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CCM Data & Primary Intelligence Production and Market of Chlorpyrifos in China A Preliminary Study

Researched & Prepared by:

Guangzhou CCM Information Science and Technology Co., Ltd Guangzhou, P. R. China

August 2008

Copyright by Guangzhou CCM Information Science and Technology Co., Ltd (P. R. China) Any publication, distribution or copying of the content in this report is prohibited. Website: http://www.cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968 Email: econtact@cnchemicals.com

Website: http://www.cnchemicals.com Tel: +86-20-3761 6606

Email: econtact@cnchemicals.com Fax: +86-20-3761 6968


CCM Data & Primary Intelligence Description: Chlorpyrifos, a broad-spectrum organophosphorus insecticide with its sales volume ranking first in the world, has the effects of contact killing, stomach poisoning and certain fumigant killing against many kinds of pests. At present, Dow Chemical Company is the largest producer of Chlorpyrifos technical, with the production capacity of 50,000t/a in 2004. China started the production of Chlorpyrifos technical in the 1990s. However, before 2007, overseas Chlorpyrifos, mostly from Dow's Chlorpyrifos, had captured a large market share in China for a long time, over 25% of the total in 2006. Since 2007, the capacity and output of domestic Chlorpyrifos technical have soared in China to scales of tens of thousand tons per year. The homemade Chlorpyrifos has not only replaced imported Chlorpyrifos in the domestic market but also entered the overseas market. What great changes have been made to Chinese Chlorpyrifos industry in 2006~2007? You can find the answer in this report. Despite the rapid growth of domestic Chlorpyrifos industry, the operation rate of Chlorpyrifos technical producers in China has been rather low, around 40% in recent years. Why the operation rate of Chlorpyrifos technical producers has been so low in recent years? What problems are Chinese Chlorpyrifos producers facing now? What is the consumption situation of Chlorpyrifos in China? These problems are also disclosed in the report.

Main content: No.

Content

Page

Executive summary

5

Introduction and methodology

8

I

Pesticide industry in China

11

I-1

Overview of the pesticide industry in China

11

I-2

Position of Chlorpyrifos in Chinese insecticide industry

15

II

Supply & demand of Chlorpyrifos in China

16

II-1

Historic development of Chlorpyrifos in China

16

II-2

Production technology of Chlorpyrifos in China

18

II-3

Current production situation (capacity, output, species, major producers, growth

21

II-3.1

Summary of Chlorpyrifos technical production

21

II-3.2

Summary of Chlorpyrifos formulations production

30

II-4

Supply situation of raw materials in China

35

II-5

Price of Chlorpyrifos in China

38

II-6

Registration situation of Chlorpyrifos in China in recent years

40

II-7

Restriction on the use of Chlorpyrifos in foreign countries

43

II-8

Import & export situation of Chlorpyrifos in China in 2007

44

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CCM Data & Primary Intelligence II-8.1

Import situation

44

II-8.2

Export situation

44

II-9

Demand for Chlorpyrifos in China

54

II-9.1

Consumption of Chlorpyrifos technical

55

II-9.2

Use of Chlorpyrifos formulations

55

- Regional distribution

55

- Use pattern

56

II-10

Competitiveness landscape

60

III

Forecast on the Chlorpyrifos industry in China (~2013)

62

III-1

Key factors and driven forces in the development of Chlorpyrifos in China

62

III-2

Supply and demand forecast in 2008-2013

63

IV

Conclusion

65

V

Appendix: Profile of major active manufacturers of Chlorpyrifos

66

V-01

Nanjing Redsun Co., Ltd.

66

...

0

Jiangsu Kwin Group

84

V-17

Executive summary:

(Note: The following summary is based on the situation in 2008 and maybe different to what it is nowadays. Please be noted.)

China has become one of the major suppliers of Chlorpyrifos in the world since 2007. And the supply of 3,5,6-Trichloropyridin-2-ol sodium (TCP) in China, an important intermediate of Chlorpyrifos, which mainly depended on import previously, has achieved complete self-sufficiency since 2007. At present, Chinese Chlorpyrifos producers have begun to explore the overseas market.

- Production technology Thanks to the advanced production technology of TCP in the second half of 2006, the domestic supply of TCP has been increasing since then, which has ensured the stable production of Chlorpyrifos. What’s more, the use of domestic TCP has largely cut down the production cost of Chlorpyrifos technical, leading to the lower price of domestic Chlorpyrifos, which directly results in the shrinking market share of overseas Chlorpyrifos in China.

