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Insecticides China News

Insecticides

Vol 4, Issue 1, 2011 Publication date: 10 January, 2011

Insecticides

Insecticides

Copyright Š CCM International Limited


Insecticides China News

Vol 4, Issue 1, 2011

Content Overview Market outlook of insecticide in 2011�������������������������������������������������������������������������������������������������������������������1 Top 10 events of 2010 insecticide industry�����������������������������������������������������������������������������������������������������������2 Market analysis of main insecticides in China 2010��������������������������������������������������������������������������������������������3

Company Dynamics The third largest buprofezin producer to relocate������������������������������������������������������������������������������������������������4 Major insecticide producers quicken merger and acquisition�����������������������������������������������������������������������������5 Jiangsu Tuoqiu trial-produces pesticide formulations�����������������������������������������������������������������������������������������6

New Products Gansu develops 8 botanical insecticides���������������������������������������������������������������������������������������������������������������7 Paichongding to be marketed������������������������������������������������������������������������������������������������������������������������������� 8

Supply and Demand Spinosad technical marketed in advance in China�����������������������������������������������������������������������������������������������9 Dicofol to gradually quit China market�����������������������������������������������������������������������������������������������������������������9 China needs efficient substitute for terbufos urgently��������������������������������������������������������������������������������������� 11

Policy Government procurement good for pesticide producers�����������������������������������������������������������������������������������12

Pests 2011 crop pest occurrence a bit worse����������������������������������������������������������������������������������������������������������������12

Import & Export China insecticide import slightly up in 2010������������������������������������������������������������������������������������������������������13

Price Updates Monthly ex-factory prices of key raw materials, Jan. 2011�������������������������������������������������������������������������������� 15 Monthly ex-factory prices of main insecticides in China, Jan. 2011������������������������������������������������������������������ 15 Monthly Shanghai port prices and FOB Shanghai of main insecticides, Jan. 2011�������������������������������������������16 Average market price of main crops in China (31 Dec. 2010)����������������������������������������������������������������������������16

Pricing Imidacloprid technical price ascending in 2010������������������������������������������������������������������������������������������������� 17

Registration Emamectin benzoate registrations remain hot ��������������������������������������������������������������������������������������������������18

News in Brief Huapont Pharm. enters pesticide market with Noposion����������������������������������������������������������������������������������19 Chemical pesticide TC output in Jan. - Nov. 2010 achieves new high���������������������������������������������������������������19 Two pesticides from domestic six pesticide enterprises are honored����������������������������������������������������������������19 Molecular diversity of cotton bollworm cytochrome P450 unveiled ����������������������������������������������������������������19 ChemChina to buy Koor's subsidiary �����������������������������������������������������������������������������������������������������������������19

China Crop Protection Summit 2011 Will be held during 18 - 19 March, Shanghai Welcome to join with us. Click here for Event Details. Dynamic Database - ValoTracer

Online & real-time consulting system

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Coming Reports from CCM: - World Outlook of Chlorpyrifos 20102014 (To be launched in Jan. 2011) Ready Market Reports: - Production and Market of Chlorpyrifos in China (launched in Nov. 2010 ) - Production and Market of Non-Crop Pesticides in China (Issued on 9th Oct. 2010 ) - Survey of Pesticide Industry in China (Edition 2, launched in Sept. 2010 ) - Production and Market of Malathion in China  - Methidathion Production & Market in

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China - Fipronil Survey in China - Future Prospect of Genetically Modified Crops - Crop Protection China Market: Opportunities and Challenges - Future of Green Biotechnology in China CCM newsletters related to Insecticides: - Crop Protection China News - Herbicides China News - Fungicides China News - Glyphosate China Monthly Report

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Insecticides China News

Welcome to the January issue of Insecticides China News, specially published by CCM International, which has been extensively and intently focusing on the dynamics of China’s insecticide industry.

Vol 4, Issue 1, 2011

Headlines of Insecticides China News 1101 China's insecticide demand is forecasted to reach 124,900 tonnes in 2011.

China's insecticide industry has gone through many changes in 2010. CCM has selected some representative ones to make up the "top 10 events of 2010 insecticide industry in China". Some are really opportunities while some are challenges, like the Pesticide Industry Policy is good for the development of insecticide industry and the poor performance of major listed producers. Also in this issue a brief analysis of insecticide consumption, import situation has been given. On the whole, domestic insecticide consumption witnesses decline in 2010, and it is predicted that the demand will reach 124,900 tonnes in 2011, down about 1.4% year on year. Meanwhile, 2010 has witnessed a small rise in insecticide import volume and value in China. It is predicted that the occurrence of plant diseases and insect pests on grain crops in 2011 are forecasted to be a bit more serious over last year.

The year 2010 has witnessed a lot of events concerning insecticide industry in China.

New products are hopefully to grab the market share. Gansu Plant Protection Institute has developed eight botanical insecticides; a patented neonicotinoid insecticide, Paichongding, will be launched in China in early 2011. Besides, the first lot of spinosad technical production lines in China has already started to run in Dec. 2010, early than the planned mid 2011. Oppositely, some products like dicofol, terbufos are to be banned from application in China.

Bioseen marketed spinosad technical

Domestic insecticide consumption witnessed descent in 2010.

in Dec. 2010. Application of dicofol in China will be gradually banned by 2014 though it's very effective against red spider mite. Efficient substitute for terbufos is urgently needed to stop peasants using it on banned fields.

On 3 Dec. 2010, Jiangsu Anpon Nantong Agro-Star is going to relocate signed a contract about procurement of 100,000 tonnes pymetrozine pesticide technical and formulation production lines. formulations with Anhui government. In 2010, many listed Chinese pesticide enterprises, including some major insecticide producers, have quickened pace of merger and acquisition.

Occurrence of plant diseases and insect pests on grain crops in 2011 is forecasted to be a bit more serious than the previous years.

Jiangsu Tuoqiu completed relocation and trial-produced pesticide formulations from 12 Nov. 2010.

In 2010, China's insecticide industry saw slight rise in import volume and value.

Gansu Plant Protection Institute has developed eight botanical insecticides.

Imidacloprid technical price kept ascending in 2010.

Paichongding will be marketed in China in early 2011.

Emamectin benzoate has been registered by more and more producers in China since 2008.

Main companies covered in this issue

During 2011 and beyond, we will cover a wide variety of issues related to insecticide market in China, including company dynamics, crop insect pests, supply and demand, price monitoring, related policies/ registration, raw materials/ intermediates, expiring patents, etc. If there are specific topics you would like to see or want to investigate any of the subjects with more details, please contact us - CCM International.

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Insecticides China News

Vol 4, Issue 1, 2011

■■ Overview Market outlook of insecticide in 2011

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hina’s insecticide demand is forecasted to reach 124,900 tonnes in 2011, down about 1.4% year on year, and total national pesticide demand will reach 308,200 tonnes in 2011, up 2.69% year on year according to Shao Zhenrun, division chief of Pesticide & Machine Department of National Agricultural Technical Extension & Service Center (NATESC). These statistics are analyzed based on information from local crop protection stations from 31 key planting provinces/ municipalities, macro economic situation, climate situation, raw material price, as well as governmental policy. Guided by Pesticide Industrial Policy, the management of industrial agricultural base will be transformed from an extensive to an intensive pattern in the next five years, such as large grain production bases, cotton and vegetable planting bases. New professional organizations engaged in crop protection will bring big changes to the application amount, operating mode and consumption pattern of pesticide. With industry structure of agriculture gradually adjusted, China's pesticide demand structure tends to be more reasonable. Insecticide demand's proportion in total pesticide demand, though remaining to be the largest part, is estimated at about 41% in 2011, lower than 44% in 2010. And owing to heavy rainfall in the middle and northern China in 2010, demand for herbicides and fungicides will see obvious increase in 2011. Figure1: China’s pesticide demand (volume) structure, 2010 est. & 2011 est. 2010 est.

2011 est.

