Though the market is depressing owing to extreme climate and slack demand, China's insecticide industry aided by gradual recovery of global economy still realizes growth rebound in export. in 2010. Meanwhile, national policies help shape the industry by accelerating industry optimization and upgrading product mix, which may bring great opportunities.
Supply & demand
Most insecticides encounter overcapacity in 2010. Output increase and huge stock are mainly responsible for the surplus.
It is estimated that China's insecticide output in 2010 totally reaches more than 700,000 tonnes which is more than that in 2009. Insecticides whose outputs surpassing 10,000 tonnes in 2010 include DDVP, trichlorfon, chlorpyrifos, etc. Owing to slack market demand, most producer's operating rates are less than 50% in 2010. Besides, the capacity of domestic pesticide is keeping increasing. Cumulative investment in the industry from Jan. to Aug. reached USD2.5 billion, accounting for 38.5% of the planned investment and posting a 36.2% rise year on year. During this period 388 projects have been under construction, up 6.0% year on year.
However, China's insecticide demand in 2010 is expected to reach just about 125,000 tonnes, basically equaling 2009 attributed to the effects of extreme climate and light occurrence of insect pests. In H1 2010, extreme climate and promotion of biological and physical control methods are major reasons for decrease in demand for insecticides. In H2 2010, the worsening occurrence of migration insect pests in southern China has brought a sudden demand for insecticides, such as pymetrozine, buprofezin, etc.
Besides in 2010, China's insecticide export has achieved rise in volume and value, whose respective growth rates reaching up 33.0% and 21.5% year on year, however, it still faills to offset the surplus capacity.
Source:
Fungicides China News
CCM International, Ltd