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Insecticides China News 201101.pdf

  1. 1. Insecticides China News Insecticides Vol 4, Issue 1, 2011 Publication date: 10 January, 2011Insecticides Insecticides Copyright © CCM International Limited
  2. 2. Insecticides China News Vol 4, Issue 1, 2011 ContentOverviewMarket outlook of insecticide in 2011 ...................................................................................................................1Top 10 events of 2010 insecticide industry ...........................................................................................................2Market analysis of main insecticides in China 2010 ............................................................................................3Company DynamicsThe third largest buprofezin producer to relocate ................................................................................................4Major insecticide producers quicken merger and acquisition .............................................................................5Jiangsu Tuoqiu trial-produces pesticide formulations.........................................................................................6New ProductsGansu develops 8 botanical insecticides ...............................................................................................................7Paichongding to be marketed............................................................................................................................... 8Supply and DemandSpinosad technical marketed in advance in China ...............................................................................................9Dicofol to gradually quit China market.................................................................................................................9China needs efficient substitute for terbufos urgently ....................................................................................... 11PolicyGovernment procurement good for pesticide producers ...................................................................................12Pests2011 crop pest occurrence a bit worse.................................................................................................................12Import & ExportChina insecticide import slightly up in 2010 ......................................................................................................13Price UpdatesMonthly ex-factory prices of key raw materials, Jan. 2011 ................................................................................ 15Monthly ex-factory prices of main insecticides in China, Jan. 2011 .................................................................. 15Monthly Shanghai port prices and FOB Shanghai of main insecticides, Jan. 2011...........................................16Average market price of main crops in China (31 Dec. 2010) ............................................................................16PricingImidacloprid technical price ascending in 2010 ................................................................................................. 17RegistrationEmamectin benzoate registrations remain hot ..................................................................................................18News in BriefHuapont Pharm. enters pesticide market with Noposion ..................................................................................19Chemical pesticide TC output in Jan. - Nov. 2010 achieves new high ...............................................................19Two pesticides from domestic six pesticide enterprises are honored ................................................................19Molecular diversity of cotton bollworm cytochrome P450 unveiled ................................................................19ChemChina to buy Koors subsidiary .................................................................................................................19 Coming Reports from CCM: China China Crop Protection Summit - World Outlook of Chlorpyrifos 2010- - Fipronil Survey in China 2014 (To be launched in Jan. 2011) - Future Prospect of Genetically2011 Will be held during 18 - 19 March, Modified CropsShanghai Ready Market Reports: - Crop Protection China Market:Welcome to join with us. - Production and Market of Chlorpyrifos Opportunities and ChallengesClick here for Event Details. in China (launched in Nov. 2010 ) - Future of Green Biotechnology in - Production and Market of Non-Crop ChinaDynamic Database - ValoTracer Pesticides in China (Issued on 9th Oct. 2010 ) CCM newsletters related to - Survey of Pesticide Industry in Insecticides: China (Edition 2, launched in Sept. 2010 - Crop Protection China News ) - Herbicides China NewsOnline & real-time consulting system - Production and Market of Malathion in - Fungicides China News China - Glyphosate China Monthly Report - Methidathion Production & Market inCCM International Limited I
  3. 3. Insecticides China News Vol 4, Issue 1, 2011Welcome to the January issue of Headlines of Insecticides China News 1101Insecticides China News, speciallypublished by CCM International,which has been extensively and Chinas insecticide demand is in Dec. 2010.intently focusing on the dynamics of forecasted to reach 124,900 tonnes inChina’s insecticide industry. 2011. Application of dicofol in China will be gradually banned by 2014 though itsChinas insecticide industry has gone The year 2010 has witnessed a lot of very effective against red spider mite.through many changes in 2010. CCM events concerning insecticide industryhas selected some representative in China. Efficient substitute for terbufos isones to make up the "top 10 events of urgently needed to stop peasants using2010 insecticide industry in China". Domestic insecticide consumption it on banned fields.Some are really opportunities witnessed descent in 2010.while some are challenges, like the On 3 Dec. 2010, Jiangsu AnponPesticide Industry Policy is good Nantong Agro-Star is going to relocate signed a contract about procurementfor the development of insecticide pesticide technical and formulation of 100,000 tonnes pymetrozineindustry and the poor performance production lines. formulations with Anhui government.of major listed producers. Also in thisissue a brief analysis of insecticide In 2010, many listed Chinese pesticide Occurrence of plant diseases andconsumption, import situation has enterprises, including some major insect pests on grain crops in 2011 isbeen given. On the whole, domestic insecticide producers, have quickened forecasted to be a bit more seriousinsecticide consumption witnesses pace of merger and acquisition. than the previous years.decline in 2010, and it is predictedthat the demand will reach 124,900 Jiangsu Tuoqiu completed relocation In 2010, Chinas insecticide industrytonnes in 2011, down about 1.4% and trial-produced pesticide saw slight rise in import volume andyear on year. Meanwhile, 2010 has formulations from 12 Nov. 2010. value.witnessed a small rise in insecticideimport volume and value in China. Gansu Plant Protection Institute has Imidacloprid technical price keptIt is predicted that the occurrence developed eight botanical insecticides. ascending in 2010.of plant diseases and insect pests ongrain crops in 2011 are forecasted to Paichongding will be marketed in Emamectin benzoate has beenbe a bit more serious over last year. China in early 2011. registered by more and more producers in China since 2008.New products are hopefully to grab Bioseen marketed spinosad technicalthe market share. Gansu PlantProtection Institute has developedeight botanical insecticides; a Main companies covered in this issuepatented neonicotinoid insecticide,Paichongding, will be launched inChina in early 2011. Besides, the firstlot of spinosad technical productionlines in China has already startedto run in Dec. 2010, early than theplanned mid 2011. Oppositely, someproducts like dicofol, terbufos are tobe banned from application in China.During 2011 and beyond, we will covera wide variety of issues related toinsecticide market in China, includingcompany dynamics, crop insect pests,supply and demand, price monitoring,related policies/ registration, rawmaterials/ intermediates, expiringpatents, etc.If there are specific topics you wouldlike to see or want to investigate anyof the subjects with more details,please contact us - CCM International.CCM International Limited II
