With capacity expansion, the ex-factory price of azoxystrobin technical has plummeted in China in the past two years. What's more, it still didn't manage to get rid of the decline trend from Jan. to early Aug. 2012. And it is estimated that the ex-factory price of azoxystrobin technical will see a continued slide in the next few months of 2012, while its decrease degree wouldn't be large mainly due to the slimmer profit margin, according to CCM’s Aug. Issue of Fungicides China News.
Generally, the ex-factory price of azoxystrobin 95% TC decreased to USD38,938/t (RMB248,000/t) in early Aug. 2012, down 0.85% over last month and 26.77% compared with that in early Jan. 2012, according to CCM International's monthly price monitoring.
Besides, it can be seen from the price trend chart that the price fall range of azoxystrobin 95% TC was bigger in the first four months of 2012. Specifically, the ex-factory price of this fungicide dropped to USD40,917/t (RMB258,000/t) in early April, down 23.05% compared with that in early Jan. However, from May to early Aug. 2012, its price decline range was smaller, only 5.21%.
It is particularly worth noting that the ex-factory price of azoxystrobin 95% TC firstly fell below USD50,000/t (RMB318,471/t) in March 2012, reaching about USD45,904/t (RMB290,000/t), down 13.67% over early Jan. What's more, this product's price broke below the previous month's low in July, less than USD40,000/t (RMB254,777/t), slipping to USD39,273/t (RMB250,000/t).
The increasing capacity resulted from more and more domestic agrochemcial companies' launch of their azoxystrobin technical production is the most important factor dragging down the ex-factory price of the product. Furthermore, the rapid capacity expansion caused confusion in the market of azoxystobin technical, and the price disorder and malign competition are relatively serious problems.
It is well known that azoxystobin is the most popular fungicide in the world with annual sales value of over USD1.0 billion at present, which attracted close attention of a large number of domestic agrochemical companies in the past few years. Coupled with the expired patent of the product in 2010, China's capacity of azoxystrobin technical witnessed a jump in 2011, hitting about 1,500t/a.
Stepping into 2012, domestic companies' enthusiasm for azoxystrobin is not only diminished but more inspired. This can be seen from one spot–the registration situation of azoxystrobin in China. According to the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA), 8 domestic companies have registered 11 azoxystrobin products since Jan. 2012, including 7 for technical and 4 for formulations.
In addition, some domestic companies are building azoxystrobin technical production lines at present and more are planning to build some in the near future, such as Jiangsu Changqing Agrochemical Co., Ltd. and Chongqing Unisplendour Chemical Co., Ltd. And it can be estimated that this fungicide's capacity will continue to go up to a certain extent in the coming years, resulting in more intense competition among domestic players.
In spite of this, the price fall range of azoxystrobin technical would not be big in the next few months of this year mainly due to the slimmer profit margin among domestic companies. On the whole, it is estimated that the ex-factory price of azoxystrobin 95% TC might maintain between USD37,656/t (RMB240,000/t) and USD39,225/t (RMB250,000/t) for a period.
Source: Fungicides China News 1208
http://www.cnchemicals.com/Newsletter/NewsletterDetail.aspx?id=2
Main content of Fungicides China News 1208:
Lier Chemical: total revenue increases but net profit declines in H1 2012
Lianhe Technology continues performing well in H1 2012
Changqing Agrochemical vigorously expands its oversea business in H1 2012
Zibo Wanchang postpones TMOF project
Huaxing Chemical to receive capital injection of USD308.59 million from CEFC Shanghai Oil
China gradually expands pesticide export to ASEAN
Difenoconaole steps into rapid development period
Ex-factory price of azoxystrobin technical continues slide in 2012
Thiediazole copper to enjoy growing favour
Baoling Chemical runs 250t/a metalaxyl-M technical production line
Hebei Guanlong begins to construct a captan technical project in July 2012
Jiangsu Sword to launch 500t/a cyproconazole technical in Oct. 2012
Corn diseases to seriously occur in middle and later growth stage of corn
Medium and late rice to suffer threat of large-scale diseases and insect pests
Fungicides China News, a monthly publication issued by CCM International on 10th of every month, provides a wealth of exclusive information and analysis, research and development dynamics of domestic competitors, analysis on import and export of key products, cooperative opportunities with domestic and foreign companies, and market information of foreign patent-expired products.
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