CCM: Overview of China’s herbicide industry in 2015 09-07-2016

Reviewing the year of 2015, China’s pesticide industry was in the doldrums as a whole - profit grew slowly and the number of enterprises at loss increased. Notably, herbicide market became the worst-hit market that dragged down the pesticide industry.



Source: Baidu


Particularly, large-tonnage herbicides include glyphosate and paraquat that occupy large shares in the herbicide market performed even worse, which was to blame for the downturn of the whole market. This directly led to declining economic benefit. Only a few herbicides like dicamba and glufosinate-ammonium enjoyed good market condition. In 2015, the export volume of dicamba TC and glufosinate-ammonium TC realized large growth of over 100% respectively, according to data analysis from CCM.


- Revenue and profit grew slowly, number of enterprises at loss further increased


According to data from the National Bureau of Statistics of the People’s Republic of China (NBS), in Jan.-Nov. 2015, the revenue from main business of China’s pesticide industry reached USD43.24 billion (RMB281.17 billion), a YoY rise of 5.7%; the YoY rise was 8.3% in the same period of 2014. And the total profit was USD3.01 billion (RMB19.58 billion), a YoY rise of 5.1%; the YoY rise was 1.3% in the same period of 2014.


Although the YoY rise in total profit in 2015 was higher than that in 2014, the number of pesticide enterprises at loss in 2015 recorded a YoY increase of 2.7%. The whole industry made a loss of USD118.40 million (RMB770 million), up 62.2% year on year. Also, the loss by scale (loss by scale=number of enterprise at loss/total number of enterprise) increased by 0.3 percentage point year on year.


In 2015, China’s major paraquat and glyphosate manufacturers all recorded different degrees’ of declines in their revenue and total profit due to the weak market demand and dropping prices.




- Paraquat and glyphosate markets were frustrated


In 2015, China’s prohibition policy on paraquat AS and paraquat being classified as a highly poisonous substance overshadowed the development prospect of paraquat in China. Domestic formulation processing enterprises almost demand no more paraquat TK. In particular, the development progress of non-AS paraquat slowed down and even stagnated. Domestic paraquat TK is mainly for overseas markets. However, the purchase volume did not rise largely in overseas markets.


Glyphosate market was also suffering in 2015. After being use in a large quantity for a long time, glyphosate resistance becomes more and more obvious. Part of market share of glyphosate is facing the risk of being replaced by other herbicides. Meantime, that glyphosate may causes cancer makes it highly-controversial on whether it can continue to be used. Some countries/regions even have suspended or banned the use of glyphosate.


- Dicamba and glufosinate-ammonium: dark horses in the depressed market


In 2015, China’s export volume of herbicides (commodities) remained stable but the export value presented large drops. Therefore, the overall profit of herbicide exports was unsatisfactory. Data from the NBS show that in Jan.-Oct. 2015, China exported 1.01 million tonnes of pesticide in total, a YoY rise of 1.9%. While the export value reached USD3.06 billion, slumping by 13.6% year on year. Of this, the export volume of herbicide was 711,000 tonnes, up 3.2% year on year; export value was USD1.84 billion, a YoY slump of 16.6%.


Nevertheless, the exports of dicamba and glufosinate-ammonium all realized large YoY increases. The YoY rise in export volume of dicamba TC in Jan.-Oct. 2015 exceeded 120%; and that of glufosinate-ammonium TC (including TK) surpassed 130%.

 

This article comes from Herbicides 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.

 

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.

 

Tag: herbicides  pesticide

 

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