2016 Chinese mancozeb market to encounter upturn 02-22-2016

Entering into Jan. 2016, the peak demand season for mancozeb comes. Downstream enterprises start to place orders to beef up its inventories, and domestic main mancozeb manufacturers are busy with receiving orders. CCM believes that this indicates mancozeb price is likely to climb.

 

In Jan. 2016, the peak demand season for mancozeb comes. Downstream enterprises begin to stock up. Meanwhile, domestic main mancozeb manufacturers are busy with receiving orders. According to industry sources we have spoken to, the quotation of 90% mancozeb TC from part of manufacturers was up to USD3,306/t (RMB21,500/t), and that of 80% mancozeb WP was USD2,999/t (RMB19,500/t). Even though the actual closing prices are below these figures, it indicates that mancozeb price is likely to go up.


In fact, in spring peak season of 2015, the average price of mancozeb TC grew to USD3,152/t (RMB20,500/t). The rising raw materials (carbon disulfide and ulphur) prices were attributed as one of factors that caused growths in production cost and price of mancozeb TC. Since the production cost of mancozeb didn’t fall with the coming of slack season, the mancozeb price declined from peak season but it remained a relative stable level between May and Oct. 2015.


Mancozeb experienced a difficult period from May to Oct. 2015. Because of decreasing market demand and factory shipments slowing down, the operating rate of some manufacturers continued to decline. Therefore, the stocked goods became one of main supplies for the market.


The opening of China International Agrochemical & Corp Protection Exhibition didn’t bring favorable driver for agrochemical market. Under the premise of small market supply, domestic mancozeb price edged up and maintained this level until the end of 2015.

 

      


The factors such as weak demand, few orders, low operating rate and decreasing supply cause a short-term tight supply in mancozeb market when the peak demand season comes in 2016. Since the overall pesticide market is not turnaround currently, it’s reveled that the 2016 market demand for pesticides will maintain stable or even go down.


Most of manufacturers take cautious attitude towards mancozeb market. They maintain stable operating rate based on finishing clients’ orders, and they don’t stock large amount of goods. On account for small destocking pressure, together with an increase in demand from upstream and downstream markets, these will favorably push mancozeb price up in a short time.

 

New research on mancozeb will facilitate its development. It’s reported that ADAMA Brazil has presented to researchers a new fungicide, formulated with mancozeb, aimed mainly to the control of Asian rust that infect soybean in Brazil. According to ADAMA, it is an innovative solution, which will enable the management of resistance of soybean diseases.


Due to the systematic fall in the efficiency of the main fungicides used against Asian rust, this disease has been a constant worry of farmers in the last seasons. Farmers call for new tools that could contain damages caused by diseases that affect the crop and accumulate millions in losses in the last few years. ADAMA presenting a pre-manufactured mixture of the formulation of dispersive granules (WG), containing mancozeb is remarkable. New market demands for mancozeb will generate.

 

In the past few years, mancozeb price had been stable with slight fluctuations when compared with other fungicides. Mancozeb manufacturers become more reasonable to encounter market changes. At present, domestic main mancozeb manufacturers include Hebei Shuangji Chemical Co., Ltd., Shaanxi Xi'an MPC Stock Co., Ltd. and Jiangsu Nantong Baoye Chemical Co., Ltd. Their production facilities keep stable operating rate. Orders and sales are performing well.



 

About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. CCM is a brand of Kcomber Inc.

 

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailingecontact@cnchemicals.com or calling +86-20-37616606.

 

 Tag: mancozeb 

 

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