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CCM: Overview of Chinese fungicide market in 2015

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Publish time: 16th February, 2016      Source: CCM
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  In 2015, Chinese pesticide industry experienced a downturn. Under such circumstances, the fungicide market witnessed an extraordinary performance. CCM will follow up on the fungicide market dynamics and market conditions and make the corresponding analysis.  

   

  

  Source: Internet

   

  

  In 2015, the Chinese pesticide industry was sluggish. However, the fungicide industry stood out and performed relatively strongly.

   

  

  Huge adjustment in fungicide production

  
The pesticide industry had an oversupply during 2015. All three pesticide categories (fungicides, insecticides and herbicides) all suffered from varying output declines. Fungicides recorded the largest decline in output; insecticides posted a slight fall in output; and the herbicide output was essentially the same as in 2014.

  
From Jan. to Nov. 2015, a total of 70 pesticide enterprises (which have revenues of up to RMB20 million from their main businesses) produced 165,562 tonnes of fungicides (converted into 100% AI) accumulatively, down by 7.9% YoY, accounting for 4.9% of the national total chemical pesticide output. Jiangsu Province, Anhui Province and Zhejiang Province were the major regions for fungicide production. These three provinces took up 72.75% of the national total fungicide output.

   

  

  Fungicide exports performed outstandingly despite sluggish conditions 

   

  

  The Chinese pesticide market is encumbered with overcapacity and oversupply. Focusing on exports is an effective method to alleviate the excessive supply in the domestic market. However, the pesticide export conditions in 2015 signified that there was insufficient external demand.

   

  

  From Jan. to Nov. 2015, both the export volume and export value of China's pesticides declined by 9.2% YoY and 17.71% YoY. Specifically, China's exports of fungicide performed strongly. Data from the International Cooperation Service of the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA) and the General Administration of Customs of the People's Republic of China (China Customs) showed that:

  

      
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          The export volume was 130,400 tonnes, edging down by 5.39% YoY, accounting for 9.44% of all pesticide exports.     
      
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          The export value was USD1.02 billion, slightly increasing by 0.91% YoY, accounting for 15.33% of the total pesticide export value.     
      

  

  Some key fungicide varieties, such as chlorothalonil and mancozeb, were stable or even had improvements to their exports.

   

  

  Notably, along with the R&D and technological improvement of fungicide products, the share of fungicides is increasing gradually in the Chinese pesticide industry. The increasing number of fungicides will reduce the dependence on imported fungicides.

   

  

   

  

  Stable fungicides prices 

  
In 2015, Chinese pesticides prices remained low because of multiple factors, such as increasing environmental protection pressures, rising production costs of upstream enterprises, the continually falling closing price, and declining profit margins. The weak demand from domestic and overseas markets and the prohibition and restrictions of high toxic pesticides also exerted downward pressure on pesticide prices.

  
Compared with herbicides and insecticides, fungicides prices were generally stable in 2015. A small number of fungicide varieties saw price increases. Carbendazim and chlorothalonil are key examples. Some fungicide varieties, like difenoconazole and propiconazol, remained at low prices because of the slack market demand.

   

  

  New changes in end market

  2015 saw new changes in the fungicide end-market. Fungicide mixed formulations were growing rapidly, replacing the single formulations. There was an increasing application of fungicides which are used as seed coating. Producers began to mix fungicides with plant growth regulators.

   

  According to the National Agro-Tech Extension and Service Center (NATESC)'s forecast, the demand for fungicides will decline to 82,700 tonnes in 2016, down by 9.25% YoY.

   

  l Strongly demanded: carbendazim, tricyclazole, chlorothalonil, jingangmycin, tricyclazole, chlorothalonil, ethylenebisdithiocarbomates (EBDCs) fungicides, thiophanate-methyl, triadimefon, jingangmycin, isoprothiolane, copper sulfate, copper hydroxide

  l Soar in demand: hexaconazole, fludioxonil, azoxystrobin, prochloraz, pyraclostrobin, bacillus subtilis, coumoxystrobin, kresoxim-methyl

   

  In 2016, there will be a continuation of the environmental protection pressures on the Chinese pesticide industry. The current trends, including the elimination excessive capacity, production technology upgrades and declining grain prices, will continue. The demand for pesticides will inevitably change. The fungicide technical market will continue to be facing an intensive price war, and profit margins may be threatened. CCM will follow up on the fungicide market dynamics and make the corresponding analysis. 

  

  
     

        

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  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: fungicide