease. Ex- Ltd (Nanjing Redsun) has reduced factory price of 95% chlorpyrifos Furthermore, insecticide export fall to USD0.08 million in Q3 2009 has dropped to USD4,501/t in end impacted by global financial crisis from USD5.10 million in Q2 2009. Sep. 2009 from USD4,978/t in early also caused the drop of operating Jiangsu Yangnong Chemical Group Jul. 2009, and that of abamectin income and net profit. CCM International Limited 1 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 TABLE1: Business situation of major insecticide companies from Q4-2008 to Q3- 2009 (Unit: million USD) Shandong Jiangsu Year Item Nanjing Redsun Hubei Sanonda Hebei Veyong Dacheng Yangnong Operating income 30.93 117.54 79.00 65.90 33.43 Q3-2008 Net profit -0.52 -1.53 6.72 8.75 0.20 Operating costs 32.21 119.51 69.96 54.79 33.40 Operating income 13.36 152.22 32.07 75.50 19.92 Q4-2008 Net profit -15.60 -1.95 3.30 4.56 -11.64 Operating costs 30.43 160.34 31.73 64.76 32.67 Operating income 31.58 105.23 98.88 76.41 9.63 Q1-2009 Net profit 0.39 -1.03 6.76 4.71 -3.25 Operating costs 31.23 105.75 89.98 70.44 12.88 Operating income 31.45 116.86 72.00 67.84 20.97 Q2-2009 Net profit 0.12 5.10 11.46 2.04 3.26 Operating costs 31.33 121.45 59.16 65.76 19.89 Operating income 24.25 119.09 25.39 57.32 18.25 Q3-2009 Net profit 0.16 0.08 2.97 0.17 0.43 Operating costs 25.37 119.72 22.00 60.25 12.70 Source : The report from above companies At the same time, almost all listed domestic insecticide consumption pesticide producers decreased their With gradual economic recovery, has entered off seasons, which will operating cost in order to improve operating rate of pesticide producers affect insecticide consumption their profit. For example, the has increased in recent three years. volume and operating income of operating cost of Jiangsu Yangnong Besides, owing to price growth of pesticide producers. has dropped 62.8% in Q3 2009 raw materials, most insecticide compared to Q2 2009, Huayang prices have rebounded or keep stable Hence, it is predicted that operating Technology dropped 36.1%, and from Oct. 2009, which contribute income and net profit of pesticide Shandong Dacheng dropped 19%, to improving operating profit of producers will slightly fall in Q4 etc. pesticide producers. However, 2009 compared to Q3 2009. Shandong Zhicheng to expand abamectin capacity to 900t/a S handong Zhicheng Chemicals Co., Ltd. (Shandong Zhicheng), a key abamectin producer in China, continues to be prosperous. For the sake of the ban on 5 high- about 2,300 tonnes, up about 50% over the previous year (Please refer to Insecticides China News 0908). is enlarging its abamectin capacity toxic insecticides and high cost from current 450t/a to 900t/a. The performance, abamectin has China has restricted the production project will be finished by late 2010, developed to be one of the most of 22 kinds of dual-high pesticides, driven by the large demand. After promising insecticides in China. including 21 insecticides (Note: 24 the expansion, the company is likely Many pesticides have encountered kinds of pesticides were listed as to become the largest producer in slump in both price and demand in dual-high pesticides in Feb.2008, China and gain larger market share 2009, due to global financial crisis, and after review, dicofol and in the near future. but abamectin market was impacted dipterex has been eliminated less. Abamectin price in H1 2009 from the list since May 2009 and Total investment in the expansion kept at nearly the same level over only 22 kinds of pesticide belongs is over USD29 million (RMB200 the previous year. to dual-high pesticides.), and million) which is mainly from credit cancelled export tax rebate for those loan. According to Mr. Sun, sales According to Abamectin Industry pesticides on August 1st , 2008, manager of Shandong Zhicheng, Forum in 2009, total demand which unavoidably has impacted the company is likely to expand for abamectin (calculated by AI) global pesticide supply, forcing abamectin capacity to about 2,000t/ (including domestic demand and other countries to purchase more a by 2011, if abamectin market export volume) is estimated to be environmentally friendly pesticides, CCM International Limited 2 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 FIGURE 1: Price change of abamectin in the first 8 months of 2009 and 2008 , USD/t about 578% year on year, including 180,000 the technical of 90 tonnes and the 160,000 1.8% EC of 4,272 tonnes. And total 140,000 export value in H1 2009 reached 120,000 USD31.24 million, up 171% year on 100,000 year. 80,000 60,000 Founded in 2004, Shandong 40,000 Zhicheng is a wholly own subsidiary 20,000 of Hebei Zhicheng Chemicals Group 0 Co., Ltd. (Hebei Zhicheng). With total assets of USD126 million (860 5-Jul 19-Jul 4-Jan 18-Jan 1-Feb 15-Feb 7-Jun 21-Jun 1-Mar 15-Mar 29-Mar 10-May 24-May 2-Aug 16-Aug 30-Aug 12-Apr 26-Apr million yuan), Hebei Zhicheng is mainly engaged in production of Price changes in 2009 Price changes in 2008 dye, fertilizer, pesticide and chemical Source: CCM International raw materials. In 2004, Hebei Zhicheng invested about USD31 such as abamectin. significantly in 2009. According to million (RMB250 million) to build statistics from China Customs, China 300t/a abamectin production line in Relying on the policy support, accumulatively exported about 4,362 Shandong Zhicheng. export volume of abamectin grows tonnes abamectin in H1 2009, up Jiangsu Weunite constructing 1,000t/a nitenpyram plant A ttracted by the product’s promising future, Jiangsu Weunite Fine Chemical Co., Ltd. efficacy on rice hoppers, even zero on brown plant hoppers as the targets acquire stronger resistance. The quit nitenpyram is registered to control aphid in orange orchard only. (Jiangsu Weunite) is constructing of imidacloprid is drawing near, but China’s nitenpyram capacity is a 1,000t/a nitenpyram plant, a few insecticides can substitute it. likely to surge if the registration indicating the company’s foray into for rice control is approved, and pesticide business. In general, there are two kinds of domestic nitenpyram capacity may insecticides for rice hopper control. be surplus in the near future. Most The project is located in Xinyi City One is with quick killing effect and nicotinoid insecticides share a key of Jiangsu Province, one of China’s the other is with durable efficacy . intermediate, namely 2-Chloro- most important pesticide production Imidacloprid belongs to the latter 5-chloromethylpyridine (CCMP). and consumption regions, with and currently only buprofezin and Starting from CCMP, just one step total investment of about USD8.8 pymetrozine can replace it . But in is necessary for the production of million (RMB60 million), of which 2009, nitenpyram has been used almost all nicotinoid insecticides, about USD0.6 million (RMB4.2 for control of rice hoppers in some so it only takes little capital to million) is used for pollutant provinces, such as Hunan, Hubei, transform the production lines of treatment. According to Mr. Zang, etc, though it has not been