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
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Tag: pesticide chlorothalonil fungicide