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Fungicides China News

Vol.4 Issue 12 2011

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Vol.4 Issue 12 2011

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ContentsFungicides China News Vol.4 Issue 12 2011

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■ Company dynamics ��1Nantong Baoye to relocate factory in RCEDZHIP .................................................................................................1Mesa Tech launches azoxystrobin 250g/L SC in China ........................................................................................ 2Huaxing Chemical merges KaJo Agrochemical .....................................................................................................3Limin Chemical applies for IPO again .................................................................................................................. 4

■ Market analysis �� 5Thiabendazole mainly used in fresh-keeping for orange in China ........................................................................51-(4-chlorophenyl)-4,4-dimethyl-3-pentanone in short supply recently ............................................................ 6Both import and export of fungicides rise in Q1-Q3 2011 .....................................................................................7

■ Supply & demand �� 8Hisun Chemical's oxine-copper development project passes acceptance............................................................ 8China's pesticide demand to rise 2.48% year on year in 2012 ............................................................................ 9Zibo Wanchang to expand trimethyl orthoformate to 10,000t/a by H1 2012 ....................................................10

■ Registration �� 11Fungicides in hot registration in Q3 2011 ............................................................................................................ 11Registration of kresoxim-methyl formualtions witnesses increase in 2011 ........................................................13

■ Price ��14Monthly ex-factory and market prices of key fungicide raw materials, Dec. 2011 .............................................14Monthly ex-factory prices of main fungicides, Dec. 2011 ....................................................................................14Monthly Shanghai port prices and FOB Shanghai of main fungicides, Dec. 2011 ..............................................15Monthly market prices of main crops, Dec. 2011 ................................................................................................15Ex-factory price of prochloraz technical turns high in early Dec. 2011 ...............................................................16

■ Disease ��16Wheat stripe rust occurs seriously in Gansu recently .........................................................................................16

■ Product �� 17Kasugamycin needs to strengthen promotion .....................................................................................................17

■ Brief news ��18

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CCM Ready Market Reports:>> Survey of Rice Insecticides in China>> Seed Treatment for Vegetable Seed in China>> Company Profiles of Ten Chinese Agrochemical Manufacturers>> Acephate Survey in China>> Production and Market of Azoxystrobin in China

>> Production and market of Dichlorvos in China>> Survey of Mancozeb in China>> Pyrethroids Survey in China>> The Survey of Bio-pesticide Industry in China>> Survey of Triazole Fungicides in China>> Production and Market of Imidacloprid in China>> Global Commercial Opportunities Derived from Glyphosate Industry>> Merger and Acquisition Research in Pesticide Industry

CCM Newsletters related to Fungicides:>> Crop Protection China News>> Herbicides China News>> Insecticides China News>> Glyphosate China Monthly Report>> Seed China News>> China Agriculture Investment Bimonthly Report

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Key companies covered in this issue

Headlines of FungicidesChina News 1112

Welcome to Fungicides China News published by CCM International, a professional consulting company which has been extensively and intently focusing on dynamics of China's fungicides industry.

As of early Dec. 2011, China's fungicide industry has been going well aided by the bright market prospect. Both import and export volumes of fungicides have witnessed increase in China in the first three quarters of this year, with YOY growth rate of 33.40% and 36.59% respectively.

Besides, the output of fungicides has hit 126,700 tonnes from Jan. to Oct. 2011, up 2.20% over the same period last year. Thereinto, the top three provinces by fungicide output include Jiangsu, Zhejiang and Shandong, with outputs of 57,800 tonnes, 10,500 tonnes and 6,200 tonnes respectively.

In 2012, the demand for pesticides will hit as high as 313,652 tonnes (calculated by 100% technical, similarly hereinafter) all over the country, increasing by 2.48% over 2011. Thereinto, China's fungicide demand is predicted to reach 78,100 tonnes, up 7.26% year on year.

As for fungicide varieties, strobilurin fungicides, especially azoxystrobin and kresoxim-methyl, are gaining more and more attention from domestic pesticide companies in 2011. For example, the registration of kresoxim-methyl formulations has witnessed increase to a great extent in China since early 2011. It is estimated that strobilurin fungicides will continue to be the focus of attention in China in the next year.

If there are any specific topics you would like us to cover or investigate any of the subjects included in more details, please contact us by +86-20-3761 6606, or [email protected].

Nantong Baoye plans to relocate its factory in Rudong Coastal Economic Development Zone of High-tech Industrial Park, and the

company will expand the capacity of its products accordingly.

Mesa Tech launches azoxystrobin 250g/L SC in domestic market recently.

Huaxing Chemical merges KaJo Agrochemical recently, which will be conducive to improving its poor performance in the future.

Limin Chemical has applied for the EIA of IPO again in early Nov. 2011.

Over 65% of thiabendazole is used in the fresh-keeping for orange in domestic market.

1-(4-chlorophenyl)-4,4-dimethyl-3-pentanone is in short supply and its price goes up in China recently.

Both import and export of fungicides have witnessed increase in China in the first three quarters of 2011.

Hisun Chemical's oxine-copper development project has successfully passed the acceptance evaluation recently, according to ZPECIC.

Kasugamycin needs to strengthen promotion as its market share has been experiencing ruthless crush from some chemical fungicides in

recent years.

The demand for pesticides will hit as high as 313,652 tonnes in China in 2012, increasing by 2.48% compared with that in 2011.

Zibo Wanchang's trimethyl orthoformate capacity will hit 10,000t/a by H1 2012.

Fungicides are in hot registration in China in the third quarter of 2011.

Registration of kresoxim-methyl formulations has witnessed increase to a great extent in China since early 2011.

The ex-factory price of prochloraz 97% TC has turned high, reaching around USD9,365/t in early Dec. 2011.

Wheat stripe rust has seriously occurred in winter wheat planting regions of Gansu recently.

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■ Company dynamics

Nantong Baoye to relocate factory in RCEDZHIP

Nantong Baoye Chemical Co., Ltd. (Nantong Baoye), one of the leading dithiocarbamate fungicide

companies in China, plans to relocate its factory in Rudong Coastal Economic Development Zone of High-tech Industrial Park (RCEDZHIP), Nantong City of Jiangsu Province, which will be more favorable for the development of the company in the long run.

According to CCM International's survey, Nantong Baoye will totally invest about USD35.54 million in the new production base with an area of 13.30 ha., and the productive area of the company is 2.68 ha., accounting for 20.15% of its total land area.

During the relocation, Nantong Baoye will further expand the capacity of its major products, such as mancozeb, zineb, propineb, metiram, thiram, etc., to 24,800t/a (technical and formulations) in the end. Thereinto, the capacity of its technical will hit 8,800t/a and those of WP, SC and WDG (formulations) will reach 13,000t/a, 2,000t/a and 1,000t/a respectively.

What's more, Nantong Baoye will be committed to improving the quality of its products via technical transformation and thus enhance competitiveness of the company to a great extent in the intense pesticide industry. In line with the plan of Nantong Baoye, some old equipment will be out of use; meanwhile the company will introduce a large number of new ones, including storage tanks, reaction vessels, condensers and so forth.

To accelerate the adjustment of industrial structure and optimize the industrial layout, Nantong government calls on agrochemical companies to move to the chemical industrial park with advanced management and perfect facilities, which also conforms to the Pesticide Industry Policy issued on 19 Sept. 2010.

Besides, Nantong Baoye, established in 1966, is now located in No. 78, Chuanzha Road (W), Nantong City of Jiangsu Province, which is surrounded by local residential areas. Under the circumstances, not only does it impact the local environment and residents' health but also limits the long-term development of Nantong Baoye. As a result, the relocation is both inevitable and necessary for Nantong Baoye.

