Three Major Reasons Cause Tight Supply of Mancozeb Technical

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Publish time: 21st April, 2011      Source: CCM
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      Guangzhou China April 21, 2011 - In the monthly newsletter, Fungicides China News in April, 2011, CCM makes a survey on mancozeb. The finding shows that mancozeb technical supply is tight in early Apr. 2011, mainly aided by the coming of the fungicide consumption peak season in the domestic market and its increasing demand from overseas market. In addition, ethylenediamine, a key intermediate of mancozeb, is also in short supply at the same time, which makes the current situation of mancozeb technical more severe.

    

       

    

      According to the survey, three leading mancozeb technical producers, namely Hebei Shuangji Chemical Co., Ltd. (Hebei Shuangji), Nantong Baoye Chemical Co., Ltd. (Nantong Baoye) and Xi'an MPC Stock Co., Ltd. (Xi'an MPC), claim that the mancozeb technical supply is very tight at present although they are busy producing this product. However, Limin Chemical Stock Co., Ltd. (Limin Chemical), the largest mancozeb technical producer in China, is able to supply sufficient mancozeb technical to the market, thanks to its adequate capacity of 20,000t/a.

    

       

    

      There are three major reasons for the tight supply of mancozeb technical. First, fungicide application is gradually entering the peak consumption season in domestic market accompany with the arrival of spring cultivation. Second, Chinese export volume of mancozeb has been keeping rise in recent years thanks to its increasing demand from overseas market, especially Europe, Africa and Asia. Third, ethylenediamine is in tight supply at present, which is one of the factors incurring the current situation of mancozeb technical. As the most important intermediate of mancozeb, Chinese ethylenediamine mainly relies on import from Japan, Europe, the U.S., etc., and the production and supply of Japanese ethylenediamine enterprises are severely affected, with the outbreak of 9.0 magnitude earthquake in Japan on 11 March 2011.

    

       

    

      However, general mancozeb production in China may not be greatly affected by the Japanese earthquake because Jiangxi Jufeng Chemical Co., Ltd. has launched a 10,000t/a ethylenediamine production line in H2 2010. It is estimated that the tight supply of ethylenediamine will be eased as it is said that new ethylenediamine production lines are about to be put into production in the coming days.

    

       

    

      In spite of the tight supply of mancozeb technical in domestic market at present, its ex-factory price still maintains at around USD3,744/t in early Apr. 2011, near to that of last month. Moreover, most mancozeb technical producers have not planned to increase its price in the short term.

    

       

    

      For more detailed information of mancozeb and other fungicides dynamics, please refer to CCM's monthly newsletter- Fungicides China News which is published in mid of each month.

    

       

    

       

    
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