  4. 4. Insecticides China News Vol 4, Issue 1, 2011■ Overview Market outlook of insecticide in 2011C hina’s insecticide demand is forecasted to reach 124,900 tonnes in 2011, down about 1.4% year on year, and total national pesticide demand will reach 308,200 tonnes in 2011, up 2.69% year on year according to ShaoZhenrun, division chief of Pesticide & Machine Department of National Agricultural Technical Extension & ServiceCenter (NATESC). These statistics are analyzed based on information from local crop protection stations from 31key planting provinces/ municipalities, macro economic situation, climate situation, raw material price, as well asgovernmental policy.Guided by Pesticide Industrial Policy, the management of industrial agricultural base will be transformed from anextensive to an intensive pattern in the next five years, such as large grain production bases, cotton and vegetableplanting bases. New professional organizations engaged in crop protection will bring big changes to the applicationamount, operating mode and consumption pattern of pesticide.With industry structure of agriculture gradually adjusted, Chinas pesticide demand structure tends to be morereasonable. Insecticide demands proportion in total pesticide demand, though remaining to be the largest part, isestimated at about 41% in 2011, lower than 44% in 2010. And owing to heavy rainfall in the middle and northernChina in 2010, demand for herbicides and fungicides will see obvious increase in 2011. Figure1: China’s pesticide demand (volume) structure, 2010 est. & 2011 est. 2010 est. 2011 est. Source: NATESC Figure2: Demand strucutre of different kinds of insecticides, 2011The issue of alternative technologies and substitutes forhighly toxic pesticides will further change the demandstructure of insecticide in 2011 at a fast pace. Demandfor organophosphorus and carbamate insecticides in2011 will respectively decrease by 4.88% and 6.21% yearon year, while that for pyrethroid insecticides and otherinsecticides will respectively increase by 16.31% and11.24% year on year.Meanwhile, affected by wide use of low-toxic and high-efficient insecticides (abamectin, emamectin benzoate,imidacloprid and chlorpyrifos, etc.), as well as intensecompetition from import ones (Rynaxypyr, Longge andVirtako, etc.), the application amount of insecticideswill face drop in 2011, pulling down demand.CCM deems that respective demand for chlorpyrifos,DDVP and trichlofon will be over 10,000 tonnes in Source: NATESCCCM International Limited 1
  5. 5. Insecticides China News Vol 4, Issue 1, 20112011. Consumption of chlorpyrifos is seeing quick increase thanks to its good control effect on insect pests andlow toxicity. The consumption of those insecticides with low toxicity and high efficiency, such as pymetrozine andbuprofezin, will have bright future since Pesticide Industry Policy has set strict requirements on waste treatmentduring pesticide production. Besides, bioinsecticides will keep enjoying strong government support in the future.Both price and export volume of insecticides in China are forecast to rise in 2011. First , the rise in raw materialprice is huge propelling force for rise in price of pesticide technical. Secondly, overseas demand is to witness a stableupturn in 2011. In 2010 China has exported a lot of abamectin, chlorpyrifos and imidacloprid to Eastern Europewith expanding planting areas of fruit trees and Table1: Insecticides with forecasted large demand (respectively), 2011vegetables. Vietnam, Thailand, South Korea Forecasted demandand Japan also have strong demand for Chinas Item > 10,000 tonnes 5,000-10,000 tonnesinsecticide thanks to larger planting areas ofrice, fruit trees and vegetables. Besides, the Latin Insecticide DDVP, trichlofon, chlorpyrifos Phoxim, dimehypo,American market is the fastest growing import omethoate, acephateorigin of pesticides from China. Source: CCM international Top 10 events of 2010 insecticide industryT he year 2010 has witnessed a lot of events concerning insecticideindustry in China. Some events, Two more pesticide enterprises go public to measure a pesticide enterprise’s strength in the future. Usually a pesticide enterprise with abundantlike the issue of Pesticide Industry In 2010, more pesticide enterprises strength will pay attention to cleanerPolicy, is good for the development went public. In April, Jiangsu production as it is the trend of futureof insecticide industry; while some Changqing Agrochemical Co., pesticide production. As stated inothers, like climatic anomaly, is Ltd. was approved to get listed Pesticide Industry Policy, by 2015responsible for the sales decline on Shenzhen Stock Exchange. newly developed cleaner productionof insecticide producers. Besides, The company is one of the top technologies shall be promotedthe pace of insecticide industry imidacloprid technical producers in basically in the whole pesticideintegration and enterprises’ merger China. Then in Dec. Jiangsu Lanfeng industry; the treatment rate of& acquisition has accelerated in Biochemical Co., Ltd., one of the specific pollutants shall exceed 70%;2010. largest producers of thiophanate- 50% of technical producers should methyl technical in China, got listed gather in industrial parks, etc.Pesticide Industry Policy on Shenzhen Stock Exchange.impacts insecticide industry Climatic anomaly affectsgreatly Insecticide players quicken insecticide sales merger and acquisitionThe Pesticide Industry Policy was The extreme weather, like freezingdrafted in 2009 and finally released In 2010, many listed pesticide weather, drought, flood disaster,on 26 Aug. 2010 by the Ministry enterprises, including some major struck China frequently in 2010,of Industry and Information producers, quickened their pace reducing a considerable amountTechnology (MIIT), the Ministry of merger and acquisition. For of insecticides sales. In 2010, theof Agriculture (MOA) and some example, Shenzhen Noposion peak season of insecticide salesother related departments, aiming Agrochemicals Co., Ltd., has postponed for one reshuffle domestic pesticide invested in Shandong Jinan Leederindustry. As stated in the policy, the Chemical Co., Ltd. and Fujian Sino- Most listed insecticide playersnumber of pesticide enterprises shall dashing Biotechnology Co., Ltd., and underperformreduce by 30% and total sale volume increased investment in Qingdaoof top 20 pesticide enterprises shall Xingpai Crop Science Co., Ltd. this Most listed Chinese insecticideexceed 50% of all pesticide players year. Merger and acquisition seems companies delivered bad salestotal in China by 2015. This has to be an efficient way for domestic performance in 2010, accordinggreatly impact Chinas insecticide pesticide enterprises to remain to their Q1-Q3 quarterly reports.industry and directly accelerated competitive and alive. Among the 13 listed companies,the pace of insecticide enterprises’ nine suffered drop in net profitmerger and acquisition in 2010. Cleaner production is highly in Q1-Q3. The biggest losers were promoted Shandong Huayang Technology Co., Ltd., Shandong Dacheng Pesticide Cleaner production will be a way Co., Ltd., Anhui Huaxing ChemicalCCM International Limited 2