registered imidacloprid or acetamiprid to that the company’s vice general manager, to control rice hopper by Oct. 2009 . of nitepyram, which means that as of Oct.2009, though the project This has encouraged the company’s domestic nitenpyram capacity can is still undergoing environmental construction of nitenpyram plant. be expanded easily in a short time. impact assessment, construction has Currently, domestic annual demand already kicked off. It doesn’t comply Other registered quick killing for nitenpyram is estimated at 5,000 with governmental policies, but is insecticides for rice hopper control tonnes. common in China. If everything goes include chlorpyrifos, fenobucarb, well, the project will be completed isoprocarb, metolcarb, dimethoate, Founded in 2006, Jiangsu Weunite by Mar. ~ Apr. 2010. etc. is jointly invested by Xinyi Gleason Precision Gear Company and a As a new nicotinoid insecticide, Nitenpyram has become hot now, Singapore merchant. Currently, the nitenpyram is thought as a substitute with registration situation as company specializes in production for imidacloprid, which used to be proof for it. As of Oct. 2009, there and sales of intermediates for the most popular insecticide for the have been 11 first registrations pyrethroid insecticides, such control of rice hopper in paddy field, (2 formal registrations and 9 as benzonitrile, cyanuric acid, but currently has seen declining temporary registrations . At present, propargyl bromide, etc. CCM International Limited 3 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 Hunan Haili to construct 10,000t/a carbamate insecticides H unan Haili Chemical Industry Co., Ltd. (Hunan Haili) commences the construction of 2,2-dimethyl-7-benzofuranol in China. 2,3-Dihydro-2,2-dimethyl-7- benzofuranol is a key intermediate insecticides, involving 6 kinds of carbamate insecticides and 3 kinds of organophosphorus insecticides. 10,000t/a carbamate insecticides for carbamate production. In plant in Changde Deshan addition, it will adopt mature Hunan Haili was listed in 1996, and Development Park on Sep. 25th, production technology of Hunan currently has 6 subsidiaries, three 2009. The construction mainly aims Research Institute of Chemical of which are related to crop plant to pave the way for the company’s Industry (HRICI), the only protection, including Hunan Haili relocation. domestic institute achieving great Changde Pesticide Co., Ltd., Jiangxi breakthrough in the production Haili Guixi Pesticide Co., Ltd. and The plant mainly includes technology of carbamate Beinong (Haili) Zhuozhou Seed- production lines of 5 insecticides, insecticides. coating Co., Ltd. namely propoxur, carbosulfan, benfuracarb, fenobucarb and Thanks to technology support About Hunan Research Institute of isoprocarb, with total investment of of HRICI, Hunan Haili has been Chemical Industry (HRICI) about USD21.99 million (RMB150 devoted to become China’s largest million). According to the schedule, and most competitive producer of Founded in 1951, HRICI is mainly the project is to complete by Nov. carbamate insecticides. It annually engaged in R&D of new products 2010. Hunan Haili estimates, if the produces over 2,000 tonnes and production technology in plant runs normally, calculated by carbofuran, accounting for about chemical industry. Currently, it has operating rate of 80%, the new 50% of domestic demand. And also 160 technicians, therein 14 doctors plant is expected to contribute an half of carbofuran output of Haili is and 35 masters. As of Oct. 2009, annual sales income of USD73.31 exported. HRICI has acquired 58 patents, million (RMB500 million) to the and over 60% of the patents are company. Besides, the company is the only related to pesticide industry. And domestic producer of propoxur, the production technologies of The plant has advantage in raw with capacity of 300t/a. As of propoxur and 2,3-Dihydro-2,2- material supply and production Oct. 2009, Hunan Haili has dimethyl-7-benzofuranol adopted technology. The raw material can 27 registrations, including 12 by Hunan Haili were developed by be ensured by its subsidiary Hunan technical registrations and 15 HRICI. Hunan Haili was originally Haili Zhuzhou Fine Chemical Co., formulation registrations. Among founded by HRICI in 1994. Ltd (Zhuzhou Fine Chemical), the the 12 technical registrations, only producer of 2,3-Dihydro- 9 registrations are related to ■ Raw materials and Intermediates Chongqing Huage to construct 39,300 t/a chloropyridine plant C hongqing Huage Bio-chemical Co., Ltd (Chongqing Huage), a company founded by the dominant The chloropyridine plant is expected to further expand Redsun’s pyridine industrial chain . As the only been undergoing environmental impact assessment. With investment of about USD71.22 million holder of Nanjing Redsun Co., Ltd. company having mastered pyridine (RMB485.78 million), the plant (Redsun) , is planning to construct production technology in China, is to be constructed in Chongqing 39,300 t/a chlorpyridine plant, Redsun has unmatched advantages Wanzhou Yanqin Chemical Park. involving in the construction of in pyridine industrial chain. Founded Pyridine base equipment in the 21,800 t/a pyridine base equipment by Mr. Shouhai Yang having project, is designed to adopt the and 29,300t/a chlorpyridine absolutely dominant holding right of technology developed by Redsun, equipment (including 2,400t/ Redsun, Chongqing Huage is being using formaldehyde, acetaldehyde a 2-chloropyridine, 3,600t/a built as the raw material supplier and ammonia as raw materials. 2,3,6-trichloropyridine, 21,000t/a for production of ‘Three Medicines’ 2,3,5,6-tetrachloropyridine, 2,300t/ (refers to pesticides, pharmaceutical The project is important for Redsun, a pentachloropyridine), according to and veterinary drug). as chloropyridine is an important Chongqing Enviro-online Net. variety of intermediates of the As of Oct. 2009, the project has ‘Three Medicine’, and can be used CCM International Limited 4 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 to produce diquat (herbicide), chlorpyrifos equipment. If pyridine tonnes 3-methylpyridine per nitrapyrin (herbicide), disopyramide price is between USD4,100~5,130/ year. According to Redsun, (pharmaceuticals), etc. And t (RMB28,000~35,000/t), pyridine most pure pyridine is used for its chlorpyrifos also can be made from route as reported has advantages paraquat production and all of its 2,3,5,6-tetrachloropyridine. Redsun in cost. Chongqing Huage’s 3-methylpyridine is sold to others. is the only domestic company who tetrachloropyridine production, has so far mastered chlorpyrifos if launched successfully, is likely Currently, Chongqing Huage is production technology with the to compete for the leading place constructing production lines of starting raw material of pyridine with TCAC route in chlorpyrifos PMIDA (N- (Phosphonomethyl) (pyridine route). production . iminodiacetic acid), a key intermediate for glyphosate With 20,000t/a chlorpyrifos At present, with 2 production production. capacity, Redsun has