Increasing Concentration in Global Chlorpyrifos Supply with Declining Market

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Publish time: 4th March, 2011      Source: CCM
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      Recently, CCM International has released a new report, World Outlook of Chlorpyrifos 2010-2015. This report gives details on the following points:

    

      -Global chlorpyrifos registration

    

      -Environmental protection policies

    

      -Supply and demand information about chlorpyrifos

    

      -Import and export analysis

    

      -Price trend of chlorpyrifos technical and formulations

    

      -Influential main factors of global chlorpyrifos industry

    

      -Forecast on chlorpyrifos development, growth potential and bottleneck

    

       

    

      Since the Dow Chemical Company first registered chlorpyrifos in 1965 around the world, consumption and market value of chlorpyrifos had changed considerably with ups and downs in the past few decades. Currently, sales of chlorpyrifos ranked the first among all organophosphate pesticides worldwide, and the third among all pesticides. In 2010, the consumption of chlorpyrifos globally (converted into technical) reached 80,000 tonnes with CAGR of about 12% in the past five years.

    

       

    

      Although chlorpyrifos has already registered in the world in more than 100 countries with widespread application, production and supply of chlorpyrifos technical are more and more concentrated in a few countries in recent years. In 2010, chlorpyrifos technical production in China and India accounts for more than 70% of the global total supply, and chlorpyrifos technical supply from Israel, the US and other countries is decreasing.

    

       

    

      The report points out that supply of chlorpyrifos technical will continue to concentrate in the next five years. Because mass production could save cost with the advantages of cheap labor forces sufficient raw material supply, it is predicted that chlorpyrifos technical production in China and India will account for over 80% of the global total supply by 2015. On one hand, along with structure changes in chlorpyrifos supply, large chlorpyrifos technical production enterprises, such as Red Sun of China, will have more and more important position. On the other hand, with continuous improvement of environmental protection requirements, pyridine route is expected to become the mainstream route for chlorpyrifos technical production, taking over the current popular trichloro-acetyl chloride route due to its considerable environmental concerns.

    

       

    

      As for formulation market, 480g/L EC is still the most widely applied formulation worldwide. Lorsban and Dursban produced by Dow AgroSciences are the most famous chlorpyrifos brand. However, Dow AgroSciences, Makheshim Agan and Cheminova have suffered from decreasing market share in the past five years.

    

       

    

      When it comes to regional distribution of chlorpyrifos, Asian chlorpyrifos market has contributed the most. Asia & Oceania has contributed the most to demand growth of chlorpyrifos in the world, seeing 20% CAGR in the past five years, far higher than the world’s average growth rate of 12%. China and India, as the two largest chlorpyrifos application countries, have witnessed 25% and 15% CAGR in 2006-2010 respectively, significantly pushing the world’s demand growth of chlorpyrifos in the past five years.

    

       

    

      By analyzing the influential factors of chlorpyrifos market demand, this report forecasts the global chlorpyrifos market demand and changes in market value. It is predicted that by 2015, demand of chlorpyrifos (converted into technical) will reach more than 100,000 tonnes with CAGR of 5% for the next five years, which is far less than the growth in the past five years. Currently, demand growth of chlorpyrifos in some large consumption countries has shown remarkable decline, and its demand growth will continue to slow down year by year. Asia and South America will be the key drivers for demand growth of chlorpyrifos in the future years. In addition, chlorpyrifos demand growth in South America is deserving attention. It is analyzed that the market value is expected to hit the new historical high of USD800 million in 2014 in the world.

    

       

    

      Researchers Qiuhua Guo from CCM said that from a long-term (2016-2020) perspective, market prospect of chlorpyrifos is negative with great uncertainty. Chlorpyrifos is suffered from overcapacity, substitute replacement, pesticide resistance, market saturation and safety problems, which raise the possibility of prohibition in some countries.

    

       

    
      Source:  CCM International