  6. 6. Insecticides China News Vol 4, Issue 1, 2011Industry Co., Ltd. and Nanjing 100 demonstration counties, management & supervision system;Redsun Co., Ltd. maintaining 1,000 demonstration meanwhile it stimulated the sales of districts and supporting 10,000 lowly toxic insecticides, especiallyExport volume increase demonstration organizations. bioinsecticides. The demonstration of SCCDP inIn 2010, the export volume of 2010 has achieved success, which Transgenic crops threatenChinas insecticide witnessed upturn is a milestone of Chinas modern insecticide industrythanks to global economic recovery agriculture.and overseas demand increase. In 2010, the commercializationAccording to China Customs, Hainan poisonous cowpea of transgenic crops increased inChina’s insecticides export volume incident exposes loopholes China. Transgenic crops couldhit 128,000 tonnes in Q1-Q3, with a in pesticide management & cut the application amount ofYOY growth of 33.0%. supervision system insecticides, whose sales would also see decline too. Meanwhile, sinceSCCDP demonstration In Feb. 2010, isocarbophos, a highly transgenic crops are only able tosucceeds toxic insecticide banned to be used prevent certain kinds of pests, some on fruits, tea, tobacco, vegetables, other insecticides sales would beIn 2010, the Ministry of Agriculture was detected in Hainan-grown impacted, while some would enjoyimplemented the "100-1,000- cowpeas in several provinces such good sales and new products might10,000" plan of specialized control as Hubei, Guangdong, Anhui and need to be developed.of crop diseases and pests (SCCDP) Jiangsu. This incident exposedaround China, focusing on building the loopholes of Chinese pesticide Market analysis of main insecticides in China 2010W ith the slight recovery in domestic pesticide industry,pesticide output witnessed growth as substitutes for five highly toxic organophosphorus insecticides (methamidophos, parathion, 2010 reached 116,000t/a, however, the domestic demand and export were just 18,100 tonnes and 19,800in 2010, predicted to exceed the parathion-methyl, phosphamidon tonnes respectively (estimatedapproximate 2.26 million tonnes in and monocrotophos) which were from Jan. to Oct. 2010). This2009. The overcapacity still hang banned since 1 Jan. 2007, and condition has led to deficit of manyover the overall pesticide industry had once accounted for over 70% chlorpyrifos players.including insecticide in 2010. domestic insecticide market share. On the other hand, owing to theThe consumption of insecticide in With Chinas strong limit on prohibition of the five highly toxic2010 is predicted to slide, in some highly toxic pesticides in domestic pesticides and the phase out ofplaces even seeing 30% decline market, the output of some fipronil since 1 Oct. 2009, theaccording to some junior plant organophosphorus insecticides demand for highly toxic pesticideprotection officers. Two main largely decreased in 2010, such as alternatives, such as pymetrozine,reasons attribute to the reduction. phorate, isocarbophos, isofenphos- chlorpyrifos, abamectin, emamectin,Firstly, the abnormal snow disaster methyl, terbufos, etc. Along with acetamiprid, has correspondinglyin 2009 affected the life circle of the large promotion of pest- increased.insects and caused 2010 the off resistant cotton in China recently,year of insect outbreak. Secondly, the occurrence of cotton bollworm, Some imported insecticides havethe wide promotion of high- cotton spider mite was effectively also successfully posted goodefficiency insecticides decreased the controlled, leading to the slide in performance in domestic insecticideoutbreak range of insects, leading usage of profenofos insecticides in market in 2010, such as Rynaxypyrto the shrinkage of insecticide 2010. (chlorantraniliprole), Longgeconsumption in 2010. (flubendiamide) and Virtako (40% Other organophosphorus chlorant-thiamethoxam).In July 2010, China released the insecticides also underperformedfifth batch of highly toxic pesticide due to the downturn in domestic The demand for chlorfluazuron,alternatives to further limit the market, like trichlorfon, triazophos; a kind of benzoylurea pesticide,production and usage of highly their operating rates were less than in domestic market reached overtoxic pesticides in domestic market 10% from Jan. to July 2010. 5,000 tonnes in 2010. Right now,(please refer to CCMs Insecticides about nine pesticide enterprisesChina news 1008). Among these Overcapacity still baffled domestic have registered chlorfluazuronpesticides, insecticides account chlorpyrifos players in 2010. technical production in China, withfor the largest proportion, such China’s chlorpyrifos capacity in total capacity in 2010 reachingCCM International Limited 3
  7. 7. Insecticides China News Vol 4, Issue 1, 20111,400t/a. Moreover, Nanjing Redsun abamectin, etc. Let alone the large continuously increased. The marketCo., Ltd.s chlorfluazuron technical insecticide demand from rice, corn, share of the compound insecticideproject is still under construction wheat and cotton, the insecticide of abamectin and chlorpyrifoswith a capacity of 3,000t/a after the usage volume on vegetables and has largely increased in Sichuancompletion. fruits has also witnessed growth in Province and Hunan Province in 2010. recent years, with about 20% growthInsecticides largely consumed in rate annually, accounting for 30%domestic market 2010 include An distinguished feature in market share of insecticide in thesedichlorvos, phoxim, buprofezin, domestic insecticide market is provinces in 2010.trichlorfon, dimethoate, isoprocarb, that the domestic market sharebisultap, chlorpyrifos, cyhalothrin, of compound insecticides has■ Company Dynamics The third largest buprofezin producer to relocateN antong Agro-Star Biochemical Co., Ltd. (Nantong Agro-Star), the third largest buprofezin 15,500t/a pesticide intermediates and 2,040t/a pesticide formulations. manufacturers reached 11,600t/a in 2010, among which Nantong Agro- Star captures 2,000t/a. Nantongproducer in China, is going to Agro-Stars buprofezin output inrelocate pesticide technical and Ms Sun revealed that the production 2009 reached 1,500 tonnes.formulations production lines in of buprofezin technical andLianyungang Chemistry Industry formulations and abamectin According to Ms Sun, NantongPark. formulations will be continued Agro-Star has no buprofezin in the new factory. Whether to inventory as the relocation isNantong Agro-Star is a chemical continue the production of other unexpected. Nantong Agro-Starproducer engaged in agrochemicals, insecticides depends on market has to quit the buprofezin marketfertilizers, chemical raw materials, demand for them. until the relocation is finished. Thepigments, etc., with production companys relocation has beenplants located in Nantong, Jiangsu Nantong Agro-Star has been changing the market structure ofProvince, and sales department in developing rapidly in recent years. buprofezin.Ningbo, Zhejiang Province. According to Ms Sun, the company mainly focuses on domestic market, It is estimated that buprofezinNantong Agro-Star starts this which took up about 80% of its demand in the coming two yearsoverall relocation and has already whole business areas in 2009. will remain strong. In Dec. 2010,stopped production under the order the price of 95% buprofezin TC wasand supervision of government. Buprofezin is a featured insecticide USD5,726/t, with 8.6% YOY growth.According to Ms Sun, a saleswoman of Nantong Agro-Star, which The steady growth of demand andfrom the company, this relocation contributes about 50% to the price is drawing increasing attentionwill spend at least 1.5 years, which is total sales of insecticide business. from more pesticide enterprises.expected to end in Jan. 2012. According to CCMs investigation, sales performance of buprofezin Nantong Agro-Stars quit in theThe total investment in this in 2010 turned out well. Major blooming sales time of buprofezinrelocation reaches USD30 million, buprofezin manufacturers in has created a market gap of aboutwith more than USD5.2 million China are Jiangsu Changlong 1,500 tonnes for other buprofezinspent on waste treatment facilities. Chemicals Co., Ltd., Jiangsu Anpon manufacturers. What NantongAfter the relocation, the company Electrochemical Co., Ltd. and Agro-Star missed may not be onlywill own the production capacities Nantong Agro-Star Biochemical Co., a good sales in this period, but theof 5,150t/a pesticide technical, Ltd. The total capacity of these three dominance in this market. Table2: Production capacity of top three buprofezin manufacturers, 2010, t/a Jiangsu Changlong Jiangsu Anpon Nantong Agro-Star Manufacturer Chemicals Co., Ltd. Electrochemical Co., Ltd. Biochemical Co., Ltd. Production 6,000 3,600 2,000 capacity Source: CCM InternationalCCM International Limited 4
