The National Bureau of Statistics of China
recently announced that the cumulative output of pesticide intermediates in
China from January to September of 2022 was 1,917,400 tonnes, a decrease of
1.9% YoY. The top three provinces
responsible for producing pesticide intermediates in China during these first
three quarters were Jiangsu, Shandong and Sichuan, with an output of 422,500
tonnes, 232,500 tonnes and 228,900 tonnes from January to September of 2022, a
YoY increase of 5.8%, 18.6%, and 0.3% YoY, respectively.
Among the top three provinces in terms of
output, Jiangsu and Shandong saw a relatively large increase in output during
September, with a YoY increase of 25.7% and 59.8%, respectively. This increase in production may be due to
many enterprises starting business again after a temporary shutdown. However,
affected by a glyphosate safety incident, Sichuan’s output of pesticide
intermediates declined 12.1% YoY. In addition, Inner Mongolia, Liaoning, Jilin
and other provinces gradually reached production capacity, and due to newly
built glufosinate-ammonium, glyphosate, and clethodim plants, the output in
these provinces may continue to climb.
Pesticide
industry growing in China despite pandemic setbacks
In 2021, the production and sales of the
pesticide industry in China was prosperous, with a substantial growth in
operating income and profits YoY. In 2021, with rising prices of pesticide
intermediates and a surge in demand in overseas markets, seven hundred and two
Chinese pesticide enterprises reached the large-scale level, defined as a
company with a product sales revenue of over RMB 20 million, an increase of
1.3% YoY.
According to the National Bureau of
Statistics of China, the total pesticide output in China reached a peak of
nearly 3.8 million tons in 2016. In 2015, with the implementation of the
Ministry of Agriculture's policy of "achieving zero growth in the use of
chemical fertilizers and pesticides by 2020", many highly toxic pesticide
varieties have been phased out, and other chemical products with
high-efficiency and low-toxicity have gained traction in the Chinese pesticide
market. This trend toward pesticides of lower volume and toxicity has caused
the total output of pesticides in China to decline steadily.
China’s
global pesticide trade expected to increase in 2023
The supply and demand for pesticides in
China have been mostly stable throughout the past few years, which will provide
a stable environment in which pesticide production companies can grow.
Furthermore, China will continue to strive not to increase its use of
pesticides domestically, so export trade is expected to be a major outlet for
the development of China’s pesticide industry, and in 2021, the output of
China's pesticide intermediates was 2.498 million tons, a YoY increase of
16.29%. Furthermore, Huaan Securities recently predicted that in 2023, the
pesticide industry is expected to achieve a rebalancing of supply and demand,
which will cause pesticide companies to flourish again. Huaan Securities opined
that key factors in the success in the pesticide industry are cost control and
production capacity, which will give large-scale companies in China a
competitive advantage in the global market.
For more information, please check our
resources on China’s
pesticide market.
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