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Herbicides China News

Vol.2 Issue 10 2009                     Publications date: 15 Oct. 2009




                 Copyright © CCM International Limited
Herbicides China News                                                                                                     Vol.2 Issue 10 2009




                                                                  Content

    ■ Company Dynamics .................................................................................. 1
    Nantong Jiangshan to finish relocation by Q4 2009 ....................................................................................... 1
    Redsun Biochemical to enlarge paraquat effluent treatment capacity ........................................................... 1
    Shandong: herbicides export down 50.76% in H1 2009 .................................................................................2
    Guangxi sees low quality of glyphosate SL formulations ................................................................................3

    ■ Market Analysis ....................................................................................... 4
    Herbicide performance to decrease .................................................................................................................4
    Herbicide producers resume production .........................................................................................................5
    Herbicides used in cornfields ...........................................................................................................................5
    Benazolin-ethyl: small herbicide mainly applied in rape ................................................................................6
    Picloram: export-oriented herbicide ................................................................................................................7
    2, 4-D export in H1 2009..................................................................................................................................8

    ■ Supply & Demand ...................................................................................10
    Anhui Futian building 7,000t/a amide herbicide production lines ..............................................................10
    Anhui Xinglong trial runs 5,000t/a 2,4-D production line ...........................................................................10

    ■ Pricing .................................................................................................... 11
    Monthly market price of main crops in China in Oct. 2009 ......................................................................... 11
    Monthly ex-work price of key raw materials in Oct. 2009 ............................................................................ 11
    Monthly ex-work price of main herbicides in Oct. 2009...............................................................................12
    Monthly Shanghai port price and FOB(Shanghai) of main herbicides in Oct. 2009 ...................................12
    Most herbicide prices keep downturn in Oct. 2009 ......................................................................................13

    ■ Registration ............................................................................................ 13
    China herbicide registration structure improving .........................................................................................13
    Five herbicides newly registered in Sep. 2009 ..............................................................................................14

    ■ News in Brief .......................................................................................... 15
    Hubei Sanonda sells equity of Zhengzhou Sanonda ......................................................................................15
    Sinochem Corporation to acquire Nufarm ....................................................................................................15
    China strengthens cooperation with US on Pesticide Risk Assessment ....................................................... 15




- China Crop Protection Summit 2010                    - The Survey of 2,4-D in China                            2008-Jun 2009
- will be launched in Shanghai China during            - IDAN Survey in China
18 March and 19 March of 2010.                         - Production and Market of Metazachlor in                 Coming Reports:
                                                       China                                                     - Crop Protection China Report (update,
Ready Market Reports:                                                                                            2nd edition): Oct 2009
- Production and Market of Paraquat in China           Ready Trade Reports:                                      - Future of Green Biotechnology in China:
– Edition (2)                                          - Tebuthiuron Production and Export in                      Oct 16, 2009
- Outlook for China Glyphosate Industry                China 2008-Jun 2009
2009-2014                                              - Captan Production and Export in China Jan-              CCM newsletters related to Herbicides:
- Production & Market of Ethanolamines in              Apr 2009                                                  - Crop Protection China News
China - Edition (3)                                    - Oxyfluorfen Production and Export in China              - Insecticides China News
- World Outlook of Glyphosate 2009-2014                2008-Jun 2009                                             - Fungicides China News
- Survey of Glufosinate in China                       - Diuron Production and Export in China                   - Glyphosate China Monthly Report




   CCM International Limited                                                                                                       www.cnchemicals.com
Herbicides China News                                                               Vol.2 Issue 10 2009




 Welcome to the October issue                 Headlines of Herbicides China News 0910
 of Herbicides China News
                                       ■ Nantong Jiangshan will complete      a and mainly applied in rape filed in
 published by CCM International, a
                                       its relocation by the end of 2009.     China.
 professional consulting company
 who has been extensively and
                                       ■ Redsun Biochemical is to build       ■ Picloram, a post-emergence
 intently focusing on dynamics of
                                       a new spare thermal oxidation          herbicide used to control unwanted
 China’s herbicide industry.
                                       incinerator for paraquat effluent      broadleaf weeds in forest, is an
                                       treatment.                             export-oriented product in China.
 As the second peak season for
 herbicide demand this year is
                                       ■ Herbicides export volume of          ■ China exported 8,492 tonnes of
 coming, many herbicide producers
                                       Shandong in H1 2009 decreased          2,4-D technical (96%) with average
 resume production of herbicides
                                       by 50.76% year on year, due to         price of USD1.81/kg to about 30
 used in winter crops such as
                                       the gloomy global economy and          countries in H1 2009.
 wheat and rape in September and
                                       structural adjustment of herbicide
 October. Besides, the producers
                                       industry.                              ■ Anhui Futian is building
 will also resume production for
                                                                              the 7,000t/a amide herbicide
 herbicides used next spring.
                                       ■ Qualified rate of glyphosate SL      production lines in Chizhou City,
                                       formulations in Guangxi market is      which are expected to be launched
 However, the herbicide price
                                       lower than 60%.                        in early 2010.
 downtrend hasn’t been changed in
 light with the increasing demand,
                                       ■ Performance of China’s herbicide     ■ Anhui Xinglong started the trial
 indicating that China’s herbicide
                                       business will decrease in 2009         run of its 5,000t/a 2,4-D technical
 business still face great challenge
                                       without doubt, due to decreased        production line.
 under the uncertain global
                                       product price and stagnant demand
 economy.
                                       for herbicides.                        ■ Most herbicide prices keep
                                                                              downturn in Oct. 2009.
 Chinese herbicide producers will
                                       ■ Some herbicide producers have
 see great decrease in performance
                                       resumed production in September        ■ Structure of herbicides registered
 in 2009. And the integration
                                       or October.                            in China has been greatly improved,
 of China’s herbicide industry
 becomes quite urgent. How                                                    with increasing proportion for
                                       ■ Pre-emergence herbicides may         formal registrations and eco-friendly
 herbicide producers grasp the
                                       see less consumption in corn fields,   formulations.
 chance or deal with challenge?
                                       while nicosulfuron will enjoy brisk
                                       market in the future 5 years.          ■ Though herbicide registration
                                                                              kept stagnant in Sep. 2009, many
                                       ■ Benazolin-ethyl is a kind of         products were formally registered
                                       herbicide with output less than 50t/   for the first time.




 CCM International Limited                                                                 www.cnchemicals.com
Herbicides China News                                                                      Vol.2 Issue 10 2009




■ Company Dynamics

                        Nantong Jiangshan to finish relocation by Q4 2009


N     antong Jiangshan Agrochemical
      & Chemicals Company (Nantong
 Jiangshan) is now busy with the
                                           China News 0805: Nantong
                                           Jiangshan: Relocation brings chances
                                           for further development).
                                                                                     method for caustic soda, calcium
                                                                                     carbide based method for PVC.
                                                                                     Abandonment of these production
 dismantlement of production lines in                                                lines or technologies greatly reduces
 the old location, and the relocation      Nantong Jiangshan’s relocation greatly    energy consumption and pollution.
 will be accomplished by the end of        benefits the company for further
 2009.                                     development.                              New technologies and facilities are
                                                                                     employed to reduce pollutants or
Ms. Huang, representative of the bond      Firstly, Nantong Jiangshan can            improve production technology.
department of Nantong Jiangshan,           enjoy larger production space and         For instance, Nantong Jiangshan
expressed that all the relocation work     take advantage of comprehensive           developed the air oxidation technology
is underway smoothly for the moment.       facilities in the new location. Nantong   for glyphosate production, which
‘Most production lines are dismantled      Economic and Technological                is more environmentally friendly
now, and the relocation will be finished   Development Zone, where Nantong           than traditional hydrogen peroxide
in time. That is, Nantong Jiangshan        Jiangshan is located, is one of China’s   oxidation technology. It also invested
will accomplish the relocation by the      first national industrial zones and       USD5.86 million (RMB40 million) in
end of 2009 and transfer the land          has completed infrastructure and          construction of the 25,000t/d sewage
use right of the old location to local     supporting facilities.                    biochemical treatment facility.
government.’
                                           The new location of Nantong               Mr. Xue, vice general manager from
According to Ms. Huang, the 12,000t/       Jiangshan covers 113 hectare, 4           Nantong Jiangshan said that over
a glyphosate technical production lines    times larger than the old one. The        USD293 million (RMB2,000 million)
haven’t been dismantled yet, but have      larger space can help the company in      had been put into the new factory, over
been suspended since May 2009, as          production expansion and technology       USD43.9 million (RMB300 million)
many new glyphosate production lines,      innovation.                               of which was cost for environmental
including 25,000t/a IDAN route and                                                   protection.
30,000t/a AEA route, were launched         Secondly, Nantong Jiangshan
in H1 2009.                                can grasp the chance to carry             Nantong Jiangshan has acquired
                                           out comprehensive upgrade of              advanced amide herbicide production
Ms. Huang said that the 12,000t/           the company. Some outdated                technologies, which were developed
a production lines had produced            products, backward and high energy        by Monsanto, from Sinochem
3,000~4,000 tonnes of glyphosate           consumption technologies are              International. And amide production
technical this year.                       abandoned, and promising products,        lines which are to use these advanced
                                           new equipments, new technologies,         technologies will be built in the new
In 2006, Nantong Jiangshan started         new production processes, etc. will be    location.
its relocation from Nantong Yaogang        employed in the new factory.
Chemical Zone to Nantong Economic                                                    Now the major herbicide produced in
and Technological Development Zone.        Some production lines or technologies     the new location of Nantong Jiangshan
The relocation is mainly because of the    with high energy consumption or           is glyphosate. In terms of capacity of
urbanization of the old location and       high pollution were abandoned, such       70,000t/a, these production lines rank
the further development of Nantong         as monocrotophos production line,         the second in China, next to Wynca’s
Jiangshan (please refer to Herbicides      diketene production line, diaphragm       total 80,000t/a.


           Redsun Biochemical to enlarge paraquat effluent treatment capacity


N     anjing Redsun Biochemical
      Company (Redsun Biochemical),
 the largest paraquat technical
                                           Mr. Chen from Redsun Biochemical,
                                           who is charge of construction of
                                                                                     end of October.

                                                                                     According to EIA report of this project,
 producer in China, is to build a new      this thermal oxidation incinerator,       total investment for the project will
 spare thermal oxidation incinerator,      says that the project had passed EIA      amount to USD2.93 million (RMB20
 in order to reduce risk in paraquat       (environmental impact assessment),        million).
 wastewater treatment.                     and is to initiate construction by the


  CCM International Limited                                    1                                  www.cnchemicals.com
Herbicides China News                                                                      Vol.2 Issue 10 2009



Redsun Biochemical claimed in the          pyrimidine, paraquat ion, etc. About      subsidiary Sanonda Tianmen
EIA report that the project is aiming to   4~5 tonnes of waste water will be         Agrochemical Company, partly
reduce risk of waste water pollution in    generated when produce one tonne          due to the heightened standard for
paraquat production. The new thermal       paraquat technical. The common            waste water discharge in paraquat
oxidation incinerator is to be used as     technology for paraquat waste water       production.
spare facility for the existing thermal    treatment is incineration.
oxidation incinerator.                                                               Redsun Biochemical is a subsidiary of
                                           China is currently heightening            Redsun Corporation Company who
In fact, Redsun Biochemical has            environmental production threshold        is the largest stockholder of listed
already had two incinerators for           for pesticide industry, and many          Nanjing Redsun Company. Now
paraquat waste water treatment at          new national standards for special        Redsun Biochemical has paraquat
present: one is thermal oxidation          pesticides were enacted and               technical production capacity of
incinerator and the other is               implemented.                              15,000t/a (42% mother liquor),
granulation incinerator. The thermal                                                 ranking the first among domestic
oxidation incinerator is formally          On 2 April 2008, Ministry of              manufacturers. Its paraquat technical
running and the granulation                Environmental Protection of China         output is over 10,000t/a annually.
incinerator is for spare. However, it is   issued Standards of Effluent Pollutants
found that the granulation incinerator     for Heterocyclic Pesticide Industry        TABLE 1: Indices for paraquat
can’t achieve the expected effect, as      (GB21523-2008) (TABLE 1), which                pollutant emission
the waste water after treatment still      involved six heterocyclic pesticides
can’t meet the national standard.          including paraquat. This is the first
                                                                                              Indices             Limit
                                           national standard for waste water
‘If there is fault for the thermal         emission specializing in pesticide        pH                            6~9
oxidation incinerator, the current         industry, and the former General          Chroma                         30
spare granulation incinerator can’t        Standard of Effluent Pollutants
                                                                                     Suspension                   50 mg/L
treat paraquat waste water effectively.    (GB8978-1996) was abolished in
Redsun Biochemical plans to build a        paraquat on 1 July 2009.                  COD                        100 mg/L
new thermal oxidation incinerator to                                                 Ammonia nitrogen             10 mg/L
reduce risk of waste water pollution       Some paraquat manufacturers are           Cyanide compounds           0.4 mg/L
and ensure paraquat production. ’          influenced by the new discharging
                                           standard for paraquat effluent            Pyrimidine                   2 mg/L
Waste water of paraquat technical          pollutants. For instance, Hubei           Paraquat ion               0.03 mg/L
contains lots of toxic compounds or        Sanonda had to close its paraquat         2,2':6',2"-Terpyridine     0.08 mg/L
ions such as cyanide compounds,            technical production lines in its
                                                                                      Source: CCM International


                     Shandong: herbicides export down 50.76% in H1 2009


H     erbicides export volume
      in Shandong province saw
 sharp decrease in H1 2009, down
                                           70%.

                                           Both the external and internal factors
                                                                                     is far more serious than domestic
                                                                                     manufacturers’ expectation.