  8. 8. Insecticides China News Vol 4, Issue 1, 2011 Major insecticide producers quicken merger and acquisitionI n 2010, many listed Chinese pesticide enterprises, includingsome major insecticide producers, companies, three of which it held over 50% holdings are Shandong Zhaofengnian Biotechnology Co., Driven by industry integration, more and more small insecticide producers in China are confrontedhave quickened pace of merger and Ltd. (80%), Dongguan Shipuwang with poor management; beingacquisition. Biotechnology Co., Ltd. (100%) acquired by large insecticide and Zhonggang Taifu (Beijing) producers has become a financingAs stated in Pesticide Industry High Technology Co., Ltd. (51%). solution for some of them.Policy released on 26 August 2010, Learning from Noposions H1the number of pesticide enterprises 2010 semiyearly report, net Meanwhile, large insecticideshall reduce by 30% and total profit of Shandong Zhaofengnian producers hope to enrich productsales volume of top 20 pesticide Biotechnology Co., Ltd. reached mix by acquiring other insecticideenterprises shall exceed 50% of that USD5.8 million, which contributed producers. On 29 Dec., Lierof all pesticide enterprises in China a lot to Noposions net profit. Chemical Co., Ltd. (Lier Chemical),by 2015. a leading pyridine technical In 2010, Noposion kept advancing producer in China, announcedIt seems that merger and acquisition merger and acquisition. In Jan. to acquire 51% shares of Jiangsubecomes an efficient way to keep Noposion increased its investment Kuaida Agrochemical Co., Ltd.domestic pesticide enterprises of Qingdao Xingpai Crop Science (Jiangsu Kuaida). The majorcompetitive and alive, since it is Co., Ltd. and its holdings increased product of Lier Chemical is pyridinequite impossible to build a new to 51% from the previous 31%. In pesticide, whose product structureproduct line and a factory in a short the same month, Noposion got is relatively simple. After acquiringtime. 40% holdings of another pesticide Jiangsu Kuaida, Lier Chemical will company–Shandong Jinan Leeder update its product mix from simplyBesides the policy, some listed Chemical Co., Ltd. Then in March, pyridine pesticides to a portfoliopesticide players success stories Noposion wholly acquired Fujian of herbicides, insecticides andof merger and acquisition also Sino-dashing Biotechnology Co., fungicides. Besides, the companysinspire other pesticide enterprises. Ltd. The companys latest decision sales network will be perfectedShenzhen Noposion Agrochemicals on this progress, released on 27 after being integrated with JiangsuCo., Ltd. (Noposion) is an example Dec. 2010, was to invest in Jiangsu Kuaidas.achieving a lot among the former. Changlong Agrochemical Co., Ltd. Its believed that in 2011 Noposion It’s estimated that merger andNoposion is a leading insecticide will keep quickening its merger and acquisition in Chinas pesticideformulation producer in China acquisition pace. industry will keep marching on inactive in adopting merger and 2011. More and more insecticideacquisition in recent two years, Unlike Noposion, some small producers will join the team.which is proved to benefi from pesticide enterprises in China are Some insecticide producers, likeit. Noposion totally got holdings looking forward to being acquired Noposion, will quicken their paceof eight pesticide companies instead of acquiring. At present, of merger and acquisition. In soduring 2004-2008. However, in there are more than 3,000 pesticide doing, insecticide industry may see2009 Noposion became a holding players in China, most of which restructuring in of another eight pesticide are small and making little profit.CCM International Limited 5
  9. 9. Insecticides China News Vol 4, Issue 1, 2011 Jiangsu Tuoqiu trial-produces pesticide formulationsJ iangsu Tuoqiu Agriculture Chemical Co., Ltd. (JiangsuTouqiu), former Jiangsu Zone in late 2009 due to the increasingly stricter environmental protection requirement issued by China has nationwide banned both sales and application of fipronil formulation in almost all areasYancheng Electricity Chemical the government. All formulation except for controlling sanitary insectPlant established in 1967, has production lines of Jiangsu Tuoqiu pests and some soil insect pestscompleted its relocation of pesticide are located in the Coastal Chemical since 1 Oct. 2009. According toformulations production lines Industrial Park now, a new CCM’s monitoring, Jiangsu Tuoqiusand carried out pilot run from 12 production base which the company ex-factory price of 5% fipronil SCNov. 2010. The company is one invested USD9.88 million. was USD6,400/t in Dec. 2010.of pesticide and fine chemicalmanufacturers in China. A staff from Jiangsu Tuoqiu, Mr. Ge, Though the relocation was said that in late 2009 the company completed, the other fourThe pilot run is from 12 Nov. 2010 has completed technological production lines of insecticideto 11 Feb. 2011. According to the upgrading of pesticide production formulations havent been put intobulletin published by Jiangsu lines, which was a part of this production as of Dec. 2010.Yancheng Environmental Protection relocation. With USD0.78 millionBureau, Jiangsu Tuoqiu has investment in waste treatment, it Manager Xu from the companyresumed the production of pesticide successfully cut down the energy told that the insecticide technical offormulations, including five consumption and pollution of these formulations were purchasedinsecticide formulations, one plant production, while no capacity from other companies before. Owinggrowth regulator and six fungicide expansion is involved. to rise in price of raw material,formulations. The insecticide high price of insecticide technicalsformulations are 1,000t/a 5% Jiangsu Tuoqiu is one of largest since late 2010 has suspended thefipronil SC, 500t/a 20% pyridaben fipronil technical producers in company from buying outside.EC, 500t/a 25% imidacloprid WP, China with output of 500 tonnes in Now the company may arrange500t/a 5% acetamiprid WP and 2009. This relocation, coupled with production if it receives orders.1,500t/a 48% chlorpyrifos EC, with slack market demand, has loweredtotal capacity reaching 4,000t/a. the output to about 400 tonnes in In 2011, Jiangsu Tuoqiu will 2010. The company also produces possibly run all the insecticideJiangsu Tuoqiu has moved into the fipronil formulations, such as 80% production lines successively.Coastal Chemical Industrial Park WDG, 5% and 20% SC, etc. Allin Yancheng, Jiangsu Province these products are mainly exportedfrom Yancheng Chemical Industrial to South America and Brazil, asCCM International Limited 6
  10. 10. Insecticides China News Vol 4, Issue 1, 2011■ New Products Gansu develops 8 botanical insecticidesGansu Plant Protection Institute of Gansu Academy of and ricinus communis botanical insecticide. CurrentlyAgricultural Sciences announced in Dec. 2010 that eight the institute is making patent application for the otherbotanical insecticides it developed could effectively four insecticides.control aphids and red spider mites after one-year fieldexperiment and demonstration. Now researchers in the institute are separating the active ingredients killing pests from the plants, whichAccording to Professor Hu Guanfang, one of the project need some time to be clarified as the ingredientsleaders from China Patent Information Center, the of these plants are complicated. Once its done, theresearch of these eight botanical insecticides began in commercialization of these botanical insecticides can be2008. These products are respectively extracted from realized.the following plants: datura tatula, henbane, nicandraphysalodes, ricinus communis, sun euphorbia herb, “Comparing with chemical insecticides, botanicalmacleaya microcarpa, common cnidium fruit and insecticides have advantages of easy degradation, lowheracleum yungningense. Among them, datura tatula residue and being eco-friendly but are with relativelyand heracleum yungningense are the first time being high price. Therefore, botanical insecticides are morerecognized as “insecticidal plants” both in China and suitable to be used on high value-added crops.” saidabroad. Professor Hu.In 2009, researchers in the institute started the field While highly toxic pesticides are banned one afterexperiment and demonstration of the 8 insecticides on another in China; eco-friendly pesticides, like4,286.7 hectares field, which proved a control effect biopesticides, are enjoying steadily increasing demand.exceeding 80% on aphids (cotton aphid, myzus persicae As mentioned in Decision on Speeding up Cultivationand corn leaf aphid) and red spider mites (most are and Development of Strategic Infant Industry by Chinacarmine spider mites in China). Also, the average State Council, Chinese government will “pay attentiongrowth rate of vegetable output in the fields reached to cultivate biological breeding industry and promote17.1%. green agricultural biological products to stimulate the development of biological agriculture” in the future.