- Production situation of Chlorpyrifos in China With the progressing production technology of TCP, China has become one of the major Chlorpyrifos producers in the world and domestic Chlorpyrifos has dominated the Chinese market. Howerver the Website: http://www.cnchemicals.com Tel: +86-20-3761 6606

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CCM Data & Primary Intelligence operation rate of most Chlorpyrifos technical producers is rather low, around XXXX%, though the market of domestic Chlorpyrifos technical has been opened. There are mainly 17 active producers of Chlorpyrifos technical, with the total capacity of XXXXt/a as of Aug. 2008. At present, Nanjing Redsun is the largest producer of Chlorpyrifos technical in China.

- Import and export situation of Chlorpyrifos Chinese Chlorpyrifos technical producers have been gradually exploring the overseas market since 2007. The total export volume of Chlorpyrifos technical is XXXX tonnes in 2007, and XXXX tonnes in 1H 2008, a XXXX% year-on-year growth rate. Nanjing Redsun is the largest exporter of Chlorpyrifos technical and formulation in China.

- Price of Chlorpyrifos With the technology improvement and the capacity expansion of domestic Chlorpyrifos producers, the price of Chlorpyrifos technical (100%) in 2004~2007 has steadily decreased in recent years. The Chlorpyrifos technical price declined most rapidly in 2007, as the TCP production technology of most domestic producers of Chlorpyrifos technical and TCP has achieved great progress. However, since the 2HF of 2007, the price of Chlorpyrifos has increased with the price rise of the raw material. And it has reached RMB 55,000/t (7,971USD) in May 2008

- Domestic demand for Chlorpyrifos In recent years, domestic consumption of Chlorpyrifos has been increasing, calculated by AIs, with the CAGR of XXXX% in 2005~2008. Thanks to the price decline of Chlorpyrifos in 2007, coupled with the prohibition of the 5 highly toxic organophosphorus insecticides, domestic consumption of Chlorpyrifos has soared since 2007, increasing to XXXX tonnes, up by XXXX% over the previous year. ......

Character of CCM' Report: The aim of this report is to provide powerful assistance to the strategy group and the management team in making correct decision as how to penetrate the ever-increasing China market and how to catch the maximum commercial opportunities. The report is formulated independently by CCM’s professional market researchers, based on the first-hand and primary data which are analyzed by scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and presented in a logic way.

Sample pagesďźš

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II-2 Production technology of Chlorpyrifos in China In terms of the different synthesis methods TCP, an intermediate of Chlorpyrifos, the production technology of Chlorpyrifos technical can be classified into 2 routes, xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx ………. Table II-2-1The comparison between trichloro-acetyl chloride route and pyridine route in the production of TCP Route Item Trichloro-acetyl chloride

Pyridine xxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Advantages

xxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx xxxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxxxxxxx

Disadvantage xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

s

xxxxxxxxxxxxxxxxxxx x

Table II-2-2 The raw material, solvent and catalyzer of the 3 synthesis methods of Chlorpyrifos Item

Organic solvent method

Bi-solvent method

Aqueous phase method

Key raw xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx material Solvent

xxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxxxxxxxxxxx

Catalyzer

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxx

Table II-2-3 The cost of raw materials in the production of Chlorpyrifos using trichloro-acetyl chlorid as the starting raw material, by aqueous phase method, as of August 2008 No

Item

Unit consumption (t/t)

Price (RMB/t)

Cost (RMB/t)

1

xxxxxxxxxxxxxxxxxxxxxxxxx

xxxx

xxxxxx

xxxxx

2

xxxxxxxxxxxxx

xxxx

xxxxxx

xxxxx

xxxx

xxxxxx

xxxxx

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx 3 x 4

Others

5

Total

xxxxx xxxxxx

II-3 Current production situation (capacity, output, species, major producers, growth rate (2003~2007), etc.) Table-3.1-1 Capacity distribution situation of major active producers of Chlorpyrifos technical in 2008 No.

Capacity (100%, t/a)

Number of producer

Share

1

Over 10,000

x

xxxxx

2

5,000

x

xxxx

3

1,000~3,000

xx

xxxxx


4

Less than 1,000 Total

x

xxxxx

xx

xxxxxx

Table II-3.1-3 Capacity and output of major Chlorpyrifos technical producers in China as of Aug. 2008 Cap.

as

Output

Cap. '07 No.

Abbr.

Status'08

Launch time

Output

Operation

of Aug. 08 (t/a)

1HF 2008 '07 (t)

rate '07

(t/a)

(t)