Source: NATESC Figure2: Demand strucutre of different kinds of insecticides, 2011

The issue of alternative technologies and substitutes for highly toxic pesticides will further change the demand structure of insecticide in 2011 at a fast pace. Demand for organophosphorus and carbamate insecticides in 2011 will respectively decrease by 4.88% and 6.21% year on year, while that for pyrethroid insecticides and other insecticides will respectively increase by 16.31% and 11.24% year on year. Meanwhile, affected by wide use of low-toxic and highefficient insecticides (abamectin, emamectin benzoate, imidacloprid and chlorpyrifos, etc.), as well as intense competition from import ones (Rynaxypyr, Longge and Virtako, etc.), the application amount of insecticides will face drop in 2011, pulling down demand. CCM deems that respective demand for chlorpyrifos, DDVP and trichlofon will be over 10,000 tonnes in

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Source: NATESC

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Insecticides China News

Vol 4, Issue 1, 2011

2011. Consumption of chlorpyrifos is seeing quick increase thanks to its good control effect on insect pests and low toxicity. The consumption of those insecticides with low toxicity and high efficiency, such as pymetrozine and buprofezin, will have bright future since Pesticide Industry Policy has set strict requirements on waste treatment during pesticide production. Besides, bioinsecticides will keep enjoying strong government support in the future. Both price and export volume of insecticides in China are forecast to rise in 2011. First , the rise in raw material price is huge propelling force for rise in price of pesticide technical. Secondly, overseas demand is to witness a stable upturn in 2011. In 2010 China has exported a lot of abamectin, chlorpyrifos and imidacloprid to Eastern Europe Table1: Insecticides with forecasted large demand (respectively), 2011 with expanding planting areas of fruit trees and vegetables. Vietnam, Thailand, South Korea Forecasted demand Item and Japan also have strong demand for China's 5,000-10,000 tonnes > 10,000 tonnes insecticide thanks to larger planting areas of Phoxim, dimehypo, rice, fruit trees and vegetables. Besides, the Latin Insecticide DDVP, trichlofon, chlorpyrifos omethoate, acephate American market is the fastest growing import origin of pesticides from China. Source: CCM international

Top 10 events of 2010 insecticide industry

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he year 2010 has witnessed a lot of events concerning insecticide industry in China. Some events, like the issue of Pesticide Industry Policy, is good for the development of insecticide industry; while some others, like climatic anomaly, is responsible for the sales decline of insecticide producers. Besides, the pace of insecticide industry integration and enterprises’ merger & acquisition has accelerated in 2010. Pesticide Industry Policy impacts insecticide industry greatly The Pesticide Industry Policy was drafted in 2009 and finally released on 26 Aug. 2010 by the Ministry of Industry and Information Technology (MIIT), the Ministry of Agriculture (MOA) and some other related departments, aiming to reshuffle domestic pesticide industry. As stated in the policy, the number of pesticide enterprises shall reduce by 30% and total sale volume of top 20 pesticide enterprises shall exceed 50% of all pesticide players' total in China by 2015. This has greatly impact China's insecticide industry and directly accelerated the pace of insecticide enterprises’ merger and acquisition in 2010.

Two more pesticide enterprises go public In 2010, more pesticide enterprises went public. In April, Jiangsu Changqing Agrochemical Co., Ltd. was approved to get listed on Shenzhen Stock Exchange. The company is one of the top imidacloprid technical producers in China. Then in Dec. Jiangsu Lanfeng Biochemical Co., Ltd., one of the largest producers of thiophanatemethyl technical in China, got listed on Shenzhen Stock Exchange. Insecticide players quicken merger and acquisition In 2010, many listed pesticide enterprises, including some major producers, quickened their pace of merger and acquisition. For example, Shenzhen Noposion Agrochemicals Co., Ltd., has invested in Shandong Jinan Leeder Chemical Co., Ltd. and Fujian Sinodashing Biotechnology Co., Ltd., and increased investment in Qingdao Xingpai Crop Science Co., Ltd. this year. Merger and acquisition seems to be an efficient way for domestic pesticide enterprises to remain competitive and alive. Cleaner production is highly promoted Cleaner production will be a way

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to measure a pesticide enterprise’s strength in the future. Usually a pesticide enterprise with abundant strength will pay attention to cleaner production as it is the trend of future pesticide production. As stated in Pesticide Industry Policy, by 2015 newly developed cleaner production technologies shall be promoted basically in the whole pesticide industry; the treatment rate of specific pollutants shall exceed 70%; 50% of technical producers should gather in industrial parks, etc. Climatic anomaly affects insecticide sales The extreme weather, like freezing weather, drought, flood disaster, struck China frequently in 2010, reducing a considerable amount of insecticides sales. In 2010, the peak season of insecticide sales postponed for one month. Most listed insecticide players underperform Most listed Chinese insecticide companies delivered bad sales performance in 2010, according to their Q1-Q3 quarterly reports. Among the 13 listed companies, nine suffered drop in net profit in Q1-Q3. The biggest losers were Shandong Huayang Technology Co., Ltd., Shandong Dacheng Pesticide Co., Ltd., Anhui Huaxing Chemical www.cnchemicals.com


Insecticides China News

Industry Co., Ltd. and Nanjing Redsun Co., Ltd. Export volume increase In 2010, the export volume of China's insecticide witnessed upturn thanks to global economic recovery and overseas demand increase. According to China Customs, China’s insecticides export volume hit 128,000 tonnes in Q1-Q3, with a YOY growth of 33.0%. SCCDP demonstration succeeds In 2010, the Ministry of Agriculture implemented the "100-1,00010,000" plan of specialized control of crop diseases and pests (SCCDP) around China, focusing on building

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100 demonstration counties, maintaining 1,000 demonstration districts and supporting 10,000 demonstration organizations. The demonstration of SCCDP in 2010 has achieved success, which is a milestone of China's modern agriculture. Hainan poisonous cowpea incident exposes loopholes in pesticide management & supervision system In Feb. 2010, isocarbophos, a highly toxic insecticide banned to be used on fruits, tea, tobacco, vegetables, was detected in Hainan-grown cowpeas in several provinces such as Hubei, Guangdong, Anhui and Jiangsu. This incident exposed the loopholes of Chinese pesticide

management & supervision system; meanwhile it stimulated the sales of lowly toxic insecticides, especially bioinsecticides. Transgenic crops threaten insecticide industry In 2010, the commercialization of transgenic crops increased in China. Transgenic crops could cut the application amount of insecticides, whose sales would also see decline too. Meanwhile, since transgenic crops are only able to prevent certain kinds of pests, some other insecticides' sales would be impacted, while some would enjoy good sales and new products might need to be developed.

Market analysis of main insecticides in China 2010

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ith the slight recovery in domestic pesticide industry, pesticide output witnessed growth in 2010, predicted to exceed the approximate 2.26 million tonnes in 2009. The overcapacity still hang over the overall pesticide industry including insecticide in 2010.

as substitutes for five highly toxic organophosphorus insecticides (methamidophos, parathion, parathion-methyl, phosphamidon and monocrotophos) which were banned since 1 Jan. 2007, and had once accounted for over 70% domestic insecticide market share.

The consumption of insecticide in 2010 is predicted to slide, in some places even seeing 30% decline according to some junior plant protection officers. Two main reasons attribute to the reduction. Firstly, the abnormal snow disaster in 2009 affected the life circle of insects and caused 2010 the off year of insect outbreak. Secondly, the wide promotion of highefficiency insecticides decreased the outbreak range of insects, leading to the shrinkage of insecticide consumption in 2010.

With China's strong limit on highly toxic pesticides in domestic market, the output of some organophosphorus insecticides largely decreased in 2010, such as phorate, isocarbophos, isofenphosmethyl, terbufos, etc. Along with the large promotion of pestresistant cotton in China recently, the occurrence of cotton bollworm, cotton spider mite was effectively controlled, leading to the slide in usage of profenofos insecticides in 2010.