“In general, the insecticide used is 300-500 timesdilution, which means 30-50 ml botanical insecticide is Cumulative investment in biopesticide industry wasmixed with 15 kg water in the sprayer.” said Professor reported to reach USD1.01 billon during Jan. to Aug.Hu, “one hectare field needs about 900-1500 ml 2010, with a YOY growth of 70.8%. As an importantbotanical insecticide. Generally it needs four to five branch of biopesticide, botanical insecticides havetimes application of botanical insecticides per year developed fast in recent years; many enterprises seizeaccording to the occurrence of aphids and red spider the opportunity to join the research, production andmites.” sales of them. As mentioned in last issue, a 10,000t/ a botanical insecticide project has settled in AnhuiLearning from Professor Hu, in Sept. 2010 Gansu Province in Nov. 2010. It’s estimated that morePlant Protection Institute already got separate patent botanical insecticide projects will be launched in thefor four botanical insecticides, which are separately coming years.datura tatula botanical insecticide, henbane botanicalinsecticide, nicandra physalodes botanical insecticideCCM International Limited 7
  11. 11. Insecticides China News Vol 4, Issue 1, 2011 Paichongding to be marketedP aichongding (not named in English), a patentedneonicotinoid insecticide, will be China University of Science and Technology, with total investment of USD2.9 million (RMB20 million) Before 2009, Paichongding was called IPP appointed by the Ministry of Agriculture. According to China’slaunched in China in early 2011. in R&D. The R&D and industrial State Intellectual Property Office, project of Paichongding was listed Jiangsu Kwin applied for nationalPaichongding was jointly developed in the branch project (Innovation invention patent of 10% IPP SC inby Jiangsu Kwin Group Co., and Creation) in Chinas Eleventh 2007 and the application has beenLtd. (Jiangsu Kwin) and East Five-Year Plan. approved in 2009 (National Patent Picture1: Structural formula of paichongding Source: Chinese National Knowledge Infrastructure (CNKI)Number: 200710024512.1). and acetamiprid, Paichongding Paichongding can save about 50% embraces great market potential unit application volume to achieveAt present, Jiangsu Kwin is the thanks to the following advantages. the same control efficiency, whichexclusive Paichongding producer can greatly cut the insecticidein China, according to its sales With low pollution and residue, application cost of domestic farmersdepartment. The companys Paichongding technical has passed during crop production.Paichongding technical is not for pilot plant test, toxicity test,sale, while 10% Paichongding field registration trial, etc. And Besides, Paichongding hasSC will be launched in Jan. 2011. 10% Paichongding SC has been broader market scope thanks toJiangsu Kwin has set a planned field tested in part of Jiangsu, the dual characters of being bothoutput of 10% Paichongding SC at Guangdong, Guangxi and Fujian an agricultural insecticide and aabout 10 tonnes per month in 2011, in 2009 and 2010. Its proved that promising hygienic insecticide.but it will be adjusted according to Paichongding can effectively controlmarket demand. plant hopper, aphid, leafhopper, etc. Driven by stricter policies on environmental protection andA sales staff in the company Super high efficiency is the products growing demand for high-efficientrevealed the ex-factory price of 10% another key advantage. Evidence insecticides, Paichongding isPaichongding SC was predicted to showed that Paichongdings expected to be an up-and-comingreach USD45,000/t in Jan. 2011. efficiency is significantly higher than product.However, the ultimate price would that of pymetrozine, acetamiprid,be set at the pricing meeting to be imidacloprid and other varieties ofheld in Hunan in Jan. 2011. its kind. The application amount of Paichongding is 37.5-52.5g/hectare.Compared with other insecticides Compared with pymetrozine andof its kind, such as imidacloprid acetamiprid, it is estimated thatCCM International Limited 8
  12. 12. Insecticides China News Vol 4, Issue 1, 2011 Spinosad technical markets in advance in ChinaB ioseen Bio-Technology Co., Ltd. (Bioseen) started to runspinosad technical production lines March 2010 for the spinosad production. Then in that April the company completed production the-spot guidance to transfer the advanced technology to excellent Dec. 2010 ahead of the planned lines of bioinsecticide and put intomid 2011. production its first product, namely An insider from Bioseen revealed abamectin. that orders for spinosad technicalSpinosad (developed by Dow have been reveived since Dec. 2010.AgroSciences LLC) is a development However, abamectin didn’t bring The company first made spinosadhotspot in China since its patent much profit to the company. technical price at USD527,450/t inexpired in Dec. 2009. Bioseen is the Depressed market demand and Dec. 2010. The insider also told thatfirst spinosad technical producer unordered market competition in a discount would be available forin China. This process appears to 2010 have suppressed abamectin customers willing to establish long-be simple, but in fact costs a lot price to a historical trough; standing relationships with Bioseen.of efforts. Actually, Bioseen is the producers could hardly make muchoutcome of Beijing Yanhua Yongle money. Bioseens capacity of spinosadPesticide Co., Ltd. (Yanhua Yongle)s technical is predicted at 300t/arecombining the bankrupted Mr. Zhao, assistant manager of in 2011. The company also makesMudanjiang Lvjin Bio-Technology Yanhua Yongle, revealed Yanhua spinosad formulations include 2.5%Co., Ltd. with the USD37.6 million Yongle has acquired the production spinosad SC, 5% spinosad SC, 20%investment on 8 Dec. 2009. technology of spinosad technical spinosad WG, 48% spinosad SC and by reaching a strategic cooperation a variety of mixed formulations.To get over the hard times before agreement with an Americanthe reconstruction, Bioseen seeks company in 2010, and then Raw materials of spinosad aredevelopment opportunities via transferred to Bioseen. mainly corn and soya flour.products with huge potential. Producing spinosad can raiseMaking use of its previous glycine Spinosad was superior to abamectin farmers income. Chineseproduction, Bioseen overhauled in mode of action, pesticide residue, government will give substantialits fermentation equipment and range of application and cost support to Bioseen.invested more than USD4.5 million effectiveness, etc. Additionally,to purchase new equipment in Bioseen invited experts for on-■ Supply and Demand Dicofol to gradually quit China marketI n Dec. 2010, the TOT meeting of Improvement of DDT-based Production of Dicofol application of dicofol will be banned before late 2012 in Luochuan County, Shaanxi Province. According to the Stockholm Convention, China had to stop the production, application, importand Introduction of Alternative and export of DDT in May 2009;Technology including IPM for Though dicofol is a very effective meanwhile the open productionLeaf Mites Control in China miticide against red spider mite, of dicofol, which uses DDT as one(China Dicofol Project for short) its application in China will be of the major raw materials, shouldwas held in Luochuan County, gradually stopped by 2014. The also be stopped in May 2009. TheShaanxi Province. China Dicofol main reason lies in one of the implementation of China DicofolProject, started in April 2009, intermediates used in its—DDT— Project will help reduce farmersis managed by United Nations one of the Persistent Organic dependency on dicofol by promotingDevelopment Program, Chinas Pollutants (POPs)mentioned integrated pest managementMinistry of Environmental in Stockholm Convention. The (IPM) and proper substitutes toProtection and the Ministry of average content of DDT in dicofol farmers.This project is now beingAgriculture, which aims to gradually production is about 14% in China, implemented in Yidu in Hubeiban the application of dicofol which makes dicofol a major source Province, Luochuan in Shanxiand promote its environmentally to release DDT to the environment. Province and Zhanhua in Shandongfriendly substitutes. The sales and Province.CCM International Limited 9
