CCM: Chlorothalonil price: up against sluggish pesticide market in 2015 05-05-2016

In 2015, Chinese pesticide industry experienced a downturn. Only chlorothalonil performed well: price growth and outstanding exports. It is estimated that the market demand for chlorothalonil will still maintain stable in the future.

 

In 2015, the Chinese pesticide industry was sluggish. In general, pesticide prices remained at low level and only a few products prices grew against sluggish pesticide market. Among them, chlorothalonil is a key example, its price went up and the exports performed well. Therefore, it is anticipated that the demand for chlorothalonil will still maintain stable in the future.

 

Chinese chlorothalonil price rose against sluggish pesticide market in 2015


In Q1-Q3, increasing foreign orders and low chlorothalonil inventory made chlorothalonil supply tight. According to market research, the domestic chlorothalonil manufacturers were Limin Chemical Co., Ltd. (Limin Chemical), CAC Group Co., Ltd. (CAC), Jiangyin Suli Fine Chemical Co., Ltd. (Jiangyin Suli), Jiangsu Weunite Fine Chemical Co., Ltd. (Jiangsu Weunite) and Jiangsu Xinhe Agrochemical Co., Ltd. (Xinhe Agrochemical). have been fully engaged in orders.

 

As chlorothalonil is not bulk pesticide product, the majority of manufacturers don't stock goods in large quantity. Therefore, when the demand for chlorothalonil exceeds manufacturers’ prediction, their inventory drops rapidly, which makes chlorothalonil in short supply.

 

These factors contributed to an upward trend in domestic chlorothalonil price, especially since Q2. Obviously, Chinese chlorothalonil price hit the highest point in Aug. According to CCM's price monitoring, the average ex-works price of 98% chlorothalonil TC was USD5,410/t in Aug., a MoM rise of 11.87% and a YoY rise of 40.29%. Besides, its price rose by 29.83% compared with that in Jan. This statistics were the largest increase in the past two years.

 

In Q4, chlorothalonil price dropped compared with the previous three quarters as market demand weakened and supply tension relieved, but overall, it still maintained high level compared with the same period of 2014.

 

According to market investigation, at present, major manufacturers stated that they have no chlorothalonil TC inventory, but they still operate normally and orders have been fully booked.

 

Among them, Jiangyin Suli’s chlorothalonil production facility is working normally (capacity:14,000 t/a) and it has no inventory.

   

Limin Chemical has no inventory and its orders have been fully booked. CAC operates normally with daily output of more than 1 tonne.

 

It is estimated that the tight supply of chlorothalonil market won’t be eased and its price will still maintain high in a short term.

 

                               Monthly ex-works price of 98% chlorothalonil technical in China, Jan. 2014-Jan. 2016


                                                                                 Source: CCM



 

China's exports of chlorothalonil showed good momentum In 2015

 

Owing to the decreasing chlorothalonil supply from foreign suppliers, most of the foreign clients turned to imports, which contributes to an increase in chlorothalonil orders of domestic manufacturers and therefore propels China's exports of chlorothalonil.

 

Zhang Wenjun, Director of International Cooperation Service of the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA), revealed that from Jan. to Sept., half of the exported products perform unsatisfactorily. Among the 407 exported products, 205 products dropped obviously.

 

Over half of the top-20 exported products (by value) severely dropped. By contrast, chlorothalonil witnessed huge increases in both export volume and values in 2015.

 

From Q1 to Q3, the export volume of chlorothalonil was around 17,900 tonnes with a YoY growth of 10.90%, ranking the 8th among Chinese exported pesticides (by volume), taking up 1.51% of the national total exports. Chlorothalonil became the top-1 fungicide variety by export volume. In 2014, chlorothalonil ranked the 12th among Chinese exported pesticides (by volume).

 

From Q1 to Q3, the export value of chlorothalonil rose by 16.28% to USD72 million, ranking the 14th (by value) and accounting for 1.26% of Chinese total export values. In 2014, chlorothalonil ranked the17th, only second to that of tebuconazole.

 

Market demand for chlorothalonil remains stable in the future

 

In 2016, the demand for chlorothalonil will remain stable. According to data from the National Agro-Tech Extension and Service Center, the demand for fungicide is expected to decline in 2016, maintaining at 82,700 tonnes, decreasing by 9.25% year on year. Copper sulfate, carbendazim, ethylenebisdithiocarbomates (EBDCs) fungicides, thiophanate-methyl, tricyclazole, chlorothalonil, triadimefon, jingangmycin, isoprothiolane and copper hydroxide are strongly demanded.

 

Therefore, it is foreseeable that the market presence of chlorothalonil is relatively stable in the future.


This article comes from Fungicides China News 1601, CCM




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.

       

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Tag: pesticide chlorothalonil fungicide


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