CCM: Pyraclostrobin: production capacity fails to meet expectation after off-patent in China 07-13-2016

There is no doubt that pyraclostrobin has been hot in Chinese market so far. It is reported that, after it became off-patent in China on 20 June, 2015, a number of producers have been approved to obtain the Pesticide Registration Certificates. Judging from the registration number, many industry insiders expected large increases in production capacity and output of pyraclostrobin, which may pull down its market price.

                                                                               Source: Internet


However, to their surprise, as of June 2016 (one year after pyraclostrobin became off-patent), production capacity and output of pyraclostrobin hasn't skyrocketed as expected, as few producers started production in fact. Most enterprises held a "wait-and-see" attitude. Meanwhile, the market price hasn't gone down but up largely.


So far, the overall pyraclostrobin market shows a trend of tight supply and high price, due to:

1. Soaring demand for pyraclostrobin technical

The past year has witnessed rapid growths in numbers of Pesticide Registration Certificate and Production Approval Certificate for pyraclostrobin.

According to the Institute for the Control of Agrochemicals, Ministry of Agriculture, as of 20 June, 2016, the number of effective registrations for pyraclostrobin has reached 126 (including sub-packaging ones), 36 for pyraclostrobin technical and 90 for pyraclostrobin formulations.

Meanwhile, according to the Ministry of Industry and Information Technology of the People's Republic of China (MIIT), there have been 48 Production Approval Certificates for pyraclostrobin granted in total (including sub-packaging ones).

Out of these, only one was for pyraclostrobin technical: Shanghai Heben-Eastsun Medicaments Co., Ltd. obtained the Pesticide Registration Certificate for its 97.5% pyraclostrobin TC on 28 Aug., 2015 and the Production Approval Certificate on 29 Feb., 2016.

Notably, most production certificates were granted in H1 2016, a majority of which were for pyraclostrobin formulations. According to the MIIT, among the 48 certificates, 32 were approved in H1 2016, 64.58% of the total. As a result, formulation producers increase their demand for pyraclostrobin technical.

However, domestic production capacity of pyraclostrobin technical is too small to meet the surging market demand.

2. Restraints from stricter environmental regulations

As Chinese authorities attach greater importance to environmental protection and impose stricter regulations, output of some technical and formulation producers was impacted. Even some small-scale plants had to close down. For these reasons, the supply of pyraclostrobin technical has become tighter.

3. Insufficient inventory to ease the shortage

In fact, in early 2016, domestic market price of pyraclostrobin technical showed a downward trend. Additionally, some industry insiders had predicted the market price of pyraclostrobin to go down. Thus, purchasers has had little inventory, which cannot ease the shortage at present in the short run.

So far, domestic production capacity and output of pyraclostrobin technical have remained low, making the market price high. It is predicted that, with further production expansion, the pyraclostrobin market will be improved in the coming period.

This article comes from Fungicides China News 1606, CCM

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.


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Tag: Pesticide  pyraclostrobin

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