Sample-Fungicides China News

Fungicides China News
Vol.6 Issue 01 2013
Copyright Guangzhou CCM Information Science & Technology Co., Ltd.
CCM Newsletter
Fungicides China News 1301
Contents
Editor's note ....................................................................................................................... 1 Market analysis .................................................................................................................. 3 Corn fungicides: an increasing market.................................................................... 3 Seed treatment agents for potato to increase ......................................................... 5 Company dynamics ........................................................................................................... 6 SYRICI approved to be National Technology Innovation Demonstration Enterprise .................................................................................................................... 6 Huifeng Agrochemical's biggest shareholder pledges stocks again ................... 8 Yangnong Chemical's fungicide business to be enhanced .................................. 9 Jiangsu Sword to consolidate fungicide position ................................................ 10 Taizhou Bailly strengthens fungicide business .................................................... 11 Product.............................................................................................................................. 12 Xian MPC temporarily registers bupirimate in China .......................................... 12 Sevencontinent Green obtains temporary registration of cyproconazole in China .......................................................................................................................... 13 Registration ...................................................................................................................... 14 New fungicide technical registrations in 2012 ...................................................... 14 Four fungicides' application for formal registration unapproved....................... 17 Price .................................................................................................................................. 19 Price update in Jan. 2013 ........................................................................................ 19 Most fungicides' prices decrease in 2012 ............................................................. 21 Brief news ......................................................................................................................... 23
Editor's note
Products' quality problem, especially pesticide residue problem, has been existing in China for a long time. This situation didn't change in 2012. In the eye of the public, pesticides still play an inglorious role.
A report released by Greenpeace in April 2012 said that tea products made by top Chinese companies contain residues of banned pesticides, which shocked the public. Later in 2012, paper bags containing pesticides, mainly fungicides, were reported to be used for fruit bagging, angering the public again.
However, pesticides should not be criticized so much. In 2012, China's grain production recorded a new high, which could not be achieved without pesticides. China need to produce more grain to meet the increasing demand, indicating more pesticide application in the future.
Undoubtedly, China's governments and pesticide companies should do more to guide farmers to apply pesticides lawfully and scientifically in order to provide adequate and safe food for the people.
1
www.cnchemicals.com Copyright Guangzhou CCM Information Science & Technology Co., Ltd. E-mail: [email protected]
CCM Newsletter
Headlines Corn fungicides' market will be more and more important with the adjustment of crop planting structure in China.
Target company screening for PE investments Among hundreds of thousands of companies in China, how to find the companies with high growth potential and true value? Who are those urgently seeking for investments and with high potential of
Seed treatment agents for seed potato may witness fast development in the near future.
profitable returns and relatively low risks? With China's economic expansion going on, a huge number of private companies have been growing fast and facing tight cash flow, thus in bad need of
MIIT and MOF jointly release the list of 2012 National Technology Innovation Demonstration Enterprise recently and SYRICI is the only pesticide company (institute) on the list.
investments.
But
they
find
it
hard
to
get
loans
from
China's state-owned banks. While at the same time, with information explosion, it has become increasingly challenging for those investors with abundant funds to find companies with true value to invest in.
Huifeng Agrochemical's biggest shareholder, Zhong Hangen, continues to pledge his shares in Dec. 2012. With a research team backed by professional research methods as well as years of accumulated industry knowledge, CCM can help Yangnong Chemical plans to set up a new pesticide production subsidiary in Jiangsu Province and its fungicide business is expected to be enhanced with this project. investors screen out a list of private companies with high growth potential and urgent needs to seek for PE investments from the thousands of companies in China. CCM provides neutral analysis reports on companies screened out, to help PE firms understand Jiangsu Sword aims to reinforce its fungicides' market position by launching some products with bright market prospect. If you have any questions, you can feel free to contact us. (Tel: Taizhou Bailly will expand azoxystrobin capacity and upgrade fluazinam production line. +86-20-3761-6606 Fax: +86-20-3761-6968 Email:[email protected] Website: http://www.cnchemicals.com) Xi'an MPC acquires two temporary registrations of bupirimate 97% TC and 25% ME in mid-Dec. 2012, assisting it to earn much more profits in the future. Market reports >> Market Analysis of Major Fungicides in China >> Guide of Coming Off-patent Agrochemical Active Ingredients Sevencontinent Green becomes the third company to obtain cyproconazole TC registration in China. >> Company Profile of Chinese Pyridine Manufacturers >> Production and Market of Azoxystrobin in China >> Data report-Epoxiconazole Survey in China 69 new registrations (not including the update of old ones) of fungicide technical are approved in China in 2012. >> Overview of Pesticide Industry in China 2012-2016 >> Data report-Production Situation of Myclobutanil in China Newsletters related to fungicides The application for formal registrations of four fungicides are unapproved by National Pesticide Registration Review Committee in H2 2012, including pythium oligadrum, ethirimol, berberine and physcion. >> AgriChina Investor >> Crop Protection China News >> Crop Protection South America Monthly Report >> Herbicides China News >> Glyphosate China Monthly Report Prices of most fungicides decrease in 2012. >> Insecticides China News >> Seed China News target companies investment intentions better.
2
CCM Newsletter
Market analysis Corn fungicides: an increasing market

China's corn output hit a new record of about 208.12 million tonnes in 2012, up 8.0% year on year, according to recent estimates from National Bureau of Statistics. With an output that is 3.83 million tonnes more than rice, corn has become the biggest crop in China by output. With the adjustment of crop planting structure, demand structure of pesticides will also change and corn fungicides' market will become more important in domestic pesticide industry. To maintain self-sufficiency in corn, it is expected that China will The new record corn output in China is mainly boosted by the increasing planting area. Supported by the strong price, the planting area of corn in China has increased very quickly in the past few years. In fact, China's corn planting area exceeded that of wheat in 2002 and that of rice in 2007, becoming the largest crop in China by planting area. Moreover, it is expected that corn release more policies to enlarge the planting area of corn. China's corn planting area may reach 36.66 million ha. in 2020, 3.24 million ha. more than that in 2011, according to an article from Mr. Han Changfu, Minister of Agriculture of China. (The article was published in People's Daily, an official newspaper of China, in early 2012). Domestic demand for corn has witnessed a huge increase in recent years, and China has tried very hard to increase corn production to meet the rising demand. However, it still has to import a large amount of corn since 2010 to meet the gap. will maintain a higher growth rate of planting area compared with other crops such as wheat and rice.
FIGURE 1: Planting areas of rice, wheat and corn in China, 2001-2011
Source: National Bureau of Statistics of China
In addition to the increasing planting area, imitative breeding of corn is very common at home and the homogenization of corn varieties would cause the increasing risk of outbreaks of diseases in China, which also will boost demand for fungicides. Some corn diseases like corn stalk rot, rough dwarf disease and leaf blight, are likely to occur seriously in the future.
As revealed by Han Junqiang, Sales Director of Shanxi Tunyu Seed Industry Co., Ltd., most corn planting varieties in Huang-Huai-Hai Plain, the largest corn planting base in China, have similar genetic background. Mr. Han believes that the successive planting of the same or similar corn varieties would cause great potential risks for disease occurrence.
3
CCM Newsletter
Zhang Shihuang, Chief Expert of National Corn Industrial Technology System, worries that corn stalk rot would probably break out in Huang-Huai-Hai Plain in future. In recent years, most corn varieties released in Huang-Huai-Hai Plain are susceptible to corn stalk rot. The enlarged planting of susceptible varieties has increased the potential occurrence risk of corn stalk rot.
Insiders also reveal that continuous cropping will also increase the occurrence of diseases. Due to a lack of farmlands, continuous cropping for corn and other crops is inevitable in China, which, however, increasing the possibility for disease occurrence.
According estimate released by National Agro-tech Extension & Service Center (NATESC) in July 2012, the total corn disease occurrence area was 20 million ha. in 2012, which provides a huge market for pesticide companies. Furthermore, both demand and price of corn fungicides are expected to witness increase in the future. Therefore, pesticide companies should pay more attention to this market.
TABLE 1: China's corn disease occurrence area, 2012 Disease Leaf blight Helminthosporium maydis Head smut Common smut Brown spot Curvularia leaf spot disease Rust Sheath blight Rough dwarf disease Others Total Affected area, million ha. 5.18 3.43 1.73 0.72 2.34 1.73 0.73 1.67 1.07 1.40 20.00
Note: The data are from an estimate released by National Agro-tech Extension & Service Center in July 2012. Source: NATESC
FIGURE 2: Major corn production bases in China, 2011
Source: Ministry of Agriculture of China
4
CCM Newsletter
Seed treatment agents for potato to increase