 50.76% year on year, mainly due           contribute to the decreased export        The internal factor contributing to the
 to the gloomy global economy and          volume and value.                         slumped export volume is structural
 structural adjustment in Shandong’s                                                 adjustment of Shandong’s herbicide
 herbicide industry.                       External factor responsible for the       industry.
                                           slumped exported volume is the
According to statistical data from         slowly increasing demand in overseas      Statistical data from Shandong
Shandong Pesticide Industry                countries caused by global economic       Pesticide Industry Association
Association, Shandong province             crisis. The global economic crisis        showed that Shandong province
exported 17,414 tones of herbicides in     that occurred in mid 2008 and the         saw great increase in export volume
H1 2009, down by 50.76% compared           whole stagnant economic situation         of insecticides, fungicides and
to the same period of 2008 (about          in H1 2009 decreased peasants’            rodenticides but decrease in that of
35,365 tonnes). There were about 28        application volume of herbicides and      herbicide, resulting from the structural
herbicides exported.                       foreign traders’ purchasing power for     adjustment.
                                           herbicides. Mr. Li, director of China
As all herbicides had experienced price    Crop Protection Industry Association      ‘The structural adjustment in
decline in H1 2009 compared to H1          said that impact of global financial      Shandong’s herbicides industry is
2008, total herbicides export value of     crisis on China’s pesticide industry      inevitable after 10 years’ high-speed
Shandong province decreased by over


  CCM International Limited                                   2                                     www.cnchemicals.com
Herbicides China News                                                                     Vol.2 Issue 10 2009



development.’ Mr. Luo suggested.          paraquat, glyphosate, etc. Output of      data, though the export value slumped,
                                          amide herbicides such as acetochlor,      total herbicide export volume from
After 10 years’ fast development in       butachlor, etc in Shandong province       China hasn’t saw sharp decrease in
herbicide business, Shandong province     takes up about 40% of total domestic      H1 2009, indicating decrease rate of
has become the top production base of     output; paraquat output in Shandong       herbicide export volume in national
herbicides in China. In 2008, herbicide   province accounts for 30% of domestic     average is not as sharp as in Shandong
technical output in Shandong province     output (excluding Syngenta Nantong        province.
reached 132,200 tonnes, accounting        Crop Protection Company’s paraquat
for more than 20% of China’s total.       output).                                  Mr. Luo suggests that manufacturers
Total production capacity of herbicide                                              in Shandong province should come
technical in Shandong province is         However, on the whole, most herbicide     up with effective measure to curb
estimated to be over 200,000t/a in        production in Shandong province is of     the decrease of herbicide export
2009. Currently over 25 companies         small scale and scattered distribution,   volume and value, such as improving
engaged in the production of herbicide    and most products are of low added        R&D capability, changing herbicide
technical and over 35 herbicides are      value, making Shandong province’s         structure, conducting company
produced in Shandong province.            herbicide industry vulnerable to the      integration, etc.
                                          economic crisis.
Competitive herbicides in Shandong
province are amide herbicides,            According to China Customs statistical

                                                                                    carry out so many steps, thus leading
Guangxi sees low quality of glyphosate SL formulations                              to the low product quality.

                                                                                    The low quality of glyphosate 10%
I  n mid September 2009,
   Administrative Bureau for Industry
 and Commerce of Guangxi (GXABIC)
                                          glyphosate 10% SL was GB20684-
                                          2006 enacted in 2006, which covers
                                          6 indices as shown below (TABLE
                                                                                    SL, the most popular formulation
                                                                                    in China, also exists in many other
 announced the result of pesticide                                                  provinces as many small producers
                                          2). It’s estimated that the inspection
 quality inspection conducted in                                                    adopt the similar method as those
                                          indices of Guangxi’s pesticide
 July and August, showing that only                                                 in Guangxi and local administrative
                                          inspection are mainly A.I. content and
 52.63% of the inspected glyphosate                                                 departments have no effective
                                          formaldehyde content.
 10% SL are qualified.                                                              measures to prevent the production
                                                                                    and sales of unqualified glyphosate
                                          In fact, most of China’s glyphosate
According to GXABIC’s                                                               10% SL at present.
                                          10% SL are produced from glyphosate
announcement, 19 batches of               mother liquor, but this process
glyphosate 10% SL formulations were                                                 Currently, the penalty on selling
                                          needs some intermediate links such
selected in random inspection and                                                   unqualified pesticides in China is very
                                          as concentrating mother liquor,
only 10 batches are qualified.                                                      small, causing many producers risk
                                          removing some formaldehyde, adding
                                                                                    producing and selling unqualified
                                          glyphosate technical to meet A.I.
GXABIC hasn’t disclosed on which                                                    pesticide.
                                          content requirement, etc. Actually,
indices those unqualified glyphosate      many small-scale glyphosate 10% SL
10% SL failed to meet the standard,                                                 Besides, most Chinese peasants
                                          producers are unable and unwilling to
but it claimed many glyphosate 10%
SL producers purchased mother
                                          TABLE 2: National standard on glyphosate 10% SL (GB20684-2006)
liquor of glyphosate technical from
other provinces to produce glyphosate
10% SL and sells them in Guangxi                                       Item                         Index
market.
                                                   Glyphosate content (mass fraction)              9.5~11%
Guangxi is a large consumer of                     Formaldehyde content (mass fraction)              ≤1%
glyphosate formulations in China,
but there are few local glyphosate                 pH                                              4.0~8.5
technical producers, so many
                                                   Dilution stability (20 times)                   Qualified
glyphosate 10% SL producers have
to purchase glyphosate technical or                Low temperature stability                       Qualified
mother liquor from other provinces
such as Jiangsu, Anhui, etc.                       Thermal stability                               Qualified
                                                  Source: China Standardization Administration
The current national standard for



  CCM International Limited                                  3                                   www.cnchemicals.com
Herbicides China News                                                                        Vol.2 Issue 10 2009



cannot identify unqualified glyphosate   of glyphosate SL formulation with A.        glyphosate 10% SL currently.
10% SL and are reluctant to report the   I. content lower than 30% in 2010,
unqualified product to local quality     which partially aims to prevent usage       It’s predicted that glyphosate SL
inspection department. Besides, the      of mother liquor to produce glyphosate      formulations quality will be much
unqualified glyphosate 10% SL causes     SL formulations.                            better in the future years, as the
no damage to crops but have lower                                                    deepening implementation of the
activity, so most peasants pay less      Some top glyphosate technical               ban on low content glyphosate SL
attention to it.                         producers such as Zhejiang Wynca,           formulations will greatly reduce
                                         Nantong Jiangshan, etc. respond             the volume of glyphosate products
However, as the use of glyphosate        quickly and invest a lot pf fund in         produced from mother liquor.
10% SL produced from mother              glyphosate mother liquor treatment.
liquor brings much damage and            Mr. Dao, director of technology
risk to the environment, Chinese         department of Nantong Jiangshan,
government has issued regulation to      reveals that the company has stopped
ban the registration and production      using mother liquor to produce


■ Market Analysis
              Herbicide performance to decrease                                      resulted from the global financial crisis
                                                                                     and stagnant economic situation in the

P    erformance of China’s herbicide
     business will decrease in 2009
 without doubt, due to decreased
                                         Shanghai during 27-29 September
                                         2009 had shown that visitors were
                                         much less than the previous exhibition,
                                                                                     whole 2009.

                                                                                     The gloomy economy had reduced
 product price and stagnant demand       indicating that customers’ willingness      peasants’ initiatives of herbicides
 for herbicides. Currently, many         for pesticide purchase had dropped.         application, thus shrinking the
 herbicide manufacturers are not                                                     demand increase of herbicide globally.
 optimistic about their performance in   It’s predicted that gloomy situation for    Foreign traders’ purchasing power and
 2009.                                   herbicide market will not significantly     willingness also declined under the
                                         change in Q4 2009, so general               gloomy economic situation.
• Facts                                  performance of China’s herbicide
                                         business in 2009 will be poorer that        Another reason leading to sharply
All herbicides in China saw              2008, though the output and sales           decreased prices of Chinese herbicides
tremendous price decrease in the past    volume will slightly increase.              is its weak competitiveness in
9 months of 2009 (TABLE 3). Take Q2                                                  global market. With weak R&D
2009 as an example, herbicide export     • Reasons for the decrease                  capability within China’s herbicide
volume in China had increased by                                                     industry, most herbicides produced
19.5% over the same period of 2008,      Without doubt, the decreased                and exported in China are of low
but the total value had decreased        performance of herbicide business is        added value. Coupled with intense
by 45.3%, mainly attributed to the       mainly caused by slumped price which        competition among domestic
slumping herbicide price.

Semi-annual financial performance               TABLE 3: Price change of top five herbicides in the first
report 2009 of most listed herbicide                         9 months of 2008 and 2009
manufacturers had shown sharp
decrease in gross profit and net                                             Average price in the
profit margin in H1 2009. China                                             first 9 months, USD/t
                                                      Herbicide                                            Change
Crop Protection Industry Association
                                                                              2008            2009
disclosed that about 80% of its 470
pesticide manufacturer members                   Glyphosate (95% TC)                11,985         3,319     -72.31%
had witnessed great profit decrease
even profit loss in H1 2009. Now                  Paraquat (42% TC)                 3,908         2,632      -32.64%
most herbicide manufacturers are
                                                 Acetochlor (95% TC)                3,542         3,044      -14.06%
not optimistic about their general
performance in 2009.                               Atrazine (95% TC)                4,900          2,657     -45.78%

The Ninth China Agrochemical                      Butachlor (95% TC)                4,148         3,019      -27.22%
Symposium and Exhibition held in
                                                Source: CCM International



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Herbicides China News                                                                     Vol.2 Issue 10 2009



producers, fierce price war is            globally. For instance, implementation    in 2008, cotton planting areas in
inevitable.                               of policy ‘Returning Cultivated Land      Hubei, Anhui, Henan, etc. decrease
                                          to Forests’ in Jiangsu has decreased      this year, which reduce herbicide
Besides, changes on planting structure    rice planting area by 20,000 hectares,    demand from these regions.
in China and favorable weather in the     thus decreasing herbicide demand
world also reduce herbicide demand        from rice fields; with low cotton price


                                 Herbicide producers resume production

S   ome herbicide producers have
    resumed production in September
 or October after suspension in the
                                          Chemical Company started trifluralin
                                          production in early October.
                                                                                    is propitious to pesticide production
                                                                                    and store, as high temperature will
                                                                                    lead to higher energy consumption or
 slack season. There will be more         There will be more herbicide              faster chemicals volatilization of some
 producers resuming herbicide             producers resuming production in the      products such as 2,4-D during the
 production in the coming months,         coming months, especially those pre-      production.
 and herbicide supply will be more        emergence herbicide producers. For
 sufficient                               instance, Jiangsu Lvlilai Company         Most selective herbicides, especially
                                          and Jiangsu Tenglong Biological           those mainly used in domestic
As the peak season for herbicide                                                    market, will have slack season and
                                          Pharmaceutical Company will start
consumption in winter crops such                                                    peak season for market demand,
                                          acetochlor production in late October
as wheat and rape is coming,                                                        thus leading to suspension of some
                                          and November respectively.
many companies resume herbicide                                                     production lines in summer. Those
production in September or October.                                                 export-oriented herbicides, such as
                                          Most herbicide prices touch the
                                          bottom in the past 3 years in             glyphosate, won’t have peak season,
For instance, Jiangsu Repont Pesticide                                              as they are exported to different
                                          October, though herbicide demand
Factory resumed tribenuron-                                                         countries where consumption seasons
                                          is increasing due to the second peak
methyl technical production in                                                      are different from each other.
                                          season for herbicide consumption.
early September, and Hangzhou
                                          With the stagnant global economy,
Udragon Chemical Company resumed                                                    In China, there are two peak seasons
                                          most herbicide producers are not
fenoxaprop-P-ethyl production in late                                               for herbicide demand each year. The
                                          optimistic about herbicide price in Q4
September.                                                                          first one is from March to June and
                                          2009.
                                                                                    the second is from October to mid
Some companies resumed production                                                   December. The consumed volume
                                          The period between late autumn and
of herbicides used in next spring. For                                              in the first peak season will be much
                                          next spring is the peak season for
instance, Jiangsu Lvlilai Company                                                   larger than that in the second one.
                                          pesticide production in China. On
restarted butachlor technical                                                       Herbicide producers mainly produce
                                          one hand, most pesticide producers
production in late September; Xinyi                                                 herbicides for winter crops and for the
                                          are endeavoring to store products to
Zhongkai Agrochemical Company                                                       store of next year.
                                          meet the peak season of herbicide
resumed butachlor production
                                          consumption next year. On the other
in October; Zhejiang Kangfeng
                                          hand, the low temperature this period

                                         Herbicides used in cornfields

A     s one of the major grain crops,
      corn is the second largest
 herbicide consumer in China, just
                                          sanguinalis, Portulaca oleracea,
                                          Eleusine indica, Chenopodium album,
                                          Acalypha australis, Amaranthus
                                                                                    dominant species in many regions of
                                                                                    China.

 next to rice. With popularity of         retroflexus, Echinochloa crusgalli,       • Pre-emergence herbicides
 chemical weeding and development         Setaria viridis, Cyperus rotundus,        Herbicides used in pre-seeding stage
 of herbicide industry in China,          Siberian Cocklebur, Abutilon              of corn are usually non-selective
 chemical weeding has become more         theophrasti, Convolvulus arvensis,        herbicides including glyphosate and
 popular and herbicides used in corn      Calystegia hederacea Wall, Eclipta        paraquat. Herbicide application
 fields are more diversified.
                                          prostrate, Commelina communis, etc.       before sowing is not popular in China,
                                                                                    only existing in some corn fields in
• Major weeds in corn fields
                                          However, weeds in different               spring and seed production regions.
Major weeds in corn fields can
                                          regions vary according to different
be classified into over 10 families
                                          climate. Calystegia hederacea Wall,       Herbicides’ major application period
including 40 species, and those most
                                          Convolvulus arvensis, Cyperus             in corn fields is pre-emergent stage
commonly seen in China are Digitaria
                                          rotundus and Eleusine indica are now      (after sowing) in China, with annual


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Herbicides China News                                                                            Vol.2 Issue 10 2009



estimated volume of over 20,000 tonnes,        to register and produce nicosulfuron         • Prospect
most of which are selective pre-emergent       technical and formulations. As of            It’s predicted that chemical weeding
herbicides including triazine herbicides,      Sep. 2009, over 25 companies had             will become more popular in China,
amide herbicides and their mixed               registered nicosulfuron technical,           thanks to rapid urbanization in
formulations.                                  and over 100 kinds of nicosulfuron           China and release of man power.
                                               formulations, mostly mixed OF                However, structure of herbicides
Triazine herbicides used in corn fields        formulation of nicosulfuron and              used in corn fields will change.
are mainly atrazine and cyanazine,             atrazine, had been registered.
while amide herbicides mainly include                                                       The proportion of pre-emergence
acetochlor and metachlor. Currently,           It’s estimated that China’s total            herbicides used in cornfield is
mixed formulations containing triazine         nicosulfuron technical capacity will         diminishing, as post-emergent
herbicide and amide herbicide have             reach 25,000t/a in 2009. The total           control of weeds becomes more and
become more and more popular in                consumption volume in domestic               more popular. Nicosulfuron will
China, as they have advantages of better       market was 500~600 tonnes in                 enjoy a brisk market in the future 5
safety to succeeding crops over atrazine       2008.                                        years, thanks to good promotion and
herbicides and wider spectrum than                                                          decreased price.
amide herbicides.                              Mesotrione and rimsulfuron are also
                                               used in corn fields, but have much           Besides, if high production cost and
• Post-emergence herbicides                    smaller consumption volume than              weed resistance problem are solved
Herbicides used for post-emergent              nicosulfuron, due to promotion and           (to mix with other herbicides),
control of weeds in corn fields include        production cost problems. These              mesotrione will expect a promising
non-selective herbicide paraquat and           three post emergence herbicides              market in the future, as it is safer
some post-emergence herbicides.                have their advantages and                    and more convenient in application.
                                               disadvantages, shown as TABLE 4.
Paraquat is used to control unwanted
weeds in the interval of corn plants
through orientational spraying. In recent       TABLE 4: Comparison of three post-emergence herbicides in corn fields
years, paraquat consumed in this way in
corn fields has been increasing, reaching                                     Effects affected     Weed                Requirement
5,0000 tonnes in 2008.                            Herbicide          Safety                                   Dosage
                                                                                by weather       resistance            on weed stage