applied bases, Redsun has total pyridine pyridine route and TCAC route (uses base capacity of 37,000t/a and trichloro-acetyl chloride (TCAC) can produce 25,000 tonnes as the starting raw material) to the pure pyridine and 12,000 FIGURE2: Designed production process of chloropyridine facility 3-methylpyridine formaldehyd (10,000t/a) 2,3,6-trichloropyridine pyridine base e acetaldehyde (3,600t/a) (21,800 t/a) ammonia pure pyridine 2,6-dichloropyridine 2,3,5,6-tetrachloropyridine (11,800t/a) (21,000t/a) pentachloropyridine Photochlorination 2-chloropyridine (2,300t/a) (2,400t/a) Source: Chongqing Enviro-online Net ■ Supply and Demand Chlorpyrifos: the most promising insecticide W ith the quit of 5 highly toxic insecticides, especially the countrywide ban on fipronil since  Policy support Since 2005 when Chinese Oct. 1st 2009. For chloramine phosphorus, a potential strong competitor with low production Oct. 1st, 2009, chlorpyrifos, as an government launched trial project cost, it is easy to decompose when ideal substitute for highly toxic of substitutes for the highly toxic the air temperature is rather high, insecticides, is recognized as the pesticides , Ministry of Agriculture which restricts its sales and use. most promising insecticide. has successively recommended As to profenofos, though it has many substitutes for them, the same action mechanism as On Oct. 15th ~ 16th 2009, the including chlorpyrifos. chlorpyrifos, it only has a small sales International Forum on Substitutes and output, due to the poor market for Banned and Severely Restricted Besides, 5 highly toxic pesticides popularization. Pesticides & Chlorpyrifos Industry quit the market, leaving huge market Development was held in Shanghai. space for the substitutes, meanwhile In addition, according to Mr. As speaker of the seminar, Mr. offering good opportunity for the Liang, as Chinese government has Liang, Senior Engineer of Sinopec development of substitutes, such as paid more and more attention to Nanjing Chemical Company, made a chlorpyrifos. agricultural industry, the income speech titled Future of Chlorpyrifos of peasants has been growing and TCPA & Recommendation According to current production significantly, which stimulates and Analysis on Other Important and application, development of peasants’ e enthusiasm of crop Pesticide Intermediates, showing 3 insecticides has encountered planting. So it is likely for them his optimistic view on the future many problems. As to fipronil, the to buy more pesticides in order to of chlorpyrfos, based on following most competitive insecticide to ensure a more satisfactory yield, facts: chlorpyrifos in the past, has been which, in some extent, will promote banned in the countrywide since domestic demand for pesticides. CCM International Limited 5 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 technology key project , coupled Currently, with total capacity of  Chlorpyrifos with significant with more pesticide companies over 60,000t/a, over 20 companies advantages over other engaging in chlorpyrifos production, are legal chlorpyrifos technical substitutes chlorpyrifos production technology producers having acquired all the has made great breakthrough, qualifications needed. If the illegal First, as a broad spectrum especially in TCP production production plants are added, China’s insecticide, chlorpyrifos can control technology. Dependence on chlorpyrifos capacity is estimated to both aboveground and underground imported TCP has decreased a lot. be 70,000~80,000t/a now. pests. It has been registered in over ten countries . According to China As of Oct. 2009, the production cost Topics related to chlorpyrifos in the Pesticide Industry Association, of chlorpyrifos is about USD3,000/ seminar domestic sales of chlorpyrifos t. 1) H1 2009 Export Analysis (calculated by technical) were about on Overall Pesticides and Hot 18,000 tonnes in 2008, and global Yang Yu, majordomo of Dow (China) Products in Financial Crisis, such as sales reached about 140,000 tonnes. AgroSciences, in his speech ‘Global Chlorpyrifos Market Analysis of Chlorpyrifos’ 2) Future of Chlorpyrifos and TCPA Second, compared to the overseas in the seminar, predicts that & Recommendation and Analysis chlorpyrifos, domestic chlorpyrifos global market for chlorpyrifos will on Other Important Pesticide has advantages in production cost increase in the future with China Intermediates for its sufficient supply of raw to become the largest potential 3) Production Technologies of materials and advanced technology. market. Demand for chlorpyrifos in Chloryprifos at Home and Abroad South America will increase while 5) Global Market Analysis of The key intermediates for that in Europe and North America Chlorpyrifos chlorpyrifos production include will stay stable. Additionally, Mr. 6) R&D and Application of O,O-diethyl thiophosphoryl chloride Liang forecasts that global demand Environmentally Friendly (DTC) and 3,5,6-trichloropyridin-2- for chlorpyrifos will increase at an Formulation of Chlorpyrifos ol sodium (TCP). As the largest DTC annual growth rate of about 10%, 7) Non-Agricultural Application supplier, China produces about 40% reaching 254,000 tonnes by 2015. Analysis of Chlorpyrifos & of the global DTC output every year. And China’s chlorpyrifos output will Recommendation on Other account for about 40% of the total Insecticides Besides, as chlorpyrifos was listed global amount by 2015. as the state’s ten-five science and JPRI to expand fufenozide registration in rice J iangsu Pesticide Research Institute Co., Ltd (JPRI) is ready to expand fufenozide application Currently, fufenozide is only registered to control lepidopterous pests in vegetables, such as insecticides. However, it has created opportunities for other insecticides, such as fufenozide. Control efficacy scope to rice in registration in diamondback moth, beet armyworm, of dimehypo and molosultap has 2009. Meanwhile, the company is etc. After about 4 year’s market declined to 40%~70% of its original preparing for the formal registration promotion in vegetables, the efficacy in paddy fields of Yangze of fufenozide. The expanded company has gained small growth River Basin. application scope is expected to in fufenozide sales, Mr. Nie (sales help fufenozide fill market space in manager of JPRI) reveals. That The main lepidopterous pests in rice left by the ban of highly toxic may be another reason for the paddy fields are rice leaf roller, pesticides. registration expansion. asiatic rice borer, yellow rice borer, purplish stem borer, etc. As one of the insecticides with self- Fufenozide is likely to have a dominated intellectual property right bright prospect in the long run. However, fufenozide is facing great of JPRI, fufenozide was developed At present, the traditional low- challenges from other insecticides in 2001 and is reported to be the priced insecticides for control of such as abamectin, chlorpyridos only one insecticide self-developed lepidopterous pests in paddy fields, and bacillus thuringiensis as well. in China and