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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



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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.


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                                         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




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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



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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



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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.


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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



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

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Insecticides China News Sample - Published by CCM International Ltd

  • 1. Insecticides China News Vol.2 Issue 11.2009 Insecticides Insecticides Insecticides Copyright © CCM International Limited
  • 2. 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
  • 3. 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
  • 4. 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
  • 5. 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
  • 6. 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
  • 7. 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
  • 8. 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
  • 9. 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
  • 10. 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
  • 11. 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
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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