As to selective post-emergence herbicides,
                                                  Nicosulfuron       Low*          Low             Low         Large       High
nicosulfuron is the hottest one used in
corn fields. Some domestic companies              Rimsulfuron         Low          Low             Low         Small       High
even produced nicosulfuron and added
                                                  Mesotrione         High          High           High**       Small       Low
it to other herbicides for weed control in
corn fields before its patent expired in        * Nicosulfuron may cause phytotoxicity to some corn varieties such as sweat corn and
2007. With nicosulfuron patent expiration      pop corn.
in January 2007, many companies began          ** Some weeds will re-grow.
                                               Source: CCM International


                    Benazolin-ethyl: small herbicide mainly applied in rape

B   enazolin-ethyl is a herbicide with
    output less than 50t/a and mainly
 applied in rape filed in China.
                                            Nanjing Pesticide Factory of Jiangsu
                                            Pesticide Research Institute (now it is
                                            renamed as Nanjing Suyan Kechuang
                                                                                          for technical, 14 for single formulation
                                                                                          and 57 for mixed formulation in China.

                                            Agrochemical Company) registered              Grade of registered technical are 95%
Benazolin-ethyl, which is mainly            benazolin-ethyl 95% technical and             or 96%. 30% SC is most popular single
used to control broad leaf weeds in         30% SC formulation in 1998. More and          formulation, taking up 42.86% of the
rape fields or used to mix with other       more companies registered benazolin-          active registration volume. As to mixed
post-emergence herbicides to control        ethyl products in China.                      formulations, mixed EC formulations
weeds in other crops, was introduced                                                      of benazolin-ethyl and quizalofop-p-
into China as early as 1990. In 1990,       As of 28 September 2009, 67 domestic          ethyl are the popular ones, with A. I.
Germany AgrEvo Limited (now Bayer           companies had registered benazolin-           content of 14% or 17.5%.
Cropscience) registered 500g/L              ethyl or its related products, and
benazolin-ethyl SC with brand name          55 of them hold active registration.          Though there are over 50 active
of “Galtak®” in China.                      There are 82 active registrations of          registrations of benazolin-ethyl in
                                            benazolin-ethyl in China, including 11        China, total output of benazolin-
Since first domestic company


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Herbicides China News                                                                                                  Vol.2 Issue 10 2009



ethyl technical are relatively small. There
are only 3~4 active manufacturers of                FIGURE 1: Annual registration number of benazolin-ethyl in
benazolin-ethyl technical in China, with                               China, 19990-2009
total annual output less than 50 tonnes.
Mr. Nie, sales manager from Nanjing                40
Suyan Kechuang Agrochemical Company
                                                   35
said: ‘There are about 3 companies
producing benazolin-ethyl technical in             30

China at present, and benazolin-ethyl              25
is mainly sold in domestic market, as
                                                   20
its output in China is not very large and
overseas demand is small.’                         15

                                                   10
Nie said that the company’s benazolin-
                                                    5
ethyl technical output is about 10 tonnes
per year, and all technical is consumed by          0
                                                          1990       1998   1999    2000   2001   2002   2003    2004     2005   2006      2007    2008   2009
the company itself to produce benazolin-
ethyl formulations.’                                                                Technical   Single Formulation     Mixed formulation

                                                Source: CCM International’s statistical data from ICAMA
Mr. Ge from Tianjin Sipule Pesticide
Technology Development Company said
that the company’s output of benazolin-        Some companies stopped benazolin-                              its application volume has kept
ethyl technical is about 10 tonnes per year,   ethyl technical production. Jihua                              stable in recent years.’ said Mr.
and the production is run by order. He         Group Pesticide Chemical Industry                              Nie form Nanjing Suyan Kechuang
expressed all the company’s benazolin-         Company stopped production                                     Agrochemical Company.
ethyl technical has been sold in domestic      because of sales problem. Jiangsu
market.                                        Changqing Chemical Company                                     ‘Benazolin-ethyl is a small herbicide
                                               stopped production because of                                  in China, since its application is
Ms. Yin also from sales department             relocation and sales problem.                                  mainly in domestic rape field, the
of Jiangsu Changqing Agrochemical                                                                             capacity expansion or superfluous
Company also disclosed that output of          Almost all benazolin-ethyl is used in                          output will face great risk.’ Mr. Nie
benazolin-ethyl technical is about 1 tonne     rape field in China. ‘The demand for                           concluded.
per month. ‘The market demand for              benazolin-ethyl in China depends
benazolin-ethyl had kept stable.’              on the planting area of rape, and


                                   Picloram: export-oriented herbicide

P   icloram, a post emergence herbicide
    used to control unwanted broadleaf
 weeds in forest, is an export-oriented
                                               (TABLE 5). Grade of registered picloram technical are all 95%, and the two
                                               registered formulations are 240g/L SL.

 product in China.
                                                                 FIGURE 2: Accumulative volume of companies having
Picloram was firstly introduced into China                            registered picloram in China, 2001-2009
by Lier Chemical Company in 2001, and
more and more companies have been                                8
engaged in its production and registration
                                                                 7
in the past few years (FIGURE 2). As
picloram is rarely used in domestic market                       6

due to the small demand, high price as                           5
well as inefficient promotion, over 90%
                                                        Volume




                                                                 4
of the homemade products are exported,
                                                                 3
mainly to South America.
                                                                 2

As of 12 October 2009, there have                                1

been 9 active registrations of picloram,                         0
including 7 registrations of technical and 2                          2001         2002    2003      2004       2005      2006      2007          2008    2009

registrations of single formulation, which          Source: CCM International
are applied by 7 domestic companies



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Herbicides China News                                                                                      Vol.2 Issue 10 2009



Now all these 7 companies claimed that
                                                                 TABLE 5: Active registrations of picloram in China by Oct. 2009
they could produce picloram technical,
but most of them arranged production in
light with overseas orders.                         Certification                     Expiration
                                                                          Product                                   Company
                                                        No.                              date
Some of the 7 companies also registered
other chloropyridine herbicides such             LS20071449               240g/L SL   2010.05.21 Lier Chemical Company
as clopyralid and fluroxypyr, as major           LS20080474                95% TC 2010.02.20 Sinochem Ningbo Chemicals Company
production processes of the three                LS20083275               240g/L SL 2009.12.16 Hebei Wanquan Lihua Chemicals Company
herbicides, namely picloram, clopyralid          PD20050010                95% TC     2010.04.05 Lier Chemical Company
and fluroxypyr, are the same. Ms. Bai
                                                 PD20070107                95% TC     2012.04.26 Zhejiang Shenghua Biok Chemical Company
from Chongqing Shuangfeng Chemical
Company (Chongqing Shuangfeng) said:             PD20080650                95% TC     2013.05.27 Hebei Wanquan Lihua Chemicals Company
’There are only some small differences           PD20080931                95% TC     2013.07.17 Zhejiang Yongnong Chemical Company
among production technologies of the                                                             Hunan Yuangjiang Chifeng Agrochemical
                                                 PD20095560                95% TC     2014.05.12
three herbicides.’                                                                               Company
                                                 PD20096514                95% TC     2014.08.19 Chongqing Shuangfeng Chemical Company
According to Ms. Bai, the three herbicides
                                                 Source: CCM International
share the same production line in                Note: Both temporary and formal registration for clopyralid can be extended, but the temporary
Chongqing Shuangfeng. ‘Chongqing                 registration can be extended with accumulative valid period of less than 3 years.
Shuangfeng had produced smaller volume
of picloram two years before, but it has       trade department of Lier Chemical,                    global economic situation in H1
focused on clopyralid and fluroxypyr in        picloram doesn’t share the same                       2009, Lier Chemical had achieved
recent two years with their larger profit      production line with the other                        net profit growth rate of 58.13%,
margins.’ Registration data from ICAMA         herbicides in the company.                            far better than most of the other
showed that Chongqing Shuangfeng                                                                     herbicides manufacturers with large
acquired formal registration of picloram       Mr. Wang said: ‘Almost all the                        profit loss.
two months before (August 2009).               picloram is exported, with South
                                               America being its major destination.                  Compared to Lier Chemical, the
Lier Chemical Company (Lier Chemical),         The actual grade of picloram                          other producers’ comprehensive
China’s largest chloropyridine herbicides      technical produced in Lier Chemical                   competitiveness in picloram
manufacturer, dominates China’s picloram       is 94%, and the ex-work price is                      technical are much weaker with
production with over 80% output share          USD30,000/t (RMB205,000/t) in                         smaller capacity and output, and that
of the total. Now it has picloram technical    Oct. 2009.                                            is why some domestic manufacturers
capacity of 1,000t/a, which was expanded                                                             possessing certificates of producing
from 550t/a in H2 2008.                        Chloropyridine herbicides including                   picloram haven’t focused on
                                               picloram are the core products in                     picloram production.
According to Mr. Wang from the foreign         Lier chemical. Under the stagnant

                                              2, 4-D export in H1 2009

C    hina exported 8,492 tonnes of 2,4-
     D technical (96%) with average
 price of USD1.81/kg to about 30
                                              FIGURE 3: Export volume and price of 2,4-D technical in China, H1
                                                                          2009

 countries in H1 2009.
According to CCM International’s                                2,500                                                                2.00
Import/ Export analysis, monthly
export volume of 2,4-D technical from                           2,000                                                                1.90

China kept generally stable except in
                                                                                                                                             Price, USD/kg
                                                Volume, tonne




March (FIGURE 3).                                               1,500                                                                1.80


                                                                1,000                                                                1.70
China’s 2,4-D technical had been
exported to about 30 countries in H1
                                                                 500                                                                 1.60
2009, with South American and
Southeast Asian countries as
                                                                   0                                                                 1.50
the major destinations. Brazil,                                          Jan        Feb     Mar      Apr       May         Jun
Venezuela,Guatemala, Indonesia                                                              Volume          Price
and Dominican Rep are the top 5
countries where China’s 2,4-D technical         Source: CCM International

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Herbicides China News                                                                                Vol.2 Issue 10 2009



                                              FIGURE 4: Regional distribution of China’s 2,4-D technical export by
is exported to, which had taken up                                   volume in H1 2009
50.48% of China’s total 2,4-D technical
export volume in H1 2009.
                                                                        Others                             Brazil
                                                                        19.76%                            12.29%
China has more than eight 2,4-D
technical producers who had exported            Costa Rica                                                                           Venezuela
                                                  3.08%                                                                               11.66%
their products, either by themselves
or traders. 2,4-D technical export            Australia
volume from 4 companies, including             3.18%

Changzhou Wintafone Chemical
                                               Ecuador
Company (Changzhou Wintafone),                  3.53%
                                                                                                                                     Guatemala
Shandong Weifang Rainbow Chemical
                                                 Malaysia                                                                             10.07%
Company (Shandong Weifang), Jiaxing               4.59%                                                             Indonesia
Jiuyisheng Chemical Company (Jiaxing                         Turkey
                                                                       Nicaragua New Zealand   Dominican Rep          9.39%
Jiuyisheng ) and Jiamusi Heilong                                         5.16%      5.18%         7.07%
                                                             5.04%
Agricultural &Industrial Chemical
Company (Jiamusi Agricultural), had          Source: CCM International
taken up 88.18% of China’s 2,4-D
technical export volume in H1 2009.          FIGURE 5: Source of China’s exported 2,4-D technical by volume
                                                                      in H1 2009
2,4-D acid, the first kind of herbicide
in the world, has kept robust market                                          7.94%
                                                               3.88%
at present, thanks to its low price and
                                                   9.30%
wide acceptance. 2,4-D formulations                                                                                                       41.69%
are registered for post-emergent control
of broadleaf weeds in wheat fields or
used to mix with other herbicides for
pre-emergent control of annual weeds         11.50%
in fields of corn and soybean.