On 17 Nov. 2011, Nantong Baoye inaugurated construction of its new production base in RCEDZHIP. It is estimated that the relocation project will be completed by the end of 2012, and the production and sales of the company's major products would not be affected, as a staffer of Nantong Baoye revealed.

Capacity of manocozeb technical, the most important fungicide of Nantong Baoye, has been witnessing increase in recent years, from about 1,800t/a in 2008 to 3,000t/a in 2011. Thanks to the high quality, Nantong Baoye's mancozeb products have been enjoying great popularity in domestic and overseas market.

The supply ability and product quality of Nantong Baoye will be considerably improved after its new production base starts operating in the near future. However, the company might confront some challenges or risks with the capacity expansion. Therefore, strengthening product promotion and building better brand image should still be its first priority from now on.

TABLE1: Capacity of Nantong Baoye's technical after relocation, 2012

Technical Capacity, t/a

Mancozeb 4,000

Propineb 2,000

Zineb 1,000

Metiram 1,000

Polycarbamate 300

Thiram 300

Clofentezine 200

Total 8,800

Source: Nantong Baoye



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Mesa Tech launches azoxystrobin 250g/L SC in China

On 22 Nov. 2011, Mesa Tech International Inc. (Mesa Tech), an overseas company specializing in the

production and sales of fine chemicals and biological technologies, held a conference in Xiamen City, Fujian Province of China to launch its azoxystrobin 250g/L SC (trade name: MesaStar) in domestic market.

Driven by handsome profit and bright market prospect, over 40 dealers from all over the country took part in Mesa Tech's product launch conference, and 15 dealers mainly from Jiangsu, Hunan, Sichuan, Guangxi, Guangdong, etc., signed order contracts with the company.

According to CCM International's investigation, Mesa Tech originally intended to put out azoxystrobin250g/L SC in 2012, but the actual launch time of the new product is several months ahead of schedule, which is mainly contributed to the smooth progress of product registration.

Information from the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA) shows that Mesa Tech has acquired the formal registration certificate of azoxystrobin 250g/L SC in early Nov. 2011. In detail, the product is registered to prevent and control cucumber downy mildew with a dosage of167.0~312.5 mg/kg.

In terms of Mesa Tech, its azoxystrobin 250g/L SC has four specifications including 10 ml, 100 ml, 1 L and 10 L, which are all made in the U.S. In addition, Mr. An, Sales Manager responsible for the market of Guangdong and Hainan of Mesa Tech, revealed that the company's azoxystrobin formulation is processed by azoxystrobin 98% TC, indicating fine quality of its products.

At present, Mesa Tech plans to promote its azoxystrobin 250g/L SC in more than 15 provinces, such as Sichuan, Shaanxi, Henan, Jiangsu, Shandong, Hunan, Guangdong, Yunnan and so on, and is recruiting regional distributors at the same time.

As described in the launch conference of Mesa Tech, its azoxystrobin 250g/L SC boasts not only high control effect on cucumber downy mildew but also good systemic activity which can better protect plant from the invasion by various diseases.

Mesa Tech is confident in the prospect of its azoxystrobin 250g/L SC thanks to its excellent control effect and the increasing market share of fungicides in the world, including China. What's more, Mesa Tech is the third company to acquire the registration certificate of azoxystrobin formulations domestically so far, which makes the company more competitive in the intense pesticide industry.

Besides Mesa Tech, Syngenta and Shanghai Heben-Eastsum Medicaments Co., Ltd. (Shanghai Heben) are the other two companies which have registered azoxystrobin formulations in China as of early Dec. 2011. It is worth noting that Syngenta has registered seven azoxystrobin formulations in China, accounting for 77.78% of the total azoxystrobin formulations.

In detail, Syngenta's azoxystrobin formulations include 25% SC, 50% WDG, 250g/L SC, metalaxyl-M•fludioxonil•azoxystrobin 11% FS, azosyxtrobin•chlorothalonil 560g/L SC, propiconazole•azosxytrobin 18.7% SC and difenoconazole•azosxytrobin 325g/L SC; Shanghai Heben has registered azoxystrobin 250g/L SC.

PICTURE1: Mesa Tech's launch conference of azoxystrobin 250g/L SC in Xiamen, 22 Nov. 2011

Source: www.191bbs.com

TABLE2: Registration situation of Mesa Tech's azoxystrobin in China, Nov. 2011

Registration Num. Content Effective date Expiry datePD20111160 250g/L SC 2011.11.07 2016.11.07

Source: CCM International



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PICTURE2: Package of Mesa Tech's azoxystrobin 250g/L SC (specifications: 10 ml and 100 ml)

Source: www.191bbs.com

Huaxing Chemical merges KaJo Agrochemical

Anhui Huaxing Chemical Industry Co., Ltd. (Huaxing Chemical), one of the leading glyphosate

manufacturers in China, merged KaJo Agrochemical Co., Ltd. (KaJo Agrochemical) in early Nov. 2011, which will be conducive to improving its poor performance in the future.

According to the Ministry of Industry and Information Technology of the People's Republic of China (MIIT), Huaxing Chemical's merger of KaJo Agrochemical has been approved recently, and the merged company still retains the name of Huaxing Chemical.

In fact, Huaxing Chemical acquired not only part of the fixed assets such as equipment and spare parts but also intangible assets, mainly including production processing technologies of pesticide technical and formulations, product registration certificates and other technical data from KaJo Agrochemical on 18 April 2011.

It is well known that Huaxing Chemical has been excessively depending on its glyphosate business in recent years, and thus it has suffered huge loss from the slumping glyphosate market all over the world. As released in the Q3 performance report of Huaxing Chemical, the company has suffered serious financial deficit of about USD4.34 million in the first three quarters of 2011, though its revenue witnessed an increase of 7.99% to about USD112.57 million in the mean time.

After completing this merger, Huaxing Chemical's production scale can be enlarged to a certain extent. What's more, the company's product mix can be improved significantly as KaJo Agrochemical is mainly

engaged in the production and sales of fungicides, which is a short board of Huaxing Chemical.

KaJo Agrochemical's fungicide products mainly include carbendazim, thiophanate methyl and benomyl (technical and formulations), which belong to benzimidazole fungicides with broad spectrum and low toxicity.

Owing to the sound protective performance and moderate price, the market share of benzimidazole fungicides has been large both at home and abroad. It is especially worth noting that carbendazim's export volume has shown the ascending trend in China in successive years.

For instance, China has exported about 23,000 tonnes of carbendazim (technical and formulation) in 2010, up 64.29% compared with that in the previous year, and its export value has increased by 76.92% year on year to about USD108.81 million.

It is not hard to see that KaJo Agrochemical's carbendazim business will become a new profit growth point of Huaxing Chemical in the near future aided by its booming market, which will help to alleviate Huaxing Chemical's poor performance.

Nevertheless, in the carbendazim industry, Huaxing Chemical will inevitably confront keen competition from major domestic carbendazim producers such as Jiangsu Lanfeng Biochemical Co., Ltd., Anhui Guangxin Agrochemical Group Co., Ltd., Ningxia Sanxi Chemical Co., Ltd., etc.



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Therefore, it is necessary for Huaxing Chemical to strengthen the market promotion of carbendazim and enhance product quality from now on. In addition, Huaxing Chemical should continue developing new

fungicides with bright prospect in the next few years, which will make its product mix more reasonable.

Limin Chemical applies for IPO again

Limin Chemical Stock Co., Ltd. (Limin Chemical), the largest mancozeb producer in China, has applied to

the Environmental Protection Department of Jiangsu Province (EPDJP) for the Environmental Impact Assessment (EIA) of initial public offerings (IPO) again in early Nov. 2011.

