1. Price Monitoring of Chlorpyrifos technical in China
Figure 2-1 Monthly price change of Chlorpyrifos technical in China, 2011
Ex-work price of chlorpyrifos TC has witnessed continuous growth in 2011. The price in Nov. reached USD6,910/t (the highest point in Jan.-Nov. 2011), up
2.90% over Oct. and up 32.10% over Jan. of the same year.
High production cost and supply shortage may explain the rise in market price of 95% chlorpyrifos technical before Dec. 2011
Firstly, high production cost is the main factor. China strengthens the supervision and inspection of environmental protection for pesticide production this year,
which has impacted the production and supply of sodium 3,5,6-Trichloropyridin-2-ol sodium (STCP), an important intermediate of chlorpyrifos. As the crude oil
price increases continuously, the market price of STCP increased to USD6,786/t at present from USD4,865/t in Oct. 2010. Besides, companies have to invest
more in waste treatment.
Secondly, although winter is the slack season of pesticide sales in China, many farmers buy chlorpyrifos to prevent soil pests and sanitary insect pests. Li
Jingwang, a dealer from Heze City, Shandong Province, said the market price of 45% chlorpyrifos EC in Aug. 2011 was just USD2.51/bottle (300ml) but rose to
USD3.15/bottle (300ml) in Nov. 2011. At the same time, the demand for the product exceeds the supply.
Besides, chlorpyrifos producers develop their products into seed coating agents, which leads to the supply shortage of chlorpyrifos. Chlorpyrifos used as seed

2. coating agent is popular this year. At present, Chinese market lacksseed coating agents with high effect, low toxicity and environmentally friendliness. The seed
coating agent of chlorpyrifos becomes a promising formulation. Anhui Fengle Agrochemical Co., Ltd., Shandong Huayang Technology Co., Ltd., Shandong
Sino-Agri United Biotechnology Co., Ltd., Shenyang Sciencreat Chemicals Co., Ltd. and chlorpyrifos producers have developed this kind of product,
accounting for large market share among seed coating agents preventing soil pests. Chlorpyrifos seed coating agents developed by these companies have
been largely popularized and applied in northern China. Thus, many producers haven't left any chlorpyrifos stock since Aug. 2011.
Furthermore, the increasing export volume of 95% chlorpyrifos technical also supports its price. The export volume of 95% chlorpyrifos technical began to
recover in April and further increased in Sept.-Nov. 2011 with the support of recovering overseas market demand, according to CCM International's
Chlorpyrifos Export Analysis.
Last, with the issue of industrial adjustment policies, a large number of enterprises with small capacity shut down, which further reduces chlorpyrifos supply and
thus the price goes up.
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