China has been engaged in production                                        25.69%
of 2,4-D technical and its related
products since 1980s, and it has
become one of the major suppliers of                             Changzhou Wintafone    Weifang Rainbow         Jiaxing Jiuyisheng

2,4-D acid in the world, with capacity of                        Jiamusi Agricultural   Shandong Qiaochang      Others

over 60,000t/a.                              Source: CCM International




                   TABLE 6: Major 2,4-D technical producers in China


                                            Company                                                             Capacity

        Changzhou Wintafone Chemical Company                                                                             15,000t/a

        Jiamusi Heilong Agricultural &Industrial Chemical Company                                                        15,000t/a
        Shandong Weifang Rainbow Chemical Company                                                                        10,000t/a

        Liyang Hefeng Chemistry Company                                                                                  10,000t/a

        Dalian Songliao Chemical Company                                                                                 10,000t/a
        Lianyungang Baierte Chemicals Company                                                                            6,000t/a
        Jiaxing Jiuyisheng Chemical Company                                                                               5,000t/a

       Source: CCM International


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Herbicides China News                                                                   Vol.2 Issue 10 2009



■ Supply & Demand
             Anhui Futian building 7,000t/a amide herbicide production lines


A    uhui Futian Agrochemical
     Company (Anhui Futian), a
 newly registered company located
                                         is a provincial chemical industrial
                                         zone in Anhui province, having
                                         comprehensive infrastructure and
                                                                                  According to the pesticide registration
                                                                                  data from ICAMA, Anhui Futian and
                                                                                  Hangzhou Futian haven’t registered
 in Chizhou City, Anhui province,        convenient transportation.               any pesticides yet.
 is building the 7,000t/a amide
 herbicide production lines, which       According to Mr. Zhao, who is in         Mr. Zhao claimed that Anhui Futian is
 are expected to be launched in early    charge of construction of these amide    preparing for the pesticide production
 2010.                                   herbicide production lines in Anhui      license and pesticide registration.
                                         Futian, construction of workshops has
The EIA (environmental impact                                                     According to two EIA public reports of
                                         been completed and now it is under
assessment) report shows that the                                                 Anhui Futian’s new projects to be built
                                         equipment installation.
70,000t/a amide herbicide production                                              announced in July 2009, production
                                         ‘These production lines is expected to
includes 3,000t/a of pretilachlor and                                             lines of other herbicides or herbicide
                                         be completed by the end of 2009 and
4,000t/a of other amide herbicides                                                safener such as 200t/a clodinafop-
                                         launched by January 2010.’
covering alachlor, acetochlor and                                                 propargyl, 50t/a cloquintocet-mexyl,
butochlor. Of course, alachlor,                                                   etc. are also to be built.
                                         Mr. Zhao disclosed that Anhui
acetochlor and butochlor can share the
                                         Futian is a new company invested
production lines and their production                                             Mr. Zhao said that the company will
                                         by the owner of Hangzhou Futian
can be adjusted in light with the                                                 focus on overseas market to sell its
                                         Agrochemical Company (Hangzhou
market demand.                                                                    amide herbicides. ‘More than 90%
                                         Futian), and Hangzhou Futian will
                                         stop all the pesticide production when   will be exported, and Southeast Asia
The production lines are built in                                                 and North America will be the major
                                         Anhui Futian’s production lines are
Xiangyu Chemical Industrial Zone in                                               destinations.’
                                         launched.
Chizhou County, Chizhou City, which


                  Anhui Xinglong trial runs 5,000t/a 2,4-D production line


A    nhui Xinglong Chemical
     Company (Anhui Xinlong) has
 completed construction of its 5,000t/
                                         domestic sales department of Anhui
                                         Xinglong disclosed that Anhui
                                         Xinglong has been producing MCPA
                                                                                  production and convenient transport of
                                                                                  the location for sales of 2,4-D.

 a 2,4-D technical production line in    ((4-chloro-2-methylphenoxy)-Acetic       According to EIA (environmental
 Dongzhi Xiangyu Chemical Industrial     acid) for many years.                    impact assessment) report of this
 Zone, and started the trial run in                                               5,000t/a 2,4-D technical project in
 September.                              Both 2,4-D and MCPA belong to            Anhui Xinglong, a 1,000t/a MCPA
                                         penoxyacid herbicides, and part of       technical production line and a 100t/
Mr. Wu, sales manager in charge of       their production technology are the      a diflufenican technical production
foreign business in Anhui Xinlong        same.                                    line are also being built. These three
said that the 5,000t/a 2,4-D technical
                                                                                  production lines cover an area of 1.33
production line is under trial run at    According to Mr. Wang, the company       hectare and cost investment of USD3.37
present, and formal launch will be in    will focus on overseas market. Mr.       million (RMB23 million).
late October or November 2009.           Wu expressed that Anhui Xinglong is
                                         seeking for overseas partners for the    According to registration data from
‘Though Anhui Xinglong is a new          sales of 2,4-D series products.          Anhui in ICAMA (Institute for the
comer in 2,4-D production, its
                                                                                  Control of Agrochemicals, Ministry of
products are not inferior to those       The 2,4-D production line is built in    Agriculture), Anhui Xinglong hasn’t
produced by old 2,4-D manufactures.      Dongzhi Xiangyu Chemical Industrial      registered any pesticides. However,
Now Anhui Xinglong can produce           Zone, one of the provincial industrial   a related company, Anhui Anqing
almost all series products of 2,4-D.’    zone in Anhui province. Anhui            Xinglong Chemical Company, whose
                                         Xinglong can take advantage of the       boss is also Anhui Xinglong’s, has
Mr. Wang, a salesman from the            comprehensive infrastructure for         registered MCPA.




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Herbicides China News                                                                            Vol.2 Issue 10 2009



■ Pricing

                   Monthly market price of main crops in China in Oct. 2009

                               Oct. 09                 Sep. 09                 Sep. 08                           2008
                                                                                                                         Chinese
   Crops                                                                                            Planting area
                          USD/t      RMB/t        USD/t      RMB/t         USD/t        RMB/t                           output(103
                                                                                                      (103 ha.)
                                                                                                                         tonnes)
   Indica rice                498        3,400         402        2,748        393          2,682
                                                                                                            29,295             182,570
   Japonica rice              402        2,745         497        3,395        439          3,000
   Wheat                       281       1,916         276        1,885        247          1,690            34,421            104,460
   Rapeseed                   542        3,700         542       3,700         584          3,990            6,888              12,650
   Corn                        261       1,783         264        1,800        238          1,624            26,971            145,480
   Soybean(oil)               540        3,688         532        3,633        548          3,742
                                                                                                             12,434             21,040
   Soybean(food)              820        5,600         791       5,400         805          5,500
   Peanut                   1,040        7,100         947        6,467       1,156         7,900            45,701             14,670
   Broomcorn                   281       1,920         258        1,760        296          2,020             1,016              3,640
 Source: CCM International




                    Monthly ex-work price of key raw materials in Oct. 2009

                                                      Oct. 09                   Sep. 09                            Sep. 08
    Raw material/intermediates
                                                 USD/t       RMB/t          USD/t     RMB/t                    USD/t     RMB/t
Phosphorus trichloride (99%)                          674          4,600              674           4,600              1,171       8,000
Glycine (98%)                                        1,465       10,000            1,464        10,000                2,928       20,000
Iminodiacetonitrile (92%)                            1,392         9,500           1,391            9,500             2,196       15,000
chloroacetic chloride (99%)                          1,201        8,200            1,303            8,900             2,386       16,300
Pyridine (99.9%)                                     4,541        31,000           4,540         31,000               6,880       47,000
Cyanuric chloride (> 99.3%)                          1,831        12,500           1,611         11,000               3,147        21,500
3,4-Dimethylbenzenamine (99.9%)                     6,738        46,000            6,809        46,500                9,881       67,500
2-Amino-4,6-dimethoxypyrimidine (99%)               18,163       124,000        18,305          125,000           26,348         180,000
L-(+)-Lactic acid (80%)                              1,318        9,000            1,318            9,000             1,464       10,000
2-aminophenol (99%)                                 4,248        29,000            4,247        29,000                7,465       51,000
2-Methy1-6-Ethylaniline (99%)                        2,197        15,000           2,050         14,000               1,976        13,500
Source: CCM International




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Herbicides China News                                                                                                   Vol.2 Issue 10 2009




                                      Monthly ex-work price of main herbicides in Oct. 2009

                                                       Oct. 09                  Sep. 09                     Oct. 08                                     Oct. 09
                    Herbicides                                                                                                  Formulation
                                               USD/t          RMB/t          USD/t      RMB/t USD/t RMB/t                                          USD/t            RMB/t
     Glyphosate (95%)                               2,886        19,700        2,885         19,700        6,023       41,150       41% SL                 1,465      10,000
     Paraquat (42%)                                 2,080        14,200        2,079         14,200        3,389       23,150      200g/L SL               1,714       11,700

     Acetochlor (92%)                               2,739        18,700        2,885         19,700        3,315     22,650         50% EC                 1,860       12,700

     Atrazine (97%)                                 2,446        16,700        2,446         16,700        4,633       31,650       38% SC                 1,392           9,500
     Tribenuron -methyl (95%)                     18,266       124,700         19,725      134,700        35,080 239,650
     Metolachlor (97%)                              3,618        24,700         3,837        26,200        4,589       31,350       72% EC                 3,325      22,700
     Butachlor (92%)                                2,739        18,700        2,885         19,700        4,267     29,150
     Pendimethalin (95%)                            7,280        49,700         7,424        50,700       10,049     68,650         33% EC                 3,032      20,700
     Trifluralin (95%)                              3,545       24,200          3,617        24,700        5,511     37,650
     Quizalofop- P-ethyl (95%)                    22,221        151,700        22,361      152,700        27,483     187,750        5% EC                  2,739       18,700
     Fenoxaprop- P-ethy (95%)                    29,252        199,700         29,244 199,700             33,616 229,650           6.9% EC                 4,863      33,200
     Oxyfluorfen (97%)                            19,730       134,700         21,190 144,700             34,018 232,400
    Source: CCM International




           Monthly Shanghai port price and FOB(Shanghai) of main herbicides in Oct. 2009

                                            Shanghai Port Price                               FOB (Shanghai)                                  Shanghai Port Price
                                                                                                                        Formu-
    Technical
                            Oct. 09               Sep. 09                 Oct. 08             Oct. 09      Sep. 09       laiton          Oct. 09                   Sep. 09

                      USD/t       RMB/t     USD/t       RMB/t        USD/t     RMB/t          USD/t        USD/t                      USD/t     RMB/t        USD/t          RMB/t
Glyphosate (95%)         2,930     20,000     2,929         20,000     6,075        41,500       2,857        2,856      41% SL         1,509     10,300           1,508 10,300

Paraquat (42%)            2,124    14,500      2,123        14,500     3,440        23,500       2,086        2,085 200g/L SL           1,758     12,000           1,757 12,000

Acetochlor (92%)         2,783     19,000     2,929         20,000     3,367     23,000           2,717       2,856      50% EC         1,904     13,000           1,904 13,000

Atrazine (97%)           2,490     17,000     2,489         17,000     4,684     32,000          2,436        2,436      38% SC         1,435      9,800           1,435     9,800
Tribenuron-methyl
                         18,310   125,000     19,769     135,000      35,131    240,000          17,575       18,972
(95%)
Metolachlor (97%)        3,662     25,000      3,881        26,500     4,640        31,700       3,558         3,767     72% EC         3,369    23,000            3,368 23,000

Butachlor (92%)          2,783     19,000     2,929         20,000     4,318     29,500           2,717       2,856
Pendimethalin
                         7,324     50,000     7,468         51,000    10,100     69,000          7,062        7,200      33% EC         3,076     21,000           3,075 21,000
(95%)
Trifluralin (95%)        3,589     24,500      3,661        25,000     5,562     38,000          3,488         3,557
Quizalofop- P-ethyl
                       22,265     152,000    22,405      153,000      27,534    188,100         21,360        21,495     5% EC          2,783    19,000            2,782 19,000
(95%)
Fenoxaprop- P-ethy
                       29,295     200,000    29,288     200,000       33,667    230,000         28,089       28,081      6.9% EC        4,907    33,500        4,906 33,500
(95%)
 Oxyfluorfen (97%)       19,774   135,000     21,234     145,000      34,070    232,750         18,977     20,374

   Note: Shanghai port price= ex-factory price plus transport fee from production plant to Shanghai port
   Source: CCM International




            CCM International Limited                                                 12                                              www.cnchemicals.com
Herbicides China News                                                                         Vol.2 Issue 10 2009




                                                                                        As to the three post-emergence
    Most herbicide prices keep downturn in Oct. 2009                                    herbicides monitored, prices of
                                                                                        quizalofop-P-ethyl and fenoxaprop-P-
                                                                                        ethyl kept stable in Oct. 2009, while

P   rice of most herbicides keeps
    the downtrend in Oct. 2009.
 Compared with the situation last
                                            It is predicted that glyphosate market
                                            will also keep stagnant in Q4 2009,
                                            as the serious overcapacity won’t be
                                                                                        that of tribenuron-methyl technical
                                                                                        has decreased from USD19,760/t in
                                                                                        mid Sep. to USD18,300/t in mid Oct,
 month, 7 of the 12 major herbicides        alleviated and overseas demand won’t        down 7.41%.
 monitored by CCM International             significantly rise in the last quarter of
 have witnessed slight price decrease       2009 under the uncertain economic           As the peak season for herbicide
 in Oct. 2009, with the remaining five      situation. However, slight price            consumption in winter crops, such
 maintaining the September level.           rebound, or price readjustment, is          as wheat and rape is coming, many
                                            possible.                                   manufacturers of tribenuron-methyl
Both of the two non-selective
herbicides (glyphosate and paraquat)                                                    have resumed production in Sep. or
                                            As the second peak season of herbicide      Oct. 2009.
kept stagnant price after 6 months’
                                            demand in China is coming, many
continuous decrease, mainly due to
                                            domestic herbicide manufacturers            All the herbicide prices have hit the
the following two factors:
                                            will resume production of selective         lowest point currently. Many herbicide
                                            herbicides in October. However, most        manufacturers expressed that current
Firstly, there is no room for further
                                            of these herbicides have undergone          prices of herbicides are very close
decrease, as their prices are so low to
                                            price decline.                              to the cost, and there is no room
touch the production costs; secondly,
as the demand for China’s non-                                                          for further decline any more. Most
                                            Quotations of the six pre-emergence         manufacturers are not optimistic to
selective herbicides hasn’t significantly
                                            herbicides monitored by CCM                 the expected price rise boosted by the
increased in Oct.2009, there is no
                                            International, namely acetochlor,           second peak season this year.
impetus to heighten the prices with
                                            metachlor, pendimethailin, butachlor,
the global financial crisis and China’s
                                            trifluralin and oxyfluorfen have
serious overcapacity.
                                            slightly decreased in Oct. 2009, down
                                            by 2~7%.

■ Registration

                         China herbicide registration structure improving

S   tructure of herbicides registered in
    China has been greatly improved,
 with increasing proportion for
                                               In 2008 and 2009, new formal
                                               registrations accounted for 67.98%
                                               and 82.39% of the total new
                                                                                         As of September 2009, active formal
                                                                                         registrations for herbicide have
                                                                                         amounted to 4,170, taking up 67.84%
 formal registrations and eco-friendly         registrations respectively, compared      of total active herbicide registrations
 formulations, mainly thanks to                with 23.31% in 2007.                      in China.
 implementation of the new regulations
 issued at the end of 2007.
                                                      TABLE 7: New formal registration in past three years
‘Structure of pesticides registered has seen
great improvement since China issued
a series of new registration regulations                               Formal
                                                                                         Total new
at the end of 2007,’ claimed Yanqiu                   Year           registration                            Proportion
                                                                                        registration
Zhang, Director of ICAMA (Institute for                                volume
the Control of Agrochemicals, Ministry
of Agriculture), on the 2nd ‘Summit of                2007                      196                    841          23.31%
China’s Pesticide Industry’ held in Suzhou
                                                      2008                    1,603               2,358             67.98%
City of Jiangsu Province during 13~15
September 2009.                                       2009                    1,960               2,379             82.93%

The most obvious fact showing the              Note: data in 2009 is as of 28 September 2009
improved structure is the increasing           Source: CCM International
proportion of formal registrations.


