Market Tendency of Some Major Pesticides

The latest issue of CCPIA Monthly Bulletin of Statistics of China Agrochemicals was just released. Here follows some major pesticides' price tendency and manufacturers' operation situation as reference.

1. Glyphosate

According to CCPIA Monthly Bulletin of Statistics of China Pesticides, in Aug, VWAP¹ of glyphosate TC increased slightly by 3.5% MoM. With more than 20 manufacturers operating in Aug, the monthly output kept same level with that of Jul, while sales volume decreased by over 10% than MoM. When it came into Aug, overseas market of glyphosate began to warm up, however it seemed there was not much impact to domestic market.

Overall, the impact of glyphosate scrutiny on the market has been slightly moving off, while the market of upwards and downwards becomes the main factors that influence glyphosate market. According to experience, yellow phosphorus' price increases in Sep every year, perhaps it'll bring up the price of glyphosate next month, we'll see.

2. Paraquat

According to CCPIA Monthly Bulletin of Statistics of China Pesticides, in Aug, VWAP of paraquat TK increased by $283 per tonne than that of Jul, till now paraquat price has been increasing for three months in a row, although the growths are not obvious.

With one less manufacturer operating in Aug (compared with that of Jul), the output of paraquat TK fell significantly by 56.0% MoM. Main factor is the ban of paraquat AS production that implemented in Jul, which also drove the decline of sales volume. Seen from the above chart, sales volume of paraquat TK fell by 47.9% than that of Jul.

3. Imidacloprid

According to CCPIA Monthly Bulletin of Statistics of China Pesticides, in Aug, VWAP of imidacloprid TC declined by $1180 per tonne than that of Jul. Actually seen from the recent one year's tendency, price of imidacloprid has been generally going down, especially in 2014. Most manufacturers' transaction price didn't change in Aug, while some declined over 8% MoM.

With two less manufacturers operating in Aug, production of imidacloprid TC fell significantly by 27.6% than that of Jul, while sales volume went the exactly opposite way, increased by 33% MoM. Given the hot weather in Aug, some manufacturers tended to shut down or reduce their operation rate, while with demand of market increasing, sales of imidacloprid still performed well in Aug.

4. Chlorpyrifos

According to CCPIA Monthly Bulletin of Statistics of China Pesticides, in Aug, VWAP ofchlorpyrifos TC fell by $233.3 per tonne. Although it's the third month that price of chlorpyrifos TC going down, it seems that the tendency won't keep that long. Overall, price of chlorpyrifos TC kept going smoothly during 2014.

With the same number of manufacturers operating in Aug (compared with that of Jul), production of chlorpyrifos went down by 19.3% and sales volume dipped by 18.5% MoM. The rapid decline was caused by the hot weather for one aspect, and for another, according to some manufacturers, operation rate was reduced because they intend to control the sales channel in their own hands instead of the traders.

5. Carbendazim

According to CCPIA Monthly Bulletin of Statistics of China Pesticides, in Aug, VWAP ofcarbendazim TC declined by 3.6% than that of Jul. Seen from the transaction price tendency, it has been declining for four months in a row till Aug. Actually market of carbendazim TC didn't perform well during the same period last year, mostly because the overseas demand couldn't fulfill the output.

With the same number of manufacturers operating in Aug (compared with that of Jul), output of carbendazim TC increased by 8.5% MoM, while sales volume decreased significantly by 35.8% than that of Jul, which also resulted from the poor season of exports.