In fact, Limin Chemical has been actively making great efforts to launch its IPO since May 2011, when the company's first application for IPO was rejected by the China Securities Regulatory Commission (CSRC).

As released in Limin Chemical's environmental protection verification technical report, all suggestions for the revision of the last environmental protection verification and its existing problems have been conscientiously implemented.

In addition, Limin Chemical promises to continue improving environmental management from now on through setting up better environmental management system, strengthening environmental security education among workers, vigorously implementing cleaner production and so on.

If all goes well in this environmental protection verification, Limin Chemical is about to realize its objective of getting listed. In accordance with the plan of Limin Chemical, it aims to issue 25 million shares, accounting for 25% of the total shares, in Shenzhen Stock Exchange.

After getting listed, most raised funds will be invested in three key projects including a cymoxanil technical and formulation production line with capacity of 2,000t/a, technical transformation projects of its major fungicide products, namely mancozeb and fosetyl-aluminum, and its technology research center; the remaining funds will be used to supplement its circulating funds.

It is estimated that Limin Chemical can consolidate advantages of its major fungicide products mentioned

above and increase its ability of research and development (R&D) in the near future. As a result, the company's reputation and overall competitiveness will be greatly enhanced after listing.

The output of Limin Chemical's cymoxanil has been witnessing continuous growth in recent years, reaching 1,000 tonnes in 2010 from 815 tonnes in 2008. In 2011, the company's production line of cymoxanil technical is operated with full capacity, but its supply falls short of demand, according to Limin Chemical. It is worth noting that Chinese output of cymoxanil technical is about 1,700 tonnes in 2010. Thereinto, Limin Chemical's output of this fungicide has exceeded 50% of its national total.

What's more, the demand for cymoxanil from domestic market will go up with an annual average growth rate of around 35% in the next three years aided by its excellent control effect on crop downy mildew. Owing to the bright market prospect and handsome profit, Limin Chemical wishes to expand its capacity of cymoxanil technical after listing.

In terms of mancozeb and fosetyl-aluminum, two conventional fungicides, the demand for them from both at home and abroad has been large thanks to their better protective performance and lower prices. However, the competition is becoming more and more fierce in these two fungicide industries.

Therefore, it is very necessary for Limin Chemical to innovate technology and expand production in order to increase their competitiveness and market share. Although Limin Chemical will derive much profit from getting listed, it will be confronted with many challenges in company management because of its continuous expansion. Therefore, its management system should keep up with its development, especially after these projects are launched.

TABLE3: Limin Chemical’s construction projects after listing, Dec. 2011

Number Project Capacity Investment, million USD

1 Cymoxanil 1,000t/a to 2,000t/a 12.62

2Mancozeb 20,000t/a to 25,000t/a

29.84Fosetyl-aluminum 3,000t/a to 5,000t/a

3 Technology Research Center - 8.77

Source: Limin Chemical



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■ Market analysis

Thiabendazole mainly used in fresh-keeping for orange in China

According to CCM International's investigation, over 65% of thiabendazole, a kind of excellent

benzimidazole fungicide with high efficiency, low toxicity and systemic performance, is used in the fresh-keeping for orange to prevent and control relative diseases, such as blue mold, green mold, anthracnose, etc., in domestic market.

At present, the application of thiabendazole mainly focuses on the field of disease control for some economic crops, like orange, banana, apple, pear, grape, mushroom, etc. Thereinto, orange and banana are the top two varieties by the consumption volume of thiabendazole, over 80% of which is used in these two fruit varieties.

It is particularly worth noting that the application volume of thiabendazole in orange is far larger than that of banana. In detail, in the over 80% thiabendazole, only about 19% is consumed in the fresh-keeping for banana to be against anthracnose, black rot, crown rot and so on.

Among all domestic manufacturers of thiabendazole formulations, Xuzhou Noon Agro-chemie Co., Ltd. (Xuzhou Noon) and Anyang Redflag Pharmaceutical Co., Ltd. (Anyang Redflag) are the two largest with outputs of around 200 tonnes and 180 tonnes in 2010 (calculated by thiabendazole 450g/L SC, the most popular thiabendazole formulation in China).

Mr. Yang, Sales Manager of Xuzhou Noon, revealed that the company mainly promotes thiabendazole formulations in economic crops with high added value, for its relatively-higher price than those of conventional fungicides. And most other domestic producers agree on this too.

Take the price of thiabendazole 450g/L SC for example, it is about USD40,000/t in early Dec. 2011, while those

of prochloraz 25% EC and carbendazim 50% SC are about USD3,547/t and USD3,477/t respectively in the mean time.

In fact, the promotion of thiabendazole in domestic market of fresh-keeping for fruits is progressing at a low pace in recent years as its high price is rather difficult to be accepted by most domestic peasants.

As a result, the market share of thiabendazole in China is far less than those of other preserving agents, especially prochloraz and imazalil, two popular varieties applied in the field of fresh-keeping for fruits. Under the circumstances, most thiabendazole technical produced by Chinese pesticide enterprises is exported to the overseas market.

In terms of thiabendazole technical, several major domestic producers include Xuzhou Noon, Wuhan Tongxing Bio-tech Co., Ltd. (Wuhan Tongxing), Anyang Redflag, Jiangsu Changlong Chemicals Co., Ltd. (Jiangsu Changlong), Huibei (Wuhan) Dinghui Chemical Co., Ltd. (Dinghui Chemical), etc.

Statistics from CCM International's ValoTracer (a dynamic database and excellent platform providing accurate, timely, exclusive data and information that you want) show that China's capacity of thiabendazole technical is about 1,000t/a at present, while Xuzhou Noon is the largest domestic manufacturer of the product with capacity of around 250t/a, accounting for 25% of the national total.

Although the application of thiabendazole is still rather limited in China currently due to its higher price and lack of promotion, the fungicide is expected to have a bright prospect in the future, thanks to its huge potential market both at home and abroad.

Orange, 67%

Banana, 19%

Others, 14%

FIGURE 1: Consumption structure of thiabendazole in China, 2010




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1-(4-chlorophenyl)-4,4-dimethyl-3-pentanone in short supply recently

The supply of 1-(4-chlorophenyl)-4,4-dimethyl-3-pentanone, an important intermediate of

tebuconazole, has been tight in domestic market recently, and its price has been witnessing increase, reaching about USD7,918/t in early Dec. 2011, up 19.68% compared with that in the same period last year.

According to CCM International's survey, several key domestic producers of 1-(4-chlorophenyl)-4,4-dimethyl-3-pentanone, like Binhai Baiyun Chemical Co., Ltd. (Binhai Baiyun), Rudong Zhongyi Chemical Co., Ltd. (Rudong Zhongyi), Zhangjiagang City Zhenfang Chemical Co., Ltd. (Zhenfang Chemical), etc., have all verified the short supply of this intermediate.

Three main factors are responsible for the tight supply of 1-(4-chlorophenyl)-4,4-dimethyl-3-pentanone and its price rise in China.

First, the supply of 4-chlorobenzaldehyde and pinacolone, two key raw materials of 1-(4-chlorophenyl)-4,4-dimethyl-3-pentanone, is tight recently, and their prices have soared up in varying degrees.

Mr. Gu, Sales Manager of Zhenfang Chemical, revealed that these two raw materials' supply mentioned above are inadequate indeed, which impacts the operating rate of 1-(4-chlorophenyl)-4,4-dimethyl-3-pentanone accordingly.

Second, a large number of small domestic producers of 4-chlorobenzaldehyde and pinacolone have gradually suspended or even stopped their productions for the strict policy of energy saving and emission reduction.Take Jiangsu Yancheng Lvye Chemical Co., Ltd. (Yancheng Lvye) for example, with its previous capacity of 700t/a, the company has stopped the production of 1-(4-Chlorophenyl)-4,4-dimethyl-3-pentanone for a long time, and it purchases the intermediate from other domestic companies at present.