  CCM International Limited                                     13                                     www.cnchemicals.com
Herbicides China News                                                                         Vol.2 Issue 10 2009



As of September 2009, active           Tips:
formal registrations for herbicide
                                       In December 2007, Chinese Agricul-              ■ Formal registration should sup-
have amounted to 4,170, taking up
                                       ture Ministry amended “Regulations              plement experiment data or com-
67.84% of total active herbicide
                                       for Pesticide Registration” and is-             prehensive report in light with new
registrations in China.
                                       sued a series of new regulations for            regulations when applying for ex-
                                       pesticide registration, which can be            tended registration.
Before 2008, many domestic
                                       classified into the following points:
pesticide manufacturers
                                                                                       ■ Regulate formulations’ A.I. con-
preferred to apply for temporary
                                       ■ Shorten accumulative valid time               tents: the number of A.I. gradient
registrations, due to the low
                                       of temporary registration from 4                should be no more than 5.
cost and low requirement on
                                       years to 3 years.
experiment data. However,
                                                                                       ■ Standardize pesticide label: re-
with implementation of new
                                       ■ Ban pesticide trade name since 1              quired items such as general name,
regulations for pesticide
                                       July 2008.                                      A.I. content, formulation type,
registration in 2007, the gap
                                                                                       manufacturer, trademark, use direc-
between temporary registration
                                       ■ Heighten pesticide registration               tion, license, etc should be printed
and formal registration is
                                       threshold and shorten the gap be-               in specific format, and those pro-
shortened, and many companies
                                       tween temporary registration and                hibited items such as trade name
turn to formal registration, as
                                       formal registration, and application            should not be printed.license, etc
formal registration needs to be
                                       of temporary registration should                should be printed in specific format,
extended every 5 years, while
                                       also hand in experimental data on               and those prohibited items such as
temporary registration should
                                       pesticide residue.                              trade name should not be printed.
be extended every year with
accumulative valid time of no
more than 3 years.

With deepening implementation              TABLE 8: Registration volume of eco-friendly herbicide formulations
of the regulations, proportion                                     in 2008 and 2009
of temporary registration is
predicted to continue decrease in                                    Registration volume                    Proportion in
the future.                                    Year                                                       total registration
                                                               2008             2009          Total            volume
Besides increasing proportion for
formal registrations, registration             WDG                       63              55       242                48.76%
volume of eco-friendly
formulations, such as WDG, CS                   EW                       44              45       167                53.29%
(micro-capsule suspension) and                  ME                       11              12        49                46.94%
EW, also increased. Registration
volume of these formulations in                  CS                       1               2           7              42.86%
2008 and 2009 has accounted
                                            Note: Data in 2009 is as of 28 September 2009
for large proportion in total
                                            Source: CCM International
registration volume (TABLE 8).

                                                                                        Care Ltd. achieves in China, and 97%
      Five herbicides newly registered in Sep. 2009                                     is the highest grade for glyphosate
                                                                                        technical registered in China.

1  68 herbicide registrations,
   including 22 for technical, 112 for
 single formulation and 34 for mixed
                                            registrations, including 3 temporary
                                            and 19 formal, were registered by 19
                                            producers mainly located in Jiangsu
                                                                                        The first formal registration of
                                                                                        clodinafop-propargyl technical is
 formulations, were achieved by             Province. I4 kinds of herbicides were       registered by Syngenta in Sep. 2009.
 120 companies in Sep. 2009. Five           involved (TABLE 9).                         Syngenta also firstly registered
 herbicides technical were formally
                                                                                        mesotrione 94% technical formally in
 registered for the first time in China.    Five herbicides technical were formally     China.
                                            registered for the first time.
According to the registration data
from Institute for the Control                                                          Dalian Razer Pesticides Company
                                            Excel Crop Care Ltd. (India) formally       formally registered ethachlor 95%
of Agrochemicals, Ministry of               registered 97% glyphosate technical
Agriculture                                                                             technical, becoming the only company
                                            in China in Sep. 2009. This is the first    holding the active registration of
(ICAMA), 22 herbicide technical             herbicide registration that Excel Crop


  CCM International Limited                                     14                                    www.cnchemicals.com
Herbicides China News Sample - Published by CCM International Ltd
Herbicides China News Sample - Published by CCM International Ltd

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Herbicides China News Sample - Published by CCM International Ltd