is recommended as including dimehypo, molosultap, With the advantages of high efficacy, alternative of highly toxic pesticides cartap hydrochloride and triazophos, low toxicity and environmentally by Ministry of Agriculture (Please have been widely used at home. friendliness, these 3 insecticides are refer to Insecticides China News For long-term use, the pests have recommended as the substitutes for 0907). acquired strong resistance, leading the highly toxic insecticides. With to shrinking demand for these earlier popularization, coupled with CCM International Limited 6 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 many companies engaging in the the control of lepidopterous pests . Mr. Nie also discloses that the production and market expansion, in the near future, as the market company does not have sufficient these 3 insecticides are developing development of fufenozide needs capital for the market expansion of to be the leading insecticides to large capital. Company like JPRI, fufenozide currently. control lepidopterous pests in rice with registered capital of USD5.86 paddy, especially abamectin and million (RMB40 million) and annual Fufenozide may have chance to chlorpyridos. sales of about USD14.66 million take its place in insecticide market (RMB100 million), can’t afford it. in the next 5~10 years, as most of Though fufenozide has good effect In fact, it was the lack of capital the traditional insecticides will on lepidopterous pests, it is difficult that led to the original failure in the gradually withdraw from the to become the main insecticide for popularization among vegetables market. Dicofol excluded from dual-high product list D icofol, which appeared in ‘2008 Dual-high product List’ (‘dual high product” refers to product increases to about 95%. Dicofol was once popular for pest market has greatly shrunk, due to competition from other substitutes. Due to long-term use, dicofol’s with high pollution and high control in orchard. However, in the control efficacy has declined and environmental risk)(Please refer to past several years, its consumption can’t compete with new products. Insecticides China News 0806), is has rapidly declined, as its DDT The substitutes of dicofol used in no longer included in the list issued content is so high and people have orchard mainly include azocyclotin, by GAQSIQ (General Administration been attaching more and more abamectin, pyridaben, fenbutatin of Quality Supervision, Inspection attention to the food safety. It is oxide, fenpropathrin, flutenzine, and Quarantine) in May 2009, prohibited to be used to control hexythiazox, propargite, etc. mainly attributed to the efforts of orchard pests in some areas. Jiangsu Yangnong Chemical Group Currently, the use of dicofol is According to Shandong Dacheng Co., Ltd. (Jiangsu Yangnong). banned in tea plantation. Pesticide Co., Ltd, who stopped However, it is difficult for dicofol dicofol technical production in to recover its previous position in As of Oct. 2009, there are 46 active 2008, holding pessimistic view pesticide market. registrations of dicofol from 39 on dicofol market, the company companies, including 1 for technical, is unlikely to resume dicofol The high DDT content in dicofol 18 for 20% EC and 27 for mixed production in the future. technical resulted in dicofol’s being formulations. While in 2006, the listed as dual-high product in active registration of technical was With dicofol’s low price, it is Feb. 2008, which led to cancelled 3. unlikely for distributors to gain fat export rebate since Aug. 2008 . As profit from dicofol, and accordingly reported, the DDT content in dicofol Currently, Jiangsu Yangnong is the slim profit will depress their technical produced with traditional the only company with dicofol enthusiasm to promote this product. production technology is as high as technical registration. Mr. Hong, A distributor in Guiping City of 14%. Moreover, owing to low price sales manager of Jiangsu Yangnong, Guangxi Zhuang Autonomous and high efficacy, dicofol has been discloses that most of the company’s Region, says that usually he does widely used in China for about 30 dicofol products are exported. At not recommend dicofol to customers years, and its use has caused serious present, its technical capacity in the for its low profit, and another pollution to the environment. company is about 3,000t/a. In Oct. two insecticides, abamectin and 2009, the quotation for 20% dicofol pyridaben, have become leading Jiangsu Yangnong, the only active EC is USD2, 346/t (RMB16,000/t). insecticides used in orchard now. dicofol producer in 2009, has made great efforts to reduce DDT content, It is not easy for dicofol to Being eliminated from dual-high which contributes greatly to the recover its lost market share, as products, dicofol has again been elimination of dicofol from the more environmentally friendly granted export rebate since May dual-high product list. As Jiangsu insecticides have dominated the 2009, which is expected to promote Yangnong has started technology market. Mr. Zhang, sales manager its export volume. It seems that innovation of dicofol since 1998, of Henan Kaifeng Kelingfeng Jiangsu Yangnong can only gain the quality of dicofol technical has Pesticide Co., Ltd. that has profits from the likely increasing achieved great improvement. With registered 20% dicofol EC, reveals overseas market. application of the new technology, that the company has stopped DDT content in dicofol technical has dicofol formulation production dropped to about 1% and AI content for about 3 years, as dicofol CCM International Limited 7 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 Chlorpyrifos export sees small growth in H1 2009 A ccording to China Customs, China has accumulatively exported about 4,842 tonnes 2009. Calculated by export value, top 10 technical. With the recovering global economy, chlorpyrifos in H1 2009, up 7.52% destinations for China’s chlorpyrifos China’s chlorpyrifos export volume year on year, with export value of are India, Vietnam, Israel, Pakistan, in H2 2009 is likely to increase USD23.67 million, closing to that Turkey, Ukraine, South Korea, compared with last year. For in H1 2008, USD23.68 million. Thailand, Malaysia and Australia. example, export volume in Jul.2009 Compared with the same period Total export volume to these 10 is about 1,235 tonnes, up 15.1% of previous year, export volume of countries is about 3,649 tonnes year on year. And the total export chlorpyrifos technical in H1 2009 with export value of USD18 million, volume of chlorpyrifos is estimated dropped 13.84% while that of accounting for about 75% of the to reach about 12,000 tonnes in formulation increased by 53.58% . total in H1 2009 . 