"There are totally 337 seed treatment registrations in China till Nov. 2012. Moreover, the expansion of domestic seed treatment agent market will stimulate over 180 pesticide enterprises to enter the market and the registered number of seed treatment agents in the next two to three years will double, reaching over 700." According to Dr. Li Xianbin from the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA). In the past years, potato seed treatment was overlooked for the control of potato diseases. Fortunately, some pesticide
companies and research institutes have recognized the importance of potato seed treatment recently. They are developing and promoting potato seed treatment agents. As reported, properly treated seed has better and uniform germination. Furthermore, rotting rate of seed tuber can be reduced and has excellent prevention and treatment effect
Dr. Li also said that most of the seed treatment agents are registered on corn, wheat, cotton, etc. Naturally, the seed treatment agent market of potato, the fourth largest crop by output in China, owns great potential.
against diseases like late blight, early blight and ring rot.
However, the lack of registered products hinders the promotion of potato seed treatment in China. So far, only five potato seed treatment products have been approved in China, including two
Domestic planting of potato has been increasing very quickly in the past years. In 2011, China's planting area of potato hit 5.51 million ha., increasing by 20.22% over 2004. The output hit 85.73 million tonnes in 2011. It is expected that the planting area will continue to expand with the popularity for potato consumption nowadays. However, the outbreak of some diseases, such as late blight, early blight and ring rot, hinder the development of potato industry as lots of yield loss is caused by these diseases every year.
fungicides. It is far less compared with those on corn and wheat. As a result, some fungicides, such as thiophanate-methyl, propineb, carbendazim and chlorothalonil, which are not registered as potato seed treatment products, are also used by potato growers to treat seed potato. The effects of these products are not very satisfactory and even may hurt the growth of potato sometimes.
With more and more growers recognizing the importance of potato seed treatment, pesticide companies should develop and
In general, the low quality of seed potato (some carry diseases), the large cardinal number of potato late blight pathogen caused by continuous cultivation for many years and the large planting area of susceptible varieties should be to blame for the outbreak of diseases.
register their products first to capture market share.
TABLE 2: Seed treatment agent registrations for potato in China, 20 Nov., 2012 Product Metalaxyl Fludioxonil Thiamethoxam Thiamethoxam* Imidacloprid Formulation 25% FS 25g/L FS 70% ZF 70% ZF 600g/L FS Target Late blight Tar spot Aphid Aphid Grub Dose 31.25-37.5g/100kg seed potato 2.5-5g/100kg seed potato 7-28g/100kg seed potao 7-28g/100kg seed potao 24-30g/100kg seed potato Registrant Gansu Huashi* Syngenta Syngenta Syngenta Bayer
Note: Gansu Huashi*=Gansu Huashi Agricultural Technology Co., Ltd.; Thiamethoxam* is a repackage registration. Source: ICAMA
5
CCM Newsletter
FIGURE 3: China's potato output, tonne, 2004-2011
Source: CCM
Company dynamics SYRICI approved to be National Technology Innovation Demonstration Enterprise

The Ministry of Industry and Information Technology (MIIT) and the Ministry of Finance (MOF) of China jointly released the list of 2012 National Technology Innovation Demonstration Enterprise recently and Shenyang Research Institute of Chemical Industry (SYRICI) is the only pesticide company (institute) on the list, indicating its remarkable R&D capability. Currently, major pesticide R&D researches in China concentrate in research institutes, and few companies directly participate in new pesticides' AI R&D. Research institutes of Chinese pesticides have made great contribution to the industry with valuable scientific achievements. Totally 76 enterprises were on the list. According to MIIT's standards, the selected enterprises should master core technology with independent intellectual property rights and their overall technological level should be in leading position in the industry. Generally, enterprises on the list can get government support more easily. Among these institutes, SYRICI, a subsidiary of Sinochem Group, is the most successful one. It has developed many pesticide products with independent intellectual property rights, most of which are fungicides, such as flumorph, coumoxystrobin, enostroburin, flufenoxystrobin, fenamistrobin, tricyclopyricarb and pyrisoxazole. China's current pesticide R&D ability is still weak compared with developed countries, due to shortage in capital support and unreasonable R&D system. In China, total annual R&D expense on pesticides by pesticide producers only accounts for less than 2% of their annual sales value, much less than that of foreign giants, who expend about 10% of their annual sales value on At present, most fungicides developed by SYRICI have been registered in China. Specifically, pyrisoxazole, pyrametostrobin, pyraoxystrobin, fenamistrobin, enostroburin and flumorph are registered and marketed by Shenyang Sciencreat Chemicals Co., Ltd., a subsidiary of SYRICI. Furthermore, coumoxystrobin R&D.
6
CCM Newsletter
and tricyclopyricarb are registered and marketed by Jilin Bada Pesticide Co., Ltd. and Jiangsu Baoling Chemical Co., Ltd. respectively.
fenamistrobintebuconazole 20% SC (brand name: Aike) are popular in domestic market.
It is expected that SYRICI will continue to extend formulation However, although these products are with independent intellectual property rights, most of them still capture low market shares. Insiders reveal that the sales network and promotion of SYRICI are not as strong compared with oversea companies and domestic leading formulation companies. Currently, only a few products such as flumorph products and registration of its patent AIs and develop more new pesticide AIs. Apart from strengthening the R&D capability, it should also improve its promotion ability in order to seize much more shares or cooperate with strong formulation companies in China to promote its products.
TABLE 3: Valid registrations of fungicides developed by SYRICI, as of 31 Dec., 2012 Registration number PD20093355 PD20080774 PD20080773 LS20110249 LS20110235 LS20120247 PD20096616 PD20095213 PD20095214 PD20096615 PD20096896 PD20095298 PD20070340 PD20070339 PD20060038 PD20060039 PD20070403 PD20095953 PD20095462 PD20090493 LS20100160 LS20100164 LS20120039 LS20120040 LS20120364 Source: ICAMA Product Pyrisoxazole+thiram Pyrisoxazole Pyrisoxazole Pyrametostrobin Pyrametostrobin Pyraoxystrobin+flumorph Fenamistrobin+tebuconazole Fenamistrobin Fenamistrobin Enostroburin+epoxiconazole Enostroburin+cymoxanil Enostroburin+carbendazim Enostroburin Enostroburin Flumorph+mancozeb Flumorph Flumorph+mancozeb Flumorph Flumorph+fosetyl-aluminium Flumorph+fosetyl-aluminium Coumoxystrobin Coumoxystrobin Tricyclopyricarb Tricyclopyricarb Tricyclopyricarb+tebuconazole Content 40% 25% 90% 20% 95% 25% 20% 5% 98% 18% 25% 28% 25% 90% 60% 95% 50% 20% 50% 50% 96% 20% 95% 15% 15% Type SE EC TC SC TC SC SC EC TC SC Shenyang Sciencreat Chemicals Co., Ltd. WP WP EC TC WP TC WP WP WDG WP TC Jilin Bada Pesticide Co., Ltd. SC TC EC SC Jiangsu Baoling Chemical Co., Ltd. Registrant
7
CCM Newsletter
Huifeng Agrochemical's biggest shareholder pledges stocks again