  • 1. Herbicides China News Vol.2 Issue 10 2009 Publications date: 15 Oct. 2009 Copyright © CCM International Limited
  • 2. Herbicides China News Vol.2 Issue 10 2009 Content ■ Company Dynamics .................................................................................. 1 Nantong Jiangshan to finish relocation by Q4 2009 ....................................................................................... 1 Redsun Biochemical to enlarge paraquat effluent treatment capacity ........................................................... 1 Shandong: herbicides export down 50.76% in H1 2009 .................................................................................2 Guangxi sees low quality of glyphosate SL formulations ................................................................................3 ■ Market Analysis ....................................................................................... 4 Herbicide performance to decrease .................................................................................................................4 Herbicide producers resume production .........................................................................................................5 Herbicides used in cornfields ...........................................................................................................................5 Benazolin-ethyl: small herbicide mainly applied in rape ................................................................................6 Picloram: export-oriented herbicide ................................................................................................................7 2, 4-D export in H1 2009..................................................................................................................................8 ■ Supply & Demand ...................................................................................10 Anhui Futian building 7,000t/a amide herbicide production lines ..............................................................10 Anhui Xinglong trial runs 5,000t/a 2,4-D production line ...........................................................................10 ■ Pricing .................................................................................................... 11 Monthly market price of main crops in China in Oct. 2009 ......................................................................... 11 Monthly ex-work price of key raw materials in Oct. 2009 ............................................................................ 11 Monthly ex-work price of main herbicides in Oct. 2009...............................................................................12 Monthly Shanghai port price and FOB(Shanghai) of main herbicides in Oct. 2009 ...................................12 Most herbicide prices keep downturn in Oct. 2009 ......................................................................................13 ■ Registration ............................................................................................ 13 China herbicide registration structure improving .........................................................................................13 Five herbicides newly registered in Sep. 2009 ..............................................................................................14 ■ News in Brief .......................................................................................... 15 Hubei Sanonda sells equity of Zhengzhou Sanonda ......................................................................................15 Sinochem Corporation to acquire Nufarm ....................................................................................................15 China strengthens cooperation with US on Pesticide Risk Assessment ....................................................... 15 - China Crop Protection Summit 2010 - The Survey of 2,4-D in China 2008-Jun 2009 - will be launched in Shanghai China during - IDAN Survey in China 18 March and 19 March of 2010. - Production and Market of Metazachlor in Coming Reports: China - Crop Protection China Report (update, Ready Market Reports: 2nd edition): Oct 2009 - Production and Market of Paraquat in China Ready Trade Reports: - Future of Green Biotechnology in China: – Edition (2) - Tebuthiuron Production and Export in Oct 16, 2009 - Outlook for China Glyphosate Industry China 2008-Jun 2009 2009-2014 - Captan Production and Export in China Jan- CCM newsletters related to Herbicides: - Production & Market of Ethanolamines in Apr 2009 - Crop Protection China News China - Edition (3) - Oxyfluorfen Production and Export in China - Insecticides China News - World Outlook of Glyphosate 2009-2014 2008-Jun 2009 - Fungicides China News - Survey of Glufosinate in China - Diuron Production and Export in China - Glyphosate China Monthly Report CCM International Limited www.cnchemicals.com
  • 3. Herbicides China News Vol.2 Issue 10 2009 Welcome to the October issue Headlines of Herbicides China News 0910 of Herbicides China News ■ Nantong Jiangshan will complete a and mainly applied in rape filed in published by CCM International, a its relocation by the end of 2009. China. professional consulting company who has been extensively and ■ Redsun Biochemical is to build ■ Picloram, a post-emergence intently focusing on dynamics of a new spare thermal oxidation herbicide used to control unwanted China’s herbicide industry. incinerator for paraquat effluent broadleaf weeds in forest, is an treatment. export-oriented product in China. As the second peak season for herbicide demand this year is ■ Herbicides export volume of ■ China exported 8,492 tonnes of coming, many herbicide producers Shandong in H1 2009 decreased 2,4-D technical (96%) with average resume production of herbicides by 50.76% year on year, due to price of USD1.81/kg to about 30 used in winter crops such as the gloomy global economy and countries in H1 2009. wheat and rape in September and structural adjustment of herbicide October. Besides, the producers industry. ■ Anhui Futian is building will also resume production for the 7,000t/a amide herbicide herbicides used next spring. ■ Qualified rate of glyphosate SL production lines in Chizhou City, formulations in Guangxi market is which are expected to be launched However, the herbicide price lower than 60%. in early 2010. downtrend hasn’t been changed in light with the increasing demand, ■ Performance of China’s herbicide ■ Anhui Xinglong started the trial indicating that China’s herbicide business will decrease in 2009 run of its 5,000t/a 2,4-D technical business still face great challenge without doubt, due to decreased production line. under the uncertain global product price and stagnant demand economy. for herbicides. ■ Most herbicide prices keep downturn in Oct. 2009. Chinese herbicide producers will ■ Some herbicide producers have see great decrease in performance resumed production in September ■ Structure of herbicides registered in 2009. And the integration or October. in China has been greatly improved, of China’s herbicide industry becomes quite urgent. How with increasing proportion for ■ Pre-emergence herbicides may formal registrations and eco-friendly herbicide producers grasp the see less consumption in corn fields, formulations. chance or deal with challenge? while nicosulfuron will enjoy brisk market in the future 5 years. ■ Though herbicide registration kept stagnant in Sep. 2009, many ■ Benazolin-ethyl is a kind of products were formally registered herbicide with output less than 50t/ for the first time. CCM International Limited www.cnchemicals.com
  • 4. Herbicides China News Vol.2 Issue 10 2009 ■ Company Dynamics Nantong Jiangshan to finish relocation by Q4 2009 N antong Jiangshan Agrochemical & Chemicals Company (Nantong Jiangshan) is now busy with the China News 0805: Nantong Jiangshan: Relocation brings chances for further development). method for caustic soda, calcium carbide based method for PVC. Abandonment of these production dismantlement of production lines in lines or technologies greatly reduces the old location, and the relocation Nantong Jiangshan’s relocation greatly energy consumption and pollution. will be accomplished by the end of benefits the company for further 2009. development. New technologies and facilities are employed to reduce pollutants or Ms. Huang, representative of the bond Firstly, Nantong Jiangshan can improve production technology. department of Nantong Jiangshan, enjoy larger production space and For instance, Nantong Jiangshan expressed that all the relocation work take advantage of comprehensive developed the air oxidation technology is underway smoothly for the moment. facilities in the new location. Nantong for glyphosate production, which ‘Most production lines are dismantled Economic and Technological is more environmentally friendly now, and the relocation will be finished Development Zone, where Nantong than traditional hydrogen peroxide in time. That is, Nantong Jiangshan Jiangshan is located, is one of China’s oxidation technology. It also invested will accomplish the relocation by the first national industrial zones and USD5.86 million (RMB40 million) in end of 2009 and transfer the land has completed infrastructure and construction of the 25,000t/d sewage use right of the old location to local supporting facilities. biochemical treatment facility. government.’ The new location of Nantong Mr. Xue, vice general manager from According to Ms. Huang, the 12,000t/ Jiangshan covers 113 hectare, 4 Nantong Jiangshan said that over a glyphosate technical production lines times larger than the old one. The USD293 million (RMB2,000 million) haven’t been dismantled yet, but have larger space can help the company in had been put into the new factory, over been suspended since May 2009, as production expansion and technology USD43.9 million (RMB300 million) many new glyphosate production lines, innovation. of which was cost for environmental including 25,000t/a IDAN route and protection. 30,000t/a AEA route, were launched Secondly, Nantong Jiangshan in H1 2009. can grasp the chance to carry Nantong Jiangshan has acquired out comprehensive upgrade of advanced amide herbicide production Ms. Huang said that the 12,000t/ the company. Some outdated technologies, which were developed a production lines had produced products, backward and high energy by Monsanto, from Sinochem 3,000~4,000 tonnes of glyphosate consumption technologies are International. And amide production technical this year. abandoned, and promising products, lines which are to use these advanced new equipments, new technologies, technologies will be built in the new In 2006, Nantong Jiangshan started new production processes, etc. will be location. its relocation from Nantong Yaogang employed in the new factory. Chemical Zone to Nantong Economic Now the major herbicide produced in and Technological Development Zone. Some production lines or technologies the new location of Nantong Jiangshan The relocation is mainly because of the with high energy consumption or is glyphosate. In terms of capacity of urbanization of the old location and high pollution were abandoned, such 70,000t/a, these production lines rank the further development of Nantong as monocrotophos production line, the second in China, next to Wynca’s Jiangshan (please refer to Herbicides diketene production line, diaphragm total 80,000t/a. Redsun Biochemical to enlarge paraquat effluent treatment capacity N anjing Redsun Biochemical Company (Redsun Biochemical), the largest paraquat technical Mr. Chen from Redsun Biochemical, who is charge of construction of end of October. According to EIA report of this project, producer in China, is to build a new this thermal oxidation incinerator, total investment for the project will spare thermal oxidation incinerator, says that the project had passed EIA amount to USD2.93 million (RMB20 in order to reduce risk in paraquat (environmental impact assessment), million). wastewater treatment. and is to initiate construction by the CCM International Limited 1 www.cnchemicals.com
  • 5. Herbicides China News Vol.2 Issue 10 2009 Redsun Biochemical claimed in the pyrimidine, paraquat ion, etc. About subsidiary Sanonda Tianmen EIA report that the project is aiming to 4~5 tonnes of waste water will be Agrochemical Company, partly reduce risk of waste water pollution in generated when produce one tonne due to the heightened standard for paraquat production. The new thermal paraquat technical. The common waste water discharge in paraquat oxidation incinerator is to be used as technology for paraquat waste water production. spare facility for the existing thermal treatment is incineration. oxidation incinerator. Redsun Biochemical is a subsidiary of China is currently heightening Redsun Corporation Company who In fact, Redsun Biochemical has environmental production threshold is the largest stockholder of listed already had two incinerators for for pesticide industry, and many Nanjing Redsun Company. Now paraquat waste water treatment at new national standards for special Redsun Biochemical has paraquat present: one is thermal oxidation pesticides were enacted and technical production capacity of incinerator and the other is implemented. 15,000t/a (42% mother liquor), granulation incinerator. The thermal ranking the first among domestic oxidation incinerator is formally On 2 April 2008, Ministry of manufacturers. Its paraquat technical running and the granulation Environmental Protection of China output is over 10,000t/a annually. incinerator is for spare. However, it is issued Standards of Effluent Pollutants found that the granulation incinerator for Heterocyclic Pesticide Industry TABLE 1: Indices for paraquat can’t achieve the expected effect, as (GB21523-2008) (TABLE 1), which pollutant emission the waste water after treatment still involved six heterocyclic pesticides can’t meet the national standard. including paraquat. This is the first Indices Limit national standard for waste water ‘If there is fault for the thermal emission specializing in pesticide pH 6~9 oxidation incinerator, the current industry, and the former General Chroma 30 spare granulation incinerator can’t Standard of Effluent Pollutants Suspension 50 mg/L treat paraquat waste water effectively. (GB8978-1996) was abolished in Redsun Biochemical plans to build a paraquat on 1 July 2009. COD 100 mg/L new thermal oxidation incinerator to Ammonia nitrogen 10 mg/L reduce risk of waste water pollution Some paraquat manufacturers are Cyanide compounds 0.4 mg/L and ensure paraquat production. ’ influenced by the new discharging standard for paraquat effluent Pyrimidine 2 mg/L Waste water of paraquat technical pollutants. For instance, Hubei Paraquat ion 0.03 mg/L contains lots of toxic compounds or Sanonda had to close its paraquat 2,2':6',2"-Terpyridine 0.08 mg/L ions such as cyanide compounds, technical production lines in its Source: CCM International Shandong: herbicides export down 50.76% in H1 2009 H erbicides export volume in Shandong province saw sharp decrease in H1 2009, down 70%. Both the external and internal factors is far more serious than domestic manufacturers’ expectation. 50.76% year on year, mainly due contribute to the decreased export The internal factor contributing to the to the gloomy global economy and volume and value. slumped export volume is structural structural adjustment in Shandong’s adjustment of Shandong’s herbicide herbicide industry. External factor responsible for the industry. slumped exported volume is the According to statistical data from slowly increasing demand in overseas Statistical data from Shandong Shandong Pesticide Industry countries caused by global economic Pesticide Industry Association Association, Shandong province crisis. The global economic crisis showed that Shandong province exported 17,414 tones of herbicides in that occurred in mid 2008 and the saw great increase in export volume H1 2009, down by 50.76% compared whole stagnant economic situation of insecticides, fungicides and to the same period of 2008 (about in H1 2009 decreased peasants’ rodenticides but decrease in that of 35,365 tonnes). There were about 28 application volume of herbicides and herbicide, resulting from the structural herbicides exported. foreign traders’ purchasing power for adjustment. herbicides. Mr. Li, director of China As all herbicides had experienced price Crop Protection Industry Association ‘The structural adjustment in decline in H1 2009 compared to H1 said that impact of global financial Shandong’s herbicides industry is 2008, total herbicides export value of crisis on China’s pesticide industry inevitable after 10 years’ high-speed Shandong province decreased by over CCM International Limited 2 www.cnchemicals.com
  • 6. Herbicides China News Vol.2 Issue 10 2009 development.’ Mr. Luo suggested. paraquat, glyphosate, etc. Output of data, though the export value slumped, amide herbicides such as acetochlor, total herbicide export volume from After 10 years’ fast development in butachlor, etc in Shandong province China hasn’t saw sharp decrease in herbicide business, Shandong province takes up about 40% of total domestic H1 2009, indicating decrease rate of has become the top production base of output; paraquat output in Shandong herbicide export volume in national herbicides in China. In 2008, herbicide province accounts for 30% of domestic average is not as sharp as in Shandong technical output in Shandong province output (excluding Syngenta Nantong province. reached 132,200 tonnes, accounting Crop Protection Company’s paraquat for more than 20% of China’s total. output). Mr. Luo suggests that manufacturers Total production capacity of herbicide in Shandong province should come technical in Shandong province is However, on the whole, most herbicide up with effective measure to curb estimated to be over 200,000t/a in production in Shandong province is of the decrease of herbicide export 2009. Currently over 25 companies small scale and scattered distribution, volume and value, such as improving engaged in the production of herbicide and most products are of low added R&D capability, changing herbicide technical and over 35 herbicides are value, making Shandong province’s structure, conducting company produced in Shandong province. herbicide industry vulnerable to the integration, etc. economic crisis. Competitive herbicides in Shandong province are amide herbicides, According to China Customs statistical carry out so many steps, thus leading Guangxi sees low quality of glyphosate SL formulations to the low product quality. The low quality of glyphosate 10% I n mid September 2009, Administrative Bureau for Industry and Commerce of Guangxi (GXABIC) glyphosate 10% SL was GB20684- 2006 enacted in 2006, which covers 6 indices as shown below (TABLE SL, the most popular formulation in China, also exists in many other announced the result of pesticide provinces as many small producers 2). It’s estimated that the inspection quality inspection conducted in adopt the similar method as those indices of Guangxi’s pesticide July and August, showing that only in Guangxi and local administrative inspection are mainly A.I. content and 52.63% of the inspected glyphosate departments have no effective formaldehyde content. 10% SL are qualified. measures to prevent the production and sales of unqualified glyphosate In fact, most of China’s glyphosate According to GXABIC’s 10% SL at present. 10% SL are produced from glyphosate announcement, 19 batches of mother liquor, but this process glyphosate 10% SL formulations were Currently, the penalty on selling needs some intermediate links such selected in random inspection and unqualified pesticides in China is very as concentrating mother liquor, only 10 batches are qualified. small, causing many producers risk removing some formaldehyde, adding producing and selling unqualified glyphosate technical to meet A.I. GXABIC hasn’t disclosed on which pesticide. content requirement, etc. Actually, indices those unqualified glyphosate many small-scale glyphosate 10% SL 10% SL failed to meet the standard, Besides, most Chinese peasants producers are unable and unwilling to but it claimed many glyphosate 10% SL producers purchased mother TABLE 2: National standard on glyphosate 10% SL (GB20684-2006) liquor of glyphosate technical from other provinces to produce glyphosate 10% SL and sells them in Guangxi Item Index market. Glyphosate content (mass fraction) 9.5~11% Guangxi is a large consumer of Formaldehyde content (mass fraction) ≤1% glyphosate formulations in China, but there are few local glyphosate pH 4.0~8.5 technical producers, so many Dilution stability (20 times) Qualified glyphosate 10% SL producers have to purchase glyphosate technical or Low temperature stability Qualified mother liquor from other provinces such as Jiangsu, Anhui, etc. Thermal stability Qualified Source: China Standardization Administration The current national standard for CCM International Limited 3 www.cnchemicals.com
