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Herbicides China News 1411

33 Pages CCM International Limited November 28, 2014 SKU: OFCM5402528

Herbicides China News 1411

The import and export of China's pesticides in 2014 is predicted to realize a double increase. However, compared with last year, the YoY growth rate of export volume and value all the year round will continue to slow down and even be lower than those of import. The export volume of formulations from Jan. 2014 to Sept. 2014 continued to increase. This shows that the formulation production and process capability of China's pesticide enterprises are strengthened.

However, there are still many factors driving the price of domestic pesticide technical increasing.

1. The rigid demand of some products increases. Herbicides, including penoxsulam, oxadiazon, oxadiargyl and bispyribac-sodium, successively enter into a mature stage of market. Especially the rapid growth in China and Southeast Asia enlarges the demand of formulation-processing enterprises for technical.

2. Low capacity of some products and short supply in the market. With new herbicide resistant GM crops coming out globally and cultivation areas of exiting GM crops enlarging, many broad-spectrum, low-cost and convenient herbicides, like 2,4-D and dicamba, will meet a new developmental opportunity. However, the insufficient capacity of these products will not satisfy the market demand. Taking dicamba as an example, its global capacity is less than the market demand.

3. The pressure of environmental protection increases and many technical manufacturers shut down or relocate. Therefore, the regular capacity can not be released. The disposal cost of manufacturers for wastes increases significantly.

4. The pressure of safety increases and the operating rate of enterprises is low. Due to the occurrence of some security incidents, pesticides and organic chemicals are under logistics management. Therefore, some enterprises are severely under insufficient operation and their production and operation becomes hard.

5. The cost of logistics increases. In 2014, the cost of transportation increases, especially that of hazardous chemicals increases doubly. Since the late July. 2014, the logistics cost in regular period increases 2-3 times.

6. The cost of ingredients increases. Due to the pressure of environmental protection, safety and transportation and production cost increase, materials upstream manufacturers will transfer those increasing factors to downstream enterprises. This leads the significant increase of the price of some ingredients and the price of a few materials increases by more than 20%.

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Herbicides China News 1411

CCM International Limited
November 28, 2014

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