Jiangsu Huifeng Agrochemical Co., Ltd. (Huifeng Agrochemical), the largest prochloraz technical producer in China, announced on 14 Dec., 2012 that Zhong Hangen, the biggest shareholder of the company, pledged the stock rights of 19 million shares on 13 Dec., 2012 to Huatai Securities Co., Ltd. and the purpose for this stock pledge is for private financing. In fact, some other shareholders of Huifeng Agrochemical have already tried to withdraw from the company. Jiuding Capital, a famous equity investment company in China, has been selling its shares of Huifeng Agrochemical. It owns over 10% shares of Huifeng Agrochemical when the company got IPO in 2010, but This is not the first time for Zhong Hangen to pledge his stock rights of Huifeng Agrochemical. Up to 14 Dec., 2012, Zhong Hangen totally pledged 31.91 million shares of Huifeng Agrochemical, accounting for 19.53% of the total shares of Huifeng Agrochemical. At present, Zhong Hangen owns 52.81% shares of Huifeng Agrochemical. In general, the worse-than-expected performance of the company in recent years may be the major reason behind big shareholders' withdrawal. As well known, Huifeng Agrochemical In addition to Zhong Hangen, Tang Zhongyi and Cai Yongjun, the third and fifth biggest shareholders of Huifeng Agrochemical by the end of H1 2012, pledged all of their shares, according to the 2012 semi-annual report of Huifeng Agrochemical. suffered from net profit decrease for two successive years (2010 and 2011). In detail, the company's net profit dropped by 13.46% year on year in 2010 to USD15.81 million (RMB100.71 million); in 2011, its net profit still did not manage to get rid of the decline trend, decreasing to USD9.79 million (RMB62.35 million), down Stock pledge is very common in China in recent years due to fund shortage of company shareholders. However, frequent stock pledges may exert negative effect on the share market, as revealed by insiders. The shares Zhong Hangen and some other shareholders of Huifeng Agrochemical are restricted shares at present, so they can't sell their shares on secondary market to raise capital. However, they can choose to pledge their shares to raise capital. It can be regarded as a way to withdraw from the 38.10% compared with that in 2010. Fortunately, Huifeng Agrochemical's H1 2012 performance was very satisfactory. According to the company's semi-annual report in 2012, its net profit witnessed an increase of 36.06% year on year to USD7.74 million (RMB49.24 million) in H1 2012. its shares declined to 6.18% by the end of H1 2012. And it is reported that Jiuding Capital continued to sell its shares after that. company.
FIGURE 4: Ownership structure of Huifeng Agrochemical, 30 June, 2012
Source: Huifeng Agrochemical
8
CCM Newsletter
Yangnong Chemical's fungicide business to be enhanced

Jiangsu Yangnong Chemical Co., Ltd. (Yangnong Chemical), the largest pyrethroid insecticide player in China, announced on 9 Dec., 2012 that it planned to set up a new pesticide production subsidiary in Rudong County, Jiangsu Province, with a total investment of USD28.52 million. not satisfactory. According to the company's 2012 semi-annual report, in H1 2012, 59.93% and 35.41% of the revenue was from insecticides and herbicides respectively. Revenue from other business only accounted for less than 5%. The company didn't reveal the exact revenue of its fungicide business.
The new subsidiary was temporarily named as Jiangsu Youjia Chemical Co., Ltd. (Jiangsu Youjia) and will be mainly engaged in the production and sales of pesticides and pesticide intermediates, fine chemicals, etc. Yangnong Chemical revealed that the main purpose of setting up the subsidiary was to further expand coastal region markets and enhance its competitiveness in domestic pesticide market.
However, no one believes that Yangnong Chemical will accept the current situation. Some domestic analysts expect that the company's revenue from insecticides, herbicides and fungicides will account for 40%, 40% and 20% of the total respectively in three years.
At present, Yangnong Chemical (including its subsidiaries Ningxia Ruitai Technology Co., Ltd. and Youth Chemical Co.,
The company didn't reveal what kinds of pesticides the new subsidiary will be mainly engaged in, but it is estimated that it will strengthen its fungicide business with this project.
Ltd.) has only registered four fungicide technical, namely carbendazim, thiophanate-methyl, propiconazole and fluazinam.
Yangnong Chemical has mentioned a couple of times to strengthen its fungicide business in recent years and has made some tries. However, its performance on fungicide business is
FIGURE 5: Revenue structure of Yangnong Chemical, H1 2012
Source: Yangnong Chemical
9
CCM Newsletter
Jiangsu Sword to consolidate fungicide position

Jiangsu Sword Agrochemicals Co., Ltd. (Jiangsu Sword), a leading triazole fungicide company in China, aims to reinforce its fungicide's market position by launching some products with bright market prospect and thus increasing its supply ability globally.
In accordance with the requirements of national and local policies of domestic pesticide industry, Jiangsu Sword plans to relocate its factory to Jiangsu Binhai Coastal Industrial Park. During the relocation course, the company will adjust its pesticide product structure to meet market demand for pesticides at home and abroad, particularly for fungicides. According to an EIA announcement issued early in Dec. 2012, Jiangsu Sword plans to launch 3,500t/a fungicide TC production lines in the new factory, including triadimefon, tebuconazole, trifloxystrobin, kresoxim-methyl, cyprodinil and so forth.
Specifically, trifloxystrobin, a patented fungicide held by Bayer CropScience now, is predicted to enjoy bright market prospect in the future with its excellent prevention and control of crop powdery mildew, leaf spot, rust, downy mildew, scab, etc. According to the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA), there is no domestic pesticide company that has ever gained related registration of trifloxystrobin in China as of late Dec. 2012. In other words, domestic companies who develop trifloxystrobin earlier could enjoy better market opportunity.
According to ICAMA, registration of kresoxim-methyl, one of the strobilurin fungicides, has been seeing significant rise in China since early 2012. The total valid registration quantity of kresoxim-methyl has amounted to 42 (including technical and formulations) in China as of late Dec. 2012, indicating bright future development trend of the product.
As a kind of pyrimidine fungicide, cyprodinil has no cross-resistance with most popular fungicides, such as triazole, imidazole and morpholine fungicides, and is widely used to prevent and control botrytis cinerea, powdery mildew, scab, web blotch, etc. Cyprodinil is a relatively popular fungicide worldwide, whose annual sales value has exceeded USD100 million in the world in 2011. Owing to the bright market prospect, Jiangsu Sword could seize handsome profit in the future with the product.
In general, it is predicted that Jiangsu Sword's fungicide business will be greatly strengthened in the future upon launching of these fungicides.
TABLE 4: Fungicide TC registrations of Jiangsu Sword in China, as of late Dec. 2012 Registration No. LS20120190 PD20070541 PD20080292 PD20081648 PD20085796 PD20097890 PDN33-95 Source: ICAMA Fungicide Cyproconazole Triadimenol Tebuconazole Diniconazole Bitertanol Diniconazole-M Triadimefon Specification 95% TC 97% TC 97% TC 95% TC 97% TC 74.5% TC 95% TC Effective date 2012.05.31 2012.12.03 2013.02.25 2008.11.14 2008.12.29 2009.11.30 2010.07.14 Expiry date 2013.05.31 2017.12.03 2018.02.25 2013.11.14 2013.12.29 2014.11.30 2015.07.14
10
CCM Newsletter
TABLE 5: New fungicide TC projects of Jiangsu Sword, 2012 No. 1 2 3 4 5 6 7 8 9 10 11 Fungicide Triadimefon Tebuconazole Triadimenol Trifloxystrobin Diniconazole Difenoconazole Propiconazole Kresoxim-methyl Epoxiconazole Cyprodinil Bitertanol Capacity, t/a 1,000 1,000 400 200 200 200 200 100 100 50 50
Source: Jiangsu Sword
Taizhou Bailly strengthens fungicide business