In July 2010, China released the fifth batch of highly toxic pesticide alternatives to further limit the production and usage of highly toxic pesticides in domestic market (please refer to CCM's Insecticides China news 1008). Among these pesticides, insecticides account for the largest proportion, such CCM International Limited

Other organophosphorus insecticides also underperformed due to the downturn in domestic market, like trichlorfon, triazophos; their operating rates were less than 10% from Jan. to July 2010. Overcapacity still baffled domestic chlorpyrifos players in 2010. China’s chlorpyrifos capacity in

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2010 reached 116,000t/a, however, the domestic demand and export were just 18,100 tonnes and 19,800 tonnes respectively (estimated from Jan. to Oct. 2010). This condition has led to deficit of many chlorpyrifos players. On the other hand, owing to the prohibition of the five highly toxic pesticides and the phase out of fipronil since 1 Oct. 2009, the demand for highly toxic pesticide alternatives, such as pymetrozine, chlorpyrifos, abamectin, emamectin, acetamiprid, has correspondingly increased. Some imported insecticides have also successfully posted good performance in domestic insecticide market in 2010, such as Rynaxypyr (chlorantraniliprole), Longge (flubendiamide) and Virtako (40% chlorant-thiamethoxam). The demand for chlorfluazuron, a kind of benzoylurea pesticide, in domestic market reached over 5,000 tonnes in 2010. Right now, about nine pesticide enterprises have registered chlorfluazuron technical production in China, with total capacity in 2010 reaching www.cnchemicals.com


Insecticides China News

1,400t/a. Moreover, Nanjing Redsun Co., Ltd.'s chlorfluazuron technical project is still under construction with a capacity of 3,000t/a after the completion. Insecticides largely consumed in domestic market 2010 include dichlorvos, phoxim, buprofezin, trichlorfon, dimethoate, isoprocarb, bisultap, chlorpyrifos, cyhalothrin,

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abamectin, etc. Let alone the large insecticide demand from rice, corn, wheat and cotton, the insecticide usage volume on vegetables and fruits has also witnessed growth in 2010. An distinguished feature in domestic insecticide market is that the domestic market share of compound insecticides has

continuously increased. The market share of the compound insecticide of abamectin and chlorpyrifos has largely increased in Sichuan Province and Hunan Province in recent years, with about 20% growth rate annually, accounting for 30% market share of insecticide in these provinces in 2010.

â– â–  Company Dynamics The third largest buprofezin producer to relocate

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antong Agro-Star Biochemical Co., Ltd. (Nantong AgroStar), the third largest buprofezin producer in China, is going to relocate pesticide technical and formulations production lines in Lianyungang Chemistry Industry Park. Nantong Agro-Star is a chemical producer engaged in agrochemicals, fertilizers, chemical raw materials, pigments, etc., with production plants located in Nantong, Jiangsu Province, and sales department in Ningbo, Zhejiang Province. Nantong Agro-Star starts this overall relocation and has already stopped production under the order and supervision of government. According to Ms Sun, a saleswoman from the company, this relocation will spend at least 1.5 years, which is expected to end in Jan. 2012. The total investment in this relocation reaches USD30 million, with more than USD5.2 million spent on waste treatment facilities. After the relocation, the company will own the production capacities of 5,150t/a pesticide technical,

15,500t/a pesticide intermediates and 2,040t/a pesticide formulations. Ms Sun revealed that the production of buprofezin technical and formulations and abamectin formulations will be continued in the new factory. Whether to continue the production of other insecticides depends on market demand for them. Nantong Agro-Star has been developing rapidly in recent years. According to Ms Sun, the company mainly focuses on domestic market, which took up about 80% of its whole business areas in 2009. Buprofezin is a featured insecticide of Nantong Agro-Star, which contributes about 50% to the total sales of insecticide business. According to CCM's investigation, sales performance of buprofezin in 2010 turned out well. Major buprofezin manufacturers in China are Jiangsu Changlong Chemicals Co., Ltd., Jiangsu Anpon Electrochemical Co., Ltd. and Nantong Agro-Star Biochemical Co., Ltd. The total capacity of these three

manufacturers reached 11,600t/a in 2010, among which Nantong AgroStar captures 2,000t/a. Nantong Agro-Star's buprofezin output in 2009 reached 1,500 tonnes. According to Ms Sun, Nantong Agro-Star has no buprofezin inventory as the relocation is unexpected. Nantong Agro-Star has to quit the buprofezin market until the relocation is finished. The company's relocation has been changing the market structure of buprofezin. It is estimated that buprofezin demand in the coming two years will remain strong. In Dec. 2010, the price of 95% buprofezin TC was USD5,726/t, with 8.6% YOY growth. The steady growth of demand and price is drawing increasing attention from more pesticide enterprises. Nantong Agro-Star's quit in the blooming sales time of buprofezin has created a market gap of about 1,500 tonnes for other buprofezin manufacturers. What Nantong Agro-Star missed may not be only a good sales in this period, but the dominance in this market.

Table2: Production capacity of top three buprofezin manufacturers, 2010, t/a Manufacturer

Jiangsu Changlong Chemicals Co., Ltd.

Jiangsu Anpon Electrochemical Co., Ltd.

Nantong Agro-Star Biochemical Co., Ltd.

Production capacity

6,000

3,600

2,000

Source: CCM International

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Major insecticide producers quicken merger and acquisition

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n 2010, many listed Chinese pesticide enterprises, including some major insecticide producers, have quickened pace of merger and acquisition. As stated in Pesticide Industry Policy released on 26 August 2010, the number of pesticide enterprises shall reduce by 30% and total sales volume of top 20 pesticide enterprises shall exceed 50% of that of all pesticide enterprises in China by 2015. It seems that merger and acquisition becomes an efficient way to keep domestic pesticide enterprises competitive and alive, since it is quite impossible to build a new product line and a factory in a short time. Besides the policy, some listed pesticide players' success stories of merger and acquisition also inspire other pesticide enterprises. Shenzhen Noposion Agrochemicals Co., Ltd. (Noposion) is an example achieving a lot among the former. Noposion is a leading insecticide formulation producer in China active in adopting merger and acquisition in recent two years, which is proved to benefi from it. Noposion totally got holdings of eight pesticide companies during 2004-2008. However, in 2009 Noposion became a holding company of another eight pesticide

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companies, three of which it held over 50% holdings are Shandong Zhaofengnian Biotechnology Co., Ltd. (80%), Dongguan Shipuwang Biotechnology Co., Ltd. (100%) and Zhonggang Taifu (Beijing) High Technology Co., Ltd. (51%). Learning from Noposion's H1 2010 semiyearly report, net profit of Shandong Zhaofengnian Biotechnology Co., Ltd. reached USD5.8 million, which contributed a lot to Noposion's net profit. In 2010, Noposion kept advancing merger and acquisition. In Jan. Noposion increased its investment of Qingdao Xingpai Crop Science Co., Ltd. and its holdings increased to 51% from the previous 31%. In the same month, Noposion got 40% holdings of another pesticide company–Shandong Jinan Leeder Chemical Co., Ltd. Then in March, Noposion wholly acquired Fujian Sino-dashing Biotechnology Co., Ltd. The company's latest decision on this progress, released on 27 Dec. 2010, was to invest in Jiangsu Changlong Agrochemical Co., Ltd. It's believed that in 2011 Noposion will keep quickening its merger and acquisition pace. Unlike Noposion, some small pesticide enterprises in China are looking forward to being acquired instead of acquiring. At present, there are more than 3,000 pesticide players in China, most of which are small and making little profit.

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Driven by industry integration, more and more small insecticide producers in China are confronted with poor management; being acquired by large insecticide producers has become a financing solution for some of them. Meanwhile, large insecticide producers hope to enrich product mix by acquiring other insecticide producers. On 29 Dec., Lier Chemical Co., Ltd. (Lier Chemical), a leading pyridine technical producer in China, announced to acquire 51% shares of Jiangsu Kuaida Agrochemical Co., Ltd. (Jiangsu Kuaida). The major product of Lier Chemical is pyridine pesticide, whose product structure is relatively simple. After acquiring Jiangsu Kuaida, Lier Chemical will update its product mix from simply pyridine pesticides to a portfolio of herbicides, insecticides and fungicides. Besides, the company's sales network will be perfected after being integrated with Jiangsu Kuaida's. It’s estimated that merger and acquisition in China's pesticide industry will keep marching on in 2011. More and more insecticide producers will join the team. Some insecticide producers, like Noposion, will quicken their pace of merger and acquisition. In so doing, insecticide industry may see restructuring in 2011.

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Insecticides China News

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Jiangsu Tuoqiu trial-produces pesticide formulations

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iangsu Tuoqiu Agriculture Chemical Co., Ltd. (Jiangsu Touqiu), former Jiangsu Yancheng Electricity Chemical Plant established in 1967, has completed its relocation of pesticide formulations production lines and carried out pilot run from 12 Nov. 2010. The company is one of pesticide and fine chemical manufacturers in China. The pilot run is from 12 Nov. 2010 to 11 Feb. 2011. According to the bulletin published by Jiangsu Yancheng Environmental Protection Bureau, Jiangsu Tuoqiu has resumed the production of pesticide formulations, including five insecticide formulations, one plant growth regulator and six fungicide formulations. The insecticide formulations are 1,000t/a 5% fipronil SC, 500t/a 20% pyridaben EC, 500t/a 25% imidacloprid WP, 500t/a 5% acetamiprid WP and 1,500t/a 48% chlorpyrifos EC, with total capacity reaching 4,000t/a. Jiangsu Tuoqiu has moved into the Coastal Chemical Industrial Park in Yancheng, Jiangsu Province from Yancheng Chemical Industrial

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Zone in late 2009 due to the increasingly stricter environmental protection requirement issued by the government. All formulation production lines of Jiangsu Tuoqiu are located in the Coastal Chemical Industrial Park now, a new production base which the company invested USD9.88 million.