  • 7. Herbicides China News Vol.2 Issue 10 2009 cannot identify unqualified glyphosate of glyphosate SL formulation with A. glyphosate 10% SL currently. 10% SL and are reluctant to report the I. content lower than 30% in 2010, unqualified product to local quality which partially aims to prevent usage It’s predicted that glyphosate SL inspection department. Besides, the of mother liquor to produce glyphosate formulations quality will be much unqualified glyphosate 10% SL causes SL formulations. better in the future years, as the no damage to crops but have lower deepening implementation of the activity, so most peasants pay less Some top glyphosate technical ban on low content glyphosate SL attention to it. producers such as Zhejiang Wynca, formulations will greatly reduce Nantong Jiangshan, etc. respond the volume of glyphosate products However, as the use of glyphosate quickly and invest a lot pf fund in produced from mother liquor. 10% SL produced from mother glyphosate mother liquor treatment. liquor brings much damage and Mr. Dao, director of technology risk to the environment, Chinese department of Nantong Jiangshan, government has issued regulation to reveals that the company has stopped ban the registration and production using mother liquor to produce ■ Market Analysis Herbicide performance to decrease resulted from the global financial crisis and stagnant economic situation in the P erformance of China’s herbicide business will decrease in 2009 without doubt, due to decreased Shanghai during 27-29 September 2009 had shown that visitors were much less than the previous exhibition, whole 2009. The gloomy economy had reduced product price and stagnant demand indicating that customers’ willingness peasants’ initiatives of herbicides for herbicides. Currently, many for pesticide purchase had dropped. application, thus shrinking the herbicide manufacturers are not demand increase of herbicide globally. optimistic about their performance in It’s predicted that gloomy situation for Foreign traders’ purchasing power and 2009. herbicide market will not significantly willingness also declined under the change in Q4 2009, so general gloomy economic situation. • Facts performance of China’s herbicide business in 2009 will be poorer that Another reason leading to sharply All herbicides in China saw 2008, though the output and sales decreased prices of Chinese herbicides tremendous price decrease in the past volume will slightly increase. is its weak competitiveness in 9 months of 2009 (TABLE 3). Take Q2 global market. With weak R&D 2009 as an example, herbicide export • Reasons for the decrease capability within China’s herbicide volume in China had increased by industry, most herbicides produced 19.5% over the same period of 2008, Without doubt, the decreased and exported in China are of low but the total value had decreased performance of herbicide business is added value. Coupled with intense by 45.3%, mainly attributed to the mainly caused by slumped price which competition among domestic slumping herbicide price. Semi-annual financial performance TABLE 3: Price change of top five herbicides in the first report 2009 of most listed herbicide 9 months of 2008 and 2009 manufacturers had shown sharp decrease in gross profit and net Average price in the profit margin in H1 2009. China first 9 months, USD/t Herbicide Change Crop Protection Industry Association 2008 2009 disclosed that about 80% of its 470 pesticide manufacturer members Glyphosate (95% TC) 11,985 3,319 -72.31% had witnessed great profit decrease even profit loss in H1 2009. Now Paraquat (42% TC) 3,908 2,632 -32.64% most herbicide manufacturers are Acetochlor (95% TC) 3,542 3,044 -14.06% not optimistic about their general performance in 2009. Atrazine (95% TC) 4,900 2,657 -45.78% The Ninth China Agrochemical Butachlor (95% TC) 4,148 3,019 -27.22% Symposium and Exhibition held in Source: CCM International CCM International Limited 4 www.cnchemicals.com
  • 8. Herbicides China News Vol.2 Issue 10 2009 producers, fierce price war is globally. For instance, implementation in 2008, cotton planting areas in inevitable. of policy ‘Returning Cultivated Land Hubei, Anhui, Henan, etc. decrease to Forests’ in Jiangsu has decreased this year, which reduce herbicide Besides, changes on planting structure rice planting area by 20,000 hectares, demand from these regions. in China and favorable weather in the thus decreasing herbicide demand world also reduce herbicide demand from rice fields; with low cotton price Herbicide producers resume production S ome herbicide producers have resumed production in September or October after suspension in the Chemical Company started trifluralin production in early October. is propitious to pesticide production and store, as high temperature will lead to higher energy consumption or slack season. There will be more There will be more herbicide faster chemicals volatilization of some producers resuming herbicide producers resuming production in the products such as 2,4-D during the production in the coming months, coming months, especially those pre- production. and herbicide supply will be more emergence herbicide producers. For sufficient instance, Jiangsu Lvlilai Company Most selective herbicides, especially and Jiangsu Tenglong Biological those mainly used in domestic As the peak season for herbicide market, will have slack season and Pharmaceutical Company will start consumption in winter crops such peak season for market demand, acetochlor production in late October as wheat and rape is coming, thus leading to suspension of some and November respectively. many companies resume herbicide production lines in summer. Those production in September or October. export-oriented herbicides, such as Most herbicide prices touch the bottom in the past 3 years in glyphosate, won’t have peak season, For instance, Jiangsu Repont Pesticide as they are exported to different October, though herbicide demand Factory resumed tribenuron- countries where consumption seasons is increasing due to the second peak methyl technical production in are different from each other. season for herbicide consumption. early September, and Hangzhou With the stagnant global economy, Udragon Chemical Company resumed In China, there are two peak seasons most herbicide producers are not fenoxaprop-P-ethyl production in late for herbicide demand each year. The optimistic about herbicide price in Q4 September. first one is from March to June and 2009. the second is from October to mid Some companies resumed production December. The consumed volume The period between late autumn and of herbicides used in next spring. For in the first peak season will be much next spring is the peak season for instance, Jiangsu Lvlilai Company larger than that in the second one. pesticide production in China. On restarted butachlor technical Herbicide producers mainly produce one hand, most pesticide producers production in late September; Xinyi herbicides for winter crops and for the are endeavoring to store products to Zhongkai Agrochemical Company store of next year. meet the peak season of herbicide resumed butachlor production consumption next year. On the other in October; Zhejiang Kangfeng hand, the low temperature this period Herbicides used in cornfields A s one of the major grain crops, corn is the second largest herbicide consumer in China, just sanguinalis, Portulaca oleracea, Eleusine indica, Chenopodium album, Acalypha australis, Amaranthus dominant species in many regions of China. next to rice. With popularity of retroflexus, Echinochloa crusgalli, • Pre-emergence herbicides chemical weeding and development Setaria viridis, Cyperus rotundus, Herbicides used in pre-seeding stage of herbicide industry in China, Siberian Cocklebur, Abutilon of corn are usually non-selective chemical weeding has become more theophrasti, Convolvulus arvensis, herbicides including glyphosate and popular and herbicides used in corn Calystegia hederacea Wall, Eclipta paraquat. Herbicide application fields are more diversified. prostrate, Commelina communis, etc. before sowing is not popular in China, only existing in some corn fields in • Major weeds in corn fields However, weeds in different spring and seed production regions. Major weeds in corn fields can regions vary according to different be classified into over 10 families climate. Calystegia hederacea Wall, Herbicides’ major application period including 40 species, and those most Convolvulus arvensis, Cyperus in corn fields is pre-emergent stage commonly seen in China are Digitaria rotundus and Eleusine indica are now (after sowing) in China, with annual CCM International Limited 5 www.cnchemicals.com
  • 9. Herbicides China News Vol.2 Issue 10 2009 estimated volume of over 20,000 tonnes, to register and produce nicosulfuron • Prospect most of which are selective pre-emergent technical and formulations. As of It’s predicted that chemical weeding herbicides including triazine herbicides, Sep. 2009, over 25 companies had will become more popular in China, amide herbicides and their mixed registered nicosulfuron technical, thanks to rapid urbanization in formulations. and over 100 kinds of nicosulfuron China and release of man power. formulations, mostly mixed OF However, structure of herbicides Triazine herbicides used in corn fields formulation of nicosulfuron and used in corn fields will change. are mainly atrazine and cyanazine, atrazine, had been registered. while amide herbicides mainly include The proportion of pre-emergence acetochlor and metachlor. Currently, It’s estimated that China’s total herbicides used in cornfield is mixed formulations containing triazine nicosulfuron technical capacity will diminishing, as post-emergent herbicide and amide herbicide have reach 25,000t/a in 2009. The total control of weeds becomes more and become more and more popular in consumption volume in domestic more popular. Nicosulfuron will China, as they have advantages of better market was 500~600 tonnes in enjoy a brisk market in the future 5 safety to succeeding crops over atrazine 2008. years, thanks to good promotion and herbicides and wider spectrum than decreased price. amide herbicides. Mesotrione and rimsulfuron are also used in corn fields, but have much Besides, if high production cost and • Post-emergence herbicides smaller consumption volume than weed resistance problem are solved Herbicides used for post-emergent nicosulfuron, due to promotion and (to mix with other herbicides), control of weeds in corn fields include production cost problems. These mesotrione will expect a promising non-selective herbicide paraquat and three post emergence herbicides market in the future, as it is safer some post-emergence herbicides. have their advantages and and more convenient in application. disadvantages, shown as TABLE 4. Paraquat is used to control unwanted weeds in the interval of corn plants through orientational spraying. In recent TABLE 4: Comparison of three post-emergence herbicides in corn fields years, paraquat consumed in this way in corn fields has been increasing, reaching Effects affected Weed Requirement 5,0000 tonnes in 2008. Herbicide Safety Dosage by weather resistance on weed stage As to selective post-emergence herbicides, Nicosulfuron Low* Low Low Large High nicosulfuron is the hottest one used in corn fields. Some domestic companies Rimsulfuron Low Low Low Small High even produced nicosulfuron and added Mesotrione High High High** Small Low it to other herbicides for weed control in corn fields before its patent expired in * Nicosulfuron may cause phytotoxicity to some corn varieties such as sweat corn and 2007. With nicosulfuron patent expiration pop corn. in January 2007, many companies began ** Some weeds will re-grow. Source: CCM International Benazolin-ethyl: small herbicide mainly applied in rape B enazolin-ethyl is a herbicide with output less than 50t/a and mainly applied in rape filed in China. Nanjing Pesticide Factory of Jiangsu Pesticide Research Institute (now it is renamed as Nanjing Suyan Kechuang for technical, 14 for single formulation and 57 for mixed formulation in China. Agrochemical Company) registered Grade of registered technical are 95% Benazolin-ethyl, which is mainly benazolin-ethyl 95% technical and or 96%. 30% SC is most popular single used to control broad leaf weeds in 30% SC formulation in 1998. More and formulation, taking up 42.86% of the rape fields or used to mix with other more companies registered benazolin- active registration volume. As to mixed post-emergence herbicides to control ethyl products in China. formulations, mixed EC formulations weeds in other crops, was introduced of benazolin-ethyl and quizalofop-p- into China as early as 1990. In 1990, As of 28 September 2009, 67 domestic ethyl are the popular ones, with A. I. Germany AgrEvo Limited (now Bayer companies had registered benazolin- content of 14% or 17.5%. Cropscience) registered 500g/L ethyl or its related products, and benazolin-ethyl SC with brand name 55 of them hold active registration. Though there are over 50 active of “Galtak®” in China. There are 82 active registrations of registrations of benazolin-ethyl in benazolin-ethyl in China, including 11 China, total output of benazolin- Since first domestic company CCM International Limited 6 www.cnchemicals.com
  • 10. Herbicides China News Vol.2 Issue 10 2009 ethyl technical are relatively small. There are only 3~4 active manufacturers of FIGURE 1: Annual registration number of benazolin-ethyl in benazolin-ethyl technical in China, with China, 19990-2009 total annual output less than 50 tonnes. Mr. Nie, sales manager from Nanjing 40 Suyan Kechuang Agrochemical Company 35 said: ‘There are about 3 companies producing benazolin-ethyl technical in 30 China at present, and benazolin-ethyl 25 is mainly sold in domestic market, as 20 its output in China is not very large and overseas demand is small.’ 15 10 Nie said that the company’s benazolin- 5 ethyl technical output is about 10 tonnes per year, and all technical is consumed by 0 1990 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 the company itself to produce benazolin- ethyl formulations.’ Technical Single Formulation Mixed formulation Source: CCM International’s statistical data from ICAMA Mr. Ge from Tianjin Sipule Pesticide Technology Development Company said that the company’s output of benazolin- Some companies stopped benazolin- its application volume has kept ethyl technical is about 10 tonnes per year, ethyl technical production. Jihua stable in recent years.’ said Mr. and the production is run by order. He Group Pesticide Chemical Industry Nie form Nanjing Suyan Kechuang expressed all the company’s benazolin- Company stopped production Agrochemical Company. ethyl technical has been sold in domestic because of sales problem. Jiangsu market. Changqing Chemical Company ‘Benazolin-ethyl is a small herbicide stopped production because of in China, since its application is Ms. Yin also from sales department relocation and sales problem. mainly in domestic rape field, the of Jiangsu Changqing Agrochemical capacity expansion or superfluous Company also disclosed that output of Almost all benazolin-ethyl is used in output will face great risk.’ Mr. Nie benazolin-ethyl technical is about 1 tonne rape field in China. ‘The demand for concluded. per month. ‘The market demand for benazolin-ethyl in China depends benazolin-ethyl had kept stable.’ on the planting area of rape, and Picloram: export-oriented herbicide P icloram, a post emergence herbicide used to control unwanted broadleaf weeds in forest, is an export-oriented (TABLE 5). Grade of registered picloram technical are all 95%, and the two registered formulations are 240g/L SL. product in China. FIGURE 2: Accumulative volume of companies having Picloram was firstly introduced into China registered picloram in China, 2001-2009 by Lier Chemical Company in 2001, and more and more companies have been 8 engaged in its production and registration 7 in the past few years (FIGURE 2). As picloram is rarely used in domestic market 6 due to the small demand, high price as 5 well as inefficient promotion, over 90% Volume 4 of the homemade products are exported, 3 mainly to South America. 2 As of 12 October 2009, there have 1 been 9 active registrations of picloram, 0 including 7 registrations of technical and 2 2001 2002 2003 2004 2005 2006 2007 2008 2009 registrations of single formulation, which Source: CCM International are applied by 7 domestic companies CCM International Limited 7 www.cnchemicals.com
  • 11. Herbicides China News Vol.2 Issue 10 2009 Now all these 7 companies claimed that TABLE 5: Active registrations of picloram in China by Oct. 2009 they could produce picloram technical, but most of them arranged production in light with overseas orders. Certification Expiration Product Company No. date Some of the 7 companies also registered other chloropyridine herbicides such LS20071449 240g/L SL 2010.05.21 Lier Chemical Company as clopyralid and fluroxypyr, as major LS20080474 95% TC 2010.02.20 Sinochem Ningbo Chemicals Company production processes of the three LS20083275 240g/L SL 2009.12.16 Hebei Wanquan Lihua Chemicals Company herbicides, namely picloram, clopyralid PD20050010 95% TC 2010.04.05 Lier Chemical Company and fluroxypyr, are the same. Ms. Bai PD20070107 95% TC 2012.04.26 Zhejiang Shenghua Biok Chemical Company from Chongqing Shuangfeng Chemical Company (Chongqing Shuangfeng) said: PD20080650 95% TC 2013.05.27 Hebei Wanquan Lihua Chemicals Company ’There are only some small differences PD20080931 95% TC 2013.07.17 Zhejiang Yongnong Chemical Company among production technologies of the Hunan Yuangjiang Chifeng Agrochemical PD20095560 95% TC 2014.05.12 three herbicides.’ Company PD20096514 95% TC 2014.08.19 Chongqing Shuangfeng Chemical Company According to Ms. Bai, the three herbicides Source: CCM International share the same production line in Note: Both temporary and formal registration for clopyralid can be extended, but the temporary Chongqing Shuangfeng. ‘Chongqing registration can be extended with accumulative valid period of less than 3 years. Shuangfeng had produced smaller volume of picloram two years before, but it has trade department of Lier Chemical, global economic situation in H1 focused on clopyralid and fluroxypyr in picloram doesn’t share the same 2009, Lier Chemical had achieved recent two years with their larger profit production line with the other net profit growth rate of 58.13%, margins.’ Registration data from ICAMA herbicides in the company. far better than most of the other showed that Chongqing Shuangfeng herbicides manufacturers with large acquired formal registration of picloram Mr. Wang said: ‘Almost all the profit loss. two months before (August 2009). picloram is exported, with South America being its major destination. Compared to Lier Chemical, the Lier Chemical Company (Lier Chemical), The actual grade of picloram other producers’ comprehensive China’s largest chloropyridine herbicides technical produced in Lier Chemical competitiveness in picloram manufacturer, dominates China’s picloram is 94%, and the ex-work price is technical are much weaker with production with over 80% output share USD30,000/t (RMB205,000/t) in smaller capacity and output, and that of the total. Now it has picloram technical Oct. 2009. is why some domestic manufacturers capacity of 1,000t/a, which was expanded possessing certificates of producing from 550t/a in H2 2008. Chloropyridine herbicides including picloram haven’t focused on picloram are the core products in picloram production. According to Mr. Wang from the foreign Lier chemical. Under the stagnant 2, 4-D export in H1 2009 C hina exported 8,492 tonnes of 2,4- D technical (96%) with average price of USD1.81/kg to about 30 FIGURE 3: Export volume and price of 2,4-D technical in China, H1 2009 countries in H1 2009. According to CCM International’s 2,500 2.00 Import/ Export analysis, monthly export volume of 2,4-D technical from 2,000 1.90 China kept generally stable except in Price, USD/kg Volume, tonne March (FIGURE 3). 1,500 1.80 1,000 1.70 China’s 2,4-D technical had been exported to about 30 countries in H1 500 1.60 2009, with South American and Southeast Asian countries as 0 1.50 the major destinations. Brazil, Jan Feb Mar Apr May Jun Venezuela,Guatemala, Indonesia Volume Price and Dominican Rep are the top 5 countries where China’s 2,4-D technical Source: CCM International CCM International Limited 8 www.cnchemicals.com