  13. 13. Insecticides China News Vol 4, Issue 1, 2011According to CCM’s investigation, legal dicofol manufacturer in China. Yangnong. Most of the company’sall dicofol manufacturers have Less than 0.1% of DDT will be dicofol technical was exported whilealready stopped the production of contained in our dicofol production, dicofol formulations were mainly fordicofol except Jiangsu Yangnong comparing with previous 8%, which domestic market in 2010.Chemical Group Co., Ltd. (Jiangsu is in line with FAO standard.” saidYangnong).“Our company is the only Mr. Cao, a sale staff from Jiangsu With the gradually quit of dicofol, Table3: Registered pyridaben TC manufacturers in China, 2010 No. Registered pyridaben TC manufacturers 1 Jiangsu Yangnong Chemical Group Co., Ltd. 2 Jiangsu Kwin Group Co., Ltd. 3 Shandong United Pesticide Industry Co., Ltd. 4 Jiangsu Lianyungang Liben Pesticide Co., Ltd. 5 Nanjing Redsun Co., Ltd. 6 Jiangsu Lanfeng Bio-Chem Co., Ltd. 7 Hubei Sanonda Co., Ltd. 8 Zhejiang Wynca Chemical Industry Group Co., Ltd. 9 Shanghai Pesticide Factory Co., Ltd. 10 Jiangsu Bailing Agrochemical Co., Ltd. Source: China Pesticide Information Network Figure3: Abamectin technical price, Jan. 2009 - Dec. 2010 Source: CCM Internationalthe substitutes for dicofol have pyridaben technical was USD12,136/ (CCM’s Insecticides China Newsbeen developing well in recent t in Dec.2010. 1002), with the quit of highly toxicyears, for example, pyridaben, insecticides in Chinese insecticideabamectin, propargite, azocyclotin, As another substitute for dicofol, market, abamectin as a substituteamitraz, fenpropathrin, etc. Among abamectin is efficient but relatively has captured much of the marketthe substitutes, pyridaben is the expensive. The price of abamectin share they left.appointed alternative for dicofol in was USD82,535/t in Dec. 2010,China Dicofol Project. At present, with a 19.4% YOY decline. Ifthere are about 320 manufacturers this downward trend continues,registering pyridaben production, abamectin will be affordable to10 of which produce pyridaben more farmers. As mentioned intechnical. The latest price of Overview of abamectin in ChinaCCM International Limited 10
  14. 14. Insecticides China News Vol 4, Issue 1, 2011 China needs efficient substitute for terbufos urgentlyT hough terbufos has been banned on crops (except peanuts) foryears, its still used on crops like it harmful to both peasants and animals. In July 2008, a serious incident of terbufos application on to apply on peanuts within the following peanut growing provinces: Henan, Hebei, Shandong, etc.sugarcane and sweet potato by some sugarcane in Enping, Guangdongpeasants. The main cause is blamed Province killed three sugarcane However, terbufos production is stillon that no efficient substitute growers and poisoned nine. Besides, running by major manufacturersis available. Therefore, China applying terbufos is a threat against as CCMs investigated. Accordingrequires efficient substitute for agricultural products’ quality and to a salesman of Handan Kaimiketerbufos urgently. On 17 Dec. 2010, environment. Relevant ban policies Chemical Co., Ltd., the companya meeting on Terbufos Insecticide on terbufos application on crops produces terbufos technical and theManagement was convened jointly have been introduced and updated sales turn out well in 2010. “We areby Zhanjiang Agriculture Board in recent years. applying for new registrations atand Zhanjiang Pesticide Industry present; the process goes smoothly.”Association, aiming to study As early as 2002, the application of said the salesman. It’s known thatrelevant management policies on terbufos on sugarcane was banned other major terbufos technicalterbufos and analysis current issues by No. 194 Announcement by the manufacturers are busy withof terbufos market in Zhanjiang Ministry of Agriculture (MOA). In registration application too.City, Guangdong. 2008, MOA announced to stop the formal registration for terbufos Meanwhile, terbufos is still appliedTerbufos is a highly toxic technical. Yet in 2009 terbufos on other crops, especially sugarcane.organophosphorus insecticide, technical registration surprisingly Most sugarcane growers takewhich once was allowed to apply to got approval again on the 5th terbufos as a miracle insecticidecontrol soil insects and nematodes Pesticide Registration Evaluation to sugarcane. “I know terbufos isof cotton, sugarcane, corn and Meeting. But according to the a restricted insecticide, but it ispeanuts. But later people found meeting, terbufos is only allowed cheap and highly efficient. I am Table4: Price of terbufos and its major substitutes, Nov. 2010, USD/t Insecticide Price 90%-97% chlorpyrifos 5,123 - 5,274 90% carbosulfan 12,506 90% phoxim 3,315 - 3,466 85% terbufos 3,315 Source: CCM Internationalused to apply it on sugarcane.” said efficient and cheap as terbufos. for terbufos are chlorpyrifos,one peasant from Suixi County, Peasants ar reluctant to spend phoxim, carbosulfan andZhanjiang City, Guangdong much on insect pest control as the monosultap·chlorpyrifos, etc. ButProvince. As one of the major profit of sugarcane is low.” said Mr. their prices are higher than terbufos,sugarcane growing districts in Fang, a pesticide salesman in Suixi. some even double; while the effectChina, the county supplies four “Besides, Suixi is also a peanut of these substitutes is inferiormillion tonnes of sugarcane every growing district. It’s difficult to to terbufos. In the near future,year. know on which crop the peasant is peasants will still prefer to purchase going to apply terbufos.” Its hard to and apply terbufos even though it“Terbufos is highly toxic and banned prevent abuse of terbufos. is banned. China do need relativelyto use on sugarcane, but currently cheap and efficient products eagerlythere is no other substitute as At present, major substitutes to help realize the ban on terbufos.CCM International Limited 11
  15. 15. Insecticides China News Vol 4, Issue 1, 2011■ Policy Government procurement good for pesticide producersO n 3 Dec. 2010, Jiangsu Anpon Electrochemical Co., Ltd.(Jiangsu Anpon) signed a contract provinces in southern China with heavy occurrence of insect pests. agricultural market. Government procurement will effectively help strike counterfeiting and decreasewith Anhui Government, selling Manager Xing from Jiangsu the possibility of casualty caused by100,000 tonnes pymetrozine Anpon indicated that government using fake pesticides.formulations to the latter. procurement was a good marketing channel of dominant pesticide Government procurement hasTo cope with the coming slack producers. In Sept. 2010, when more advantages. First, lowly toxic,sales period, at the end of 2010 southern China was hit by serious highly efficient and environmentallymost pesticide producers have occurrence of migration insect pests, friendly pesticides will be given priorreduced operating rates and made Jiangsu Anpon actively participated consideration for the procurement2011 production plan. Government in government procurement and with strict quality control. In soprocurement is a surprising have attained big orders from doing, the whole product mix willopportunity to them. Jiangxi Province of 300 tonnes 25% gradually become reasonable. pymetrozine and 100 tonnes 25% Secondly, the large purchasingTaking into account agricultural buprofezin. amount is an attraction to suppliers,experts warning of serious and the favourable procurementoccurrence of rice planthopper in Manager Xing said to pesticide cost will drive the fluctuatingthe next two or three years, in 2011 producers the best thing about pesticide price to become moresome provincial governments launch government procurement was reasonable. Thirdly, the centralizedprocurement plans in advance. their rising fame; the creditable tendering improves the whole procurements help establish efficiency of marketing and createsTo ensure food production security, reputable brands greatly. Also, with mutual benefit