Meanwhile, some companies have to reduce or even suspend the supply of 1-(4-Chlorophenyl)-4,4-dimethyl-3-pentanone to other players in order to satisfy their own demand. Mr. Zhang, Sales Manager of Rudong Zhongyi, claimed that the company's 1-(4-Chlorophenyl)-4,4-dimethyl-3-pentanone is not for sale at present, because all of its intermediate is used to produce its own tebuconazole.

Last but not least, the pull of demand from major downstream fungicide, tebuconazole, also tightens the supply of 1-(4-Chlorophenyl)-4,4-dimethyl-3-pentanone, pushing up its price to a certain extent.

It is well known that tebuconazole is the second largest fungicide in terms of sales value, only surpassed by azoxystrobin, in global pesticide market, thanks to its effective control performance on various diseases of grains, fruits and vegetables. What's more, Chinese tebuconazole industry has also witnessed rapid growth in recent years. For example, the total capacity of tebuconazole technical has increased to about 20,000t/a in 2010, with its output hitting around 8,000 tonnes.

Owing to the increasing demand for tebuconazole from domestic and overseas market, tebuconazole enjoys fast sale in 2011. As a result, the consumption of 1-(4-Chlorophenyl)-4,4-dimethyl-3-pentanone also goes up with the robust tebuconazole market. It is estimated that the price of 1-(4-Chlorophenyl)-4,4-dimethyl-3-pentanone will witness slip in H1 2012 as the tight supply of 4-chlorobenzaldehyde and pinacolone will be alleviated and their prices will go down correspondingly.

TABLE4: Key producers of 1-(4-Chlorophenyl)-4,4-dimethyl-3-pentanone in China, Dec. 2011

Company Capacity, t/a

Binhai Baiyun Chemical Co., Ltd. 4,000

Rudong Zhongyi Chemical Co., Ltd. 2,300

Zhangjiagang City Zhenfang Chemical Co., Ltd. 2,000

Suzhou Dedicated Pharmaceutical Co., Ltd. 1,000

Jiangsu Haiyibo Chemical Co., Ltd. 800




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Both import and export of fungicides rise in Q1-Q3 2011

Recently, the General Administration of Customs of the People's Republic of China (GAC) has released

the result of China's pesticide import and export in the first three quarters of 2011, showing that both import and export of fungicides have witnessed increase to a certain extent.

All in all, the import and export volumes of pesticides have reached around 41,000 tonnes and 611,000 tonnes respectively (calculated by physical quantity, similarly hereinafter) in China in the first nine months of this year, resulting in a favorable balance of USD1.47 billion.

It is worth noting that the import volume of fungicides is the largest among the three major pesticide categories, namely herbicides, insecticides and fungicides, at home from Jan. to Sept. 2011, hitting about 15,000 tonnes, up 33.40% year on year, accounting for 36.59% of the total import volume of pesticides.

However, the import volumes of both herbicides and insecticides have decreased by 22.40% and 26.00% year on year to about 14,000 tonnes and 5,600 tonnes respectively all over the country in the first nine months of 2011.

In addition, the import value of fungicides has witnessed significant growth of 38.80% year on year in the first three quarters of 2011, accounting for 42.11% of

the import value of pesticides in China. Meanwhile, insecticides and herbicides have seen decreases, down 11.60% and 8.70% compared with those of the same period of last year. In terms of export, compared with insecticides and fungicides, the export volume of herbicides is the largest, reaching 377,000 tonnes and taking up 61.70% of the total export volume of pesticides in China from Jan. to Sept. 2011.

Although the export volume of fungicides is the least than those of herbicides and insecticides in the first nine months of this year, it has increased by 23.80% year on year to 59,000 tonnes, with its export value witnessing a remarkable rise of 43.70% to USD0.29 billion.

The robust demand for fungicides from domestic and overseas market is the most important factor pushing up its import and export in China in the first nine months of this year. It is estimated that both import and export of fungicides will maintain soaring up in the rest of 2011 for the booming fungicide market around the world.

FIGURE 2: China's import volume and export volume of insecticides, herbicides and fungicides, Jan.~Sept. 2011

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

In secticides Herbicides Fungicides

Un

it: t

onne

Import v olume Export v olume

Source: GAC



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FIGURE 3: YOY growth rates of import and export volumes for insecticides, herbicides and fungicides in China, Jan.~Sept. 2011

-40%

-20%

0%

20%

40%

60%

In secticides Herbicides Fungicides

YO

Y g

row

th ra

te

Import Export

Source: GAC

FIGURE 4: Export values and the YOY growth rates of fungicides, insecticides and herbicides in China, Jan.~Sept. 2011

0.0

0.2

0.4

0.6

0.8

1 .0

1.2

Fungicides In secticides Herbicides0%

10%

20%

30%

40%

50%

60%

Expo

rt v

alu

e: b

illio

n U

SD

YO

Y g

row

th ra

te

Value YOY growth rate

Source: GAC

■ Supply & demand

Hisun Chemical's oxine-copper development project passes acceptance

Zhejiang Hisun Chemical Co., Ltd. (Hisun Chemical)'s oxine-copper development project,

one of the Provincial Technical Innovation Projects, has successfully passed the acceptance evaluation recently, according to Zhejiang Province Economic and Information Commission (ZPECIC).

Hisun Chemical's synthetic process of oxine-copper, which is synthesized from 8-hydroxyquinoline and copper sulfate, has several advantages, such as refined product quality, high yield, easy operation and so on.

Thanks to the mature production craft, Hisun Chemical's oxine-copper is highly praised by the Inspection and Acceptance Committee consisting of five specialists. To better promote oxine-copper, Hisun Chemical has set a series of product marketing objectives as follows: the long-term goal is to make oxine-copper one of the famous fungicide brands and the company's competitive product in the next ten years.

The medium-term goal is to achieve annual sales volume of 500 tonnes (calculated by physical quantity of oxine-copper formulations) and develop oxine-copper into a

flagship fungicide in bacterial disease control of field crops in China in the next five years.

The short-term goal is to rapidly open up domestic fungicide market of economic crops, like vegetables and fruits, which can consume a large quantity of fungicides every year, and gradually set up a good brand image of Hisun Chemical's oxine-copper, promoting its healthy development in the long run.

According to CCM International's investigation, the sales value of Hisun Chemical's oxine-copper is expected to exceed USD1.58 million in 2011; the company's top five domestic sales regions of this organic copper fungicide are Jiangsu, Fujian, Zhejiang, Guangdong and Guangxi respectively.

In 2012, Hisun Chemical will still focus on strengthening the market promotion of its oxine-copper in other regions of China, like Hunan and Hubei. In addition, Hisun Chemical will also explore and extend the overseas market, especially Thailand and Vietnam.

Oxine-copper is a kind of organic copper fungicide with



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high efficiency, broad spectrum and low toxicity, which can prevent and control not only fungal diseases but also bacterial diseases, such as tomato late blight, cucumber downy mildew, Chinese cabbage angular leaf spot, citrus canker, etc., drawing huge attention from some pesticide companies.

As of early Dec. 2011, four companies, namely Hisun Chemical, Sinon Co., Ltd. (Sinon), Kuang Hwa Chemical Co., Ltd. (Kuang Hwa) and Jiatai Enterprise Co., Ltd. (Jiatai Enterprise), have registered oxine-copper

technical and formulations, according to the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA).

Hisun Chemical, established in 1998, is a state-holding enterprise co-invested by the State Development & Investment Corporation (SDIC), Zhejiang Hisun Group and ZMC Co., Ltd. Hisun Chemical's main products include oxine-copper, ascomycin, abamectin, imidacloprid, quizalofop-p-ethyl, fenoxaprop-p-ethyl, etc., most of which are exported to the overseas market.