2008, increasing by 12% over the previous year . According to historical record, Among the top 10 destinations, chlorpyrifos export usually peaks Pakistan, Turkey and Ukraine during May ~ October every year. In mainly import chlorpyrifos H1 2009, May witnessed the largest formulations (40% EC and 48% EC) chlorpyrifos export volume of 1,259 from China, and the rest 7 countries tonnes, about 26% of the total in H1 mainly import chlorpyrifos FIGURE3: Chlorpyrifos export volume, H1 2009 and H1 2008, tonne 6,000 5,000 4,000 3,000 2,000 1,000 0 Technical Formulation Total export volume H1 2008 H1 2009 Source: CCM International TABLE 2: Export situation of chlorpyrifos to the top 3 export destinations Export volume, tonnes Export value, Country Formulation Technical Total '000USD India 4 830 834 5,011 Vietnam 392 528 920 4,301 Israel 4 565 569 2,874 Source: CCM International Outlook for 2009 China insecticide market C hinese pesticide industry witnesses a downturn in 2009. Among the 3 categories of pesticides, export volume, domestic demand for insecticide has decreased by 10%~15% over last year, due to a  Domestic demand slump As reported, nearly no large pests outbreak took place in most regions namely insecticide, herbicide and relatively good weather which is not of China thanks to the good weather, fungicide, market for insecticide is favorable for pest occurrence. except for the ‘three rice pests’ (rice the worst. Apart from the declining plant hopper, rice leaf roller and CCM International Limited 8 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 rice stem borer) in Central China. methylamino, abamectin, benzoate Therefore, the main insecticides and profenofos in 2009, the most  Increase in insecticide import used in paddy fields, such as popular insecticides used in cotton Compared to the fall in pesticide thiosulfuric acid, chlorpyrifos, fields. export volume, import volume of triazophos, buprofezin, dichlorvos, pesticide is on the rise in 2009. acetamiprid, etc, have witnessed a  Large fall in insecticide price According to China Customs, total domestic consumption plummet. Owing to the global economic pesticide import volume in the first downturn, China’s insecticide export 9 months reached 35,972 tonnes, Besides, cotton planting area value decreases considerably in 2009 up 3.8% year on year. Owing to reduction can be also attributed . Coupled with capacity expansion of the heightened requirements on to the drop. According to China many kinds of insecticides in large pesticide residue in more and Cotton Association, China’s cotton scale , insecticide industry witnesses more countries, demand for planting area in 2009 has decreased fierce price war and great drop in environmentally friendly pesticides by about 11% over last year, due to 2009. Except abamectin, whose is growing, which promotes China’s the depressed global textile industry. price remains the same level with pesticide import. The imported Cotton planting area in Henan, last year, most insecticides have insecticides are mainly used in Anhui, Hunan and Hubei in 2009 witnessed continuous price fall in orchard and vegetables. Insecticide even reduces by about 30~ 40% over the first 9 months of 2009. import growth inevitably aggravates 2008. competition in domestic insecticide According to China Customs, China’s market. Planting area decrease, coupled pesticide export volume in H1 2009 with no great breakout of cotton China Pesticide Association declined by 4% year on year, and the bollworm and lygus bugs, results estimates that currently, domestic export value decreased by 34% over in the declining sales for phoxim, pesticide market size is about the previous year. USD3,225.8 million (RMB22,000 million). Given the insecticide share FIGURE 4: Price changes of abamectin in the first 9 months of 2009, USD/t of 40%, domestic insecticide market size is estimated to be USD1,290.3 180,000 million. According to CPA, the 160,000 pesticide market size will increase 140,000 120,000 at an annual growth rate of 3%~6% 100,000 in coming years, and the share of 80,000 insecticide in domestic pesticide 60,000 structure will further decline. The 40,000 20,000 6 varieties of pesticides for crops, 0 rice, vegetable, orchard, wheat, corn 5-Jul 19-Jul 4-Jan 18-Jan 1-Feb 15-Feb 7-Jun 21-Jun and cotton, represent about 80% of 1-Mar 15-Mar 29-Mar 10-May 24-May 2-Aug 16-Aug 30-Aug 12-Apr 26-Apr pesticide market. Price changes in 2009 Price changes in 2008 Source: CCM International Guangxi: big pesticide market A s a big agricultural region, Guangxi plays an important role in China pesticide market. Its reduced rainfall this year. Since weather in Guangxi is in The pesticide needed for four major crops in Guangxi, namely rice, sugarcane, vegetable and fruit, takes demand for pesticide has ranked the favor of the growth for many pests, up roughly 90% of local pesticide tenth in China, reaching 120,000 insecticides have been dominating market demand. The four crops’ total tonnes (If calculated by technical, local pesticide market. Among the 3 planting area accounts for about the demand is about 15,000 tonnes) categories of pesticides, insecticides 80% of Guangxi’s total. According in 2009, according to Guangxi Plant take up over 70% of the total to Guangxi Agricultural Information Protection General Station. And the pesticide consumption by volume. Center, planting areas of these four total market value reaches about Located in tropical and subtropical crops are: 2.03 million hectares USD220~290 million annually. zone, Guangxi’s temperature usually for rice, 0.98 million hectares for Pesticide demand in Gunagxi might is high and it has abundant rainfall sugar cane, 0.83 million hectares decrease 5.8% over last year, mainly in the whole year. vegetables and 0.74 million hectares due to the high temperature and fruit in 2009. CCM International Limited 9 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 FIGURE 5: Guangxi pesticide market distribution, breakdown by crop increasing planting area of vegetable, stimulating the rapid growth of pesticide consumption in vegetable. The pesticide market size 10% for vegetable has been about USD45 16% Rice million Guangxi presently. 42% Sugarcane Vegatable Pesticides with high effectiveness and low toxicity, such as abamectin, Orchard 19% beta-cypermethrin, abamectin- Others aminomethyl, etc, are popular for 23% control of vegetable pests. Main pests used in vegetable planting area are phyllotreta striolata, diamondback moth, whitefly, aphid, Source: CCM International vegetable leaf miner, etc. Low-priced and highly toxic  Introduction to the pesticide pesticides still dominate sugarcane  Orchard market breakdown by crops planting area in Guangxi, and the Annual pesticide market for Guangxi  Rice mainly used pesticides include orchard is estimated to value about Rice plays a decisive part in Guangxi carbofuran, phorate, isofenphos- USD40 million. As there are little pesticide market. Currently, the methyl and terbufos whic h has been changes in the occurrence of pests pesticide market for rice has been banned on sugarcane since 2004. As and disease, pesticide demand from worthy of about USD100 million reported, though the market share of orchard has kept stable in recent per year, sharing about 42% of the terbufos sees a slight fall, it is still as years. total market size. And the main high