for participants.China has unveiled a series of procurements the government isfresh policies to help and support willing to reduce application amount However, pesticide producersfarmers. For instance, the State of pesticides and improve the safe wish the occasional governmentCouncil will allocate USD181 million use and efficacy of pesticides. procurement can become periodicalspecial funds, in the form of public and institutionalized, and coverstendering, to purchase cost-effective Thanks to introduction of the a large area in China. Only in thispesticides, fertilizers and other mechanism of open competition, way can it benefit producers and theagricultural supplies used to support the government has made great development of agriculture.grain production of eight major efforts on standardizing the■ Pests 2011 crop pest occurrence a bit worseO ccurrence of plant diseases and insect pests on grain crops in2011 is forecasted to be a bit more Rice Insect pests on rice mainly include Leaf folder will occur severely in the southern Changjiang River, the middle and lower reaches ofserious than the previous years. rice planthopper, leaf folder and rice the Changjiang River, Yangtze-Total stricken area of diseases and stem borer. Huaihe River Valley, Southwest andinsect pests of all crops will hit 0.38 South China; total stricken area isbillion hectares in 2011, up 4% than Rice planthopper is forecasted estimated to be 22 million hectaresover last year, according to National to blast in most rice planting areas in 2011. Chlorpyrifos, abamectin andAgricultural Plant Protection in the south of the Changjiang hexaflumuron are recommended toStation, Institute of Plant Protection River in 2011, with total stricken control leaf folder.of Chinese Academy of Agricultural area estimated at 28 millionSciences, China Agricultural hectares. Chlorpyrifos, buprofezin, Rice stem borer will occurUniversity and experts from malathion and emamectin benzoate severely in the middle reaches of theresearch institutes and universities. are recommended to control rice Changjiang River and the southern planthopper. Changjiang River, southwestCCM International Limited 12
  16. 16. Insecticides China News Vol 4, Issue 1, 2011China and some parts in northeast the east of Northwest China. Total China, and moderately in NorthChina. Total stricken area of rice stricken area of wheat red mite is China and the Huang-Huai-Haistem borer is estimated to reach 14 estimated to be 7.3 million hectares Plain. The total stricken area is tomillion hectares in 2011. Acephate, in 2011. Pyridaben and abamectin reach about 6 million hectares inchlorpyrifos and triazophos are are recommended to control wheat 2011. Terbufos, carbofuran andrecommended to control rice stem red mite. phoxim are recommended to controlborer. underground pests. Wheat midge will occur seriouslyWheat in Hebei, Tianjin, Beijing and Cotton bollworm is to hit Henan, and moderately in North Northwest China and the Yellow-Insect pests to hit wheat mainly China and the Huang-Huai- Huai River Valley moderately. Totalinclude wheat aphid, wheat red mite Hai Plain. Total stricken area of stricken area is estimated at 3.3and wheat midge. wheat midge is estimated to be 2.5 million hectares in 2011. Bacillus million hectares in 2011. Phoxim, thuringiensis, chlorbenzuron andWheat aphid is said to surge chlorpyrifos, isofenphos-methyl and methomyl are recommended toin North China and the Huang- permethrin are recommended to control cotton bollworm.Huai-Hai Plain. And it will occur control wheat midge.moderately in the wheat planting Armyworm will occur moderatelyareas in the middle and lower Corn in the North and Southwest China,reaches of the Changjiang River, with total stricken area of 3 millionSouthwest and Northwest China. Insect pests on corn mainly include hectares in 2011. Trichlorfon,Total stricken area of wheat aphid is corn borer, underground pests, fenvalerate and omethoate areestimated to be 16 million hectares cotton bollworm and armyworm. recommended for the 2011. Imidacloprid, dimethoate,carbofuran and esfenvalerate are Corn borer will occur severely in Conclusionrecommended to control wheat most parts of Northeast China withaphid. total stricken area of 22.7 million According to forecast on occurrence hectares in 2011. Carbofuran, of insect pests, the applicationWheat red mite will breakout trichlorfon, dichlorvos and amount of insecticides willseriously in North China and the bioinsecticides are recommended to accordingly increase in 2011.northern Huang-Huai-Hai Plain, control corn borer. However, owing to the use of highlymoderately in the southern Huang- efficient and long-lasting products,Huai-Hai Plain, Jianghan Region Underground pests will occur together with the change of planting(Hubei Province), Sichuan and seriously in most parts of Northeast structure, the increment is limited.■ Import & Export China insecticide import slightly up in 2010I n 2010, Chinas insecticide industry has witnessed smallrise in import volume and value, the average import price reached USD2,593/t. Import volume of non- retail packaging insecticides reached due to Chinese producers’ more inefficient production technology of technical and formulation anddriven by the need for high-tech about 1,338.3 tonnes, up 72.7% year market promotion compared withproducts, and foreign enterprises’ on year; the average import price foreign rivals. Besides, a part of theactive promotion of their patented reached USD11,000/t. imported products are patented,products. In Q1-Q3 2010 the import such as chlorantraniliprole andvolume hit 6,753.7 tonnes in Q1-Q3 The reason for importing some spirodiclofen. Also, technicals of2010, up 1.2% year on year. varieties like cypermethrin and some varieties have been exported imidacloprid mainly lies in the and then returned to domesticAccording to statistics from China great push by foreign developerss market after being processed toCustoms, in Q3 2010 China’s entrance of Chinese market, formulations.insecticide import volume hit though these products have been1,810.1 tonnes in Q3 2010, up manufactured on a large scale As to category of imported34.7% year on year; the average in China with quite advanced pesticides, those used on vegetablesimport price reached USD9,008/ technology and low cost. Some and fruits still need to be importedt. Retail packaging insecticides kinds like asdeltamethrin and for tight supply, while others haveimport volume reached about 471.8 chlorfenapyr, though also being been enough to meet domestictonnes, down 17.1% year on year; made in China, need to be imported needs, especially those used onCCM International Limited 13
  17. 17. Insecticides China News Vol 4, Issue 1, 2011fields with surplus supply. friendly products with low toxicity thus, the import volume and value and high efficiency. Moreover, the will steadily increase to make up theIn the next five years, China needs powerful promotion campaign of supply shortage.more products with more eco- foreign products will be going on; Table5: Major imported insecticide products, Q1-Q3 2010 Insecticide Flubendiamide, carbofuran, dimefluthrin, cypermethrin, Technical deltamethrin, spirodiclofen, alpha-cypermethrin, fenpropathrin, prallethrin, chlorfenapyr, carbosulfan Chlorantraniliprole, fubendiamide, alpha-cypermethrin, Formulation imidacloprid, dimefluthrin, propargite, pymetrozine Source: China Customs Table6: Major import source of China’s insecticides, Q1-Q3 2010 Region Indonesia Hong Kong Proportion in total national import Inport volume (tonne) 1,201 975 32.2% Average price (USD/t) 5,162 1,428 - Source: China Customs Table7: Major import origins of retail packaging insecticides in China, Q1-Q3 2010 Region Hong Kong Proportion in total national import Import volume (tonne) 975 69.7% Average price (USD/t) 1,428 - Source: China Customs Table8: Major import origins of non-retail packaging insecticides in China, Q1-Q3 2010 Region Indonesia South Korea The U.S. Proportion in total national import Import volum (tonne) 1,201 886 707 37.3% Year on year 700% 125.2% -68.8% - Source: China Customs Table9: Major insecticides importers in China, Q1-Q3 2010 Region Guangdong Shanghai Tianjin Proportion in total national import Import volume (tonne) 1,690 1,379 1,235 63.7% Average price (USD/t) 11,000 5,336 1,121 Source: China Customs Table10: Major importers of retail packaging insecticides in China, Q1-Q3 2010 Region Guangdong Shanghai Proportion in total national import Import volume (tonne) 1,108 100 86.0% Source: China Customs Table11: Major importers of non-retail packaging insecticides in China, Q1-Q3 2010 Region Shanghai Tianjin Proportion in total national import Import volume (tonne) 1,279 1,192 46.1% Source: China CustomsCCM International Limited 14
