China’s leading
mancozeb producer Limin Chemical has announced to likely expand its production
base in order to meet the high demand and strengthen its position as the number
1 in the market.
Limin
Chemical has announced previously to likely expanding the production of the
fungicide mancozeb, both technical and formulations, according to market
intelligence firm CCM.
According
to a statement by the company, the production of mancozeb is running at full
capacity, thanks to the high demand for this pesticide in China as well as
overseas markets. Notably, mancozeb is one of the main products Limin Chemical
produces, which is also the largest producer of this fungicide in China.
The
growing demand is additionally followed by a price rice of the main raw material
for mancozeb production, which is pushing up the prices and sales for the
product and leads to the interest of the company to further expand the
production capacity. Ethylenediamine, manganese sulphate and carbon disulphide
are the main raw materials for mancozeb.
The
announcement of production capacity expansion is also a declaration of Limin
Chemical to stay the largest producer of mancozeb in China, as the company
wants to catch even more market share and keep competitors at a significant
distance.
To
support the leading status, the company had launched a 10,000 t/a
ethylenediamine project to realize self-supply, reduce production costs and
improve its competitiveness in 2016 before.
In
addition to this, the plan is supported by an acquisition happened earlier this
year, when Limin Chemical has finished the purchase of 79.50% shares in
Shuangji Chemical, another major producer of mancozeb and similar fungicides in
China.
Following
the acquisition, Limin Chemical has increased its production capacity of
mancozeb by about 40%.
What’s
more, mancozeb is expected to have a large market potential in China. At
present, it is not only used in some traditional areas, but also in crop
farming. Field experiments carried by Limin Chemical have shown that the usage
of about 10 kg mancozeb per mu generated an increase of more than 10% in wheat
yield.
According
to industry insiders, the demand for mancozeb will increase even faster,
considering that it has a larger application scope, the Zero Pesticide Growth
goal is approaching, and the Belt and Road Initiatives may bring some
development opportunities. In this context, supply is predicted to be
tightened, resulting in further price rises. Some other factors may also
contribute to the continuous price rise, including advanced production
technologies, big environmental investment and the higher requirement for
product quality.
Major
rivals in the international mancozeb market include Dow AgroSciences, whose
plant was constructed in China and several Indian producers, according to an
unnamed employee of Limin Chemical. They all have good capacity in producing
mancozeb, which makes them equal rivals against the Chinese mancozeb producers.
China
is exporting mancozeb technical mainly to its neighbours Vietnam and India
recently, while also exporting a significant amount to Turkey, Iran, and Peru.
Limin Chemical is hereby the main exporter in China, having a market share of
more than 40%.
Limin
Chemical is also the first pesticide enterprise in China which has obtained the
permit for pollution discharge.
About CCM
CCM
is the leading market intelligence provider for China’s agriculture, chemicals,
food & ingredients and life science markets.
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