(2011-3-21)As a traditional broad-spectrum insecticide, the global sales of chlorpyrifos rank first among all organophosphorus insecticides and remain top three among all kinds of insecticides. However, the global consumption and market value of chlorpyrifos have gone through a roller coaster ride since the Dow Chemical Company registered the first chlorpyrifos product in 1965. With the rapid expansion of capacity in China and India these years, especially in the past five years, the supply and market structure changed remarkably. With its overcapacity of 70,000 tonnes per year, chlorpyrifos cost has prevailed loses among its producers for cost inversion. It's estimated that the growth of global chlorpyrifos market will slow down in the coming years.
This is one case of less consumption on conventional insecticides because of the rising demand on alternatives. The organophosphorus insecticides, the largest output among the insecticides products for a long time, is ordered to be cut back on overcapacities by the government due to its pollution and risk in its production process. According to the Custom, the total output of Chinese pesticides will reach a record of 2,262,200 tonnes, and its export and consumption will be 550,000 tonnes and 300,000 tonnes respectively. It will intensify the competition among the Chinese pesticides market due to the overcapacity, cost rising, appreciation of Yuan, rising inventories led by unpredictable pests & diseases, and the high-quality products introduced by the multinationals.
Growth cycle of the pests has been disrupted by the frozen disaster in the past two years, together with the widely use of the high-efficiency and the outbreak of the pests reduced by the long-lasting insecticides. This year, industry sources and insecticides consumption will be down by approximately 30%, especially the paddy products.
The scenery here is fine for the alternates products, and more demand on pymetrozine, avermectins,emamectin benzoate and acetamiprid as fipronil has phased out since 1st July 2009. The bio-insecticides, which has experienced a continuing growth of sales in recent years, might be more favored by the consumers if there were less usage cost. Another remarkable trend is that the mixed formulation products have gained more and more market shares. Statistically, some mixed formulations has gained 30% of market share, like the local markets in Sichuan and Hunan Province.
It is forecasted that the demand on insecticides will be 124,900 tonnes, down by 1.43% year on year. However, market demand of pyrethroid insecticides recovers in 2011 thanks to worsening pest occurrence, and benzoyl urea insecticides will have a promising market prospect in China without crossing resistance with other kinds of insecticides.
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