Led by the global pesticides giant BASF, the
pyraclostrobin market in China has witnessed a surging competition in 2016,
resulting of the expired patent of BASF’s pyraclostrobin. China’s manufacturers
were able to achieve large profits of this product, which elevates the number
of players, who want to get a piece of the cake.
Source: Baidu
China’s fungicide market has witnessed the surge of a
star product, which is characterised by high efficiency, low toxicity, and an
environmental-friendly usage. Hence, this product is one of the most favourite
products for several Chinese pesticides enterprises and farmers throughout the
country. The product is pyraclostrobin.
The biggest contributor of pyraclostrobin in China is
still BASF, which also brought this fungicide to China in the first place. All
in all, BASF has already introduced ten different products to China, which all
contain pyraclostrobin as the critical ingredient. The two most successful
products are Cabrio® and Bai Tai®. In fact, these two products have been
dominated the Chinese pyraclostrobin market ever since.
However, Chinese manufacturers did not remain idle.
Several producers, like Qingdao Hailir Pesticides, Beijing Yoloo Biotechnology,
Jiangxi HKLS Biotechnology, and Shenzhen Noposion had introduced their own
pyraclostrobin formulations in China, namely Jirun, Chuanqi, Jucai,
and Lvqi respectively. All of these domestic companies and several
more have been able to surpass a sales value of more than USD4.32 million in
2016, according to market intelligence firm CCM. Even they could not even reach
close to the sales of BASF, this trend is still a sign into a growing domestic
competition in China’s pyraclostrobin market.
What’s more, the high profitability of pyraclostrobin
in China is attracting a growing number of pesticides manufacturers to push
into this promising market. A key factor in this development is furthermore the
expiration of BASF’s patent on pyraclostrobin on June 21, 2015, according to
CCM. Ever since, more than 190 certificates have already been issues, to
manufacture pyraclostrobin technical, formulations, and mixtures.
What kerbs the domestic production of pyraclostrobin
in China, are the growing environmental protection measurements of China’s
government. The stricter regulations were started to being implement in the end
of 2016, with far-reaching effects on the pesticides industry in China. Many
enterprises have to slow down or cut their production of pesticides, to be able
to reduce their pollution and meet the new environmental standards in China.
This development slows down the growth of pyraclostrobin production as well.
As mentioned before, Beijing Yoloo and
Shenzhen Noposion are one of the biggest pyraclostrobin formulation
manufacturers in China. However, they mainly purchase their pyraclostrobin
technical upstream product from BASF. Hence, the demand for technical from
Chinese manufacturers is still comparable low, according to CCM’s research. It
is furthermore expected, that the current shortage of pyraclostrobin technical will
be eased in the near future when manufacturers are ready to enhance their
production technology and improve the process.
Pyraclostrobin is known for effectively control
boxwood blight, especially in preventive control. Boxwood blight is a huge
problem for many farmers in the USA nowadays, as the fungus and its sticky
spores spread all around the soil and plant debris. The fungus is affecting
mainly cole crops, like broccoli or cabbage.
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