  18. 18. Insecticides China News Vol 4, Issue 1, 2011■ Price Updates Monthly ex-factory prices of key raw materials, Jan. 2011 Ex-factory price Market price Raw materials / intermediates 8-Jan-11 7-Dec-10 1-Jan-10 8-Jan-11 7-Dec-10 1-Jan-10 USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t Thionyl chloride (99%) 754 5,000 751 5,000 542 3,700 802 5,320 799 5,320 586 4,0002-chloro-5-methylpyridine (93%) 19,608 130,000 21,772 145,000 17,526 119,700 19,656 130,320 21,820 145,320 17,570 120,000 Thiophosphoryl chloride (99%) 1,448 9,600 1,441 9,600 1,537 10,500 1,496 9,920 1,489 9,920 1,581 10,800 Acrylonitrile (99%) 2,896 19,200 2,853 19,000 2,196 15,000 2,944 19,520 2,901 19,320 2,240 15,300 *DETCL (98%) 2,202 14,600 2,252 15,000 1,830 12,500 2,250 14,920 2,300 15,320 1,874 12,800 *STCP (85%) 5,732 38,000 5,556 37,000 5,081 34,700 5,780 38,320 5,604 37,320 5,124 35,000 *PHT (98%) 5,279 35,000 5,255 35,000 3,909 26,700 5,327 35,320 5,303 35,320 3,953 27,000 Benzyl cyanide (99%) 2,715 18,000 2,703 18,000 2,079 14,200 2,763 18,320 2,751 18,320 2,123 14,500 *CCMP (98%) 15,083 100,000 14,264 95,000 11,669 79,700 15,131 100,320 14,312 95,320 11,713 80,000Note: *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-chloromethylpyridineSource: CCM International Monthly ex-factory prices of main insecticides in China, Jan. 2011 8-Jan-11 7-Dec-10 1-Jan-10 8-Jan-11 7-Dec-10 Technical Formulation USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t Chlorpyrifos (95%) 5,231 34,680 5,207 34,680 4,495 30,700 48% EC 3,572 23,680 3,856 25,680 Abamectin (95%) 79,891 529,680 82,535 549,680 109,766 749,700 1.8% EC 3,421 22,680 3,556 23,680 Imidacloprid (95%) 17,297 114,680 17,219 114,680 12,548 85,700 10% WP 2,817 18,680 2,655 17,680 Lambda-cyhalothrin (95%) 25,593 169,680 25,477 169,680 23,382 159,700 25% EC 2,667 17,680 2,354 15,680 Buprofezin (95%) 5,834 38,680 5,658 37,680 4,495 30,700 25% WP 2,214 14,680 - - Acetamiprid (95%) 14,281 94,680 14,066 93,680 12,548 85,700 3% EC 2,365 15,680 - - Cypermethrin (94%) 15,035 99,680 14,967 99,680 11,669 79,700 - - - - - Methomyl (98%) 7,795 51,680 7,760 51,680 8,009 54,700 - - - - - Carbofuran (99%) 12,471 82,680 12,565 83,680 11,962 81,700 - - - - - Phoxim (90%) 3,421 22,680 3,405 22,680 2,592 17,700 - - - - - Triazophos (85%) 4,778 31,680 4,757 31,680 3,836 26,200 - - - - - Propargite (90%) 5,608 37,180 5,583 37,180 5,739 39,200 - - - - - Deltamethrin (98%) 120,615 799,680 120,072 799,680 96,589 659,700 - - - - - Omethoate (75%) 4,250 28,180 4,231 28,180 3,836 26,200 - - - - - Emamectin benzoate (90%) 135,698 899,680 - - - - - - - - - Acephate (97%) 5,382 35,680 - - - - - - - - -Source: CCM InternationalCCM International Limited 15
  19. 19. Insecticides China News Vol 4, Issue 1, 2011Monthly Shanghai port prices and FOB Shanghai of main insecticides, Jan. 2011 Shanghai port price FOB Shanghai price Market price Technical 8-Jan-11 7-Dec-10 1-Jan-10 8-Jan-11 7-Dec-10 Formulation 8-Jan-11 7-Dec-10 USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t USD/t USD/t RMB/t USD/t RMB/t Chlorpyrifos (95%) 5,279 35,000 5,255 35,000 4,539 31,000 5,260 5,260 48% EC 3,620 24,000 3,904 26,000 Abamectin (95%) 79,940 530,000 82,583 550,000 109,810 750,000 78,070 80,738 1.8% EC 3,469 23,000 3,604 24,000 Imidacloprid (95%) 17,345 115,000 17,267 115,000 12,592 86,000 17,042 16,985 10% WP 2,866 19,000 2,703 18,000 Lambda-cyhalothrin 25,641 170,000 25,526 170,000 23,426 160,000 25,130 25,046 25% EC 2,715 18,000 2,402 16,000 (95%) Buprofezin (95%) 5,882 39,000 5,706 38,000 5,271 36,000 5,866 4,820 25% WP 2,262 15,000 - - Acetamiprid (95%) 14,329 95,000 14,114 94,000 12,592 86,000 14,101 5,627 3% EC 2,413 16,000 - - Cypermethrin (94%) 15,083 100,000 15,015 100,000 11,713 80,000 14,836 5,700 - - - - - Methomyl (98%) 7,843 52,000 7,808 52,000 8,053 55,000 7,778 13,907 - - - - - Carbofuran (99%) 12,519 83,000 12,613 84,000 12,006 82,000 12,337 14,787 - - - - - Phoxim (90%) 3,469 23,000 3,453 23,000 2,635 18,000 3,513 7,752 - - - - - Triazophos (85%) 4,827 32,000 4,805 32,000 3,880 26,500 4,837 12,442 - - - - - Propargite (90%) 5,656 37,500 5,631 37,500 5,783 39,500 5,646 3,501 - - - - - Deltamethrin (98%) 120,664 800,000 120,120 800,000 96,633 660,000 117,775 117,378 - - - - - Omethoate (75%) 4,299 28,500 4,279 28,500 3,880 26,500 4,322 4,308 - - - - - Emamectin benzoate 135,747 900,000 - - - - 132,480 - - - - - (90%) Acephate (97%) 5,430 36,000 - - - - 5,425 - - - - -Note: Shanghai port price = ex-factory price + transport fee from production plant to Shanghai port;FOB price = port price + handling and THC + trading companies profitSource: CCM International Average market price of main crops in China (31 Dec. 2010) 31-Dec-10 15-Dec-10 Dec-09 Crops USD/t RMB/t USD/t RMB/t USD/t RMB/t Wheat 323 2,128 316 2,100 291 1,990 Corn 295 1,947 293 1,950 246 1,683 Soybean (oil) 660 4,350 629 4,180 542 3,700 Soybean (food) 766 5,050 744 4,950 633 4,326 Peanut 1,381 9,100 1,383 9,200 1,142 7,800 Indica rice 501 3,300 505 3,360 431 2,943 Japonica Rice 586 3,860 592 3,940 455 3,110 Rapeseed 645 4,250 639 4,250 603 4,120 Broomcorn 316 2,080 316 2,100 287 1,960Source: CCM InternationalCCM International Limited 16
  20. 20. Insecticides China News Vol 4, Issue 1, 2011■ Pricing Imidacloprid technical price ascending in 2010I midacloprid technical price kept ascending in 2010, thoughwith some fluctuations. In this In Feb. 2010, Imidacloprid Industry Association (IIA), which was established on 30 Jan. 2010, Imidacloprid Technical Production has push imidacloprid technical price to soar in Feb. 2010. Accordingperiod, the general price trend of proposed Admittance Regulations to CCM’s price monitoring, 95%imidacloprid technical is almost of Imidacloprid Technical imidacloprid technical price reachedin line with that of 2-Chloro-5- Production to the Ministry USD16,059/t in this month, muchchloromethylpyridine (CCMP), the of Industry and Information higher than USD12,548/t in thatmost important intermediate for Technology, which aims to Jan. The price has kept climbing inimidacloprid technical production, prevent the low-level redundant H1 thanks to tight market supply.whose price fluctuation will greatly construction and blind expansion ofaffect imidacloprid technical price. imidacloprid technical in China. In July, the sufficient supply butBesides CCMP price, there are weak demand directly causedother factors, like policy, affecting The establishment of IIA and issue the plunge in imidaclopridimidacloprid technical price. of Admittance Regulations of technical price; while the revise of Figure4: 95% imidacloprid technical ex-factory price, 2010, USD/t Source: CCM InternationalImidacloprid Technical Application price returned to the ascending and imidacloprid market will beConditions by European Union trend with strong support of raw regulated, which is in accordance(EU), according to which material price in the following with the trend of pesticide industryimidacloprid is limited to use, has months. Finally it ended with integration. In 2011, imidaclopridgreatly impacted Chinas export of USD17,219/t in Dec., compared with technical price will continue to riseimidacloprid technical. USD12,401/t in the same period of slowly and steadily with the support last year, with a YOY growth of 39%. of raw material price and relativelyAccording to CCMs price Besides, the off-season purchasing strong demand; and it may fluctuatemonitoring, 95% imidacloprid and storage plan of pesticide by along with the possible decline oftechnical price decreased to government also pushed up the export.USD13,965/t in July, even price of imidacloprid technical.lower than the production costUSD14,000/t. With the push of IIA, more imidacloprid technical producersFortunately, imidacloprid technical will realize merger and acquisition,CCM International Limited 17