TABLE5: Registration situation of oxine-copper in China, Jan.~early Dec. 2011

Company Registration Num� ContentEffective

dateExpiry

date

Zhejiang Hisun Chemical Co., Ltd.

PD20096255 95% TC 2009.07.15 2014.07.15

PD20094968 50% WP 2009.04.21 2014.04.21

PD20101862 33.5% SC 2010.08.04 2015.08.04

Sinon Co., Ltd.

PD20095865 98% TC 2009.05.27 2014.05.27

PD20095866 33.5% SC 2009.05.27 2014.05.27

PD20095866F090091 33.5% SC 2011.07.20 2012.07.20

Kuang Hwa Chemical Co., Ltd. LS20100105oxine-copper·triabendazole 53% WP

2011.06.28 2012.06.28

Jiatai Enterprise Co., Ltd. LS20091310 33.5% WP 2011.06.02 2012.06.02

Source: ICAMA

China's pesticide demand to rise 2�48% year on year in 2012

On the whole, the demand for pesticides will hit as high as 313,652 tonnes (calculated by 100%

technical, similarly hereinafter) all over the country in 2012, increasing by 2.48% compared with that in 2011, according to the National Agriculture Technical Extension and Service Center (NATESC).

Although the demand for insecticides is estimated to be the largest among all pesticide varieties, reaching 124,100 tonnes in China in 2012, its YOY growth rate is only 1.20%, lower than those of fungicides, plant growth regulators and acaricides. Thereinto, the demand for organic phosphorus insecticides will reach 91,100 tonnes, accounting for 73.41% of the total insecticide demand.

In addition, the demand for herbicides in 2012 is expected to hit 97,300 tonnes, which is the same as this year's. Major herbicides consumed in domestic market include acetochlor, glyphosate, atrazine, butachlor, paraquat, alachlor, trifluralin and so on.

It is worth noting that China's fungicide demand is predicted to reach 78,100 tonnes in 2012, up 7.26% year on year, accounting for 24.90% of the total pesticide demand; the YOY growth rate of fungicide demand is the third highest, just behind those of acaricides and plant growth regulators.

What's more, some fungicides for seed treatment

of autumn-sown wheat, such as tebuconazole, difenoconazole, propiconazole, silthiopham, fludioxonil, quintozene, triadimenol, diniconazole, etc., will still keep selling well next year.

As for plant growth regulators, its demand will increase by 7.41% year on year to 3,458 tonnes in 2012. In particular, ethephon, mepiquat and paclobutrazol will be the top three categories by demand volume in China, while the demand for brassinolide will encounter a significant drop in the mean time.

It is well known that China's pesticide industry experienced quite a tough period in the past four years due to adverse weather, overcapacity, price hike of raw materials, RMB appreciation, etc. Although the demand for pesticides from domestic is estimated to increase slightly in 2012, Chinese pesticide industry will still face the above predicaments.

Under the circumstances, it is very necessary that domestic pesticide players should be more careful when planning production, improving the market promotion both at home and abroad, accelerating the brand-building, etc., to remain strong in the intense market competition.



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TABLE6: Forecast on pesticide demand by varieties in China, 2012

Pesticides Demand volume, tonne

Insecticides 124,100

Herbicides 97,300

Fungicides 78,100

Acaricides 10,600

Plant growth regulators 3,458

Rodenticides 94

Total 313,652

Source: NATESC

-50.00%

-40.00%

-30.00%

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FIGURE5: Forecast on YOY growth rates of pesticide demand by varieties in China, 2012

Source: NATESC

Zibo Wanchang to expand trimethyl orthoformate to 10,000t/a by H1 2012

According to Zibo Wanchang Science & Technology Co., Ltd. (Zibo Wanchang), the largest producer

of trimethyl orthoformate in China, the project of its additional trimethyl orthoformate production line with a capacity of 7,000t/a will be successfully completed by H1 2012.

After completion of this expansion, Zibo Wanchang's capacity of trimethyl orthoformate, an important intermediate of azoxystrobin, will reach 10,000t/a from the current 3,000t/a, which can greatly enhance the company's supply capability and integrate competitiveness.

Specifically, Zibo Wanchang will totally invest USD15.14 million in two projects, namely 7,000t/a trimethyl orthoformate and 6,000t/a triethyl orthoformate, including construction investment of USD11.04 million and flow funds of USD4.10 million respectively.

It is well known that Zibo Wanchang successfully got listed in Shenzhen Stock Exchange in May 2011, after which it has raised a large amount of funds, about USD74.37 million. Moreover, the construction of7,000t/a trimethyl orthoformate production line belongs to one of its IPO projects.

Owing to the enhanced promotion and good product quality, Zibo Wanchang's trimethyl orthoformate has been in popularity in recent years. Meanwhile, the company's output of trimethyl orthoformate has witnessed increase, hitting 7,600 tonnes in the whole year of 2010, while it was only around 1,900 tonnes in 2007.

Most trimethyl orthoformate of Zibo Wanchang is exported to foreign countries, such as Germany, the U.S., India, Brazil, Japan, South Korea, etc. What's more, Zibo Wanchang has established sound partnership with Syngenta, the largest producer of azoxystrobin in the world. Zibo Wanchang has been supplying its trimethyl orthoformate to Syngenta since June 2008, with the accumulative supply volume hitting about 1,800 tonnes from Jan. to early Sept. 2011.

Trimethyl orthoformate is mainly used to produce azoxystrobin, an excellent strobilurin fungicide, whose sales value in the global market is the largest among all fungicides, exceeding USD1.0 billion in 2010. With the patent expiration in 2010, azoxystrobin's capacity has witnessed significant growth in China, greatly pushing up the consumption of its upstream industries, namely raw materials and intermediates of azoxystrobin.



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As a result, the demand for trimethyl orthoformate from not only foreign countries but also China will go up to a great extent in the near future. It is expected that Zibo Wanchang will capture more market share and more handsome profit through this expansion of trimethyl orthoformate, thanks to its bright market prospect.

Zibo Wanchang, established in 2000, is engaged in the production and sales of trimethyl orthoformate, triethyl orthoformate and ethyl formate. In line with the plan of Zibo Wanchang, the company's revenue is expected to reach about USD78.90 million (RMB500 million) in 2012.

■ Registration

Fungicides in hot registration in Q3 2011

Statistics from the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA)

show that fungicides are in hot registration in China in the third quarter of 2011 as more and more companies are paying attention to the fungicide industry aided by its bright market prospect both at home and abroad.

All in all, 233 registrations of pesticide products have been approved by ICAMA in China from July to Sept. of this year, including 42 for technical registrations and 191 for formulation registrations, with 145 formal and 88 temporary.

In addition, the data on the pesticide registration in China in the third quarter of this year does not cover the records of repacking registrations and formal registrations transformed from temporary registrations.

In terms of fungicides, the registration quantity of technical has reached 13, accounting for 30.95% of the total pesticide technical, ranking the second place among all pesticide varieties registered in Q3 2011.

It is particularly worth noticing that triazole fungicides, the largest fungicide category in global fungicide market, are the most popular registered products in the third quarter of this year. In detail, popular registered fungicides include difenoconazole, tebuconazole,

propiconazole, dimethomorph and prochloraz respectively.

It is not hard to see that the registration quantity of difenoconazole, tebuconazole and propiconazole which all belong to triazole fungicides, has hit 24 from July to Sept. of 2011, accounting for 60.00% of the total popular fungicides. Thereinto, difenoconazole is in the first place with the registration quantity of 11 among all popular fungicides registered.

