Entering
into Jan. 2016, the peak demand season for mancozeb comes. Downstream enterprises start to place orders to beef up its
inventories, and domestic main mancozeb manufacturers are busy with receiving
orders. CCM believes that this indicates mancozeb price is likely to climb.
In Jan.
2016, the peak demand season for mancozeb comes. Downstream enterprises begin
to stock up. Meanwhile, domestic main mancozeb manufacturers are busy with
receiving orders. According to industry sources we have spoken to, the
quotation of 90% mancozeb TC from part of manufacturers was up to USD3,306/t
(RMB21,500/t), and that of 80% mancozeb WP was USD2,999/t (RMB19,500/t). Even
though the actual closing prices are below these figures, it indicates that
mancozeb price is likely to go up.
In fact, in spring peak season of 2015, the average price of mancozeb TC grew
to USD3,152/t (RMB20,500/t). The rising raw materials (carbon disulfide and
ulphur) prices were attributed as one of factors that caused growths in
production cost and price of mancozeb TC. Since the production cost of mancozeb
didn't fall with the coming of slack season, the mancozeb price declined from
peak season but it remained a relative stable level between May and Oct. 2015.
Mancozeb experienced a difficult period from May to Oct. 2015. Because of
decreasing market demand and factory shipments slowing down, the operating rate
of some manufacturers continued to decline. Therefore, the stocked goods became
one of main supplies for the market.
The opening of China International Agrochemical & Corp Protection
Exhibition didn't bring favorable driver for agrochemical market. Under the
premise of small market supply, domestic mancozeb price edged up and maintained
this level until the end of 2015.
The
factors such as weak demand, few orders, low operating rate and decreasing
supply cause a short-term tight supply in mancozeb market when the peak demand
season comes in 2016. Since the overall pesticide market is not turnaround
currently, it's reveled that the 2016 market demand for pesticides will
maintain stable or even go down.
Most of manufacturers take cautious attitude towards mancozeb market. They
maintain stable operating rate based on finishing clients' orders, and they
don't stock large amount of goods. On account for small destocking pressure,
together with an increase in demand from upstream and downstream markets, these
will favorably push mancozeb price up in a short time.
New
research on mancozeb will facilitate its development. It's reported that ADAMA
Brazil has presented to researchers a new fungicide, formulated with mancozeb,
aimed mainly to the control of Asian rust that infect soybean in Brazil.
According to ADAMA, it is an innovative solution, which will enable the
management of resistance of soybean diseases.
Due to the systematic fall in the efficiency of the main fungicides used
against Asian rust, this disease has been a constant worry of farmers in the
last seasons. Farmers call for new tools that could contain damages caused by
diseases that affect the crop and accumulate millions in losses in the last few
years. ADAMA presenting a pre-manufactured mixture of the formulation of
dispersive granules (WG), containing mancozeb is remarkable. New market demands
for mancozeb will generate.
In the
past few years, mancozeb price had been stable with slight fluctuations when
compared with other fungicides. Mancozeb manufacturers become more reasonable
to encounter market changes. At present, domestic main mancozeb manufacturers
include Hebei Shuangji Chemical Co., Ltd., Shaanxi Xi'an MPC Stock Co., Ltd.
and Jiangsu Nantong Baoye Chemical Co., Ltd. Their production facilities keep
stable operating rate. Orders and sales are performing well.
About CCM:
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.
For more
information about CCM, please visit www.cnchemicals.com or
get in touch with us directly by emailingecontact@cnchemicals.com or
calling +86-20-37616606.
Tag: mancozeb