China has nationwide banned both sales and application of fipronil formulation in almost all areas except for controlling sanitary insect pests and some soil insect pests since 1 Oct. 2009. According to CCM’s monitoring, Jiangsu Tuoqiu's ex-factory price of 5% fipronil SC was USD6,400/t in Dec. 2010.

A staff from Jiangsu Tuoqiu, Mr. Ge, said that in late 2009 the company has completed technological upgrading of pesticide production lines, which was a part of this relocation. With USD0.78 million investment in waste treatment, it successfully cut down the energy consumption and pollution of production, while no capacity expansion is involved.

Though the relocation was completed, the other four production lines of insecticide formulations haven't been put into production as of Dec. 2010.

Jiangsu Tuoqiu is one of largest fipronil technical producers in China with output of 500 tonnes in 2009. This relocation, coupled with slack market demand, has lowered the output to about 400 tonnes in 2010. The company also produces fipronil formulations, such as 80% WDG, 5% and 20% SC, etc. All these products are mainly exported to South America and Brazil, as

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Manager Xu from the company told that the insecticide technical of these formulations were purchased from other companies before. Owing to rise in price of raw material, high price of insecticide technicals since late 2010 has suspended the company from buying outside. Now the company may arrange production if it receives orders. In 2011, Jiangsu Tuoqiu will possibly run all the insecticide production lines successively.

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Insecticides China News

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■■ New Products Gansu develops 8 botanical insecticides Gansu Plant Protection Institute of Gansu Academy of Agricultural Sciences announced in Dec. 2010 that eight botanical insecticides it developed could effectively control aphids and red spider mites after one-year field experiment and demonstration.

and ricinus communis botanical insecticide. Currently the institute is making patent application for the other four insecticides. Now researchers in the institute are separating the active ingredients killing pests from the plants, which need some time to be clarified as the ingredients of these plants are complicated. Once it's done, the commercialization of these botanical insecticides can be realized.

According to Professor Hu Guanfang, one of the project leaders from China Patent Information Center, the research of these eight botanical insecticides began in 2008. These products are respectively extracted from the following plants: datura tatula, henbane, nicandra physalodes, ricinus communis, sun euphorbia herb, macleaya microcarpa, common cnidium fruit and heracleum yungningense. Among them, datura tatula and heracleum yungningense are the first time being recognized as “insecticidal plants” both in China and abroad.

“Comparing with chemical insecticides, botanical insecticides have advantages of easy degradation, low residue and being eco-friendly but are with relatively high price. Therefore, botanical insecticides are more suitable to be used on high value-added crops.” said Professor Hu.

In 2009, researchers in the institute started the field experiment and demonstration of the 8 insecticides on 4,286.7 hectares field, which proved a control effect exceeding 80% on aphids (cotton aphid, myzus persicae and corn leaf aphid) and red spider mites (most are carmine spider mites in China). Also, the average growth rate of vegetable output in the fields reached 17.1%.

While highly toxic pesticides are banned one after another in China; eco-friendly pesticides, like biopesticides, are enjoying steadily increasing demand. As mentioned in Decision on Speeding up Cultivation and Development of Strategic Infant Industry by China State Council, Chinese government will “pay attention to cultivate biological breeding industry and promote green agricultural biological products to stimulate the development of biological agriculture” in the future.

“In general, the insecticide used is 300-500 times dilution, which means 30-50 ml botanical insecticide is mixed with 15 kg water in the sprayer.” said Professor Hu, “one hectare field needs about 900-1500 ml botanical insecticide. Generally it needs four to five times' application of botanical insecticides per year according to the occurrence of aphids and red spider mites.”

Cumulative investment in biopesticide industry was reported to reach USD1.01 billon during Jan. to Aug. 2010, with a YOY growth of 70.8%. As an important branch of biopesticide, botanical insecticides have developed fast in recent years; many enterprises seize the opportunity to join the research, production and sales of them. As mentioned in last issue, a 10,000t/ a botanical insecticide project has settled in Anhui Province in Nov. 2010. It’s estimated that more botanical insecticide projects will be launched in the coming years.

Learning from Professor Hu, in Sept. 2010 Gansu Plant Protection Institute already got separate patent for four botanical insecticides, which are separately datura tatula botanical insecticide, henbane botanical insecticide, nicandra physalodes botanical insecticide

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Vol 4, Issue 1, 2011

Paichongding to be marketed

P

aichongding (not named in English), a patented neonicotinoid insecticide, will be launched in China in early 2011. Paichongding was jointly developed by Jiangsu Kwin Group Co., Ltd. (Jiangsu Kwin) and East

China University of Science and Technology, with total investment of USD2.9 million (RMB20 million) in R&D. The R&D and industrial project of Paichongding was listed in the branch project (Innovation and Creation) in China's Eleventh Five-Year Plan.

Before 2009, Paichongding was called IPP appointed by the Ministry of Agriculture. According to China’s State Intellectual Property Office, Jiangsu Kwin applied for national invention patent of 10% IPP SC in 2007 and the application has been approved in 2009 (National Patent

Picture1: Structural formula of paichongding

Source: Chinese National Knowledge Infrastructure (CNKI)

Number: 200710024512.1). At present, Jiangsu Kwin is the exclusive Paichongding producer in China, according to its sales department. The company's Paichongding technical is not for sale, while 10% Paichongding SC will be launched in Jan. 2011. Jiangsu Kwin has set a planned output of 10% Paichongding SC at about 10 tonnes per month in 2011, but it will be adjusted according to market demand. A sales staff in the company revealed the ex-factory price of 10% Paichongding SC was predicted to reach USD45,000/t in Jan. 2011. However, the ultimate price would be set at the pricing meeting to be held in Hunan in Jan. 2011. Compared with other insecticides of its kind, such as imidacloprid

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and acetamiprid, Paichongding embraces great market potential thanks to the following advantages. With low pollution and residue, Paichongding technical has passed pilot plant test, toxicity test, field registration trial, etc. And 10% Paichongding SC has been field tested in part of Jiangsu, Guangdong, Guangxi and Fujian in 2009 and 2010. It's proved that Paichongding can effectively control plant hopper, aphid, leafhopper, etc. Super high efficiency is the product's another key advantage. Evidence showed that Paichongding's efficiency is significantly higher than that of pymetrozine, acetamiprid, imidacloprid and other varieties of its kind. The application amount of Paichongding is 37.5-52.5g/hectare. Compared with pymetrozine and acetamiprid, it is estimated that

8

Paichongding can save about 50% unit application volume to achieve the same control efficiency, which can greatly cut the insecticide application cost of domestic farmers during crop production. Besides, Paichongding has broader market scope thanks to the dual characters of being both an agricultural insecticide and a promising hygienic insecticide. Driven by stricter policies on environmental protection and growing demand for high-efficient insecticides, Paichongding is expected to be an up-and-coming product.