as 70% in the pesticide market insecticides used in the paddy for sugarcane. For example, the cost There are great differences in the fields are abamectin, abamectin- on using terbufos for pests control pests among different varieties of aminomethyl, triazophos, is about USD53/ha in 2009. While fruits. As to orange orchard, main chlorpyrifos, phoxim, bisultap, etc. using carbofuran, cost is about pests are scale insects, whitefly, USD114/ha. aphids, longicorn, citrus leaf miner, The perennial pests in paddy fields leaf rollers, fruit flies, leaf meats, etc. mainly include yellow stem borer, Insect pests is the main cause for As to banana, the disease is the main rice leaf folder, rice plant hopper and sugarcane production damage. The control object. And the damages rice gall midge in Guangxi. In the common pests in sugarcane fields on lichi are mainly caused by lichi past several years, some new pests are sugarcane borer, white woolly stinkbug, conopomopha sinensis have occurred frequently in part aphid, sugarcane thrips, yellow bradley, conopaworpha litchiella of the region, such as striped stem top borer (chilotraca inluscatellus Bradley, leaf rollers, eriophyid, etc. borer, dark-headed stem borer, pink snellen), cavelerius saccharivorus, borer, army worm, rice green stink etc, which mainly hurt the leaf Different fruits usually use different bug, rice grasshopper, etc. and stem of sugarcane. Usually 2 pesticides in orchards. The popular applications of pesticide are needed insecticides in orange orchard are Guangxi belongs to the double rice in the sugarcane fields with one abamectin, chlorpyrifos, propargite, cropping area. Generally, the first application in Apr.~May and the methidathion, etc. And that in lichi season rice needs 4 applications of other in Jul.~Aug. orchard are cypermethrin, bisultap, pesticides and the second season methomyl, etc. rice needs 2~3 applications. As the largest sugarcane producer, Guangxi accounts for about 64% of After Hebei and Guangdong,  Sugarcane the country’s sugarcane planning Guangxi has the third largest area As the largest cash crop in Guangxi, area, which is mainly distributed in of orchard. And the main fruits are sugarcane consumes about Liuzhou City, Laibing City, Nanning orange, lichi and banana. 48,000 tonnes pesticides each City, Chongzuo City, Baise City, year with a value of about USD55 Guigang City, etc. million. According to China Sugar Association, the pesticide cost for  Vegetable sugarcane production is about Next to Guangdong, which is a USD88 per hectare (RMB600 per large consumer, coupled with a hectare). favorable weather for vegetable planting, Guangxi has a gradually CCM International Limited 10 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 ■ Price Updates Monthly price of key raw materials in Nov. 2009 Ex-factory price Market price Raw material 1- Nov -09 1- Oct -09 Nov-08 1- Nov -09 1- Oct -09 Nov-08 Intermediates USD/ RMB/t USD/ RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t t t 484 3,300 469 3,200 733 5,000 528 3,600 513 3,500 762 5,200 Thionyl chloride (99%) 2-chloro-5- 18,284 124,700 16,129 110,000 29,296 199,800 18,328 125,000 16,173 110,300 29,326 200,000 methylpyridine(93%) Thiophosphoryl 1,422 9,700 1,862 12,700 2,097 14,300 1,466 10,000 1,906 13,000 2,126 14,500 chloride(99%) 1,745 11,900 1,760 12,000 1,657 11,300 1,789 12,200 1,804 12,300 1,686 11,500 Acrylonitrile(99%) 1,642 11,200 1,628 11,100 2,463 16,800 1,686 11,500 1,672 11,400 2,493 17,000 *DETCL(98%) 4,355 29,700 4,355 29,700 5,836 39,800 4,399 30,000 4,399 30,000 5,865 40,000 *STCP(85%) 3,695 25,200 3,695 25,200 5,103 34,800 3,739 25,500 3,739 25,500 5,132 35,000 *PHT(98%) 2,302 15,700 2,375 16,200 2,903 19,800 2,346 16,000 2,419 16,500 2,933 20,000 Benzyl cyanide(99%) *CCMP(98%) 13,006 88,700 12,859 87,700 21,965 149,800 13,050 89,000 12,903 88,000 21,994 150,000 *DETCL: O, O-diethylthiophosphoryl chloride *STCP: Sodium 3,5,6-trichloro-2-hydroxypyridine *PHT: 1-Phenyl-3-hydroxy-1,2,4-triazole *CCMP: 2-Chloro-5-chloromethylpyridine Source: CCM International Monthly factory price of main insecticides in Nov. 2009 1- Nov -09 1- Oct -09 Nov-08 1- Nov -09 1- Oct -09 Technical Formulation USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t Chlorpyrifos (95%) 4,501 30,700 4,501 30,700 7,009 47,800 480g/L EC 3,328 22,700 3,035 20,700 99,663 679,700 87,933 599,700 131,935 899,800 1.8% EC 3,622 24,700 3,622 24,700 Abamectin (95%) 12,419 84,700 12,419 84,700 26,364 179,800 10% WP 1,716 11,700 1,716 11,700 Imidacloprid (95%) Lambda-cyhalothrin 23,416 159,700 24,883 169,700 26,364 179,800 25g/L EC 2,009 13,700 1,716 11,700 (95%) 11,686 79,700 12,126 82,700 14,633 99,800 Cypermethrin (94%) 7,434 50,700 7,727 52,700 10,235 69,800 Methomyl (98%) 12,053 82,200 11,979 81,700 12,581 85,800 Carbofuran (99%) 2,529 17,250 2,522 17,200 3,490 23,800 Phoxim (90%) 3,475 23,700 3,622 24,700 5,323 36,300 Triazophos(85%) 5,748 39,200 5,821 39,700 6,422 43,800 Propargite (90%) 5,015 34,200 5,308 36,200 8,035 54,800 Buprofezin(95%) 12,419 84,700 12,639 86,200 24,164 164,800 Acetamiprid(95%) 99,663 679,700 102,595 699,700 130,469 889,800 Deltamethrin (98%) Omethoate (75%) 3,768 25,700 3,768 25,700 2,977 20,300 Source: CCM International CCM International Limited 11 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 Monthly Shanghai port price and FOB Shanghai of main insecticides in Nov. 2009 FOB Shanghai Shanghai Port Price Market Price Price 1- Nov-09 1- Oct-09 Nov -08 1- Nov- 1- Oct- Formu- 1- Nov-09 1- Oct-09 Technical 09 09 lation USD/ USD/ USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t USD/t RMB/t RMB/t t t 4,545 31,000 4,545 31,000 7,038 48,000 4,425 4,425 480g/L 3,372 23,000 3,079 21,000 Chlorpyrifos (95%) EC 99,707 680,000 87,977 600,000 131,965 900,000 95,495 84,269 1.8% EC 3,666 25,000 3,666 25,000 Abamectin (95%) 12,463 85,000 12,463 85,000 26,393 180,000 12,003 12,003 10% WP 1,760 12,000 1,760 12,000 Imidacloprid (95%) Lambda-cyhalothrin 23,460 160,000 24,927 170,000 26,393 180,000 22,527 23,930 25g/L 2,053 14,000 1,760 12,000 (95%) EC Cypermethrin 11,730 80,000 12,170 83,000 14,663 100,000 11,301 11,722 (94%) 7,478 51,000 7,771 53,000 10,264 70,000 7,232 7,512 Methomyl (98%) 12,097 82,500 12,023 82,000 12,610 86,000 11,652 11,582 Carbofuran (99%) 2,573 17,550 2,566 17,500 3,519 24,000 2,538 2,531 Phoxim (90%) 3,519 24,000 3,666 25,000 5,352 36,500 3,443 3,583 Triazophos(85%) 5,792 39,500 5,865 40,000 6,452 44,000 5,618 5,688 Propargite (90%) 5,059 34,500 5,352 36,500 8,065 55,000 4,916 5,197 Buprofezin(95%) 12,463 85,000 12,683 86,500 24,194 165,000 12,003 12,213 Acetamiprid(95%) 99,707 680,000 102,639 700,000 130,499 890,000 95,495 98,301 Deltamethrin (98%) Omethoate (75%) 3,812 26,000 3,812 26,000 3,006 20,500 3,724 3,724 Source: CCM International Average market price of main crops in China (30 Oct. 2009) 30-Oct 15-Oct Oct., 2008 Crops USD/t RMB/t USD/t RMB/t USD/t RMB/t Wheat 281 1,918 279 1,904 255 1,739 Corn 257 1,753 266 1,820 234 1,599 Soybean(oil) 530 3,620 535 3,655 510 3,480 Soybean(food) 835 