Summary: In April, the market for picoxystrobin TC remained in the doldrums, with an ex-works price edging down on a month-on-month basis, mainly because the downstream demand for the product was weak, while the market was well-supplied with ample stock.

In early April, the ex-works price of picoxystrobin TC dipped slightly to USD47,224.34/t (RMB335,000/t), marking a marginal month-on-month decline of 1.47%. In terms of supply in April, manufacturers of picoxystrobin TC were operating soundly, leading to a loose supply with an ample market inventory. However, on the demand side, the market sentiment remained subdued with weak purchasing activity, resulting in a slow stock depletion. Moreover, the price of a key raw material, 2-methylpyridine, saw a downturn, failing to hold up the cost of picoxystrobin TC.

Up to April 2024, the registration for picoxystrobin TC has been secured by 11 companies. It's worth noting that the number of producers for this TC product is quite limited, with only a handful such as Zhejiang Zhongshan Chemical Industry Group Co. Ltd. (with a capacity of 2,000 t/a), Hebei Sanlen Agrochemical Co., Ltd. (with a capacity of 300 t/a) and Shandong Weifang Rainbow Chemical Co., Ltd. (with a capacity of 300 t/a). Some enterprises have opted to discontinue their picoxystrobin TC production lines. For instance, in March 2022, Hebei Lanrun Plant Protection Technology Co., Ltd. phased out its 100 t/a picoxystrobin TC production line, while Jiangsu Lianhua Technology Co., Ltd. cancelled a new line with a capacity of 1,000 t/a.

Nevertheless, there are plans afoot to build new production lines for picoxystrobin TC.

In recent years, interest in picoxystrobin has been rekindled, as regulatory changes in pesticide management and a growing market demand for high-efficiency, low-toxicity pesticides. Picoxystrobin, known for its broad-spectrum, systemic and fumigating actions, and low toxicity, is effective against a range of diseases in various crops, including powdery mildew, leaf blight, and brown spot. Advances in domestic synthesis techniques have also boosted production efficiency and reduced costs, enhancing its market appeal.

Despite the patent for picoxystrobin expiring in 2008, large-scale production within China has been slow to materialise. The product faces stiff competition from other strobilurin fungicides like azoxystrobin and pyraclostrobin, due to its lower cost-effectiveness. Furthermore, the European Union disapproved the renewal registration for picoxystrobin in 2017 and required its member states to pull picoxystrobin products by 30 Nov., 2017 at the latest. The prohibition stemmed from concerns over the potential teratogenic and genotoxic risks of its metabolite IN-H8612, as well as the high risk posed by another metabolite, IN-QDY63, to aquatic life, earthworms, and their mammalian predators, leading to a cautious approach by companies towards new registrations, which is further complicated by the high costs and lengthy timelines associated with the registration process.