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Insecticides China News

Vol 4, Issue 1, 2011

Spinosad technical markets in advance in China

B

ioseen Bio-Technology Co., Ltd. (Bioseen) started to run spinosad technical production lines in Dec. 2010 ahead of the planned mid 2011. Spinosad (developed by Dow AgroSciences LLC) is a development hotspot in China since its patent expired in Dec. 2009. Bioseen is the first spinosad technical producer in China. This process appears to be simple, but in fact costs a lot of efforts. Actually, Bioseen is the outcome of Beijing Yanhua Yongle Pesticide Co., Ltd. (Yanhua Yongle)'s recombining the bankrupted Mudanjiang Lvjin Bio-Technology Co., Ltd. with the USD37.6 million investment on 8 Dec. 2009. To get over the hard times before the reconstruction, Bioseen seeks development opportunities via products with huge potential. Making use of its previous glycine production, Bioseen overhauled its fermentation equipment and invested more than USD4.5 million to purchase new equipment in

March 2010 for the spinosad production. Then in that April the company completed production lines of bioinsecticide and put into production its first product, namely abamectin. However, abamectin didn’t bring much profit to the company. Depressed market demand and unordered market competition in 2010 have suppressed abamectin price to a historical trough; producers could hardly make much money. Mr. Zhao, assistant manager of Yanhua Yongle, revealed Yanhua Yongle has acquired the production technology of spinosad technical by reaching a strategic cooperation agreement with an American company in 2010, and then transferred to Bioseen. Spinosad was superior to abamectin in mode of action, pesticide residue, range of application and cost effectiveness, etc. Additionally, Bioseen invited experts for on-

the-spot guidance to transfer the advanced technology to excellent products. An insider from Bioseen revealed that orders for spinosad technical have been reveived since Dec. 2010. The company first made spinosad technical price at USD527,450/t in Dec. 2010. The insider also told that a discount would be available for customers willing to establish longstanding relationships with Bioseen. Bioseen's capacity of spinosad technical is predicted at 300t/a in 2011. The company also makes spinosad formulations include 2.5% spinosad SC, 5% spinosad SC, 20% spinosad WG, 48% spinosad SC and a variety of mixed formulations. Raw materials of spinosad are mainly corn and soya flour. Producing spinosad can raise farmers' income. Chinese government will give substantial support to Bioseen.

■■ Supply and Demand Dicofol to gradually quit China market

I

n Dec. 2010, the TOT meeting of Improvement of DDTbased Production of Dicofol and Introduction of Alternative Technology including IPM for Leaf Mites Control in China (China Dicofol Project for short) was held in Luochuan County, Shaanxi Province. China Dicofol Project, started in April 2009, is managed by United Nations Development Program, China's Ministry of Environmental Protection and the Ministry of Agriculture, which aims to gradually ban the application of dicofol and promote its environmentally friendly substitutes. The sales and

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application of dicofol will be banned before late 2012 in Luochuan County, Shaanxi Province. Though dicofol is a very effective miticide against red spider mite, its application in China will be gradually stopped by 2014. The main reason lies in one of the intermediates used in its—DDT— one of the Persistent Organic Pollutants (POPs)mentioned in Stockholm Convention. The average content of DDT in dicofol production is about 14% in China, which makes dicofol a major source to release DDT to the environment.

9

According to the Stockholm Convention, China had to stop the production, application, import and export of DDT in May 2009; meanwhile the open production of dicofol, which uses DDT as one of the major raw materials, should also be stopped in May 2009. The implementation of China Dicofol Project will help reduce farmer's dependency on dicofol by promoting integrated pest management (IPM) and proper substitutes to farmers.This project is now being implemented in Yidu in Hubei Province, Luochuan in Shanxi Province and Zhanhua in Shandong Province.

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According to CCM’s investigation, all dicofol manufacturers have already stopped the production of dicofol except Jiangsu Yangnong Chemical Group Co., Ltd. (Jiangsu Yangnong).“Our company is the only

Vol 4, Issue 1, 2011

legal dicofol manufacturer in China. Less than 0.1% of DDT will be contained in our dicofol production, comparing with previous 8%, which is in line with FAO standard.” said Mr. Cao, a sale staff from Jiangsu

Yangnong. Most of the company’s dicofol technical was exported while dicofol formulations were mainly for domestic market in 2010. With the gradually quit of dicofol,

Table3: Registered pyridaben TC manufacturers in China, 2010 No.

Registered pyridaben TC manufacturers

1

Jiangsu Yangnong Chemical Group Co., Ltd.

2

Jiangsu Kwin Group Co., Ltd.

3

Shandong United Pesticide Industry Co., Ltd.

4

Jiangsu Lianyungang Liben Pesticide Co., Ltd.

5

Nanjing Redsun Co., Ltd.

6

Jiangsu Lanfeng Bio-Chem Co., Ltd.

7

Hubei Sanonda Co., Ltd.

8

Zhejiang Wynca Chemical Industry Group Co., Ltd.

9

Shanghai Pesticide Factory Co., Ltd.

10

Jiangsu Bailing Agrochemical Co., Ltd.

Source: China Pesticide Information Network Figure3: Abamectin technical price, Jan. 2009 - Dec. 2010

Source: CCM International

the substitutes for dicofol have been developing well in recent years, for example, pyridaben, abamectin, propargite, azocyclotin, amitraz, fenpropathrin, etc. Among the substitutes, pyridaben is the appointed alternative for dicofol in China Dicofol Project. At present, there are about 320 manufacturers registering pyridaben production, 10 of which produce pyridaben technical. The latest price of

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pyridaben technical was USD12,136/ t in Dec.2010. As another substitute for dicofol, abamectin is efficient but relatively expensive. The price of abamectin was USD82,535/t in Dec. 2010, with a 19.4% YOY decline. If this downward trend continues, abamectin will be affordable to more farmers. As mentioned in Overview of abamectin in China

10

(CCM’s Insecticides China News 1002), with the quit of highly toxic insecticides in Chinese insecticide market, abamectin as a substitute has captured much of the market share they left.

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Insecticides China News

Vol 4, Issue 1, 2011

China needs efficient substitute for terbufos urgently

T

hough terbufos has been banned on crops (except peanuts) for years, it's still used on crops like sugarcane and sweet potato by some peasants. The main cause is blamed on that no efficient substitute is available. Therefore, China requires efficient substitute for terbufos urgently. On 17 Dec. 2010, a meeting on Terbufos Insecticide Management was convened jointly by Zhanjiang Agriculture Board and Zhanjiang Pesticide Industry Association, aiming to study relevant management policies on terbufos and analysis current issues of terbufos market in Zhanjiang City, Guangdong. Terbufos is a highly toxic organophosphorus insecticide, which once was allowed to apply to control soil insects and nematodes of cotton, sugarcane, corn and peanuts. But later people found

it harmful to both peasants and animals. In July 2008, a serious incident of terbufos application on sugarcane in Enping, Guangdong Province killed three sugarcane growers and poisoned nine. Besides, applying terbufos is a threat against agricultural products’ quality and environment. Relevant ban policies on terbufos application on crops have been introduced and updated in recent years. As early as 2002, the application of terbufos on sugarcane was banned by No. 194 Announcement by the Ministry of Agriculture (MOA). In 2008, MOA announced to stop the formal registration for terbufos technical. Yet in 2009 terbufos technical registration surprisingly got approval again on the 5th Pesticide Registration Evaluation Meeting. But according to the meeting, terbufos is only allowed

to apply on peanuts within the following peanut growing provinces: Henan, Hebei, Shandong, etc. However, terbufos production is still running by major manufacturers as CCM's investigated. According to a salesman of Handan Kaimike Chemical Co., Ltd., the company produces terbufos technical and the sales turn out well in 2010. “We are applying for new registrations at present; the process goes smoothly.” said the salesman. It’s known that other major terbufos technical manufacturers are busy with registration application too. Meanwhile, terbufos is still applied on other crops, especially sugarcane. Most sugarcane growers take terbufos as a miracle insecticide to sugarcane. “I know terbufos is a restricted insecticide, but it is cheap and highly efficient. I am

Table4: Price of terbufos and its major substitutes, Nov. 2010, USD/t Insecticide

Price

90%-97% chlorpyrifos 90% carbosulfan

5,123 - 5,274 12,506

90% phoxim

3,315 - 3,466

85% terbufos

3,315

Source: CCM International

used to apply it on sugarcane.” said one peasant from Suixi County, Zhanjiang City, Guangdong Province. As one of the major sugarcane growing districts in China, the county supplies four million tonnes of sugarcane every year. “Terbufos is highly toxic and banned to use on sugarcane, but currently there is no other substitute as

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efficient and cheap as terbufos. Peasants ar reluctant to spend much on insect pest control as the profit of sugarcane is low.” said Mr. Fang, a pesticide salesman in Suixi. “Besides, Suixi is also a peanut growing district. It’s difficult to know on which crop the peasant is going to apply terbufos.” It's hard to prevent abuse of terbufos. At present, major substitutes

11

for terbufos are chlorpyrifos, phoxim, carbosulfan and monosultap·chlorpyrifos, etc. But their prices are higher than terbufos, some even double; while the effect of these substitutes is inferior to terbufos. In the near future, peasants will still prefer to purchase and apply terbufos even though it is banned. China do need relatively cheap and efficient products eagerly to help realize the ban on terbufos.