5,700 820 5,600 754 5,150 Peanut 1,055 7,208 1,040 7,100 1,230 8,400 Indica rice 424 2,895 425 2,905 389 2,653 Japonica Rice 447 3,052 451 3,083 442 3,020 Rapeseed 542 3,700 542 3,700 513 3,500 Broomcorn 281 1,916 281 1,920 299 2,040 Source: CCM International ■ Pricing Abamectin price rebounds A bamectin price greatly rebounds in China in early Nov. 2009, mainly driven by supply fall, from USD105,270/t (RMB719,700/ t) in Jan. 2009. And then, owing to slight occurrence of crop insect pests slumped in Q3 2009, and many technical producers had a downtime for avoiding production risk and according to CCM’s monitoring. and capacity expansion, abamectin maintenance equipments, which The price of abamectin technical price dropped from June to October. caused tight supply of abamectin in hits approximately USD106,149/t the short term. (RMB725,000/t) in early Nov. 2009, However, its price has rebounded in up 20.7% from USD87.933/t in Oct. Nov. 2009, which is contributed by Furthermore, abamectin stock 2009. the following factors: has increased in order to prevent consecutive price fall since Aug. Since the beginning of 2009, its price To begin with, abamectin supply 2009, which contributed to has been continuously increasing dropped in Oct.2009. Its price balance of supply and demand, and CCM International Limited 12 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 stabilizing price of abamectin. With abamectin demand growth, 2,000t/a abamectin production line its capacity and output has also from the current 500t/a. China’s With high efficiency and low soared in recent two years. Its capacity will keep increasing in the toxicity, abamectin, as a substitute technical capacity has reached next year. However, with rising of highly toxic insecticides, has 3,800 tonnes in 2009, up about operating rate and the coming of witnessed demand surge in recent 35% compared to 2008. And its slack season, abamectin’s price is years, especially when its use in rice output has climbed to 1,800 tonnes predicted to keep stable and slightly field was approved in 2008, which from Jan.2009 to Aug.2009. It is reduce in next two months. has stimulated its consumption. reported that Shandong Zhicheng Chemical Co., Ltd. is expanding FIGURE6: Price change of abamectin technical, Jan. 2008 ~ Nov.2009 (Unit: USD/t) 200,000 160,000 120,000 80,000 40,000 0 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. 2008 2009 Source: CCM International ■ Registration Insecticide registration situation in Oct.2009 2 48 companies registered 350 insecticides in China, including 23 registrations of insecticide technical in Oct. 2009 are mainly from companies in Jiangsu and Zhejiang province which has chlorpyrifos·phoxim were the most popular registrations, registered by 5 times and 4 times respectively in technical, 252 registrations of single witnessed the most insecticide October. formulations and 75 registrations of technical registrations in the past mixed formulations in Oct. 2009, several months in China. 132 registrations of insecticide as the statistics from the Institute formulation are of EC type, for Control of Agrochemicals, As for single formulations, the accounting for 40.4% of the total Ministry of Agriculture (ICAMA) 252 registrations, including 96 327 formulation registrations in shows. temporary, 151 formal, and 5 Oct. 2009. repacking, have been achieved Registration data shows that 23 by 190 companies. The single New insecticides registrations insecticide technical registrations formulations of 25g/l lambda- are mainly located in Shandong, were accomplished by 20 cyhalothrin EC, 18% dimehypo, Jiangsu and Hebei and Guangxi in companies in Oct. 2009, including 18g/l abamectin EC, 40% Oct. 2009. 4 temporary registrations and 19 chlorpyrifos EC were the most formal registrations. Imidacloprid, popular ones in Oct. 2009. fenvalerate, monosultap and fipronil were the most popular The 75 mixed formulation insecticides technical registered registrations, including 37 with two registrations. temporary and 38 formal, have been achieved by 65 companies. Registrations of insecticide Abamectin·beta-cypermecthrin and CCM International Limited 13 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 TABLE3: Insecticide technical registered in Oct. 2009 Registration Insecticide Name time Fenvalerate, imidacloprid, fipronil, monosultap 2 Esfenvalerate, cycocel, Profenophos , chlorpyrifos, sodium parachlorophenoxy, diazinon, silafluofen, emamectin benzoate, bifenthrin, aluminium phosphide, cypermethrin, 1 malathion, fenitrothion, transfluthrin, dimefluthrin Source: ICAMA TABLE 4: Distribution of new insecticides registered in Oct. 2009 Number of Region Company registration Shandong 42 66 Jiangsu 30 37 Hebei 21 29 Guangxi 17 24 Henan 16 18 Guangdong 14 22 Zhejiang 12 20 Overseas 7 8 Other areas in China 89 126 Total 248 350 Source: ICAMA TABLE 5: Situation of insecticides registered in Oct. 2009 Temporary registration Formal registration Thereinto Thereinto Registration Repacking Item Company Popular insecticides Subtotal new Subtotal new number registration registration registration Technical 20 23 4 0 4 15 0 Imidacloprid, fipronil 25g/l lambda-cyhalothrin EC, Single 18% dimehypo 190 252 92 4 17 134 5 formulation 18g/l abamectin EC 40% chlorpyrifos EC Abamectin·beta-cypermecthrin, Mixed 65 75 37 0 0 38 0 chlorpyrifos · phoxim formulation buprofezin ·isoprocarb Source: ICAMA Emamectin-benzoate registration soars in China T he registration for emamectin- benzoate has soared in 2008 and 2009, especially its mixed Jan. ~ Oct. 2009, compared with 47 in the whole 2008 and 17 in 2007. 1% and 0.5% emamectin-benzoate Zhejiang Shenghua Biok Biology Co., Ltd and Syngenta Biotechnology (China) Co. Ltd, etc. formulation. EC were the most popular fungicide single formulation. As to the total According to ICAMA, companies 508 emamectin-benzoate 480 registrations, 134 were approved registered emamectin-benzoate are registration applications, both valid in Jan. ~ Oct 2009 and 138 in 2008, mainly concentrated in Shandong, and overdue from 268 companies, compared with 73 in 2007. Hebei, Henan and Jiangsu. have been approved in China, including 35 for technical, 284 45 of the total 189 mixed formulation Emamectin benzoate is a new semi- for single formulation and 189 for were registered in Jan. ~Oct.2009, synthetic antibiotic insecticide mixed formulation, according to and 87 in 2008. made from abamectin. It is the the data from Institute for Control only effective and environmental of Agrochemicals, Ministry of By Oct. 2009, 28 pesticide insecticide and acaricide which can Agriculture (ICAMA), as of Oct, companies have registered 35 replace the five high toxic pesticides. 