Reviewing the year of 2015, China’s pesticide industry was in the doldrums as a
whole - profit grew slowly and the number of enterprises at loss increased.
Notably, herbicide market became the worst-hit market that dragged down the
pesticide industry.
Source: Baidu
Particularly, large-tonnage herbicides include glyphosate
and paraquat that occupy large shares in the herbicide market performed even
worse, which was to blame for the downturn of the whole market. This directly
led to declining economic benefit. Only a few herbicides like dicamba and
glufosinate-ammonium enjoyed good market condition. In 2015, the export volume
of dicamba TC and glufosinate-ammonium TC realized large growth of over 100%
respectively, according to data analysis from CCM.
- Revenue and profit grew slowly, number of enterprises at loss further
increased
According to data from the National Bureau of Statistics of the People’s
Republic of China (NBS), in Jan.-Nov. 2015, the revenue from main business of
China’s pesticide industry reached USD43.24 billion (RMB281.17 billion), a YoY
rise of 5.7%; the YoY rise was 8.3% in the same period of 2014. And the total
profit was USD3.01 billion (RMB19.58 billion), a YoY rise of 5.1%; the YoY rise
was 1.3% in the same period of 2014.
Although the YoY rise in total profit in
2015 was higher than that in 2014, the number of pesticide enterprises at loss
in 2015 recorded a YoY increase of 2.7%. The whole industry made a loss of
USD118.40 million (RMB770 million), up 62.2% year on year. Also, the loss by
scale (loss by scale=number of enterprise at loss/total number of enterprise)
increased by 0.3 percentage point year on year.
In 2015, China’s major paraquat and glyphosate manufacturers all recorded
different degrees’ of declines in their revenue and total profit due to the
weak market demand and dropping prices.
- Paraquat and glyphosate markets were frustrated
In 2015, China’s prohibition policy on paraquat AS and paraquat being
classified as a highly poisonous substance overshadowed the development
prospect of paraquat in China. Domestic formulation processing enterprises
almost demand no more paraquat TK. In particular, the development progress of
non-AS paraquat slowed down and even stagnated. Domestic paraquat TK is mainly
for overseas markets. However, the purchase volume did not rise largely in
overseas markets.
Glyphosate market was also suffering in 2015. After being use in a large
quantity for a long time, glyphosate resistance becomes more and more obvious.
Part of market share of glyphosate is facing the risk of being replaced by
other herbicides. Meantime, that glyphosate may causes cancer makes it
highly-controversial on whether it can continue to be used. Some
countries/regions even have suspended or banned the use of glyphosate.
- Dicamba and glufosinate-ammonium: dark horses in the depressed market
In 2015, China’s export volume of herbicides (commodities) remained stable but
the export value presented large drops. Therefore, the overall profit of
herbicide exports was unsatisfactory. Data from the NBS show that in Jan.-Oct.
2015, China exported 1.01 million tonnes of pesticide in total, a YoY rise of
1.9%. While the export value reached USD3.06 billion, slumping by 13.6% year on
year. Of this, the export volume of herbicide was 711,000 tonnes, up 3.2% year
on year; export value was USD1.84 billion, a YoY slump of 16.6%.
Nevertheless, the exports of dicamba and glufosinate-ammonium all realized
large YoY increases. The YoY rise in export volume of dicamba TC in Jan.-Oct.
2015 exceeded 120%; and that of glufosinate-ammonium TC (including TK)
surpassed 130%.
This article comes from Herbicides China News 1601, CCM
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Tag: herbicides pesticide