Taizhou Bailly Chemical Co., Ltd. (Taizhou Bailly), one of the key fungicide manufacturers in China, is strengthening its fungicide business through expanding azoxystrobin capacity and Azoxystrobin, the most popular strobilurin fungicide worldwide, has been drawing attention from domestic agrochemical companies, including Taizhou Bailly, driven by its bright market prospect both at home and abroad in recent years. It is well known that the annual sales value of azoxystrobin reaches about USD1.0 billion all over the world in recent few years, thanks to its high efficiency, broad spectrum and low toxicity. With the As disclosed by Taizhou Bailly, the company is about to expand its azoxystrobin capacity to 1,500t/a on the basis of 500t/a production line (including technical and formulations). At the same time, Taizhou Bailly is going to upgrade its 500t/a fluazinam production line. The preparation before construction of the project is under smooth progress. increasing demand for azoxystrobin from domestic and overseas market, the consumption of azoxystrobin will continue to go up in the next few years, according to insiders. As a result, Taizhou Bailly hopes to expand its capacity of azoxystrobin in order to timely grasp the great opportunity and thus seize more market shares in the near future.
upgrading fluazinam production lines, which will reinforce its fungicide market position and make it seize handsome profit in the future.
Both projects currently are undergoing approval of Taizhou Municipal Environmental Protection Bureau, and it is estimated to be completed in the second half of 2013, according to Miss Li, a foreign trade salesman from Taizhou Bailly. If all goes well, especially passing the environmental protection acceptance by the local government department, Taizhou Bailly is committed to launching the 1,500t/a azoxystrobin and 500t/a fluazinam production lines as soon as possible.
Moreover, fluazinam is a nitroanilines fungicide with excellent control effect on bacteria such as alternaria, botrytis,
phytophthora, plasmopara, sclerotinia and venturia. Even though domestic consumption of fluazinam is still small at present, overseas demand for this fungicide is stable in recent years, particularly in some countries and regions in Europe and Middle East. Although the consumption of fluazinam is not large in China so far, its sales volume is estimated to witness increase in the next few years thanks to its excellent control effect on various
11
CCM Newsletter
diseases, in terms of some insiders. Taizhou Bailly believes that there is still large development space for China's fluazinam industry.
present, the company's azoxystrobin formulations include azoxystrobin 250g/L SC, 50% WDG, 480g/L 560g/L 325g/L 80% WDG, SC, SC, SC,
azoxystrobin chlorothalonil azoxystrobin chlorothalonil
As a matter of fact, Taizhou Bailly is managing to become a leading global manufacturer of fungicides under the support of its parent company, Jiangyin Suli Chemical Co., Ltd., a famous enterprise of fine chemicals in China with nearly 20 years' development. It is actively developing new fungicide products. At
azoxystrobin difenoconazole
azoxystrobin cyproconazole 280g/L SC, azoxystrobin 100g/L FS and azoxystrobin tebuconazole 360g/L SC, according to its official website. And its fluazinam formulations include fluazinam 500g/L SC and 50% WDG.
TABLE 6: Fungicide TC registrations of Taizhou Bailly in China, as of late Dec. 2012 Registration No. PD20080812 PD20081145 PD20110032 PD20110483 PD20111235 PD20120024 Source: ICAMA Fungicide Chlorothalonil Flutolanil Cymoxanil Azoxystrobin Tebuconazole Fluazinam Specification 98.5% TC 98% TC 97% TC 97.5% TC 98% TC 97% TC Effective date 2008.06.20 2008.09.01 2011.01.07 2011.04.29 2011.11.18 2012.01.09 Expiry date 2013.06.20 2013.09.01 2016.01.07 2016.04.29 2016.11.18 2017.01.09
Product Xian MPC temporarily registers bupirimate in China

Xi'an MPC Stock Co., Ltd. (Xi'an MPC), a key fungicide manufacturer in China, acquired two temporary registrations of bupirimate 97% TC and 25% ME from the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA) in mid Dec. 2012. Xi'an MPC is the first and the only company that has gained bupirimate registration in China so far. As an efficient fungicide, bupirimate is estimated to enjoy a bright market prospect in the future. It is well known that cucumber powdery mildew is one of the major cucumber diseases all over the world, which can bring huge loss to cucumber production when it occurs seriously. As a fungicide with specially excellent effect on powdery mildew, bupirimate 25% ME has been considered a good substitute for kresoxim-methyl and triazole fungicides such as tebuconazole, It is understood that with the advantages of high efficacy, low toxicity and environmental friendliness, bupirimate is a pyrimidine fungicide with protective and curative activity for the control of fungal diseases. It is used for the control of powdery mildew on apples, pears, stone fruits, cucurbits, roses and other ornamentals, strawberries, gooseberries, currants, raspberries, hops, beets and other crops. As disclosed by ICAMA, Xi'an MPC's bupirimate 25% ME is registered to prevent and control After several years of development, Xi'an MPC has become the only domestic enterprise that has gained the registrations of bupirimate in China, which is very beneficial to the building of this fungicide's brand image and thus helps Xi'an MPC seize much hexaconazole and difenoconazole. Moreover, the impact of powdery mildew's resistance to the above fungicides is increasingly apparent at present. cucumber powdery mildew with the recommended application dosage of 225-300g/ha. and with the method of spraying.
12
CCM Newsletter
more profits. Mrs. Liu, a sales manager of Xi'an MPC, said that bupirimate was produced by Xi'an Modern Chemistry Research Institute (MCRI) whose production technology of bupirimate is very mature in China. As a sub-unit of MCRI, Xi'an MPC gained the right to use the production technology of bupirimate.
correspondingly, disclosed Mrs. Liu. Xi'an MPC would keep three to five tonnes of bupirimate in stock in order to supply new customers. In accordance, Xi'an MPC is also managing to register bupirimate 25% ME on other crops from ICAMA and develop new bupirimate formulations applied in other fields.
In line with the sales strategy of Xi'an MPC, most of its buprimate will be exported to overseas market through its own foreign trade department and other domestic trade companies. Currently, the prices of bupirimate products are still a bit high for domestic consumers. The ex-works price of bupirimate 97% TC was USD63,500/t (RMB400,000/t) at the end of Dec. 2012, and that of bupirimate 25% ME was USD23,800/t (RMB150,000/t)
It is predicted that bupirimate series products would increase in variety and receive a lot of attention from domestic pesticide enterprises. As the price of bupirimate is about to get lower and lower because of the production technology will continue to progress, bupirimate will become increasingly popular among farmers.
TABLE 7: Registration situation of bupirimate in China, as of late Dec. 2012 Registrant Xi'an MPC Stock Co., Ltd. LS20120412 Source: ICAMA 97% TC 2012.12.19 2013.12.19 Registration No. LS20120411 Specification 25% ME Effective date 2012.12.19 Expiry date 2013.12.19
Sevencontinent Green obtains temporary registration of cyproconazole in China

On 7 Dec., 2012, Jiangsu Sevencontinent Green Chemical Co., Ltd. (Sevencontinent Green), a leading manufacturer of triazole fungicides in China, gained the temporary registration of cyproconazole 98% TC in China, according to the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA). It is the third company that has gained cyproconazole TC registration in China, but it is the first one to gain cyproconazole TC for 98% content so far. In general, developing cyproconazole would not only be beneficial to Sevencontinent Green, but also development of the whole industry. As disclosed by Mr. Xu, Sevencontinent Green has finished the pilot scale production of cyproconazole TC in Aug. 2012. The capacity of cyproconazole TC that the company originally designed is 800t/a. However, cyproconazole series products As an excellent triazole fungicide, cyproconazole is worth developing and draws attention from domestic agrochemical players. Before Sevencontinent Green, there are two other pesticide companies which have gained the registration of cyproconazole 95% TC in China, namely Jiangsu Sword Agrochemicals Co., Ltd. and Jiangsu Fengdeng Pesticide Co., Ltd. haven't been put into mass production for the moment as the company believed that the current production base is not suitable for the product's mass production. The company is going to put the cyproconazole production line into another production base, but the specific production base has not been disclosed. Thus, the specific time of mass production of the product hasn't been determined yet. But it is predicted that the production base for the cyproconazole production line maybe in Mr. Xu, Sales Manager of Sevencontinent Green, said that the company has a little stock of cyproconazole TC now but does not sell temporarily. And they would use the stock of cyproconazole TC to develop some formulations, such as 400g/L SC, 250g/L propiconazole+80g/L cyproconazole EC and 30g/L difenoconazole+6.3g/L cyproconazole FS.
13
CCM Newsletter
one of Sevencontinent Green's subsidiaries' production bases or a newly built one. The earliest time for mass production of cyprocinazole is estimated to be the second half of 2013.
will increase to a certain degree in China because of its broad spectrum and excellent efficiency, favoring the whole industry's growth. In accordance with the other two registrants of cyproconazole, the product is selling well in overseas market.
Furthermore, as introduced by Sevencontinent Green, its cyproconazole is mainly for overseas market since the product is rarely used in China currently. And the company believes it will bring handsome profit in the future and is worth developing. In line with the sales strategy of the company, it would export its cyproconazole mainly by itself while through other domestic trade companies.
(Please refer to Fungicides China News 1208 Jiangsu Sword to launch 500t/a cyproconazole technical in Oct. 2012)
Cyproconazole could be applied to fight against many crop diseases like grape powdery mildew, peanut, sugar beet leaf spot, apple scab and peanuts white rot, on various grain crops and fruit trees. In addition, it is also reported that the effect of cyproconazole is better than that of triadimefon in wheat
Apart from benefiting the company's future development, some insiders predicted that the registration quantity of cyproconazole
powdery mildew prevention and control.
TABLE 8: Registration situation of cyproconazole in China, as of Dec. 2012 Registrant Jiangsu Sevencontinent Green Chemical Co., Ltd. Jiangsu Fengdeng Pesticide Co., Ltd. Jiangsu Sword Agrochemicals Co., Ltd. Source: ICAMA Registration No. LS20120394 LS20110174 LS20120190 Specification 98% TC 95% TC 95% TC Effective date 2012.12.07 2012.07.04 2012.05.31 Expiry date 2013.12.07 2013.07.04 2013.05.31
Registration New fungicide technical registrations in 2012