Seven registrations of tebuconazole, the largest triazole fungicide category by market value worldwide, are composed of one for technical and six for single formulations in Q3 2011. Moreover, four registrations of tebuconazole technical have been approved by ICAMA since early 2011.

According to CCM International's investigation, by technical output, tebuconazole is the largest triazole fungicide in China, with about 8,000 tonnes of technical produced in 2010. Owing to the increasing demand for tebuconazole from domestic and overseas market, its output is estimated to keep going up in 2011.

Propiconazole ranks the third place in the registration quantity among all popular triazole fungicides in Q3 2011. Thanks to its excellent control effect on various

0

1 ,000

2,000

3,000

4,000

5,000

6,000

7 ,000

8,000

2007 2008 2009 2010

Ou

tpu

t: to

nne

FIGURE 6: Zibo Wanchang’s output of trimethyl orthoformate, 2007~2010

Source: Zibo Wanchang



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CCM

crop diseases, the demand for propiconazole from domestic market has exceeded 2,500 tonnes (calculated by AI) in 2010.

Among 233 pesticide registrations, 10 new active ingredients are approved by ICAMA in the third

quarter of this year, including 4 for fungicides and 6 for herbicides. Thereinto, these four new active ingredients of fungicides include pyrimorph, pyrametostrobin, cyproconazole and trichoderma harzianum respectively.

TABLE7: Registration quantity of pesticides in China, Q3 2011

Pesticide Technical Formulation

Insecticides 186Acaricides

Molluscicides3

Fungicides 1364

Nematicides 0

Herbicides 24 39

Plant growth regulators 1 2

Total 42 191

Note: The registration quantity does not cover the records of repacking registrations and formal registrations transformed from temporary registrations.Source: ICAMA

TABLE8: Registration quantity of popular fungicides in China, Q3 2011

Fungicide Technical Single formulation Mixed formulation Total

Difenoconazole 0 5 6 11

Dimethomorph 0 7 2 9

Tebuconazole 1 6 0 7

Prochloraz 1 5 1 7

Propiconazole 0 3 3 6

Note: The registration quantity does not cover the records of repacking registrations and formal registrations transformed from temporary registrations.Source: ICAMA

TABLE9: Registration situation of new fungicide active ingredients in China, Q3 2011

Active ingredient Content Company

Pyrimorph 95% TC, 20% SC Jiangsu Frey Agrochemicals Co., Ltd.

Pyrametostrobin 95% TC, 20% SC Shenyang Sciencreat Chemicals Co., Ltd.

Cyproconazole 95% TC Jiangsu Fengdeng Pesticide Co., Ltd.

Trichoderma harzianum 30 billion cfu/g TK, 0.3 billion cfu/g WP BioWorks

Source: ICAMA



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Registration of kresoxim-methyl formualtions witnesses increase in 2011

Registration quantity of kresoxim-methyl formulations has witnessed increase to a great extent

in China since early 2011, reaching six, accounting for 54.54% of the total registrations of kresoxim-methyl formulations, according to the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA).

It can be observed from the above figure that the registration quantity of kresoxim-methyl formulations was very small, accumulatively hitting five from 2007 to 2010. Moreover, there was no registration on kresoxim-methyl in the whole year of 2008 (only one repacking registration).

10 companies have acquired 11 registrations of kresoxim-methyl formulations in China as of early Dec. 2011, including 1 for mixed formulation and 10 for single formulations. What's more, the registration of kresoxim-methyl 30% SC is the hottest one, with the second place taken by 50% WDG and 30% WP.

Kresoxim-methyl, developed by BASF, is a kind of strobilurin fungicide which is the fastest-growing fungicide in terms of sales revenue all over the world. It is well known that the administrative protection of BASF's kresoxim-methyl in China has expired on 24 June 2011, which is one of the key factors spurring its registration.

It is estimated that more and more companies will register and produce kresoxim-methyl formulations in the near future with its expired administrative protection and excellent control effect on various crop diseases, such as cucumber powdery mildew, tomato blight, grape downy mildew, pear scab, etc.

According to CCM International's investigation, some domestic pesticide companies, like Nanjing Boshibang Chemical Technology Co., Ltd. and Qingdao Hailier Pesticides and Chemicals Co., Ltd., are expected to obtain related registrations of kresoxim-methyl formulations soon.

FIGURE 7: Registration situation of kresoxim-methyl in China, 2007~early Dec. 2011

0

1

2

3

4

5

6

7

2 007 2 008 2 009 2 01 0 Ja n .~ea r lyDec. 2 01 1

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atio

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Note: The registration of kresoxim-methyl does not include repacking registrations.Source: ICAMA

TABLE 10: Registration situation of kresoxim-methyl in China, Dec. 2011

CompanyRegistration

Num�Content

Effective date

Expiry date

BASF

PD20070124 50% WDG 2007.05.18 2012.05.18PD20070135 94% TC 2007.05.29 2012.05.29

PD20101017kresoxim-methyl·boscalid 300g/L SC

2010.01.20 2015.01.20

Shandong Jingbo Agrochemicals Co., Ltd.PD20095289 30% WP 2009.04.27 2014.04.27PD20090799 95% TC 2009.01.19 2014.01.19

Jiangsu Frey Agrochemicals Co., Ltd. PD20095664 95% TC 2009.05.13 2014.05.13

Anhui Huaxing Chemical Co., Ltd.PD20098011 95% TC 2009.12.07 2014.12.07PD20102116 30% SC 2010.12.21 2015.12.21

Qingdao Jiner Agrochemicals Research & Development Co., Ltd. LS20100093 30% SC 2011.06.03 2012.06.03Shaanxi Tangpusen Biotechnology Co., Ltd. LS20110070 60% WDG 2011.04.01 2012.04.01Shaanxi Weirqi Crop Protection Co., Ltd. LS20110071 40% SC 2011.04.01 2012.04.01Shaanxi Meibang Pesticides Co., Ltd. LS20110234 50% WP 2011.09.08 2012.09.08Dongguan Ruidefeng Bio-tech Co., Ltd. PD20110611 50% WDG 2011.06.07 2016.06.07Shaanxi Biaozheng Crop Science Co., Ltd. PD20111129 30% SC 2011.10.28 2016.10.28Maifon Agricultural Chemicals Co., Ltd. PD20111308 30% WP 2011.11.24 2016.11.24

Note: The registration of kresoxim-methyl does not include repacking registration.Source: ICAMA



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CCM

■ Price

Monthly ex-factory and market prices of key fungicide raw materials, Dec� 2011

Raw material/intermediate

Ex-factory price Market price

10 Dec. 2011 10 Nov. 2011 Dec. 2010 10 Dec. 2011 10 Nov. 2011 Dec. 2010

USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t

2,6-Dimethyl aniline 8,775 55,800 8,750 55,500 8,602 57,450 8,846 56,250 8,821 55,950 8,684 58,000

2,4,6-Trichlorophenol 2,202 14,000 2,065 13,100 - - 2,225 14,150 2,136 13,550 - -

o-phenylenediamine 5,473 34,800 5,439 34,500 - - 5,544 35,250 5,510 34,950 - -

M-xylene 2,013 12,800 2,018 12,800 1,662 11,100 2,084 13,250 2,089 13,250 1,744 11,650

Ethylenediamine 5,268 33,500 5,124 32,500 - - 5,339 33,950 5,195 32,950 - -

1,2,4-Triazole 5,520 35,100 5,558 35,250 6,438 43,000 5,591 35,550 5,629 35,700 6,521 43,550

Sulphur 354 2,250 363 2,300 207 1,380 425 2700 434 2750 289 1,930


Monthly ex-factory prices of main fungicides, Dec� 2011

Technical 10 Dec. 2011 10 Nov. 2011 Dec. 2010 Formulation 10 Dec. 2011 10 Nov. 2011USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t RMB/t

