Learned from the China Crop Protection Industry Association (CCPIA), the total losses of loss-making enterprises were USD5.83 billion in H1 2011, up by 105.9% compared with that at the same period last year. According to the National Bureau of Statistics of China (NBS), the total profits of 773 enterprises with large-scale were USD84.57 billion in H1 2011, up by 17.2% compared with that in H1 2010. But the industrial average profit margin was less than 6%, still at a low-level. Most conventional varieties of pesticides were in depressed market, and insecticide and herbicide were particularly serious among them.
According to CCPIA, prices of block varieties of insecticide, such as abamectin, chlorpyrifos and Pymetrozine, were mostly close to the cost. Domestic demand of herbicide increased slightly in H1 2011. But only the rise in domestic demand can not absorb such excess production capacity presently. Some herbicide, such as glyphosate and acetochlor, were in low operating rate with export volume exceeded 50%.
(Guangzhou China, November 2, 2011)