69 new registrations (not including the update of old ones) of fungicide technical were approved in China in 2012.
Among the total, azoxystrobin was the hottest registered product in 2012. The total registration quantity of azoxystrobin technical reached 22 in China in 2012, accounting for 31.88% of the total new fungicide technical registration in 2012 and 84.62% of the azoxystrobin technical registration of all time. The registration soar was boosted by the patent expiry and bright market prospect of the product.
However, problems associated with the registration soar of azoxystrobin technical have grown in China in recent two years, such as capacity surge, vicious competition and price plummeting. Therefore, it is very necessary that domestic companies reasonably plan production to avoid potential risks.
Except azoxystrobin technical, the registration number of other fungicides was very small. Difenoconazole and tebuconazole technical were still hot in 2012, with three new registrations for each. Products with two new registrations included propiconazole, picoxystrobin, epoxiconazole, fludioxonil and cyproconazole.
14
CCM Newsletter
Seven fungicide technical were first approved in 2012, including picoxystrobin, tricyclopyricarb, bupirimate, zoxamide, initium, tetramycin and albendazole. Moreover, the formal registrations of six fungicide technical were first approved in 2012, including fluopyram, cyprodinil, JS399, fentin hydroxide, fungous proteoglycan and ipconazole.
TABLE 9: New registrations of fungicide technical in 2012 in China Product Content 97% 97% 95% 98% 98% Ltd. 98% 95% 97% 97% 95% Azoxystrobin 96% 98% 98% 95% 95% 96% 96.50% 95% 95% 95% 95% 98% 95% Difenoconazole 95% 95% 96% Tebuconazole 96% 97% 95% Propiconazole 96% 97% Picoxystrobin 97% 97% Epoxiconazole 95% Jiangsu Sevencontinent Green Chemical Co., Ltd. DuPont Jiangsu Huifeng Agrochemical Co., Ltd. 2 5 Sinochem Ningbo (Lianyungang) Chemicals Co., Ltd. DuPont 2 2 Mesa Tech Co., Ltd. Jingma Chemicals Co., Ltd. Hebei Veyong Bio-chemical Co., Ltd. CAC Nantong Chemical Co., Ltd. Nanjing Redsun Co., Ltd. Shandong United Pesticide Industry Co., Ltd. Jiangsu Xinyi Taisong Chemical Co., Ltd. Jiangsu Weunite Fine Chemical Co., Ltd. Shanghai HeBen-EastSun Medicaments Co., Ltd. Limin Chemical Co., Ltd. Jiangsu Subin Agrochemical Co., Ltd. Jiangsu Flag Chemical Industry Co., Ltd. Jiangsu Greenscie Chemical Co., Ltd. Jiangsu Fengdeng Pesticide Co., Ltd. Zhejiang Boshida Crop Technological Co., Ltd. Lier Chemical Co., Ltd. Shandong Weifang Shuangxing Chemicals Co., Ltd. Jiangsu Sevencontinent Green Chemical Co., Ltd. Shandong Weifang Shuangxing Chemicals Co., Ltd. Limin Chemical Co., Ltd. Jiangsu Subin Agrochemical Co., Ltd. Jiangsu Jianshen Biological Agricultural Chemical Co., Ltd. Rudong Zhongyi Chemical Co., Ltd. Changzhou Wujin Henglong Pesticide Co., Ltd. 2 40 3 44 3 15 22 26 Registrant Shandong Hailier Chemical Co., Ltd. Anhui Guangxin Agrochemical Co., Ltd. Jiangsu Luye Agrochemicals Co., Ltd. Jiangsu Repont Pesticide Factory Co., Ltd. Sichuan Leshan Fuhua Tongda Agro-Chemical Technology Co., 2012* Total*
15
CCM Newsletter
98% Fludioxonil 97% 98% Cyproconazole 95% 10 billion Bacillus subtilis spores/g Chlorothalonil Carbendazim Polyoxin B Hymexazol Dithianon Fluopyram Fluazinam Flusilazole Metalaxyl Dimetachlone Captan Prochloraz Kresoxim-methyl Cyprodinil JS399 Thifluzamide Thiabendazole Fentin hydroxide Propamocarb 95% hydrochloride Cymoxanil Probenazole Fungous 10% proteoglycan Iprodione Ipconazole Tricyclopyricarb Bupirimate Zoxamide Initium Tetramycin Albendazole 96% 97% 95% 97% 97% 98% 15% 98% 98% 95% 98.50% 98% 31% 99% 95% 96% 97% 95% 98% 96% 97% 97% 95% 98% 95% 95% 99% 95%
Shangyu Nutrichem Co., Ltd. 2 Zhejiang Boshida Crop Technological Co., Ltd. Jiangsu Sevencontinent Green Chemical Co., Ltd. 2 Jiangsu Sword Agrochemicals Co., Ltd. Taiwan Biotech Limited Company Shijiazhuang Richem Co., Ltd. Suzhou Bianjing Agro-Biochemical Co., Ltd. Shanxi Green Sea Pesticide Technology Co., Ltd. Jiangxi Bafit chemical Co., Ltd. Jiangsu Huifeng Agrochemical Co., Ltd. Bayer Jiangsu Taizhou Bailly Chemical Co., Ltd. Zhejiang Heben Pesticide & Chemicals Co., Ltd. Jiangsu Heye Agrochemicals Co., Ltd. Jiangxi Heyi Chemical Co., Ltd. Hebei Guanlong Agrochemical Co., Ltd. Jiangsu Changlong Chemicals Co., Ltd. Lier Chemical Co., Ltd. Syngenta Jiangsu Pesticide Research Institute Co., Ltd. Zhejiang Boshida Crop Technological Co., Ltd. Shijiazhuang Richem Co., Ltd. Zhejiang Heben Pesticide & Chemicals Co., Ltd. Zhejiang Heben Pesticide & Chemicals Co., Ltd. Shaanxi Hentin Chem-tech Co., Ltd. Tianjin Xinwei Chemnical Co., Ltd. Shandong Sheng Peng Pesticide Co., Ltd. Jiangsu Changlong Chemicals Co., Ltd. DuPont Jiangsu Baoling Chemical Co., Ltd. Xi'an MPC Stock Co., Ltd. Dalian Kaifei Chemical Co., Ltd. BASF Liaoning Wkioc Bioengineering Co., Ltd. Guizhou Daoyuan Technology Co., Ltd. 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 18 19 3 12 2 2 3 12 17 1 4 13 4 2 1 2 9 1 7 11 3 1 7 2 1 1 1 1 1 1 3 3
Note: 2012* means registration number in 2012, Total* in the table means the total number of valid technical registrations as of 31 Dec., 2012. Source: ICAMA
16
CCM Newsletter
Four fungicides' application for formal registration unapproved

