CCM: Review II: rigid demand to continuously support herbicide industry development 04-22-2016

Reviewing the year of 2015, China’s exports of herbicide formulations encountered serious setbacks with poor domestic sales. However, the rigid market demand still supported the herbicide industry development. Herbicides still enjoyed a strong market demand although the whole pesticide industry was depressed.   


- Output 
The drop in total herbicide output was the lowest when compared to other pesticides. Herbicide also occupies a largest share in Chinese pesticide market. According to the National Bureau of Statistics of the People’s Republic of China, in Jan.-Nov. 2015, China outputted:
  • Herbicide: 1.61 million tonnes (converted into 100% A.I., similarly hereinafter), down 0.5% year on year, accounting for 47.7% of the total chemical pesticide output
  • Insecticide: 469,305 tonnes, down 3.9% year on year, accounting for 13.9% of the total
  • Fungicide: 165,562 tonnes, down 7.9% year on year, accounting for 4.9% of the total




- Demand 

China’s agrochemical industry market still has a strong demand for herbicide even when glyphosate and paraquat markets encountered a weak demand both at home and abroad. Particularly, the demand for paraquat is relatively strong since there are no outputs of substitutes yet when paraquat AS is going to be banned. 


The demand analysis on pesticides from the National Agro-Tech Extension & Service Center (NATESC) show that as the population grows, the demand and supply of wheat, rice, corn and potato is in tight balance and the demand for agrochemicals is still rigid. Although the NATESC forecasted that the herbicide demand would drop in 2016, the drop would be the lowest when compared to that of other pesticides. 


It is predicted that the total demand for pesticides (commodities) will be 961,700 tonnes in 2016. When being converted into 100% A.I., the figure will be 304,800 tonnes, down 6.18% year on year. Thereinto, the herbicide demand is expected to reach around 104,700 tonnes, a YoY fall of 4.22%. In fact, 2016 will be the first year when herbicide demand records a drop in China. Herbicide will be one of the most requested pesticides in China’s agrochemical industry currently.


In 2016, glyphosate, acetochlor, atrazine, butachlor, paraquat, 2,4-D butylate, bentazone and metolachlor will have a large market demand; mefenacet, clomazone, imazethapyr,mesotrione, haloxyfop, clodinafop-propargyl, benazolin-ethyl, pretilachlor, metribuzin, simetryn, cyhalofop-butyl, quizalofop-ethyl and fluroxypyr will enjoy large grows in demand.

 

                                                   Forecasts of China's pesticide demand, 2016

No.

Pesticide

Demand (tonne)

YoY change

1

Herbicide

104,700

-4.22%

2

Insecticide

103,700

-5.21%

3

Fungicide

82,700

-9.25%

4

Acaricide

10,300

-5.22%

5

Plant growth regulator

3,234.21

-18.88%

6

Rodenticide

41.84

-17.74%

                                                                         Source: NATESC


In addition, as the herbicide resistance of part of weeds increases, the consumption of corresponding herbicides will also improve. In generally, weeds will be resistant to a single herbicide in 3-5 years if the herbicide is used in a large quantity for a long time. At present, China’s weeds that are resistant to herbicides are growing especially in wheat and paddy fields. Farmers need to continuously enhance the per unit dosage of herbicides. Under this irreversible trend, the consumption of single herbicide will keep rising before a new effective variety turns up.



About CCM: 

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta. 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.


Tag: herbicide, pesticide


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