VI-01

xxxxxxxxxxxxxx

xxxxxx

xxxxx

xxxxx

xxxxxx

xxxxx

xxxxx

xxxxxx

VI-02

xxxxxxxxxxxxxxxxxx

xxxxxx

xxxx

xxxxx

xxxxxx

xxxxx

xxxxx

xxxxxx

VI-03

xxxxxxxxxxxxxxxx

xxxxxx

xxxx

xxxxx

xxxxx

xxx

xxxxx

xxxxxx

VI-04

xxxxxxxxxxxxxx

xxxxxx

xxxxxxxxxxxxxxxxx

xxxxx

xxxxx

xxx

x

xxxxxx

VI-05

xxxxxxxxxxxxxxxx

xxxxxx

xxxxxx

xxxxx

xxxxx

xxx

xxx

xxxxxx

VI-06

xxxxxxxxxxxxx

xxxxxx

xxxx

xxxxx

xxxxx

xxx

xxx

xxxxxx

VI-07

xxxxxxxxxxxxxx

xxxxxx

xxxx

xxxxx

xxxxx

xxx

xxx

xxxxxx

VI-08

xxxxxxxxxxxxxxxxx

xxxxxx

xxxx

xxxxx

xxxxx

xxx

xxx

xxxxxx

VI-09

xxxxxxxxxxxxxxx

xxxxxx

xxxxxxxxxxxxxxxxx

xxxxx

xxxxx

xxx

xxx

xxxxxx

VI-10

xxxxxxxxxxxxxxxx

xxxxxx

xxxx

xxxxx

xxxxx

xxx

x

xxxxxx

VI-11

xxxxxxxxxxxxxx

xxxxxx

xxxx

xxxxx

xxxxx

xxx

xxx

xxxxxx

VI-12

xxxxxxxxxxxxxxx

xxxxxx

xxxxx

xxxxx

xxxxx

xxx

xxx

xxxxxx

VI-13

xxxxxxxxxxxxxxxx

xxxxxx

xxxx

x

xxxxx

x

xxx

x

VI-14

xxxxxxxxxxxx

xxxxxx

xxxx

xxx

xxx

xxx

xxx

xxxxxx

VI-15

xxxxxxxxxxxxxxxxxxx

xxxxxx

2008

0

500

0

200

x

VI-16

xxxxxxxxxxxxxxxxxx

xxxxxx

xxxx

xxx

xxx

xx

xx

xxxxxx

VI-17

xxxx

xxxxxx

xxxx

xxx

xxx

xx

xx

xxxxxx

1

xxxxxxxxxxxxxxx

xxxx

xxxx

xxxxx

x

xxx

x

xxxxxx

2

xxxxxxxxxxxxx

xxxx

xxxxx

xxxxx

x

xxx

x

xxxxxx

3

xxxxxxxxxxxxxxx

xxxx

xxxxxx

xxxxx

x

xxx

x

xxxxxx

4

xxxxxxxxxxxxx

xxxx

xxxxxx

xxx

x

xx

x

xxxxxx

5

xxxxxxxxxxxxxx

xxxxxxx

xxx

xxx

x

xx

x

xxxxxx

6

xxxxxxxxxxxxx

xxxxxxx

xxxx

x

x

x

x

x

7

xxxxxxx

xxxxxxx

xxxxx

xxxxx

x

xxx

x

xxxxxx

8

xxxxxxxxxxxxxxx

xxxxxxx

xxx

xxx

x

xx

x

xxxxxx

9

xxxxxxxxxxxxxxxxx

xxxxxxx

xxxx

xxx

x

xx

x

xxxxxx

10

xxxxxxxxxxxxx

xxxxxxx

xxxx

x

x

x

x

x

11

xxxxxxxxxxxxxxx

xxxxxxx

xxxxxxxxxxxxxxxxx

x

x

x

x

x

12

xxxxxxxxxxxxxxxxx

xxxxxxx

xxxx

xxx

x

xxx

x

xxxxxx

13

xxxxxxxxxxxxxxxxx

xxxxxxx

xxxx

x

x

x

x

x

xxxxxx

xxxxxx

xxxxxx

xxxxxx

xxxxxx

xxxxx


II-3.2 Summary of Chlorpyrifos formulation production At present, there are mainly 2 Chlorpyrifos formulations including 40% Chlorpyrifos EC and 480g/L Chlorpyrifos EC in China. In order to reduce the price of Chlorpyrifos formulation and expand the domestic market, many mixed formulations of Chlorpyrifos have been developed. The market share of such formulations has been increasing in China in recent years. ………. II-4 Supply situation of raw materials in China Table II-4.1-1 The major TCP producers in China in 2008 No.

Company

Abbr.

Location

Route

1

xxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxx

xxxxxxx

xxxxxxxx

Capacity ’08 (t) xxxxxx

2

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxxx

xxxxxxxx

xxxxxxxxxxxxxxxxxxxxxxxx

xxxxx

3

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxx

xxxxxx

xxxxxxxxxxxxxxxxxxxxxxxx

xxxxx

4

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxx

xxxxx

xxxxxxxxxxxxxxxxxxxxxxxx

xxxxx

5

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxxx

xxxxxxxx

xxxxxxxxxxxxxxxxxxxxxxxx

xxxxx

6

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxx

xxxxxxxx

xxxxxxxxxxxxxxxxxxxxxxxx

xxxxx

7

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxx

xxxxxxx

xxxxxxxxxxxxxxxxxxxxxxxx

xxxxx

8

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxx

xxxxxxx

xxxxxxxxxxxxxxxxxxxxxxxx

2,000

Total

xxxxxx

Table II-4.1-2 The major trichloro-acetyl chloride producers in China in 2008 No.