National Pesticide Registration Review Committee (the 250g/L SC this time was only registered to prevent and control watermelon gummy stem blight and anthracnose. And its application to prevent and control banana leaf spot and banana black spot was unapproved by the Committee. The reason behind this is that the residue of picoxystrobin on banana exceeds the European standard, indicated the Committee. As a matter of fact, DuPont got two temporary registrations of the product in June 2012, namely picoxystrobin 97% TC and 22.5% The seven formal registrations (approved) involve four fungicide AIs, namely JS399, fluopyram, maleic hydrazide and SC, the second of which was registered on nine diseases of six crops (see Fungicides China News 1212, DuPont obtains formal registration of picoxystrobin in China).
Committee) held a meeting to review pesticide registrations in Aug. 2012 and the results were released recently. The Committee reviewed 14 formal registration applications of fungicides. Among the total, seven formal registration
applications were approved (the first time for these products), while the left seven were unapproved.
picoxystrobin. In Nov. 2012, based on the results from the Committee, the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA), approved the formal
The formal registration of maleic hydrazide 99% TC was obtained by Chemtura. The company first introduced this product to China in 2003, but its registration was outdated in
registrations of the seven products.
JS399 is a novel fungicide developed by Jiangsu Pesticide Research Institute Company Ltd. (JPRI). The company got two temporary registrations of the product in 2007, which were outdated in 2011. The approval of the formal registration this time will benefit it in the further promotion of the product (please refer to Fungicides China News 1212, JPRI formally registers JS399).
2004. Apart from Chemtura, seven domestic companies also got three temporary registrations for TC and five temporary registrations for formulations in the past years. All of the formulations were registered as suppression of sprouting on tobacco.
Moreover, Bayer also obtained two formal registrations of The formal registration of picoxystrobin 97% TC and 250g/L SC were obtained by DuPont. However, the formal registration of fluopyram. The company introduced this product to China in 2010.
TABLE 10: Fungicides approved by National Pesticide Registration Review Committee, H2 2012 AI Product content 95% JS399 25% 96% Fluopyram 41.70% Maleic hydrazide 99% 250g/L Picoxystrobin 97% TC SC TC SC banana (leaf spot, black spot) / DuPont Cucumber (powdery mildew) / Watermelon (gummy stem blight, anthracnose), Chemtura SC TC Wheat (scab), rice (bakanae) / Bayer Institute Company Ltd. TC / Jiangsu Pesticide Research Type Application target Applicant
Source: National Pesticide Registration Review Committee
However, not every one heard the good news. The other seven formal registration applications of fungicides were unapproved
by the Committee, including four fungicide AIs, namely pythium oligandrum, ethirimol, berberine and physcion. There are no
17
CCM Newsletter
valid registrations (both temporary and formal) for these four fungicides AIs at present (data were monitored on 14 Dec., 2012).
Chemical Co., Ltd. (Jiangxi Heyi) were also unapproved. According to the comments released by the Committee, Jiangxi Heyi should provide more data about the product's performance, hazard to humans, residue, etc. Jiangxi Heyi got two temporary
Two formal registration applications of pythium oligandrum from Czech Biopreparaty, spol. sr.o (Czech Biopreparaty) were not approved by the Committee. According to the comments released by the Committee, Czech Biopreparaty should provide more data about the product's hazard to humans and environment to get formal registration. In addition, it should provide instruction from domestic institutes that the product is not pathogenic bacteria.
registrations of ethirimol in 2007 and the company built a 300t/a ethirimol TC production line. So far, only Jiangxi Heyi has got the registration of the product in China.
The formal registration of 0.50% berberine AS from Zhejiang Huajing Biotech Co., Ltd. was not approved. The Committee reveals that the company should register berberine TC first. Furthermore, the company should provide more data about the product's hazard to humans and the environment. Four
Czech Biopreparaty introduced pythium oligandrum to China to control tomato late blight in 2009. The temporary registration it got in 2009 was outdated in 2011. The failure to get a formal registration will hinder the company's promotion of the product in China.
companies got the temporary formulation registrations of berberine in the past, but none has got the berberine TC registration in China yet.
In addition, Inner Mongolia Kingbo Biotech Co., Ltd. also should provide more data about physcion, such as hazard to humans
Two formal registration applications of ethirimol from Jiangxi Heyi
and the environment, to get the formal registration of the product.
TABLE 11: Pesticides unapproved by National Pesticide Registration Review Committee temporarily, H2 2012 Product AI content 5 million TC Pythium oligandrum spores/g 1 million WP spores/g 95% Ethirimol 25% Berberine 0.50% 8.50% Physcion 0.50% AS Cucumber (powdery mildew) Biotech Co., Ltd. Source: National Pesticide Registration Review Committee SC AS pseudoperonospora cubensis), pepper (phytophoracapsici) TK / Co., Ltd. Inner Mongolia Kingbo Cucumber (powdery mildew) Tomato (botrytis cinerea, fulvia fulva), cucumber (powdery mildew, Co., Ltd. Zhejiang Huajing Biotech TC / Jiangxi Heyi Chemical Tomato (late blight) / Czech Biopreparaty, spol. sr.o Type Application target Applicant
18
CCM Newsletter
Price Price update in Jan. 2013

TABLE 12: Ex-factory prices of main fungicides in China, Jan. 2013 8-Jan-13 Product USD/t Tricyclazole 95% TC Mancozeb 90% TC Mancozeb 80% WP Difenoconazole 95% TC Propiconazole 95% TC Azoxystrobin 95% TC Hexaconazole 95% TC Kresoxim-methyl 95% TC Epoxiconazole 95% TC Trifloxystrobin 96% TC Dimethomorph 95% TC Chlorothalonil 98% TC Isoprothiolane 97% TC Carbendazim 98% TC Thiophanate-methyl 96% TC Phosethyl Al TC 97% TC Triadimefon 95% TC Tebuconazole 97% TC Metalaxyl 98% TC Prochloraz 97% TC Propamocarb 98% TC Cymoxanil 98% TC Propineb 85% TC Thiram 97% TC Flusilazole 95% TC Myclobutanil 97% TC Hymexazol 97% TC Iprodione 95% TC 9,155 2,834 2,675 25,476 18,789 38,692 17,674 47,290 60,187 98,720 14,808 4,140 5,175 4,458 4,299 2,946 8,757 12,738 14,808 9,554 6,687 8,121 4,777 1,497 38,214 17,833 18,470 18,629 RMB/t 57,500 17,800 16,800 160,000 118,000 243,000 111,000 297,000 378,000 620,000 93,000 26,000 32,500 28,000 27,000 18,500 55,000 80,000 93,000 60,000 42,000 51,000 30,000 9,400 240,000 112,000 116,000 117,000 USD/t 8,425 2,829 2,670 25,274 18,280 35,765 17,485 46,733 60,403 98,552 14,783 4,133 5,087 4,419 4,244 2,941 8,266 12,398 14,942 9,537 6,994 8,107 4,769 1,494 38,626 17,962 19,392 18,598 RMB/t 53,000 17,800 16,800 159,000 115,000 225,000 110,000 294,000 380,000 620,000 93,000 26,000 32,000 27,800 26,700 18,500 52,000 78,000 94,000 60,000 44,000 51,000 30,000 9,400 243,000 113,000 122,000 117,000 7-Dec-12
Note: CCM makes some adjustment of the product mix and it will monitor more products since Jan. 2013. Meanwhile, some products are removed from the table. The content of hexamethylbenzene in chlorothalonil 98% TC is 40ppm. The color of carbendazim 98% TC is white. Ex-factory price includes VAT. Source: CCM
19
CCM Newsletter
TABLE 13: Shanghai Port prices and FOB prices of main fungicides in China, Jan. 2013 Port price Product 8-Jan-13 USD/t Tricyclazole 95% TC Mancozeb 90% TC Mancozeb 80% WP Difenoconazole 95% TC Propiconazole 95% TC Azoxystrobin 95% TC Hexaconazole 95% TC Kresoxim-methyl 95% TC Epoxiconazole 95% TC Trifloxystrobin 96% TC Dimethomorph 95% TC Chlorothalonil 98% TC Isoprothiolane 97% TC Carbendazim 98% TC Thiophanate-methyl 96% TC Phosethyl Al TC 97% TC Triadimefon 95% TC Tebuconazole 97% TC Metalaxyl 98% TC Prochloraz 97% TC Propamocarb 98% TC Cymoxanil 98% TC Propineb 85% TC Thiram 97% TC Flusilazole 95% TC Myclobutanil 97% TC Hymexazol 97% TC Iprodione 95% TC 9,227 2,906 2,747 25,548 18,860 38,763 17,746 47,362 60,259 98,791 14,880 4,212 5,246 4,530 4,371 3,017 8,829 12,810 14,880 9,625 6,759 8,192 4,848 1,568 38,286 17,905 18,542 18,701 RMB/t 57,950 18,250 17,250 160,450 118,450 243,450 111,450 297,450 378,450 620,450 93,450 26,450 32,950 28,450 27,450 18,950 55,450 80,450 93,450 60,450 42,450 51,450 30,450 9,850 240,450 112,450 116,450 117,450 7-Dec-12 USD/t 8,496 2,901 2,742 25,345 18,351 35,836 17,557 46,804 60,474 98,623 14,854 4,204 5,158 4,490 4,316 3,012 8,337 12,470 15,013 9,609 7,066 8,178 4,840 1,566 38,698 18,033 19,464 18,669 RMB/t 53,450 18,250 17,250 159,450 115,450 225,450 110,450 294,450 380,450 620,450 93,450 26,450 32,450 28,250 27,150 18,950 52,450 78,450 94,450 60,450 44,450 51,450 30,450 9,850 243,450 113,450 122,450 117,450 FOB price 8-Jan-13 USD/t 9,092 2,925 2,770 25,014 18,490 37,907 17,403 46,295 58,878 96,469 14,607 4,199 5,209 4,510 4,354 3,034 8,704 12,587 14,607 9,481 6,684 8,083 4,820 1,621 37,441 17,558 18,179 18,335 7-Dec-12 USD/t 8,379 2,920 2,765 24,817 17,993 35,051 17,218 45,751 59,088 96,305 14,582 4,192 5,122 4,471 4,300 3,029 8,224 12,256 14,737 9,464 6,983 8,069 4,812 1,618 37,843 17,683 19,079 18,304
Note: Shanghai Port price = ex-factory price + transportation fee from warehouse to Shanghai Port, and the ex-factory include VAT. FOB Shanghai price considers factors of Shanghai Port price, port sur-charges, loading charges, traders profits and export rebates. And the shipment cost shall be paid by the buyer. Source: CCM
20
CCM Newsletter
Most fungicides' prices decrease in 2012

