The price of pesticide raw materials has greatly increased since September 2010 due to tight supply and climate effects. Most raw material prices rose 10% compared to last month, with chlorine price up 158%. National energy-saving policies and low prices earlier in 2010 that led producers to sell stored materials contributed to the increases. Pesticide producers are not building short-term storage this year as prices of raw materials will likely remain high through November and December.

1. Pesticide price witnessed great increase
Guangzhou China Nov. 5, 2010-The price of pesticide technical has witnessed great
increase since Sept. 2010 due to the sharp rise of the raw materials, including coal, liquid
chlorine, caustic soda, methanol, benzene, ammonia, phosphorus, alcohol, sulfuric acid, sulfur,
methylamine, ethylamine, formaldehyde, etc.
Most of the price rises by 10% compared with last month, especially for the marvelous price
increase of chlorine, up 158% compared with that in Sept. 2010. Besides, coal price has been
rising for a month.
Since the National Day in 2010, the price of the raw materials has hit a new record high due to
tight supply and effect of climate,
According to some insiders from pesticide industry, the national policy on energy-saving in the
last year of China's Eleventh Five Year Plan is the main reason for the raw materials price up.
Another reason may be the continuous decline in raw materials price at the beginning of 2010.
Most of the price has touched the bottom of the history record. Thus, in order to avoid loss,
pesticide players sold most of their storages. Now, the intention of most pesticide enterprises
to add storage has pulled up the price of raw materials.
In Nov. and Dec. 2010, the pesticide producers are not busy with short storage, while in the
past few years, it is a good time for pesticide players to start short storage in Nov. and Dec.,
because price of raw materials would reach the lowest at that time.
Source: CCM International