2009 emamectin-benzoate technical, It has the properties of broad mainly including controlling spectrum, non-residual, Among the total 508 single Hebei Veyong Bio-Chemical Co. Ltd, high selectivity, stomach poisoning formulation, 88 were registered in Nanjing Redsun Group Co., Ltd, and contact poisoning. What’s more, CCM International Limited 14 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 its controlling spectrum is broader With these good characteristics, 2009. Its production and sales than abamectin, and its insecticidal emamectin benzoate registration volume had climbed to 750 tonnes activity is 100 to 200 times higher was very hot. For instance, the from Jan.2009 to Aug.2009, up than abamectin and toxicity is 2 to registration number in 2008 about 50% year on year. 3 orders of magnitude lower than increased 89% compared to 2007. abamectin. The product can control It is estimated that its technical hard resistant Lepidoptera insects. capacity reaches 1,450 tonnes in FIGURE7: Number of emamectin-benzoate registration in China, 2001-2009 160 140 120 100 80 60 40 20 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 Single formulation Mixed formulation Technical Note: Data in 2009 is as of October Source: ICAMA ■ Pest Rice leaf roller occurs severely in Jiangsu cultivation techniques, according 5,270,100 hectares. The loss of rice O ccurrence of rice leaf roller has been becoming more and more serious in Jiangsu Province during to statistics from Jiangsu Plant Protection Station. output reached about 20%~30% of total output in 2007. the past decade, mainly caused by Stricken area of rice leaf roller The following factors have caused large cardinal number of insect reached 4,890,000 hectares in 2008 the increasingly severe occurrence of pests, favorable climate for insect from 1,898,700 hectares in 2001, rice leaf roller in Jiangsu. pests occurrence, and improper rice up 157%, with the peak in 2007 with Firstly, there is a larger number of insects migrated to Jiangsu. More FIGURE8: Occurrence of rice leaf roller in Jiangsu, 2001~2009 (Unit: '000 ha.) and more rice leaf roller migrated to Jiangsu from the south of China, 6,000 compared with previous years. 5,000 Owing to high temperature and large 4,000 insect growth rate, cardinal number of insect pests in the south of China 3,000 is larger than that in other regions. 2,000 When the insect moves into Jiangsu, it can lead to severe occurrence 1,000 of rice leaf roller in some areas of 0 Jiangsu. 2001 2002 2003 2004 2005 2006 2007 2008 Est2009 Secondly, local weather with high rainfall and temperature is favorable Source: Jiangsu Plant Protection Station for insect pests occurrence. And rice CCM International Limited 15 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 leaf roller’s resistance to insecticides  Larger stricken area and planted ahead of time, which is becoming more and more serious. high frequency of serious contributes to earlier maturity of occurrence. In recent years, rice than normal time and decrease Besides, improper rice cultivation rice planting area was about of stricken area of rice leaf roller. techniques also lead to severe 2,200,000 hectares in Jiangsu, Secondly, appropriate application occurrence of rice leaf roller in but annually cumulative of nitrogen fertilize is necessary for Jiangsu. Planting new rice seeds stricken area of rice leaf roller rice insect pests control . Besides, with late-maturing rice and the was more than 4,000,000 chlorpyrifos, chlorantraniliprole, application of more nitrogen hectares, and the frequency profenophos and emamectin- fertilizer delay the maturity of rice , of serious occurrence reached benzoate are recommended to which may cause severe occurrence 81.8%. The most serious control rice leaf roller. of rice leaf roller. The planting area occurrence regions mainly lay of new rice seed in Jiangsu has been in South Jiangsu and regions of However, rice leaf roller resistance increasing in recent few years. In river along. to insecticides has been becoming addition, Tender rice is more prone  Long stricken time and larger more and more stronger over the to insect pests occurrence. numbers of insect eggs. The past few years. The unit area dosage stricken time lasted three of insecticides for control rice leaf Rice planning area was expanded months from June to August. roller also markedly increased in in Jiangsu in past decades, which is 2008, up about 10% compared also a factor of expanding stricken to 2003, which contributed to area of rice leaf roller. In order to effectively control rice consumption growth of some leaf roller, some measures are related insecticides. The characteristics of outbreak of recommended by plant protection rice leaf roller are shown as follows: experts. Firstly, rice should be FIGURE 9: Rice planting area in Jiangsu (Unit:’ 000 ha.) 200,000 160,000 120,000 80,000 40,000 0 Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. 2008 2009 Source: National Bureau of Statistics of China ■ News in Brief Pesticide import volume up 29% in Sep.2009 A ccording to China Customs, pesticide import volume reached 3,286 tonnes in China in period in September. Accumulative import volume reached 35,972 tonnes from Jan. 2009 to Sep.2009, volume may keep stable or go downward with entering pesticide consumption off seasons. Sep.2009, up 29% over last month, with total import value of USD27.76 mainly owing to consumption peak million. It is predicted that import CCM International Limited 16 www.cnchemicals.com
    • Insecticides China News Vol.2 Issue 11.2009 Number of pesticide companies to reduce 30% in 2015 P esticide Industry Industrial Policy was issued by Ministry of Industry and Information the policy, as of 2015, the number of pesticide companies will reduce 30%. And sales revenue of top 20 50% of total pesticide sales revenue in China in 2015 and 70% in 2020. Technology of PRC. According to pesticide companies will amount to Jiangsu Changlong to relocate 11,450 tonnes insecticide production lines J iangsu Changlong Chemical Co., Ltd (Jiangsu Changlong) plans to relocate and innovate production 8,750 tonnes herbicides, 1,500 tonnes fungicides and 200 tonnes fine chemical products, pollution and improve market competitiveness. Its total investment amounts to USD85.23 million. lines of 11,450 tonnes insecticides, which will reduce environmental China plans to reform pesticide storage institution C hina will expand pesticide storage scale in order to promote the healthy development of pesticide diseases and insect pests, which will benefit the management of pesticide. Besides, China will transform for pesticide storage from previous mainly coming from imports to mainly from domestic production. producers and control serious purchasing patterns of pesticide Operating income of Zhejiang Qianjiang down 18.6% in Q3 A ccording to Q3 report, the operating income of Zhejiang Qianjiang Biochemical Co., Ltd year on year, totaling USD10.95 million in Q3 2009, mainly caused by the reduction of sales price and period of last year. (Zhejiang Qianjiang) dropped 18.6% sales volume compared to the same CCM International Limited 17 www.cnchemicals.com
    • CCM International Limited 17th Floor, Huihua Commercial & Trade Building, No.80 Xianlie Zhong Road Guangzhou, 510070, P.R.China Tel: +86-20-37616606 Fax: +86-20-37616968 E-mail: econtact@cnchemicals.com Website: www.cnchemicals.com