2012 was a very tough year for domestic fungicide industry, with both output and price witnessing decrease. Its situation was in a sharp contrast to the good performance of domestic herbicide industry, which was mainly boosted by the strong price of glyphosate. Among the 16 fungicides monitored by CCM, the prices of 14 showed a downtrend (Dec. 2012 price compared with March 2012 price) in 2012. And only the prices of tebuconazole 97% TC and tricyclazole 95% TC witnessed a little increase thanks to the rebound in recent months. Among all fungicide products, the prices of carbendazim, mancozeb, propiconazole, difenoconazole and dimethomorph decreased the most. In detail, the prices of these products in Dec. As a matter of fact, Chinese fungicides enjoyed a good performance before 2012. However, demand for them from oversea market, especially some major products, turned weak in 2012. As domestic fungicides are very dependent on export, the weak export in 2012 hit the price heavily. Take carbendazim for example, Brazil, Argentina and India were the major export destinations for domestic carbendazim, but the demand from Brazil and India decreased sharply due to the China's total export volume of fungicides declined by 7.85% year on year from Jan. to Oct. 2012 to 59,394 tonnes, according to the General Administration of Customs of the People's Republic of China (China Customs). In addition, the total export value of fungicides also witnessed a fall of 10.91% year on year from Jan. to Oct. 2012 to about USD278.13 million, due to fungicides' sink in export volume and price. drought in the two countries. Moreover, carbendazim, which was banned in the US, was found in the orange juice exported to the US from Brazil, which further reduced demand for carbendazim in Brazil, revealed an insider from Jiangsu Lanfeng Biochemical Co., Ltd. (Lanfeng Biochemical). 2012 decreased by over 5% compared with that in March 2012 and over 10% compared with that in March 2011. The export performance of domestic fungicide industry was much worse than the total situation of domestic pesticide industry in the same period, which recorded a 12.6% and 17.3% increase in export volume and export value respectively, mainly contributed to glyphosate's increase in both export volume and export price.
TABLE 14: Monthly ex-factory prices of main fungicides in China, 2011-2012, USD/t 2011 Product March June Sept. Dec. March June Sept. Dec. March 2011* Mancozeb 90% TC Propiconazole 95% TC Thiophanate-methyl 96% TC Carbendazim 98% TC Difenoconazole 95% TC Dimethomorph 95% TC Cymoxanil 98% TC Triadimefon 95% TC Propamocarb 98% TC 3,737 23,221 5,335 5,411 29,683 17,208 9,103 8,608 7,238 3,786 21,829 5,020 5,397 30,773 18,436 8,412 9,723 7,641 4,230 22,605 4,728 4,934 28,078 17,311 8,687 9,156 7,475 3,224 21,231 5,040 5,158 28,080 17,142 9,208 9,515 6,888 3,324 20,261 4,480 4,828 26,909 15,829 9,054 8,627 7,123 2,971 18,647 4,267 4,583 26,233 15,329 8,692 8,534 6,953 2,838 18,604 4,178 4,414 25,383 15,293 8,435 8,356 6,937 2,861 18,646 4,292 4,469 25,558 14,949 8,198 8,359 7,073 -23.44% -19.70% -19.55% -17.41% -13.90% -13.13% -9.94% -2.89% -2.28% March 2012 -13.93% -7.97% -4.20% -7.44% -5.02% -5.56% -9.45% -3.11% -0.70% 2012 Compared with Compared with
21
CCM Newsletter
Isoprothiolane 97% TC Chlorothalonil 98% TC Tricyclazole 95% TC Phosethyl-Al 97% TC Metalaxyl 98% TC Tebuconazole 97% TC Prochloraz 97% TC
5,259 4,262 8,608 2,976 14,392 12,223 7,390
5,328 4,326 8,335 3,015 14,581 13,347 9,954
5,247 4,308 7,983 29,79 15,255 12,909 9,000
5,276 4,010 7,950 2,996 15,498 12,746 9,365
5,334 4,353 8,231 3,087 15,433 12,822 9,735
5,294 4,267 7,822 3,034 15,408 12,168 10,035
5,266 4,099 7,568 2,964 15,372 11,351 9,775
5,144 4,179 8,519 2,974 15,110 13,181 9,645
-2.19% -1.95% -1.03% -0.07% 4.99% 7.84% 30.51%
-3.56% -4.00% 3.50% -3.66% -2.09% 2.80% -0.92%
Note: * means the Dec. 2012 price compared with prices of March 2011 and March 2012. Source: CCM
Furthermore, domestic over-capacity of carbendazim became more serious in 2012 with the capacity expansion of Lanfeng Biochemical and production line launch of some new producers, such as Ningxia Ruitai Technology Co., Ltd. (a subsidiary of Jiangsu Yangnong Chemical Co., Ltd.) and Lianyungang Jindun Agrochemical Co., Ltd. According to CCM's export analysis, China's propiconazole technical export was 1,141 tonnes in the first eight months of 2012, about the same as that in the same period in 2011. However, more and more domestic pesticide producers enter into propiconazole market, and the capacity of propiconazole technical in China sees fast increase accordingly. Therefore, Thus, the ex-factory price of carbendazim 98% TC in China was only USD4,469/t in Dec. 2012, down 7.44% and 17.41% compared with those in March 2012 and March 2011 respectively. The price of thiophanate-methyl, a product which is similar to carbendazim in function and production cost, also witnessed sharp price decrease in recent two years. Price of difenoconazole technical also witnessed large reduction due to capacity expansion and export decrease. According to CCM's export analysis, China's difenoconazole technical export Due to the strong competition from India, the price of mancozeb decreased the most among all fungicide products. India's mancozeb capacity is over 160,000t/a at present, much bigger than the capacity in China. In addition, the production cost in India is lower than that in China. In recent years, Indian producers not only compete with domestic producers in oversea market, but enhance their mancozeb export to China. However, tricyclazole 95% TC and tebuconazole 97% TC witnessed price increase. Specifically, the price of tricyclazole 95% TC was USD8,519/t in Dec. 2012, up 3.50% over March 2012; the price of tebuconazole 97% TC was USD13,181/t in As a result, the ex-factory price of mancozeb 90% TC decreased to USD2,861/t in Dec. 2012, down 13.93% and 23.44% compared with those in March 2012 and March 2011 respectively. And it is expected there is still difficult time ahead for domestic mancozeb technical producers with the strong competition from India. The price increase of these two products is attributed to the price soar of their raw materials, o-toluidine and hydrazine hydrate, in recent two months. In fact, the prices of these two products in Sept. 2012 were still much lower than those in early 2012. Dec. 2012, up 2.80% over March 2012. in the first eight months of 2012 was only 266 tonnes, much less than that in the same period in 2011, forcing domestic producers to cut down export price. Chinese propiconazole producers have to compete against each other, leading to obvious price decrease of propiconazole in recent two years.
22
CCM Newsletter
Brief news No. 1 Central Document of 2013 to focus on agricultural issues again
Entering 2013, the content of domestic high-profile policy of 2013the No. 1 Central Document (Document 2013), will become one of the hot topics in China. Document 2013, which is about to be released during the period from Jan. to Feb. 2013, is predicted to continue to focus on agricultural issues in China. If the prediction is true, it will be the tenth consecutive for Chinese central document to concentrate on agricultural issues (2004-2013). It is understood that EC formulation is a main type of pesticide formulation in China at present. According to the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA), the valid registration of EC formulations reached 9,017 as of Aug. 2012 in China, accounting for 42% of the total registration of In detail, Document 2013 will mainly highlight the reformation and innovation of domestic agricultural management system. An expert explained that the basic principle of the agricultural management system in Document 2013 will still be the household contract responsibility system (farmers contract for agricultural means of production such as farm land, and production tasks from collective organizations in the unit of family), but the system will be innovated and bring new agricultural production and operation modes to encourage farmers to work together to better deal with natural and market risks. It means that aiming to ensure grain security, encouraging more professional crop production, developing better collective organizations and realizing the industrialization of agriculture will be good options for the innovation and reformation of the present agricultural management system in China. In 2012, the agricultural machinery purchasing subsidy allocated by the central government of China soars to USD3.4 billion (RMB21.5 billion), with a year-on-year growth of 25.6%, according to the Ministry of Finance of the People's Republic of China. It covered 5.95 million sets of various types of agricultural machinery in total, benefiting 4.56 million rural households. Stimulated by the policy of agricultural machinery purchasing subsidy, on one hand, farmers have benefited a lot and show great enthusiasm in purchasing agricultural machinery; on the pesticide formulations. However, the solvents mainly used in pesticide EC formulations cause severe environmental pollution (please see Crop Protection China News 1224 for more details). In line with the plan, the use of five harmful solvents, namely benzene, toluene, dimethyl benzene, methanol and dimethyl formamide, will be restricted in China. The total use volume of the five harmful solvents could be reduced by more than 90% compared with their current use volume within three years after the standard is put into effect.
China's agricultural machinery purchasing subsidy soars by 25.6% in 2012
CCPIA issues new limit standard for harmful solvents in pesticide EC formulation
Along with the enhanced environmental protection consciousness in China, EC formulations of pesticides have to face challenges in future development and it is inevitable for the use of harmful solvents to be reduced. In mid-Dec. 2012, China Crop Protection Industry Association (CCPIA) made a plan on limit standard and implementation scheme for harmful solvents in EC formulations of pesticides.
other hand, domestic agricultural machinery industry has seen flourishes in both production and sales, which has greatly contributed to China's agricultural mechanization level.
Legend Holdings expands investment in kiwi business