  • 12. Herbicides China News Vol.2 Issue 10 2009 FIGURE 4: Regional distribution of China’s 2,4-D technical export by is exported to, which had taken up volume in H1 2009 50.48% of China’s total 2,4-D technical export volume in H1 2009. Others Brazil 19.76% 12.29% China has more than eight 2,4-D technical producers who had exported Costa Rica Venezuela 3.08% 11.66% their products, either by themselves or traders. 2,4-D technical export Australia volume from 4 companies, including 3.18% Changzhou Wintafone Chemical Ecuador Company (Changzhou Wintafone), 3.53% Guatemala Shandong Weifang Rainbow Chemical Malaysia 10.07% Company (Shandong Weifang), Jiaxing 4.59% Indonesia Jiuyisheng Chemical Company (Jiaxing Turkey Nicaragua New Zealand Dominican Rep 9.39% Jiuyisheng ) and Jiamusi Heilong 5.16% 5.18% 7.07% 5.04% Agricultural &Industrial Chemical Company (Jiamusi Agricultural), had Source: CCM International taken up 88.18% of China’s 2,4-D technical export volume in H1 2009. FIGURE 5: Source of China’s exported 2,4-D technical by volume in H1 2009 2,4-D acid, the first kind of herbicide in the world, has kept robust market 7.94% 3.88% at present, thanks to its low price and 9.30% wide acceptance. 2,4-D formulations 41.69% are registered for post-emergent control of broadleaf weeds in wheat fields or used to mix with other herbicides for pre-emergent control of annual weeds 11.50% in fields of corn and soybean. China has been engaged in production 25.69% of 2,4-D technical and its related products since 1980s, and it has become one of the major suppliers of Changzhou Wintafone Weifang Rainbow Jiaxing Jiuyisheng 2,4-D acid in the world, with capacity of Jiamusi Agricultural Shandong Qiaochang Others over 60,000t/a. Source: CCM International TABLE 6: Major 2,4-D technical producers in China Company Capacity Changzhou Wintafone Chemical Company 15,000t/a Jiamusi Heilong Agricultural &Industrial Chemical Company 15,000t/a Shandong Weifang Rainbow Chemical Company 10,000t/a Liyang Hefeng Chemistry Company 10,000t/a Dalian Songliao Chemical Company 10,000t/a Lianyungang Baierte Chemicals Company 6,000t/a Jiaxing Jiuyisheng Chemical Company 5,000t/a Source: CCM International CCM International Limited 9 www.cnchemicals.com
  • 13. Herbicides China News Vol.2 Issue 10 2009 ■ Supply & Demand Anhui Futian building 7,000t/a amide herbicide production lines A uhui Futian Agrochemical Company (Anhui Futian), a newly registered company located is a provincial chemical industrial zone in Anhui province, having comprehensive infrastructure and According to the pesticide registration data from ICAMA, Anhui Futian and Hangzhou Futian haven’t registered in Chizhou City, Anhui province, convenient transportation. any pesticides yet. is building the 7,000t/a amide herbicide production lines, which According to Mr. Zhao, who is in Mr. Zhao claimed that Anhui Futian is are expected to be launched in early charge of construction of these amide preparing for the pesticide production 2010. herbicide production lines in Anhui license and pesticide registration. Futian, construction of workshops has The EIA (environmental impact According to two EIA public reports of been completed and now it is under assessment) report shows that the Anhui Futian’s new projects to be built equipment installation. 70,000t/a amide herbicide production announced in July 2009, production ‘These production lines is expected to includes 3,000t/a of pretilachlor and lines of other herbicides or herbicide be completed by the end of 2009 and 4,000t/a of other amide herbicides safener such as 200t/a clodinafop- launched by January 2010.’ covering alachlor, acetochlor and propargyl, 50t/a cloquintocet-mexyl, butochlor. Of course, alachlor, etc. are also to be built. Mr. Zhao disclosed that Anhui acetochlor and butochlor can share the Futian is a new company invested production lines and their production Mr. Zhao said that the company will by the owner of Hangzhou Futian can be adjusted in light with the focus on overseas market to sell its Agrochemical Company (Hangzhou market demand. amide herbicides. ‘More than 90% Futian), and Hangzhou Futian will stop all the pesticide production when will be exported, and Southeast Asia The production lines are built in and North America will be the major Anhui Futian’s production lines are Xiangyu Chemical Industrial Zone in destinations.’ launched. Chizhou County, Chizhou City, which Anhui Xinglong trial runs 5,000t/a 2,4-D production line A nhui Xinglong Chemical Company (Anhui Xinlong) has completed construction of its 5,000t/ domestic sales department of Anhui Xinglong disclosed that Anhui Xinglong has been producing MCPA production and convenient transport of the location for sales of 2,4-D. a 2,4-D technical production line in ((4-chloro-2-methylphenoxy)-Acetic According to EIA (environmental Dongzhi Xiangyu Chemical Industrial acid) for many years. impact assessment) report of this Zone, and started the trial run in 5,000t/a 2,4-D technical project in September. Both 2,4-D and MCPA belong to Anhui Xinglong, a 1,000t/a MCPA penoxyacid herbicides, and part of technical production line and a 100t/ Mr. Wu, sales manager in charge of their production technology are the a diflufenican technical production foreign business in Anhui Xinlong same. line are also being built. These three said that the 5,000t/a 2,4-D technical production lines cover an area of 1.33 production line is under trial run at According to Mr. Wang, the company hectare and cost investment of USD3.37 present, and formal launch will be in will focus on overseas market. Mr. million (RMB23 million). late October or November 2009. Wu expressed that Anhui Xinglong is seeking for overseas partners for the According to registration data from ‘Though Anhui Xinglong is a new sales of 2,4-D series products. Anhui in ICAMA (Institute for the comer in 2,4-D production, its Control of Agrochemicals, Ministry of products are not inferior to those The 2,4-D production line is built in Agriculture), Anhui Xinglong hasn’t produced by old 2,4-D manufactures. Dongzhi Xiangyu Chemical Industrial registered any pesticides. However, Now Anhui Xinglong can produce Zone, one of the provincial industrial a related company, Anhui Anqing almost all series products of 2,4-D.’ zone in Anhui province. Anhui Xinglong Chemical Company, whose Xinglong can take advantage of the boss is also Anhui Xinglong’s, has Mr. Wang, a salesman from the comprehensive infrastructure for registered MCPA. CCM International Limited 10 www.cnchemicals.com
  • 14. Herbicides China News Vol.2 Issue 10 2009 ■ Pricing Monthly market price of main crops in China in Oct. 2009 Oct. 09 Sep. 09 Sep. 08 2008 Chinese Crops Planting area USD/t RMB/t USD/t RMB/t USD/t RMB/t output(103 (103 ha.) tonnes) Indica rice 498 3,400 402 2,748 393 2,682 29,295 182,570 Japonica rice 402 2,745 497 3,395 439 3,000 Wheat 281 1,916 276 1,885 247 1,690 34,421 104,460 Rapeseed 542 3,700 542 3,700 584 3,990 6,888 12,650 Corn 261 1,783 264 1,800 238 1,624 26,971 145,480 Soybean(oil) 540 3,688 532 3,633 548 3,742 12,434 21,040 Soybean(food) 820 5,600 791 5,400 805 5,500 Peanut 1,040 7,100 947 6,467 1,156 7,900 45,701 14,670 Broomcorn 281 1,920 258 1,760 296 2,020 1,016 3,640 Source: CCM International Monthly ex-work price of key raw materials in Oct. 2009 Oct. 09 Sep. 09 Sep. 08 Raw material/intermediates USD/t RMB/t USD/t RMB/t USD/t RMB/t Phosphorus trichloride (99%) 674 4,600 674 4,600 1,171 8,000 Glycine (98%) 1,465 10,000 1,464 10,000 2,928 20,000 Iminodiacetonitrile (92%) 1,392 9,500 1,391 9,500 2,196 15,000 chloroacetic chloride (99%) 1,201 8,200 1,303 8,900 2,386 16,300 Pyridine (99.9%) 4,541 31,000 4,540 31,000 6,880 47,000 Cyanuric chloride (> 99.3%) 1,831 12,500 1,611 11,000 3,147 21,500 3,4-Dimethylbenzenamine (99.9%) 6,738 46,000 6,809 46,500 9,881 67,500 2-Amino-4,6-dimethoxypyrimidine (99%) 18,163 124,000 18,305 125,000 26,348 180,000 L-(+)-Lactic acid (80%) 1,318 9,000 1,318 9,000 1,464 10,000 2-aminophenol (99%) 4,248 29,000 4,247 29,000 7,465 51,000 2-Methy1-6-Ethylaniline (99%) 2,197 15,000 2,050 14,000 1,976 13,500 Source: CCM International CCM International Limited 11 www.cnchemicals.com
  • 15. Herbicides China News Vol.2 Issue 10 2009 Monthly ex-work price of main herbicides in Oct. 2009 Oct. 09 Sep. 09 Oct. 08 Oct. 09 Herbicides Formulation USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t Glyphosate (95%) 2,886 19,700 2,885 19,700 6,023 41,150 41% SL 1,465 10,000 Paraquat (42%) 2,080 14,200 2,079 14,200 3,389 23,150 200g/L SL 1,714 11,700 Acetochlor (92%) 2,739 18,700 2,885 19,700 3,315 22,650 50% EC 1,860 12,700 Atrazine (97%) 2,446 16,700 2,446 16,700 4,633 31,650 38% SC 1,392 9,500 Tribenuron -methyl (95%) 18,266 124,700 19,725 134,700 35,080 239,650 Metolachlor (97%) 3,618 24,700 3,837 26,200 4,589 31,350 72% EC 3,325 22,700 Butachlor (92%) 2,739 18,700 2,885 19,700 4,267 29,150 Pendimethalin (95%) 7,280 49,700 7,424 50,700 10,049 68,650 33% EC 3,032 20,700 Trifluralin (95%) 3,545 24,200 3,617 24,700 5,511 37,650 Quizalofop- P-ethyl (95%) 22,221 151,700 22,361 152,700 27,483 187,750 5% EC 2,739 18,700 Fenoxaprop- P-ethy (95%) 29,252 199,700 29,244 199,700 33,616 229,650 6.9% EC 4,863 33,200 Oxyfluorfen (97%) 19,730 134,700 21,190 144,700 34,018 232,400 Source: CCM International Monthly Shanghai port price and FOB(Shanghai) of main herbicides in Oct. 2009 Shanghai Port Price FOB (Shanghai) Shanghai Port Price Formu- Technical Oct. 09 Sep. 09 Oct. 08 Oct. 09 Sep. 09 laiton Oct. 09 Sep. 09 USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t USD/t USD/t RMB/t USD/t RMB/t Glyphosate (95%) 2,930 20,000 2,929 20,000 6,075 41,500 2,857 2,856 41% SL 1,509 10,300 1,508 10,300 Paraquat (42%) 2,124 14,500 2,123 14,500 3,440 23,500 2,086 2,085 200g/L SL 1,758 12,000 1,757 12,000 Acetochlor (92%) 2,783 19,000 2,929 20,000 3,367 23,000 2,717 2,856 50% EC 1,904 13,000 1,904 13,000 Atrazine (97%) 2,490 17,000 2,489 17,000 4,684 32,000 2,436 2,436 38% SC 1,435 9,800 1,435 9,800 Tribenuron-methyl 18,310 125,000 19,769 135,000 35,131 240,000 17,575 18,972 (95%) Metolachlor (97%) 3,662 25,000 3,881 26,500 4,640 31,700 3,558 3,767 72% EC 3,369 23,000 3,368 23,000 Butachlor (92%) 2,783 19,000 2,929 20,000 4,318 29,500 2,717 2,856 Pendimethalin 7,324 50,000 7,468 51,000 10,100 69,000 7,062 7,200 33% EC 3,076 21,000 3,075 21,000 (95%) Trifluralin (95%) 3,589 24,500 3,661 25,000 5,562 38,000 3,488 3,557 Quizalofop- P-ethyl 22,265 152,000 22,405 153,000 27,534 188,100 21,360 21,495 5% EC 2,783 19,000 2,782 19,000 (95%) Fenoxaprop- P-ethy 29,295 200,000 29,288 200,000 33,667 230,000 28,089 28,081 6.9% EC 4,907 33,500 4,906 33,500 (95%) Oxyfluorfen (97%) 19,774 135,000 21,234 145,000 34,070 232,750 18,977 20,374 Note: Shanghai port price= ex-factory price plus transport fee from production plant to Shanghai port Source: CCM International CCM International Limited 12 www.cnchemicals.com
  • 16. Herbicides China News Vol.2 Issue 10 2009 As to the three post-emergence Most herbicide prices keep downturn in Oct. 2009 herbicides monitored, prices of quizalofop-P-ethyl and fenoxaprop-P- ethyl kept stable in Oct. 2009, while P rice of most herbicides keeps the downtrend in Oct. 2009. Compared with the situation last It is predicted that glyphosate market will also keep stagnant in Q4 2009, as the serious overcapacity won’t be that of tribenuron-methyl technical has decreased from USD19,760/t in mid Sep. to USD18,300/t in mid Oct, month, 7 of the 12 major herbicides alleviated and overseas demand won’t down 7.41%. monitored by CCM International significantly rise in the last quarter of have witnessed slight price decrease 2009 under the uncertain economic As the peak season for herbicide in Oct. 2009, with the remaining five situation. However, slight price consumption in winter crops, such maintaining the September level. rebound, or price readjustment, is as wheat and rape is coming, many possible. manufacturers of tribenuron-methyl Both of the two non-selective herbicides (glyphosate and paraquat) have resumed production in Sep. or As the second peak season of herbicide Oct. 2009. kept stagnant price after 6 months’ demand in China is coming, many continuous decrease, mainly due to domestic herbicide manufacturers All the herbicide prices have hit the the following two factors: will resume production of selective lowest point currently. Many herbicide herbicides in October. However, most manufacturers expressed that current Firstly, there is no room for further of these herbicides have undergone prices of herbicides are very close decrease, as their prices are so low to price decline. to the cost, and there is no room touch the production costs; secondly, as the demand for China’s non- for further decline any more. Most Quotations of the six pre-emergence manufacturers are not optimistic to selective herbicides hasn’t significantly herbicides monitored by CCM the expected price rise boosted by the increased in Oct.2009, there is no International, namely acetochlor, second peak season this year. impetus to heighten the prices with metachlor, pendimethailin, butachlor, the global financial crisis and China’s trifluralin and oxyfluorfen have serious overcapacity. slightly decreased in Oct. 2009, down by 2~7%. ■ Registration China herbicide registration structure improving S tructure of herbicides registered in China has been greatly improved, with increasing proportion for In 2008 and 2009, new formal registrations accounted for 67.98% and 82.39% of the total new As of September 2009, active formal registrations for herbicide have amounted to 4,170, taking up 67.84% formal registrations and eco-friendly registrations respectively, compared of total active herbicide registrations formulations, mainly thanks to with 23.31% in 2007. in China. implementation of the new regulations issued at the end of 2007. TABLE 7: New formal registration in past three years ‘Structure of pesticides registered has seen great improvement since China issued a series of new registration regulations Formal Total new at the end of 2007,’ claimed Yanqiu Year registration Proportion registration Zhang, Director of ICAMA (Institute for volume the Control of Agrochemicals, Ministry of Agriculture), on the 2nd ‘Summit of 2007 196 841 23.31% China’s Pesticide Industry’ held in Suzhou 2008 1,603 2,358 67.98% City of Jiangsu Province during 13~15 September 2009. 2009 1,960 2,379 82.93% The most obvious fact showing the Note: data in 2009 is as of 28 September 2009 improved structure is the increasing Source: CCM International proportion of formal registrations. CCM International Limited 13 www.cnchemicals.com
  • 17. Herbicides China News Vol.2 Issue 10 2009 As of September 2009, active Tips: formal registrations for herbicide In December 2007, Chinese Agricul- ■ Formal registration should sup- have amounted to 4,170, taking up ture Ministry amended “Regulations plement experiment data or com- 67.84% of total active herbicide for Pesticide Registration” and is- prehensive report in light with new registrations in China. sued a series of new regulations for regulations when applying for ex- pesticide registration, which can be tended registration. Before 2008, many domestic classified into the following points: pesticide manufacturers ■ Regulate formulations’ A.I. con- preferred to apply for temporary ■ Shorten accumulative valid time tents: the number of A.I. gradient registrations, due to the low of temporary registration from 4 should be no more than 5. cost and low requirement on years to 3 years. experiment data. However, ■ Standardize pesticide label: re- with implementation of new ■ Ban pesticide trade name since 1 quired items such as general name, regulations for pesticide July 2008. A.I. content, formulation type, registration in 2007, the gap manufacturer, trademark, use direc- between temporary registration ■ Heighten pesticide registration tion, license, etc should be printed and formal registration is threshold and shorten the gap be- in specific format, and those pro- shortened, and many companies tween temporary registration and hibited items such as trade name turn to formal registration, as formal registration, and application should not be printed.license, etc formal registration needs to be of temporary registration should should be printed in specific format, extended every 5 years, while also hand in experimental data on and those prohibited items such as temporary registration should pesticide residue. trade name should not be printed. be extended every year with accumulative valid time of no more than 3 years. With deepening implementation TABLE 8: Registration volume of eco-friendly herbicide formulations of the regulations, proportion in 2008 and 2009 of temporary registration is predicted to continue decrease in Registration volume Proportion in the future. Year total registration 2008 2009 Total volume Besides increasing proportion for formal registrations, registration WDG 63 55 242 48.76% volume of eco-friendly formulations, such as WDG, CS EW 44 45 167 53.29% (micro-capsule suspension) and ME 11 12 49 46.94% EW, also increased. Registration volume of these formulations in CS 1 2 7 42.86% 2008 and 2009 has accounted Note: Data in 2009 is as of 28 September 2009 for large proportion in total Source: CCM International registration volume (TABLE 8). Care Ltd. achieves in China, and 97% Five herbicides newly registered in Sep. 2009 is the highest grade for glyphosate technical registered in China. 1 68 herbicide registrations, including 22 for technical, 112 for single formulation and 34 for mixed registrations, including 3 temporary and 19 formal, were registered by 19 producers mainly located in Jiangsu The first formal registration of clodinafop-propargyl technical is formulations, were achieved by Province. I4 kinds of herbicides were registered by Syngenta in Sep. 2009. 120 companies in Sep. 2009. Five involved (TABLE 9). Syngenta also firstly registered herbicides technical were formally mesotrione 94% technical formally in registered for the first time in China. Five herbicides technical were formally China. registered for the first time. According to the registration data from Institute for the Control Dalian Razer Pesticides Company Excel Crop Care Ltd. (India) formally formally registered ethachlor 95% of Agrochemicals, Ministry of registered 97% glyphosate technical Agriculture technical, becoming the only company in China in Sep. 2009. This is the first holding the active registration of (ICAMA), 22 herbicide technical herbicide registration that Excel Crop CCM International Limited 14 www.cnchemicals.com