In 2025, affected by the preliminary ruling
of China's anti-dumping investigation on imported cypermethrin originating from
India, the market pattern has begun to change. In the Chinese market, the
import cost of Indian cypermethrin has increased due to the margin measures,
and the competitive pressure on domestic cypermethrin production enterprises
may be somewhat alleviated.
If Indian suppliers raise prices to avoid
anti-dumping measures, there may be an upward trend in global cypermethrin
prices. However, if the production capacity in other countries or regions is
released, it may also suppress the price increase.
Recent
Situations of Enterprises in 2025
On August 4, 2024, Jiangsu Yangnong
Chemical Co., Ltd. underwent industrial and commercial changes, with its
registered capital changing from 406.370649 million yuan to 406.759709 million
yuan. As the largest production base of new bionic pesticides - pyrethroids in
China, with the anti-dumping investigation and preliminary ruling by China on
Indian cypermethrin, the company is expected to benefit from the creation of a
fair competitive environment.
On January 8, 2025, Guangkang Biochemical
Co., Ltd. stated on the investor relations platform that in the past few years,
the domestic cypermethrin industry had developed with difficulties due to the
impact of low-priced imported goods from India. This time, the Ministry of
Commerce has launched an anti-dumping investigation on imported cypermethrin
from India and preliminarily determined that there was dumping behavior. Since
January 8, 2025, importers are required to provide corresponding deposits to
China Customs. This will create a fair competitive environment for the domestic
cypermethrin industry, help promote a reasonable recovery in product prices,
and the company will closely monitor the progress of the investigation and
market changes and flexibly adjust its production and sales strategies.
On January 6, 2025, Hebei Juming
Agricultural Chemical Co., Ltd.'s new project of producing 1,000 tons per year
of high-efficiency cypermethrin mother liquor obtained the approval of Hengshu
Zheng Investment Management [2025] No. 1 document, indicating that the company
is optimistic about the market prospects of cypermethrin and is expected to
increase the market supply of cypermethrin in the future.
Impacts
on Upstream and Downstream Industries
Upstream
Industry
With the increase in the production
enthusiasm of domestic cypermethrin production enterprises, the demand for
production raw materials and intermediates will increase, and the order volume
of relevant suppliers and manufacturers is expected to grow.
The increase in demand may drive up the
prices of raw materials and intermediates. However, if the supply of raw
materials and intermediates in the market is sufficient, the price increase
range may be limited, and the overall price may fluctuate within a certain
range.
Due to the expansion of market demand, more
enterprises may be attracted to enter the production fields of raw materials
and intermediates, intensifying competition in the industry. Existing
enterprises need to enhance their competitiveness through technological
innovation, improving product quality and reducing costs.
Downstream
Industry
In the short term, due to restrictions on
the import of Indian cypermethrin, the domestic product supply may experience a
certain degree of tightness, and the price increase may lead to a rise in the
drug use costs for agricultural growers. However, in the long run, after the
domestic industry develops, the supply will gradually stabilize, and growers
will have more domestic products to choose from and will no longer rely too
much on imports.
Cypermethrin is commonly used in the field
of sanitation and epidemic prevention to kill pests. Affected by the
anti-dumping measures, the import of products has decreased, and relevant
institutions and enterprises need to rely more on domestic products. This
prompts them to strengthen cooperation with domestic production enterprises,
pay attention to the quality and efficacy of domestic products, and may also
promote the development of new pest control agents or technologies in the field
of sanitation and epidemic prevention to reduce reliance on cypermethrin.
Anti-dumping measures are helpful in
standardizing the cypermethrin market, eliminating some small and non-standard
enterprises that rely on low-priced imported products, prompting the downstream
industry to pay more attention to product quality and brand, and promoting the
entire industry to develop in a high-quality and standardized direction.
Future
Trends
According to the statistics and forecasts
of QYResearch, the global cypermethrin market sales reached 195 million US
dollars in 2023 and are expected to reach 265 million US dollars in 2030, with
a compound annual growth rate (CAGR) of 4.6% (2024 - 2030).
The "2024 - 2030 China Cypermethrin
Market Survey and Investment Strategy Report" released by Gongyan
Industrial Research Institute pointed out that in large agricultural production
countries such as China, with the development of agricultural production and
the increase in farmers' demand for high-efficiency and low-toxicity
pesticides, the cypermethrin market will maintain a strong growth momentum.
With the intensification of market competition, the market concentration of the
cypermethrin industry will gradually increase, and some enterprises with
technological strength, brand influence and market channel advantages will
gradually dominate the market.
About CCM:
CCM is the leading market intelligence provider for China's agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of content solutions, from price and trade analysis to industry newsletters and customized market research reports. 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.