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Insecticides China News

Vol 4, Issue 1, 2011

■■ Policy Government procurement good for pesticide producers

O

n 3 Dec. 2010, Jiangsu Anpon Electrochemical Co., Ltd. (Jiangsu Anpon) signed a contract with Anhui Government, selling 100,000 tonnes pymetrozine formulations to the latter. To cope with the coming slack sales period, at the end of 2010 most pesticide producers have reduced operating rates and made 2011 production plan. Government procurement is a surprising opportunity to them. Taking into account agricultural experts' warning of serious occurrence of rice planthopper in the next two or three years, in 2011 some provincial governments launch procurement plans in advance. To ensure food production security, China has unveiled a series of fresh policies to help and support farmers. For instance, the State Council will allocate USD181 million special funds, in the form of public tendering, to purchase cost-effective pesticides, fertilizers and other agricultural supplies used to support grain production of eight major

provinces in southern China with heavy occurrence of insect pests. Manager Xing from Jiangsu Anpon indicated that government procurement was a good marketing channel of dominant pesticide producers. In Sept. 2010, when southern China was hit by serious occurrence of migration insect pests, Jiangsu Anpon actively participated in government procurement and have attained big orders from Jiangxi Province of 300 tonnes 25% pymetrozine and 100 tonnes 25% buprofezin. Manager Xing said to pesticide producers the best thing about government procurement was their rising fame; the creditable procurements help establish reputable brands greatly. Also, with procurements the government is willing to reduce application amount of pesticides and improve the safe use and efficacy of pesticides. Thanks to introduction of the mechanism of open competition, the government has made great efforts on standardizing the

agricultural market. Government procurement will effectively help strike counterfeiting and decrease the possibility of casualty caused by using fake pesticides. Government procurement has more advantages. First, lowly toxic, highly efficient and environmentally friendly pesticides will be given prior consideration for the procurement with strict quality control. In so doing, the whole product mix will gradually become reasonable. Secondly, the large purchasing amount is an attraction to suppliers, and the favourable procurement cost will drive the fluctuating pesticide price to become more reasonable. Thirdly, the centralized tendering improves the whole efficiency of marketing and creates mutual benefit for participants. However, pesticide producers wish the occasional government procurement can become periodical and institutionalized, and covers a large area in China. Only in this way can it benefit producers and the development of agriculture.

■■ Pests 2011 crop pest occurrence a bit worse

O

ccurrence of plant diseases and insect pests on grain crops in 2011 is forecasted to be a bit more serious than the previous years. Total stricken area of diseases and insect pests of all crops will hit 0.38 billion hectares in 2011, up 4% than over last year, according to National Agricultural Plant Protection Station, Institute of Plant Protection of Chinese Academy of Agricultural Sciences, China Agricultural University and experts from research institutes and universities.

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Rice Insect pests on rice mainly include rice planthopper, leaf folder and rice stem borer. Rice planthopper is forecasted to blast in most rice planting areas in the south of the Changjiang River in 2011, with total stricken area estimated at 28 million hectares. Chlorpyrifos, buprofezin, malathion and emamectin benzoate are recommended to control rice planthopper.

12

Leaf folder will occur severely in the southern Changjiang River, the middle and lower reaches of the Changjiang River, YangtzeHuaihe River Valley, Southwest and South China; total stricken area is estimated to be 22 million hectares in 2011. Chlorpyrifos, abamectin and hexaflumuron are recommended to control leaf folder. Rice stem borer will occur severely in the middle reaches of the Changjiang River and the southern Changjiang River, southwest www.cnchemicals.com


Insecticides China News

China and some parts in northeast China. Total stricken area of rice stem borer is estimated to reach 14 million hectares in 2011. Acephate, chlorpyrifos and triazophos are recommended to control rice stem borer. Wheat Insect pests to hit wheat mainly include wheat aphid, wheat red mite and wheat midge. Wheat aphid is said to surge in North China and the HuangHuai-Hai Plain. And it will occur moderately in the wheat planting areas in the middle and lower reaches of the Changjiang River, Southwest and Northwest China. Total stricken area of wheat aphid is estimated to be 16 million hectares in 2011. Imidacloprid, dimethoate, carbofuran and esfenvalerate are recommended to control wheat aphid. Wheat red mite will breakout seriously in North China and the northern Huang-Huai-Hai Plain, moderately in the southern HuangHuai-Hai Plain, Jianghan Region (Hubei Province), Sichuan and

Vol 4, Issue 1, 2011

the east of Northwest China. Total stricken area of wheat red mite is estimated to be 7.3 million hectares in 2011. Pyridaben and abamectin are recommended to control wheat red mite. Wheat midge will occur seriously in Hebei, Tianjin, Beijing and Henan, and moderately in North China and the Huang-HuaiHai Plain. Total stricken area of wheat midge is estimated to be 2.5 million hectares in 2011. Phoxim, chlorpyrifos, isofenphos-methyl and permethrin are recommended to control wheat midge. Corn Insect pests on corn mainly include corn borer, underground pests, cotton bollworm and armyworm. Corn borer will occur severely in most parts of Northeast China with total stricken area of 22.7 million hectares in 2011. Carbofuran, trichlorfon, dichlorvos and bioinsecticides are recommended to control corn borer. Underground pests will occur seriously in most parts of Northeast

China, and moderately in North China and the Huang-Huai-Hai Plain. The total stricken area is to reach about 6 million hectares in 2011. Terbufos, carbofuran and phoxim are recommended to control underground pests. Cotton bollworm is to hit Northwest China and the YellowHuai River Valley moderately. Total stricken area is estimated at 3.3 million hectares in 2011. Bacillus thuringiensis, chlorbenzuron and methomyl are recommended to control cotton bollworm. Armyworm will occur moderately in the North and Southwest China, with total stricken area of 3 million hectares in 2011. Trichlorfon, fenvalerate and omethoate are recommended for the control. Conclusion According to forecast on occurrence of insect pests, the application amount of insecticides will accordingly increase in 2011. However, owing to the use of highly efficient and long-lasting products, together with the change of planting structure, the increment is limited.

■■ Import & Export China insecticide import slightly up in 2010

I

n 2010, China's insecticide industry has witnessed small rise in import volume and value, driven by the need for high-tech products, and foreign enterprises’ active promotion of their patented products. In Q1-Q3 2010 the import volume hit 6,753.7 tonnes in Q1-Q3 2010, up 1.2% year on year. According to statistics from China Customs, in Q3 2010 China’s insecticide import volume hit 1,810.1 tonnes in Q3 2010, up 34.7% year on year; the average import price reached USD9,008/ t. Retail packaging insecticides' import volume reached about 471.8 tonnes, down 17.1% year on year;

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the average import price reached USD2,593/t. Import volume of nonretail packaging insecticides reached about 1,338.3 tonnes, up 72.7% year on year; the average import price reached USD11,000/t. The reason for importing some varieties like cypermethrin and imidacloprid mainly lies in the great push by foreign developers's entrance of Chinese market, though these products have been manufactured on a large scale in China with quite advanced technology and low cost. Some kinds like asdeltamethrin and chlorfenapyr, though also being made in China, need to be imported

13

due to Chinese producers’ more inefficient production technology of technical and formulation and market promotion compared with foreign rivals. Besides, a part of the imported products are patented, such as chlorantraniliprole and spirodiclofen. Also, technicals of some varieties have been exported and then returned to domestic market after being processed to formulations. As to category of imported pesticides, those used on vegetables and fruits still need to be imported for tight supply, while others have been enough to meet domestic needs, especially those used on www.cnchemicals.com


Insecticides China News

Vol 4, Issue 1, 2011

fields with surplus supply.

friendly products with low toxicity and high efficiency. Moreover, the powerful promotion campaign of foreign products will be going on;

In the next five years, China needs more products with more eco-

thus, the import volume and value will steadily increase to make up the supply shortage.

Table5: Major imported insecticide products, Q1-Q3 2010 Insecticide Technical

Flubendiamide, carbofuran, dimefluthrin, cypermethrin, deltamethrin, spirodiclofen, alpha-cypermethrin, fenpropathrin, prallethrin, chlorfenapyr, carbosulfan

Formulation

Chlorantraniliprole, fubendiamide, alpha-cypermethrin, imidacloprid, dimefluthrin, propargite, pymetrozine

Source: China Customs Table6: Major import source of China’s insecticides, Q1-Q3 2010 Region

Indonesia

Hong Kong

Proportion in total national import

Inport volume (tonne)

1,201

975

32.2%

Average price (USD/t)

5,162

1,428

-

Source: China Customs Table7: Major import origins of retail packaging insecticides in China, Q1-Q3 2010 Region

Hong Kong

Proportion in total national import

Import volume (tonne)

975

69.7%

Average price (USD/t)

1,428

-

Source: China Customs Table8: Major import origins of non-retail packaging insecticides in China, Q1-Q3 2010 Region

Indonesia

South Korea

The U.S.

