Paraquat is Still One of the Popular Herbicides in the Current Herbicide Market of China

Date: 2015-08-09

“As of April 2015, China’s diuron market does not get better. It is predicted that the diuron price will be unlikely to rebound in the short time.

In Q1 2015, the output of chemical pesticide technical witnessed slight YoY increase in China, totaling 912,967 tonnes, up 0.05% over the same period in 2014.

In 2014, Shenghua Biok’s total revenues declined by 16.36% year on year. Of this, the revenue from pesticide products saw YoY drop of 35.51%. However, the company’s net profit witnessed YoY increase of 199.02%.

In 2014, the revenue from Lianhetech’s pesticides and pesticide intermediates was USD418.34 million (RMB2.57 billion), up 15.99% year on year.

Huapont-Nutrichem’s net profit encountered YoY rise of 41.79% in 2014. 
Significantly, the company’s net profit from agrochemical department was also increased by 39.73% year on year.

In Jan. 2015, China’s export volume of diquat technical and formulations witnessed a YoY growth of 31.35%, according to China Customs and CCM. That is mainly thanks to the rise in diquat formulation export.

According to the ICAMA, in March 2015, there were 12 herbicide technical products obtained registrations in China. Thereinto, glufosinate-ammonium and glyphosate ammonium both obtained two registrations on technical products.

In April, China’s pyridine price continues to decline but the downtrend slows down.
Along with the coming busy season of paraquat export, China’s major paraquat TK manufacturers start to stock up goods actively, improve operating rates or resume production.

Along with the approaching time limit of paraquat AS prohibition in China, China’s paraquat manufacturers are actively applying for registrations on paraquat non-AS formulation and energetically building up production lines to seize the market in advance.

In 2015, China regulates the export tax rebate rates of some products, which to some extent boosts the development of pesticide technical businesses. However, what impacts will the export tax rebate bring to China’s pesticide formulation businesses?

Paraquat is still one of the popular herbicides in the current herbicide market of China. On 17 April, Shandong Luba officially obtained the production license of 50% paraquat SG, which means that it can legally produce and sell non-AS paraquat product. This is also the driving force for the development of China’s non-AS paraquat market. As of April 2015, there were 5 enterprises obtained production licenses of non-AS paraquat, namely Nanjing Redsun, Shandong Luba, Shandong Kexin, Nanjing Gaozheng and Zhejiang Wynca. Of these, only Nanjing Redsun and Shandong Luba obtained the registrations on non-AS paraquat, others are now applying for the registrations to the ICAMA. 

At present, many industrial insiders worry that new paraquat formulations cannot completely fill up the gap that left by the prohibition of paraquat AS in the market, because the cost of non-AS paraquat is relatively high, the acceptance of farmers is uncertain, and the promotion effect of new products is not good. However, not a few insiders hold optimistic attitude to the market prospect of new paraquat formulations. They believe that there is no herbicide product can completely replace the position of paraquat in herbicide industry up to now; and farmers will be glad to accept new paraquat formulations which enjoy good effect and are convenient to use, despite high costs.

Nevertheless, since the development of new formulations of paraquat is still in slow progress, China’s paraquat TK market still remains stagnant. In April 2015, with the coming busy season for paraquat export, paraquat TK manufacturers are stocking up goods actively. For example, some of them improve the operating rates of production equipment of paraquat TK and some of them end up the overhaul to resume the production of paraquat TK.

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