CCM: China’s national environmental inspection helps boost pesticide market 11-07-2016

On 20 Oct., 2016, Zhai Qing, deputy director of the Ministry of Environmental Protection of the People's Republic of China (MEP), confirmed that a total ten inspection groups would be assigned to urge provincial governments and environmental protection departments to implement environmental regulations and in the meantime, to ensure punishments for breaching related rules. This inspection started the next day (21 Oct.) and was conducted in 20 provinces / municipalities / autonomous regions, including Tianjin, Hebei, Shanxi, Inner Mongolia, Laioning, Anhui, Fujian, Jiangxi, Shandong, Henan, Hubei, Hunan, Guangdong, Hainan, Sichuan, Yunnan, Shaanxi, Gansu, Qinghai and Xinjiang.



Source: Baidu


In fact, the environmental inspection system was first officially established by the Environmental Protection Inspection Plan (Trial) approved by the 14th session of the Central Leading Group for Comprehensively Continuing Reform in July 2015. Accordingly, the central government would assign groups of inspectors to conduct related investigations into environmental regulations implemented by the provincial or even city-level governments and relevant departments.

 

Environmental inspection has been prioritised on the MEP’s agendas in 2016. Early this year, pilot inspections were conducted in Hebei. In mid-July, the first group of inspectors carried out stringent regulation towards enterprises in Inner Mongolia, Heilongjiang, Jiangsu, Jiangxi, Heinan, Guangxi, Yunnan and Ningxia. The inspection continued on in Sichuan and Hubei in mid-Sept. and was further expanded this time in Oct.

 

This large-scale national environmental inspection may affect the domestic prices of most chemicals, especially pesticides. Most important pesticide producing provinces were covered this time, including Shandong, Henan, Hubei, Anhui, Sichuan, Hebei, Inner Mongolia, Jiangxi, Hunan, Guangdong and Fujian. All these provinces were among the top 15 pesticide producing provinces in Jan.-Aug. 2016, whose output totaled around 1.44 million tonnes, 57.78% of the national total.

 

Given this, the pesticide business may be seriously influenced – lowering operating rate, tightening supply of raw materials, increasing environmental costs, reducing overall output, all of which are driving forces behind possible rises in pesticide prices. It is expected that the Chinese pesticide market will transition to an upturn in the near future.

 



Notably, the previous environmental inspection this year has already boosted prices of many pesticides. Rises in prices of pesticide technical has become a trend in the domestic market. For instance, the long-depressed chlorpyrifos price finally rebounded slightly in Sept. 2016, thanks to the increased price of intermediates. Badly affected by the national environmental inspection, most producers of chlorpyrifos TC intermediates had to cut down their production, leading to declined market supply and increased price. Moreover, just a few chlorpyrifos TC manufacturers realised self-supply of intermediates. In this context, many chlorpyrifos producers raised their quotations.

 

The state had in fact required in-depth and continuous environmental inspection early when the first groups of inspectors were dispatched this year. As the national environmental regulation gets increasingly stringent, it noteworthy how the domestic pesticide manufacturers will cope with the coming challenges.

 

Top 25 pesticide producing provinces in China, 2015 & Jan.-Aug. 2016

No.

2015

Jan.-Aug. 2016

Province/ municipality/ autonomous region

Output, 000' tonne

Province/ municipality/ autonomous region

Output, 000' tonne

1

Jiangsu

1055.3

Jiangsu

774.7

2

Shandong

1000.4

Shandong

621.5

3

Henan

324.0

Zhejiang

192.5

4

Zhejiang

279.3

Henan

191.9

5

Hubei

253.9

Hubei

159.7

6

Anhui

197.7

Anhui

121.9

7

Sichuan

178.1

Sichuan

121.6

8

Inner Mongolia

77.7

Hebei

53.8

9

Hebei

75.5

Inner Mongolia

43.6

10

Hunan

51.4

Jiangxi

35.0

11

Jiangxi

50.9

Hunan

33.9

12

Fujian

44.9

Guangdong

33.5

13

Guangdong

43.2

Fujian

23.6

14

Jilin

23.1

Jilin

21.0

15

Ningxia

19.1

Ningxia

17.5

16

Liaoning

12.9

Chongqing

8.5

17

Guangxi

10.5

Shanghai

8.2

18

Chongqing

10.5

Liaoning

7.8

19

Shanghai

10.4

Tianjin

6.8

20

Tianjin

9.2

Shaanxi

4.8

21

Shaanxi

5.6

Guangxi

3.9

22

Gansu

3.2

Gansu

3.3

23

Guizhou

2.3

Guizhou

1.7

24

Heilongjiang

1.3

Heilongjiang

0.6

25

Shanxi

0.6

Shanxi

0.3

Source: National Bureau of Statistics of the People's Republic of China

Top 10 producing provinces of fungicides / insecticides / herbicides in China, Jan.-Aug. 2016

No.

Fungicide

Insecticide

Herbicide

Province/ municipality/ autonomous region

Output, 000' tonne

Province/ municipality/ autonomous region

Output, 000' tonne

Province/ municipality/ autonomous region

Output, 000' tonne

1

Jiangsu

55.9

Jiangsu

142.9

Shandong

453.3

2

Anhui

26.6

Shandong

44.4

Jiangsu

321.4

3

Zhejiang

15.2

Hunan

24.4

Hubei

121.4

4

Ningxia

4.7

Hubei

17.4

Sichuan

99.3

5

Shaanxi

3.6

Zhejiang

16.8

Zhejiang

93.3

6

Sichuan

3.5

Anhui

13.0

Anhui

47.3

7

Shandong

3.0

Jiangxi

11.0

Inner Mongolia

42.6

8

Shanghai

2.6

Chongqing

6.4

Guangdong

15.0

9

Jiangxi

2.6

Guangxi

3.9

Henan

14.2

10

Fujian

2.4

Shanghai

3.7

Hebei

8.9

Source: National Bureau of Statistics of the People's Republic of China

 

This article comes from Insecticides China News 1610, CCM




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.

 

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Tag: pesticides  insecticides

 

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