Proportion in total national import

Import volum (tonne)

1,201

886

707

37.3%

Year on year

700%

125.2%

-68.8%

-

Source: China Customs Table9: Major insecticides importers in China, Q1-Q3 2010 Region

Guangdong

Shanghai

Tianjin

Proportion in total national import

Import volume (tonne)

1,690

1,379

1,235

63.7%

Average price (USD/t)

11,000

5,336

1,121

Source: China Customs Table10: Major importers of retail packaging insecticides in China, Q1-Q3 2010 Region

Guangdong

Shanghai

Proportion in total national import

Import volume (tonne)

1,108

100

86.0%

Source: China Customs Table11: Major importers of non-retail packaging insecticides in China, Q1-Q3 2010 Region

Shanghai

Tianjin

Proportion in total national import

Import volume (tonne)

1,279

1,192

46.1%

Source: China Customs

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Insecticides China News

Vol 4, Issue 1, 2011

■■ Price Updates Monthly ex-factory prices of key raw materials, Jan. 2011 Ex-factory price Raw materials / intermediates

Thionyl chloride (99%)

8-Jan-11

Market price

7-Dec-10

1-Jan-10

USD/t

RMB/t

USD/t

RMB/t

754

5,000

751

5,000

8-Jan-11

USD/t RMB/t 542

3,700

2-chloro-5-methylpyridine (93%) 19,608 130,000 21,772 145,000 17,526 119,700

7-Dec-10

USD/t

RMB/t

USD/t

RMB/t

802

5,320

799

5,320

19,656

130,320

21,820

145,320

1-Jan-10 USD/t RMB/t 586

4,000

17,570 120,000

Thiophosphoryl chloride (99%)

1,448

9,600

1,441

9,600

1,537

10,500

1,496

9,920

1,489

9,920

1,581

10,800

Acrylonitrile (99%)

2,896

19,200

2,853

19,000

2,196

15,000

2,944

19,520

2,901

19,320

2,240

15,300

*DETCL (98%)

2,202

14,600

2,252

15,000

1,830

12,500

2,250

14,920

2,300

15,320

1,874

12,800

*STCP (85%)

5,732

38,000

5,556

37,000

5,081

34,700

5,780

38,320

5,604

37,320

5,124

35,000

*PHT (98%)

5,279

35,000

5,255

35,000

3,909

26,700

5,327

35,320

5,303

35,320

3,953

27,000

Benzyl cyanide (99%)

2,715

18,000

2,703

18,000

2,079

14,200

2,763

18,320

2,751

18,320

2,123

14,500

15,083 100,000 14,264

95,000

11,669

79,700

15,131

100,320

14,312

95,320

11,713 80,000

*CCMP (98%)

Note: *DETCL: O, O-diethylthiophosphoryl chloride *STCP: Sodium 3,5,6-trichloro-2-hydroxypyridine *PHT: 1-Phenyl-3-hydroxy-1,2,4-triazole *CCMP: 2-Chloro-5-chloromethylpyridine Source: CCM International

Monthly ex-factory prices of main insecticides in China, Jan. 2011 Technical

8-Jan-11

7-Dec-10

1-Jan-10

USD/t

RMB/t

USD/t

RMB/t

USD/t

RMB/t

Chlorpyrifos (95%)

5,231

34,680

5,207

34,680

4,495

30,700

Abamectin (95%)

79,891

529,680

82,535

Imidacloprid (95%)

17,297

114,680

Lambda-cyhalothrin (95%)

25,593

169,680

Formulation

8-Jan-11

7-Dec-10

USD/t

RMB/t

USD/t

RMB/t

48% EC

3,572

23,680

3,856

25,680

549,680 109,766 749,700

1.8% EC

3,421

22,680

3,556

23,680

17,219

114,680

12,548

85,700

10% WP

2,817

18,680

2,655

17,680

25,477

169,680

23,382

159,700

25% EC

2,667

17,680

2,354

15,680

Buprofezin (95%)

5,834

38,680

5,658

37,680

4,495

30,700

25% WP

2,214

14,680

-

-

Acetamiprid (95%)

14,281

94,680

14,066

93,680

12,548

85,700

3% EC

2,365

15,680

-

-

Cypermethrin (94%)

15,035

99,680

14,967

99,680

11,669

79,700

-

-

-

-

-

Methomyl (98%)

7,795

51,680

7,760

51,680

8,009

54,700

-

-

-

-

-

Carbofuran (99%)

12,471

82,680

12,565

83,680

11,962

81,700

-

-

-

-

-

Phoxim (90%)

3,421

22,680

3,405

22,680

2,592

17,700

-

-

-

-

-

Triazophos (85%)

4,778

31,680

4,757

31,680

3,836

26,200

-

-

-

-

-

Propargite (90%)

5,608

37,180

5,583

37,180

5,739

39,200

-

-

-

-

-

Deltamethrin (98%)

120,615

799,680

120,072

799,680

96,589

659,700

-

-

-

-

-

Omethoate (75%)

4,250

28,180

4,231

28,180

3,836

26,200

-

-

-

-

-

Emamectin benzoate (90%)

135,698

899,680

-

-

-

-

-

-

-

-

-

Acephate (97%)

5,382

35,680

-

-

-

-

-

-

-

-

-

Source: CCM International

CCM International Limited

15

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Insecticides China News

Vol 4, Issue 1, 2011

Monthly Shanghai port prices and FOB Shanghai of main insecticides, Jan. 2011 Shanghai port price 8-Jan-11

Technical

FOB Shanghai price

7-Dec-10

1-Jan-10

8-Jan-11

7-Dec-10

RMB/t USD/t RMB/t

USD/t

USD/t

35,000

Market price 8-Jan-11

Formulation

7-Dec-10

USD/t

RMB/t

USD/t

Chlorpyrifos (95%)

5,279

35,000

5,255

4,539 31,000

5,260

5,260

48% EC

3,620 24,000 3,904 26,000

Abamectin (95%)

79,940

530,000 82,583 550,000 109,810 750,000

78,070

80,738

1.8% EC

3,469 23,000 3,604 24,000

Imidacloprid (95%)

17,345

115,000

17,267

115,000 12,592 86,000

17,042

16,985

10% WP

2,866 19,000

Lambda-cyhalothrin (95%)

25,641

170,000

25,526

170,000 23,426 160,000

25,130

25,046

25% EC

2,715

18,000 2,402 16,000

Buprofezin (95%)

5,882

39,000

5,706

38,000

5,271 36,000

5,866

4,820

25% WP

2,262

15,000

-

-

Acetamiprid (95%)

14,329

95,000

14,114

94,000 12,592 86,000

14,101

5,627

3% EC

2,413

16,000

-

-

Cypermethrin (94%)

15,083

100,000

15,015

100,000 11,713 80,000

14,836

5,700

-

-

-

-

-

Methomyl (98%)

7,843

52,000

7,808

52,000

8,053 55,000

7,778

13,907

-

-

-

-

-

Carbofuran (99%)

12,519

83,000

12,613

84,000 12,006 82,000

12,337

14,787

-

-

-

-

-

Phoxim (90%)

3,469

23,000

3,453

23,000

2,635 18,000

3,513

7,752

-

-

-

-

-

Triazophos (85%)

4,827

32,000

4,805

32,000

3,880 26,500

4,837

12,442

-

-

-

-

-

Propargite (90%)

5,656

37,500

5,631

37,500

5,783 39,500

5,646

3,501

-

-

-

-

-

117,775

117,378

-

-

-

-

-

4,322

4,308

-

-

-

-

-

Deltamethrin (98%) Omethoate (75%) Emamectin benzoate (90%) Acephate (97%)

120,664 800,000 120,120 800,000 96,633 660,000 4,299

28,500

5,430

2,703 18,000

4,279

28,500

-

-

-

-

132,480

-

-

-

-

-

-

-

-

-

5,425

-

-

-

-

-

135,747 900,000 36,000

3,880 26,500

USD/t RMB/t USD/t RMB/t

Note: Shanghai port price = ex-factory price + transport fee from production plant to Shanghai port; FOB price = port price + handling and THC + trading companies' profit Source: CCM International

