In H1, 2020, the prices of fungicides in China fluctuated drastically. In particular, in Feb., when the epidemic just broke out, the insufficient supply of certain fungicides caused their prices to go up dramatically. At the same time, the fungicides which can protect such crops as wheat and rape were in urgent demand since it was the time for spring farming. Therefore, fungicides such as carbendazim and tebuconazole were particularly in short supply, with their price index fluctuating most significantly.
In late July, the overall demand for domestic fungicides was weak. This came at a time when some TC manufacturers increased their operating rate, leading to an increase in the inventory. Currently, the overall fungicide market is dipping.
The pyraclostrobin*fluopimomide 30% CS-SC developed by Shandong United Pesticide has obtained registration certificate on 8 June, 2020. The company's decision to compound its patented fluopimomide with pyraclostrobin and to launch the compound will help the company increase its share on the fluopimomide market, thereby gaining better economic benefits.
Greatchem Chemical decided to implement a product portfolio adjusting and technology upgrading project, since some of its producing facilities, which were built long ago, are out of date, and the difficulty in getting some intermediates makes it hard to ensure stable production and reduce cost. The company used to produce 24 types of agrochemical TC products, namely, 3 insecticides, 16 fungicides, 4 herbicides and 1 acaricide, with a combined capacity of 18,712 t/a. When the project finishes, the portfolio will cover 26 agrochemical TC products, namely, 6 insecticides, 13 fungicide, 3 herbicide, 1 acaricide, 1 plant growth regulator, and 1 intermediate, with a combined capacity of 18,650 t/a.
On 3 July, the Wuzhong City Ecological Environment Bureau accepted the EIA Report on a 21,000 t/a new TC and formulations project (Phase I) submitted by Wuzhong Linghang. It's understood that the Phase I project will build a capacity of 2,000 t/a imidacloprid, 1,000 t/a thiophanate-methyl, 2,000 t/a carbendazim, 1,000 t/a thiamethoxam, and 9,000 t/a formulations, thus entering the company in the competition on the thiophanate-methyl and carbendazim markets.
Inner Mongolia Laike plans to build new capacity onto its existing plant. Planned capacity includes 1,500 t/a prochloraz TC, 1,500 t/a chlorfenapyr TC, 1,000 t/a cyhalofop-butyl TC, 500 t/a bispyribac-sodium TC and 100 t/a pyribenzoxim TC.
In April., 2020, China's overall export volume of carbendazim increased YoY. Specifically, the export volume of carbendazim formulations rose significantly YoY, while that of carbendazim TC dropped YoY.In H1, 2020, a total of 132 new fungicides in China have obtained agrochemical registration certificates. The fungicides involve more than 60 types active ingredients, take 16 different forms and come from 79 producers.
On 16 July, MOA released the National Development Plan of Rural Industries (2020-2025). The blueprint sets out goals that by 2025, the rural industry system will be sound and complete, the quality and efficiency of the rural industries will be significantly improved, the rural employment structure will be optimised, the industrial integration will be significantly enhanced, the source of farmers' income growth will be expanded, and the internal drivers of growth in rural areas will be fully-fledged. Some industry insiders interpreted the blueprint as having higher requirements for agrochemical producers, and therefore, stressed that the businesses must go green and ensure safety.
On 15 July, NATESC released a forecast on late potato blight in northern China. According to the forecast, the disease will occur moderately in northern China on the whole in 2020. The majority of Northeast China is expected to see the prevalence of the disease from mid-July to early August, while the majority of Northwest China and North China from late July to early Sept.
Table of Contents
Column 1 Market Dynamics
H1, 2020 saw significant fluctuations in prices of carbendazim and tebuconazole
Fungicide market dips in late July
Column 2 Company Dynamics
Shandong United Pesticide launches new fluopimomide compound
Greatchem Chemical to adjust its agrochemical TC portfolio
Wuzhong Linghang to tap into thiophanate-methyl and carbendazim markets
Inner Mongolia Laike to build producing capacity of agrochemical TC including prochloraz
Column 3 Import and Export
China's export volume of carbendazim increases by 25.60% YoY in April., 2020
Column 4 Registration
Altogether 132 types of new fungicides obtain registration certificates in H1, 2020
Column 5 Policy
As MOA rolls out new blueprint, agrochemical industry expected to see further improvements
Column 6 Diseases
Northern China to experience moderate occurrence of late potato blight
Relatively heavy occurrence of mid-late rice pests and diseases expected in 2020
Corn diseases and pests to occur relatively heavily in mid-late growth stages
Column 7 Brief News
Sichuan Guoguang to establish wholly-owned subsidiary in Hainan
Limin Group's net profit in H1, 2020 to increase by 45% to 55% YoY
CAS's method for total synthesis of xinaomycin granted patent
Jining Sevencontinent holds groundbreaking ceremony for its premium fine chemical product project
Ningxia Lanfeng makes headway in its RTO project
Jiangsu Huifeng's loss in H1, 2020 decreases YoY
Regions in Yangtze River's middle and lower reaches should watch out for crop diseases and pests
Yangtze River flood may restrict production of agrochemicals
Column 8 Price Update
Ex-works prices of main fungicides in China, 8 July, 2020
Shanghai Port prices of main fungicides in China, 8 July, 2020
FOB Shanghai prices of main fungicides in China, 8 July, 2020