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