Average market price of main crops in China (31 Dec. 2010) Crops

31-Dec-10

15-Dec-10

Dec-09

USD/t

RMB/t

USD/t

RMB/t

USD/t

RMB/t

Wheat

323

2,128

316

2,100

291

1,990

Corn

295

1,947

293

1,950

246

1,683

Soybean (oil)

660

4,350

629

4,180

542

3,700

Soybean (food)

766

5,050

744

4,950

633

4,326

Peanut

1,381

9,100

1,383

9,200

1,142

7,800

Indica rice

501

3,300

505

3,360

431

2,943

Japonica Rice

586

3,860

592

3,940

455

3,110

Rapeseed

645

4,250

639

4,250

603

4,120

Broomcorn

316

2,080

316

2,100

287

1,960

Source: CCM International

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Insecticides China News

Vol 4, Issue 1, 2011

■■ Pricing Imidacloprid technical price ascending in 2010

I

midacloprid technical price kept ascending in 2010, though with some fluctuations. In this period, the general price trend of imidacloprid technical is almost in line with that of 2-Chloro-5chloromethylpyridine (CCMP), the most important intermediate for imidacloprid technical production, whose price fluctuation will greatly affect imidacloprid technical price. Besides CCMP price, there are other factors, like policy, affecting imidacloprid technical price.

In Feb. 2010, Imidacloprid Industry Association (IIA), which was established on 30 Jan. 2010, proposed Admittance Regulations of Imidacloprid Technical Production to the Ministry of Industry and Information Technology, which aims to prevent the low-level redundant construction and blind expansion of imidacloprid technical in China. The establishment of IIA and issue of Admittance Regulations of

Imidacloprid Technical Production has push imidacloprid technical price to soar in Feb. 2010. According to CCM’s price monitoring, 95% imidacloprid technical price reached USD16,059/t in this month, much higher than USD12,548/t in that Jan. The price has kept climbing in H1 thanks to tight market supply. In July, the sufficient supply but weak demand directly caused the plunge in imidacloprid technical price; while the revise of

Figure4: 95% imidacloprid technical ex-factory price, 2010, USD/t

Source: CCM International

Imidacloprid Technical Application Conditions by European Union (EU), according to which imidacloprid is limited to use, has greatly impacted China's export of imidacloprid technical. According to CCM's price monitoring, 95% imidacloprid technical price decreased to USD13,965/t in July, even lower than the production cost USD14,000/t. Fortunately, imidacloprid technical

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price returned to the ascending trend with strong support of raw material price in the following months. Finally it ended with USD17,219/t in Dec., compared with USD12,401/t in the same period of last year, with a YOY growth of 39%. Besides, the off-season purchasing and storage plan of pesticide by government also pushed up the price of imidacloprid technical.

and imidacloprid market will be regulated, which is in accordance with the trend of pesticide industry integration. In 2011, imidacloprid technical price will continue to rise slowly and steadily with the support of raw material price and relatively strong demand; and it may fluctuate along with the possible decline of export.

With the push of IIA, more imidacloprid technical producers will realize merger and acquisition,

17

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Insecticides China News

Vol 4, Issue 1, 2011

■■ Registration Emamectin benzoate registrations remain hot

E

mamectin benzoate, generally applied to control all pests, has been registered by more and more producers in China since 2008, especially single formulations and mixed formulations. The large registration number in the past two years reflects its bright market prospect. From 2004 to Jan. 2011, totally 511 applications for emamectin benzoate registration from 270 companies have been approved, both valid and overdue, among which 35 are for technical, 206 for mixed formulations and 270 for

single formulations. Two hundred and fifty one new applications for emamectin benzoate registration have been approved in 2010, much higher than the 110 in 2009 and 79 in 2008. According to Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA), companies registered emamectin benzoate are mainly located in Jiangsu, Shandong and Zhejiang. Up to early 2011, 30 pesticide companies in China have registered to produce emamectin benzoate technical. Hebei Veyong

Bio-Chemical Co., Ltd. got the first registration for emamectin benzoate technical in China in 2004. As the largest emamectin benzoate technical producer in China, the company owns 300t/a emamectin benzoate technical production lines and produced 100 tonnes in 2010. Registration number of emamectin benzoate EC formulation and ME formulation reached 256 and 159 respectively from 2004 to Jan. 2011, constituting 50.1% and 31.1% of total formulation registrations of emamectin benzoate. 1% EC and 0.5% ME are the most popular

Figure5: Emamectin benzoate’s registration number in China, 2004-2011

Source: Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA)

formulations registered. The mixture of emamectin benzoate and beta-cypermethrin, emamectin benzoate and chlorpyrifos are the most popular mixed formulations registered among all. Besides, the number of emamectin benzoate's mixed formulations is rising rapidly, reaching 132 in 2010, which was only 41 in 2009. Three factors contribute to emamectin benzoate's hot registration in China. Emamectin benzoate's broad spectrum is an important factor. It

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can be applied on lots of crops, such as rice, cotton, vegetables and fruits, etc. It has control effect on nearly all of insect pest, especially the Lepidoptera. Emamectin benzoate's activity is higher than abamectin, whose stomach toxicity is 2,146 times higher over abamectin. After a long-time application, the advantages of emamectin benzoate have gradually been clear since 2008. Rice pests' resistance to abamectin is becoming stronger, which is emamectin benzoate’s strongest rival. Experts deemed that emamectin benzoate is an ideal alternative to emamectin in the

18

future. Besides, the ban on the five highly toxic insecticides by Chinese government since 2007 is also a main driver for the popularity of emamectin benzoate. As an environmentally friendly bioinsecticide, emamectin benzoate characterized by high control effect, low toxicity and low residue is seeing application area expanding in China. Emamectin benzoate would enjoy promising market prospects in China, remaining hot with high registration number in the future.

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Insecticides China News

Vol 4, Issue 1, 2011

â– â–  News in Brief Huapont Pharm. enters pesticide market with Noposion

I

n Dec. 2010, Chongqing Huapont Pharm. Co., Ltd. (Huapont Pharm.) announced that it will increase investment to raise its shares in Jiangxi Heyi Chemical Co., Ltd. (Jiangxi Heyi ) with Shenzhen Noposion Agrochemicals Co., Ltd. (Noposion), who will become a new shareholder of Jiangxi Heyi. After the deal, both Huapont Pharm. and Noposion will respectively hold 20% of Jiangxi Heyi's shares.

Chemical pesticide TC output in Jan. - Nov. 2010 achieves new high

A

ccording to Chinese State Statistics Bureau, China's chemical pesticide TC output in Jan. - Nov. 2010 reached 2.485 million tonnes, with a YOY growth of 20.6%; the output in Nov. reached 0.253 million tonnes, with a YOY growth of 22.2%.

Two pesticides from domestic six pesticide enterprises are honored

T

wo pesticides from domestic six pesticide enterprises are honored as 2010 products with famous brands in domestic petroleum and chemical industry, namely abamectin and chlorpyrifos from the following companies: Hebei Veyong Bio-Chemical Co., Ltd., Zhejiang Shenghua Biok Biology Co., Ltd., Zhejiang Xinnong Chemical Co., Ltd., Nanjing Redsun Co., Ltd., Shandong Tiancheng Pesticides Co., Ltd. and Jiangsu Baoling Chemical Co., Ltd.

Molecular diversity of cotton bollworm cytochrome P450 unveiled

B

y clone identifying the new gene of cotton bollworm cytochrome P450, Chinese Academy of Sciences unveiled the molecular diversity of cotton bollworm cytochrome P450. The finding can partly explain why cotton bollworm will easily have resistance to chemical insecticides.

ChemChina to buy Koor's subsidiary

O

n 28 Dec. 2010, China National Chemical Corporation (ChemChina) and Koor Industries Ltd. (Koor), the mother company of Makhteshim Agan Industries Ltd. (Makhteshim Agan), reached the first agreement on ChemChina's takeover of Makhteshim Agan. ChemChina will purchase 60% shareholdings of Makhteshim Agan at total price of USD1.438 billion.

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CCM International Limited 17th Floor, Huihua Commercial & Trade Building, No. 80 Xianlie Zhong Road, Guangzhou, 510070, P. R.China Tel: +86-20-37616606 Fax: +86-20-37616968 E-mail: econtact@cnchemicals.com Website: www.cnchemicals.com

Insecticides China News 201101.pdf  

It is a professional publication on China’s insectides industry published monthly by CCM International Limited, presents the latest and excl...

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