Company

Abbr.

Location

Capacity ‘08

1

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxx

xxxxxx

xxxxx

2

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxxxxx

xxxxxxxx

xxxxx

3

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

xxxxxxxxxxxxx

xxxxxxx

xxxxx

Total

xxxxxx

II-8 Import & export situation of Chlorpyrifos in China in 2007 ………. Table II-8.2-1 Export price of Chlorpyrifos in 2007 (Quantity: tonne, Price: USD/kg, Value: USD) 40% EC

480g/L EC

Tech.

Month

Value Quantity

Price

Quantity

Price

Quantity

Price

Jan-07

xxxxxx

3.41

xxxxxx

xxxx

xxxxxx

xxxx

xxxxxxx

Feb-07

xxxxxx

3.68

xxxxxxx

xxxx

xxxxxxx

xxxx

xxxxxxxxx

Mar-07

xxxxxx

3.69

xxxxxx

xxxx

xxxxxxx

xxxx

xxxxxxxxx

Apr-07

xxxxxx

3.55

xxxxxx

xxxx

xxxxxxx

xxxx

xxxxxxxxx

May-07

xxxxxx

xxxx

xxxxxx

xxxx

xxxxxxx

xxxx

xxxxxxxxx

Jun-07

xxxxxx

xxxx

xxxxxx

xxxx

xxxxxxx

xxxx

xxxxxxxxx


Jul-07

xxxxxx

xxxx

xxxxxx

xxxx

xxxxxxx

xxxx

xxxxxxxxx

Aug-07

xxxxxx

xxxx

xxxxx

xxxx

xxxxxx

xxxx

xxxxxxx

Sep-07

xxxxxx

xxxx

xxxxxx

xxxx

xxxxxxx

xxxx

xxxxxxxxx

Oct-07

xxxxxx

xxxx

xxxxxx

xxxx

xxxxxxx

xxxx

xxxxxxxxx

Nov-07

xxxxxx

xxxx

xxxxxx

xxxx

xxxxxxx

xxxx

xxxxxxxxx

Dec-07

xxxxxx

3.69

xxxxxx

xxxx

xxxxxxx

xxxx

xxxxxxxxx

xxxxxxx

xxxx

xxxxxxx

xxxx

xxxxxxxxx

xxxx

xxxxxxxxxx

Total

II-9 Demand for Chlorpyrifos in China At present, Chlorpyrifos has been one of the most widely used insecticides in China. It is mainly applied to rice, fruit tree, vegetable, tea, etc. Chlorpyrifos has also been used in the control of underground pest, ectozoas of domestic animals and public health pests. ………. Table II-9.1-1 The consumption situation of Chlorpyrifos technical in active producers in China in 2007 (Unit: tonne) Used by No.

Sold in domestic

Producer

Export

Total

itself VI-01

xxxxxxxxxxxxxx

VI-02

xxxxxxxxxxxxxxxxxx

VI-03

market xxx

xxxxx

xxx

xxxxx

x

x

xxxxx

xxxxx

xxxxxxxxxxxxxxxx

xxx

xxx

xxx

xxx

VI-04

xxxxxxxxxxxxxx

350

17

xxx

xxx

VI-05

xxxxxxxxxxxxxxxx

xx

xx

xxx

xxx

VI-06

xxxxxxxxxxxxx

xxx

x

xxx

xxx

VI-07

xxxxxxxxxxxxxx

xxx

xxx

xxx

900

VI-08

xxxxxxxxxxxxxxxxx

xxx

xx

xxx

xxx

VI-09

xxxxxxxxxxxxxxx

300

73

xxx

xxx

VI-10

xxxxxxxxxxxxxxxx

180

3

xxx

xxx

VI-11

xxxxxxxxxxxxxx

160

0

xxx

xxx

VI-12

xxxxx

xxx

x

xxx

xxx

VI-13

xxxxxxxxxxxxxxxx

x

x

x

x

VI-14

xxxxxxxxxxxx

xxx

x

xxx

xxx

VI-15

xxxxxxxxxxxxxxxxxxx

x

x

x

x

VI-16

xxxxxxxxxxxxxxxxxx

xx

x

x

xx

VI-17

xxxx

xx

x

x

xx

xxxxx

xxxxx

xxxxx

xxxxxx

xxxxx

Production and Market of Chlorpyrifos in China  

Chlorpyrifos, a broad-spectrum organophosphorus insecticide with its sales volume ranking first in the world, has the effects of contact kil...