There is no doubt that pyraclostrobin has
been hot in Chinese market so far. It is reported that, after it became
off-patent in China on 20 June, 2015, a number of producers have been approved
to obtain the Pesticide Registration Certificates. Judging from the
registration number, many industry insiders expected large increases in
production capacity and output of pyraclostrobin, which may pull down its
market price.
Source: Internet
However, to their surprise, as of June 2016
(one year after pyraclostrobin became off-patent), production capacity and
output of pyraclostrobin hasn't skyrocketed as expected, as few producers
started production in fact. Most enterprises held a "wait-and-see"
attitude. Meanwhile, the market price hasn't gone down but up largely.
So far, the overall pyraclostrobin market
shows a trend of tight supply and high price, due to:
1. Soaring demand for pyraclostrobin technical
The past year has witnessed rapid growths in numbers of Pesticide Registration
Certificate and Production Approval Certificate for pyraclostrobin.
According to the Institute for the Control of Agrochemicals, Ministry of
Agriculture, as of 20 June, 2016, the number of effective registrations for
pyraclostrobin has reached 126 (including sub-packaging ones), 36 for
pyraclostrobin technical and 90 for pyraclostrobin formulations.
Meanwhile, according to the Ministry of Industry and Information Technology of
the People's Republic of China (MIIT), there have been 48 Production Approval
Certificates for pyraclostrobin granted in total (including sub-packaging
ones).
Out of these, only one was for pyraclostrobin technical: Shanghai
Heben-Eastsun Medicaments Co., Ltd. obtained the Pesticide Registration
Certificate for its 97.5% pyraclostrobin TC on 28 Aug., 2015 and the Production
Approval Certificate on 29 Feb., 2016.
Notably, most production certificates were granted in H1 2016, a majority of
which were for pyraclostrobin formulations. According to the MIIT, among the 48
certificates, 32 were approved in H1 2016, 64.58% of the total. As a result,
formulation producers increase their demand for pyraclostrobin technical.
However, domestic production capacity of pyraclostrobin technical is too small
to meet the surging market demand.
2. Restraints from stricter environmental regulations
As Chinese authorities attach greater importance to environmental protection
and impose stricter regulations, output of some technical and formulation
producers was impacted. Even some small-scale plants had to close down. For
these reasons, the supply of pyraclostrobin technical has become tighter.
3. Insufficient inventory to ease the shortage
In fact, in early 2016, domestic market price of pyraclostrobin technical
showed a downward trend. Additionally, some industry insiders had predicted the
market price of pyraclostrobin to go down. Thus, purchasers has had little
inventory, which cannot ease the shortage at present in the short run.
So far, domestic production capacity and output of pyraclostrobin technical
have remained low, making the market price high. It is predicted that, with
further production expansion, the pyraclostrobin market will be improved in the
coming period.
This article comes from Fungicides China News 1606, CCM
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Tag: Pesticide pyraclostrobin