中国作物保护月报(中国作物保护202210月报)

The overriding food security across the globe has brought great opportunities to Chinese pesticide producers—as the global agricultural prices rise spurring interest and motivation among agricultural farmers, prices of fertilisers, pesticides and other agricultural materials have been rising in H1 2022. But challenges are standing in front of Chinese producers. The most prominent cases are the Russia-Ukraine conflict that has caused surges in worldwide chemical raw materials and energy prices, the upgraded lockdown and control measures against the Covid-19 across China that have raised material costs and disrupted energy supply and logistics, etc. Chinese pesticide companies, especially those of small and medium sizes, are facing higher levels of international and domestic pressures.

As the global production capacity of pesticide technical is gradually transferred to China, India and other developing countries, the problem of overcapacity has occurred due to low level of redundant capacity construction, and vicious undercutting has followed. Since 2018 when China adopted action to achieve zero growth in chemical fertiliser and pesticide use, the country has recorded improved efficacy of pesticides and declined domestic use. China has been the world's largest pesticide producer and Chinese companies engaging in pesticide technical manufacturing and export are increasing their investment in overseas marketing in recent years.

The leading agrochemical companies in China boasted high production and sales of pesticide products thanks to their advanced production technologies and abundant resources regarding to raw materials, energy and others. For example, Shandong Luba Chemical Co., Ltd. marked growing sales of glufosinate-ammonium, CAC Nantong Chemical Co., Ltd. with rising demand for chlorothalonil and 2,4-D, and Sichuan Hebang Biotechnology Co., Ltd. having more orders for glyphosate, etc. According to the financial reports, most of the listed companies gained rises in both sales prices and volumes of their herbicide products for H1 2022.

CCM research shows that there are 77 new pesticide capacity investment projects that are in the planning, EIA and construction stage in China's pesticide industry as of Oct. 2022; apart form the majority of upgrading and capacity expansion projects for technicals, there also include intermediates and raw materials projects. A great many of the concerning projects are (to be/being) established in East, Northwest and central China.