In H1 2012, the market demand for insecticides in China has experienced a big change, first falling then climbing. Since last Dec., the continuous cold weather has reduced the occurrence of insect pests and delay the peak period of pesticide application. In Q1 2012, the demand for insecticides has decreased over the same period last year. Then in Q2, the situation quickly turned around, and the price of most insecticides began to rise. Also, the export volume has largely increased over the same time last year. For most insecticides there's nearly no stock, or only a little, such as imidacloprid and acetamiprid, according to CCM’s September issue of Insecticides China News
As insecticide manufacturers wish, a prosperous market is expectable in H2 2012, as the demand for insecticides will increase for more occurrence of insect pests and increasing export demand.
Insect pests
Entering June, high temperature and much rain this year favor the reproduction of insect pests in most regions of China. According to National Agricultural Technology Extension and Service Center (NATESC), the accumulated occurrence area of rice pests and diseases in H1 2012 came up to about 26.67 million hectares. And this will be more serious in H2 as predicted: the accumulated occurrence area will reach 74 million hectares, including 48 million hectares stricken by rice pests; specially, rice plant hopper will hit 20 million hectares of rice fields. The demand for rice insecticides such as imidacloprid, pymetrozine, nitenpyram and chlorpyrifos will keep increasing.
Corn insect pests are estimated to hit around 38 million hectares' corn fields in H2 2012, while it was 18 million hectares in H1 2012. Specially, in 2012, the occurrence of first-generation corn borer, the most damaging corn insect pest, is much severer over the average year, which is estimated to affect 10.33 million hectares' fields. Insecticides can efficiently control corn insect pests will be welcomed, such as chlorpyrifos, imidacloprid, phoxim, deltamethrin and Bt.
Last but not least, the occurrence of cotton insect pests will also benefit the insecticide market in H2 2012. Learning from NATESC, the occurrence of cotton insect pests in H2 is predicted to be severer over H1 2012, with around 12.67 million hectares to be affected. As estimated, cotton insecticides such as carbosulfan, acetamiprid, methomyl, beta-cypermethrin, triazophos and trichlorphon will continue to enjoy demand rise in H2 and some may witness supply shortage, such as carbosulfan.
Export
In H1 2012, China's export volume of pesticides increased mainly due to the strong demand from overseas market such as the Association of Southeast Asian Nations (ASEAN) and the America. According to the Institute for the Control of Agrochemicals, Ministry of Agriculture, the export volume of pesticide that China exports to ASEAN increases by 10% every year. Also, what's worth anticipating is that in this June Burma announced that it will exempt commercial tax on fertilizers, pesticides, agricultural equipment and machinery with a nine-month tax exemption period from 1 July, 2012 to 31 March, 2013.
The export volume of some insecticides showed a large increase in H1 2012, such as pymetrozine, imidacloprid and fipronil. According to CCM International's Imidacloprid Export Analysis, China's export volume of imidacloprid (both technical and formulations) in the first five months of 2012 increased to 7,136 tonnes, up 4.2% over the same period of 2011.
July to Sept. is usually still a peak period of pesticide export. Therefore, insecticide export will be thriving in H2 2012. The international prices of major grain crops (corn, soybean and wheat) have increased a lot since June 2012. And this uptrend is very likely to continue in the next few months as predicted. Farmers would raise their investment in pesticide purchase.
Source: Insecticides China News 1208
http://www.cnchemicals.com/Newsletter/NewsletterDetail_1.html
Main content of Insecticides China News 1208:
Guadipyr: a hotspot possibly to be launched in 2013
Sinochem Ningbo (Lianyungang) expands thiodicarb technical capacity
Hebei Veyong predicts H1 net profit to up 50% year on year
Jiangsu Baoling’s pesticide project passes EIA
Jiangsu Yangnong to set up a subsidiary in Singapore
Insecticide market to perform well in China in H2 2012
M&A among agrochemical companies goes on
Pesticide group-buying by large grain growers emerging
Imidacloprid market in short-term prosperity
38 million hectares' corn fields to be hit by pests in H2 2012
Two more companies register clothianidin technical
Lingyun Pesticides Chemical’s registration of thiamethoxam technical approved
Monthly ex-factory prices of key raw materials in China, Aug. 2012
Monthly ex-factory prices of main insecticides in China, Aug. 2012
Monthly Shanghai Port prices and FOB Shanghai price of main insecticides in China, Aug. 2012
Average market price of main crops in China, 31 July 2012
Ex-factory price of DETCL keeps decreasing
Insecticides China News, a monthly publication issued by CCM International on 10th of every month, provides the latest and influential analysis on insecticide industry for you, including company dynamics, supply and demand, price analysis, policy, raw material and intermediate.
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