Dimethomorph 95%TC 17,142 109,000 17,272 109,550 16,388 109,450 50% WP 9,554 60,750 9,476 60,100

Chlorothalonil 98%TC 4,010 25,500 3,240 20,550 4,192 28,000 75% WP 3,075 19,550 2,925 18,550

Mancozeb 90%TC 3,224 20,500 3,177 20,150 3,594 24,000 80% WP 2,988 19,000 2,704 17,150

Isoprothiolane 97%TC 5,276 33,550 5,369 34,050 5,158 34,450 - - - - -

Carbendazim 98%TC 5,158 32,800 5,132 32,550 5,607 37,450 50% SC 3,538 22,500 3,477 22,050

Thiophanate-methyl 96%TC 5,040 32,050 4,896 31,050 5,158 34,450 70% WP 4,569 29,050 5,211 33,050

Phosethyl-Al 97%TC 2,996 19,050 3,004 19,050 2,837 18,950 - - - - -

Triadimefon 95%TC 9,515 60,500 9,389 59,550 7,883 52,650 15% WP 2,674 17,000 2,609 16,550

Tebuconazole 97%TC 12,746 81,050 12,700 80,550 11,597 77,450 43% SC 5,669 36,050 5,684 36,050

Tricyclazole 95%TC 7,950 50,550 8,049 51,050 8,452 56,450 - - - - -

Propiconazole 95%TC 21,231 135,000 22,633 143,550 23,875 159,450 - - - - -

Metalaxyl 98%TC 15,498 98,550 15,538 98,550 13,992 93,450 - - - - -

Prochloraz 97%TC 9,365 59,550 8,987 57,000 6,656 44,450 25% EC 3,704 23,550 3,547 22,500

Difenoconazole 95%TC 28,080 178,550 27,994 177,550 29,565 197,450 10% WDG 6,762 43,000 6,709 42,550

Propamocarb 98%TC 6,888 43,800 6,906 43,800 7,105 47,450 - - - - -

Cymoxanil 98%TC 9,208 58,550 9,231 58,550 - - - - - - -

Note: The content of hexamethylbenzene in chlorothalonil 98% TC is 40ppm. The color of carbendazim 98% TC is white.




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Monthly Shanghai port prices and FOB Shanghai of main fungicides, Dec� 2011

Technical

Shanghai port price FOB Shanghai

Formulation

Shanghai port price

10 Dec.2011

10 Nov.2011

Dec.2010

10Dec.2011

10 Nov.2011

10 Dec. 2011 10 Nov. 2011

USD/t RMB/t USD/t RMB/t USD/t RMB/t USD/t USD/t USD/t RMB/t USD/t RMB/t

Dimethomorph 95%TC 17,213 109,450 17,343 110,000 16,471 110,000 16,554 16,679 50% WP 9,625 61,200 9,547 60,550Chlorothalonil 98%TC 4,081 25,950 3,311 21,000 4,275 28,550 3,987 3,251 75% WP 3,145 20,000 2,996 19,000Mancozeb 90%TC 3,295 20,950 3,248 20,600 3,676 24,550 3,235 3,190 80% WP 3,059 19,450 2,775 17,600Isoprothiolane 97%TC 5,347 34,000 5,439 34,500 5,241 35,000 5,199 5,287 - - - - -Carbendazim 98%TC 5,229 33,250 5,203 33,000 5,690 38,000 5,086 5,061 50% SC 3,609 22,950 3,547 22,500Thiophanate-methyl 96%TC 5,111 32,500 4,966 31,500 5,241 35,000 4,973 4,835 70% WP 4,639 29,500 5,282 33,500Phosethyl-Al 97%TC 3,067 19,500 3,074 19,500 2,920 19,500 3,016 3,024 - - - - -Triadimefon 95%TC 9,585 60,950 9,460 60,000 7,966 53,200 9,255 9,135 15% WP 2,744 17,450 2,680 17,000Tebuconazole 97%TC 12,817 81,500 12,771 81,000 11,679 78,000 12,348 12,304 43%SC 5,740 36,500 5,755 36,500Tricyclazole 95%TC

8,021 51,000 8,120 51,500 8,535 57,000 7,757 7,853 - - - - -

Propiconazole 95%TC 21,302 135,450 22,704 144,000 23,957 160,000 20,467 21,810 - - - - -Metalaxyl 98%TC 15,569 99,000 15,609 99,000 14,075 94,000 14,981 15,020 - - - - -Prochloraz 97%TC 9,436 60,000 9,058 57,450 6,738 45,000 9,112 8,750 25% EC 3,774 24,000 3,618 22,950Difenoconazole 95%TC 28,150 179,000 28,065 178,000 29,647 198,000 27,022 26,940 10% WDG 6,833 43,450 6,780 43,000Propamocarb 98%TC 6,959 44,250 6,977 44,250 7,187 48,000 6,741 6,759 - - - - -Cymoxanil 98%TC 9,279 59,000 9,302 59,000 - - 8,961 8,984 - - - - -

Note: Shanghai port price =ex-factory price plus transport fee from production plant to Shanghai port FOB price =port price + handing and THC +trading companies′ Profit


Monthly market prices of main crops, Dec� 2011

Crops10 Dec. 2011 10 Nov. 2011 Dec. 2010

USD/t RMB/t USD/t RMB/t USD/t RMB/t

Wheat 336 2,138 334 2,118 319 2,133

Yellow maize 355 2,260 363 2,302 292 1,948

Peanut Kernel 1478 9,400 1,719 10,900 1,378 9,200

Indica rice 609 3,871 583 3,700 428 2,856

Japonica rice 633 4,026 631 4,000 587 3,917

Banana 928 5,900 914 5,800 524 3,500

Cucumber 346 2,200 300 1,900 329 2,200

Apple 865 5,500 741 4,700 898 6,000




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CCM

Ex-factory price of prochloraz technical turns high in early Dec� 2011

According to CCM International's monthly price monitoring, the ex-factory price of prochloraz 97%

TC has turned high, reaching around USD9,365/t in early Dec. 2011, up 4.21% compared with that in the previous month.

Generally speaking, the ex-factory price of prochloraz 97% TC has shown a significant increase in the whole year of 2011, and it has been fluctuating at a high level since early April of this year, exceeding USD8,900/t. It is particularly worth noting that the ex-factory price of prochloraz 97% TC has peaked in May 2011, hitting USD10,238/t.

Recently, some leading domestic manufacturers, such as Jiangsu Huifeng Agrochemical Co., Ltd. (Jiangsu Huifeng), Nanjing Redsun Co., Ltd. (Nanjing Redsun), Rosi Chemical Co., Ltd. (Rosi Chemical), etc., have raised their ex-factory prices of prochloraz technical, including 97% TC.

The increasing prices of raw materials are one of the main factors pushing up the ex-factory price of prochloraz technical. For instance, the ex-factory price of 2,4,6-trichlorophenol, key intermediate of prochloraz, has increased to about USD2,202/t in early Dec. 2011, up 6.63% over last month.

In addition, domestic price of prochloraz technical is greatly impacted by the overseas demand, as over 60% of the product is exported to foreign countries and regions, such as Europe, Southeast Asia, the U.S., etc. With the coming of export peak season, the demand for prochloraz technical is showing an uptrend recently. As a consequence, its price soars up.

Last but not least, some domestic producers of prochloraz technical , such as Shaanxi Qinfeng Agricultural Co., Ltd., Shaoxing Donghu Bio-chemical Co., Ltd., etc., have gradually stopped their productions in recent years due to the strict policy of energy saving and emission reduction. Under the circumstances, the supply of prochloraz technical is quite tight when its demand is very robust in a short time, driving up the price of the product.

It is estimated that the ex-factory price of prochloraz 97% TC will fluctuate between USD9,000/t and USD9,500/t by late Dec. 2011, maintaining at this price level for some time. And then it will witness a slight rise in the near future, according to Mr. Rui, a staffer from Nanjing Redsun.

FIGURE 8: Ex-factory price of prochloraz 97% TC in China, Jan.~Dec. 2011

0

2,000

4,000

6,000

8,000

10,000

12,000

Jan. Feb. March April May June July Aug. Sept. Oct. Nov. Dec.

Un

it: U

SD/t


■ Disease

Wheat stripe rust occurs seriously in Gansu recently

Recently, wheat stripe rust has seriously occurred in winter wheat planting regions of Gansu, one of the

major wheat planting provinces in China. Statistics from the Plant Protection Station of Gansu (PPSG) show that the total stricken area of winter wheat stripe rust has

accumulatively reached 230,300 ha., up 30% year on year as of mid-Nov. 2011.

Actually, to prevent and control winter wheat diseases and insect pests, mainly including stripe rust, take-all,



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CCM

powdery mildew, grub, midge, aphid, etc., the seed treatment area of autumn-sown wheat with pesticides has hit as large as 489,933 ha. accounting for 86.15% of the total planting area of winter wheat in Gansu this year.

However, the occurrence of wheat stripe rust in winter wheat planting regions of Gansu is still more severe than that estimated by PPSG in early Sept. 2011. Three main reasons are responsible for the serious occurrence of wheat stripe rust in major winter wheat planting regions of Guansu, like Tianshui, Longnan, Pingliang and so on.

First, more precipitation and higher temperature are favorable to the multiplication and spread of wheat stripe rust in the fields of winter wheat in Gansu from late Oct. to early Nov. 2011.

Second, many winter wheat varieties sown in most regions of Gansu have little or even no resistance

against wheat stripe rust. Under the circumstances, this disease is very easy to infect wheat at the seedling stage.

Last but not least, many peasants, especially those in remote mountainous areas of Guansu, have not fully realized the importance of seed dressing technology with pesticides of autumn-sown wheat, and thus early preventive measures are not effective enough, resulting in the frequent occurrence of diseases, including wheat stripe rust.

With the serious occurrence of wheat stripe rust, the demand for highly-effective and low-toxicity fungicides, particularly triazole fungicides, such as triadimefon, tebuconazole, propiconazole, diniconazole, etc., witnesses increase to a certain extent in most planting regions of winter wheat in Guansu at present.

■ Product

Kasugamycin needs to strengthen promotion

The market share of kasugamycin, an aminoglycoside antibiotic widely used to prevent and control rice

blast, is relatively small in China. It even has been experiencing ruthless crush from some chemical fungicides in recent years. Under the circumstances, to vigorously strengthen the promotion of kasugamycin is now at the top of the agenda of kasugamycin producers and players.

In the 1990s, North China Pharmaceutical Group Aino Co., Ltd. (North China) is the earliest kasugamycin TK producer in China. At present, other key domestic producers include Yanbian Chunlei Biochemical Reagents Co., Ltd. (Yanbian Chunlei), Shaanxi Green Shield Biological Products Co., Ltd. (Green Shield) and Jixi Nonghua Biological Technology Co., Ltd. (Jixi Nonghua).

Among these four domestic producers, Yanbian Chunlei is the largest kasugamycin TK producer with the total capacity of 500t/a so far, accounting for about 50% of the national total. Mr. Qu, Deputy General Manager of Yanbian Chunlei, revealed that the number of kasugamycin formulation companies was no less than 100 in China in the most prosperous period of kasugamycin market—around 2000, while it has witnessed sharp decline ever since, decreasing to about 40 in late 2011.

It can be observed from the figures mentioned above

that the market share of kasugamycin has been gradually shrinking in domestic market. With the decreasing demand from downstream industries, China's annual output of kasugamycin TK has reduced to about 200 tonnes (calculated by 50% TK) in recent three years (2008-2010).

In detail, Yanbian Chunlei's output of kasugamycin TK was about 120 tonnes in 2010, accounting for about 60% of the national total, with the operating rate of only 24%. What is worse, the situation has lasted for a few years (2008~2010), which has also happened to other domestic companies.

"Although our company's sales volume of kasugamycin products is the largest among all key domestic producers, antibiotics fungicides have not been adequately promoted in many regions of China" said Mr. Qu.

According to CCM International's survey, domestic marketing regions of Yanbian Chunlei's kasugamycin mainly cover Guangdong, Guangxi, Hunan, Hubei, Sichuan, Shaanxi, Jilin, Shandong, etc. In addition, about 50% of kasugamycin products are exported to foreign countries, such as Vietnam, Indonesia, Thailand and so forth.

For the slow control effect, the popularization of kasugamycin has confronted many barriers just as most



Vol.4 Issue 12 2011

CCM

■ Brief news

Grain risk fund subsidy to reach about USD4�95 billion in China in 2012

On 5 Dec. 2011, the Ministry of Finance of the People's Republic of China (MOF) released that grain risk fund subsidy will reach about USD4.95 billion (RMB31.50 billion) all over the country in 2012 to better promote stability of the grain circulation market and ensure national food security.

China's grain yield up 4�5% year on year in 2011

Data from the National Bureau of Statistics of China (NBS) shows that China's grain yield hits 571.21 million tonnes in 2011, up 4.5% year on year.

China's fungicide output reaches 126,700 tonnes in the first ten months of 2011

The output of fungicides has witnessed increase in China from Jan. to Oct. 2011, reaching 126,700 tonnes, up 2.2% compared with that of last year. Thereinto, the top three

provinces by fungicide output include Jiangsu, Zhejiang and Shandong, with outputs of 57,800 tonnes, 10,500 tonnes and 6,200 tonnes respectively.

Jiangsu Huifeng to change IPO projects

On 24 Nov. 2011, Jiangsu Huifeng Agrochemical Co., Ltd. (Jiangsu Huifeng), the largest prochloraz technical producer in China, declared that it will remove capital from two initial public offering (IPO) projects (10,000t/a bromoxynil octanoate technical project and the basic-level construction of pesticide sales network) to run newly invested projects, namely a Good Laboratory Practice (GLP) laboratory and a marketing center.

MOA to build 228 key laboratories by 2015

Recently, the Ministry of Agriculture of the People's Republic of China (MOA) revealed that a total 228 key laboratories covering agricultural fields, such as rice, corn, wheat, soybean, cotton, etc., will be built in China by the end of 2015.

Interaction ColumnPlease click HERE to send your comments and topics you are interested in.

other biopesticides did. For instance, the market share of kasugamycin in China's major rice planting areas has suffered carve-up by chemical fungicides including tricyclazole, isoprothiolane, tebuconazole, prochloraz, fenoxanil and so on.

But it is very encouraging that Chinese government will attach more and more attention on the development of biopesticides with the public's increasing consciousness about environmental protection and food safety in the

next few years. It is expected that kasugamycin will enjoy impressive opportunities to make great progress. Therefore, domestic producers of kasugamycin should further strengthen their product promotions to enlarge their market share of this fungicide.

TABLE11: Key producers of kasugamycin TK in China, Dec. 2011

Company Capacity, t/a

Yanbian Chunlei Biochemical Reagent Co., Ltd. 500

North China Pharmaceutical Group Aino Co., Ltd. 300

Shaanxi Green Shield Biological Products Co., Ltd. 200

Jixi Nonghua Biological Technology Co., Ltd. 100


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Journalist: Echo Ju, Mingeos HuangEditor: Peony WangChief Editor: Hongxiang DuPublisher: CCM International Limited

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