On 23 Dec., 2012, Legend Holdings Ltd. (Legend Holdings), a leading IT technology company in China, announced that its subsidiary named Beijing Huaxia Liancheng Fruit Co., Ltd.
23
CCM Newsletter
(Huaxia Liancheng) has signed a strategic cooperation agreement on kiwi business with Xixia County, Henan Province.
2012, up 3.2% over the previous year. Meanwhile, China's import of grain also increases accordingly. In the first eleventh months of 2012, the import volume of grain in China has hit
Zhao Yu, Chairman of Huaxia Liancheng, expressed that the prophase investment with around USD24 million (RMB150 million) will be mainly spent on construction of logistics centers, refrigerators, a demonstration plantation with an area of 666 ha. (10,000 mu) and introduction of new varieties. In addition, Legend Holdings will cooperate with local farmers to better control planting cycle and purchase kiwi with a high price.
65.89 million tonnes, accounting for around 11% of the nation's total grain yield according to official statistics, which means that China's grain self-sufficient rate has dropped below 90%.
Noposion to buy back shares

Shenzhen Noposion Agrochemical Co., Ltd. (Noposion), the
It is reported that the planting area and output of China's kiwi contribute to 60% and 40% to the world's total respectively at present. However, the output value of Chinese kiwi only takes up 8% of the world's total, indicating a huge potential market for domestic kiwi industry.
largest pesticide formulation company in China, announced on 18 Dec., 2012 that it planned to invest USD28.62 million of self-owned capital to buy back 21,176,400 shares from the secondary market, accounting for 5.85% of its total shares. Noposion disclosed that the main reason for the share buyback was the low price of its shares in the market. Actually, the share price of Noposion has sunk to the lowest level on 4 Dec., 2012
China's grain self-sufficient rate drops to below 90%

In 2012, China's grain yield is expected to hit a record high and achieve the ninth consecutive annual increase for the first time. According to National Bureau of Statistics of China, domestic grain yield is predicted to increase to 589.57 million tonnes in
after its IPO on 18 Feb., 2008, reaching USD0.96 per share, down 39.6% over that when it got listed. Aiming to maintain its image in capital market and boost the confidence of its investors in the company, Noposion decided to carry out the buyback of its shares. (please refer to Crop Protection China News 1224 for more details)
24
Journalist: Echo Ju, Jocqueen Chen Editor: Peony Wang Chief Editor: Michelle Li Publisher: Guangzhou CCM Information Science & Technology Co., Ltd. Disclaimer: 1. CCM guarantees that the information in the report is accurate and reliable to the best of its knowledge and experience. CCM defines the report as a consulting product providing information and does not guarantee its information is completely in accordance with the fact. CCM shall not have any obligations to assume any possible damage or consequences caused by subscribers any corporate decisions based upon subscribers own understanding and utilization of the report. 2. The complete copyright of the report is and will be held by CCM. Subscribers shall not acquire, or be deemed to acquire the copyright of the report. 3. The report provided by CCM shall be only used as source of subscribers internal business decisions and shall not be used for any other purposes without CCMs prior written consent, unless stated and approved in license contract signed by both parties. Subscribers shall not distribute, resell and disclose the whole report or any part of the report to third parties and shall not publish any article or report by largely or directly copying or citing the information or data based on CCMs report without the prior written consent of CCM. 4. Single User License means that there shall be only ONE person to receive, access and utilize the report. Subscriber can present the content of the report that marked the source from CCM to their internal colleagues for their internal communication and utilization, but cannot share the whole report to other individuals. Any citation, distribution, reselling and disclosure of the report as well as its partial content to any third party are prohibited, including but not limited to their parent companies or subsidiaries. 5. Corporate License means that subscriber shall not cite, distribute, resell the report or disclose information of the report to any third party without CCM's prior written consent, except subscribers' affiliates controlled with ownership of more than 50% of shares.
Guangzhou CCM Information Science & Technology Co., Ltd.

Adress: 17th Floor, Huihua Commercial & Trade Building, No.80 Xianlie Zhong Road Guangzhou, 510070, P.R.China
Tel: +86-20-37616606 Fax: +86-20-37616968 E-mail: [email protected] Website: www.cnchemicals.com

Sample-Fungicides China News

Uploaded by

Copyright:

Available Formats

Sample-Fungicides China News

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Sample-Fungicides China News

Uploaded by

Copyright:

Available Formats

What are some of the major trends discussed in the fungicide market in China?

What are some of the major trends discussed in the fungicide market in China?

What companies are mentioned as strengthening their fungicide business?

What companies are mentioned as strengthening their fungicide business?

Fungicides China News

Vol.6 Issue 01 2013

Copyright Guangzhou CCM Information Science & Technology Co., Ltd.

Fungicides China News 1301

Fungicides China News 1301

Fungicides China News 1301

Market analysis Corn fungicides: an increasing market

FIGURE 1: Planting areas of rice, wheat and corn in China, 2001-2011

Source: National Bureau of Statistics of China

Fungicides China News 1301

FIGURE 2: Major corn production bases in China, 2011

Source: Ministry of Agriculture of China

Fungicides China News 1301

Seed treatment agents for potato to increase

register their products first to capture market share.

Fungicides China News 1301

FIGURE 3: China's potato output, tonne, 2004-2011

Company dynamics SYRICI approved to be National Technology Innovation Demonstration Enterprise

Fungicides China News 1301

fenamistrobintebuconazole 20% SC (brand name: Aike) are popular in domestic market.

Fungicides China News 1301

Huifeng Agrochemical's biggest shareholder pledges stocks again

FIGURE 4: Ownership structure of Huifeng Agrochemical, 30 June, 2012

Source: Huifeng Agrochemical

Fungicides China News 1301

Yangnong Chemical's fungicide business to be enhanced

FIGURE 5: Revenue structure of Yangnong Chemical, H1 2012

Source: Yangnong Chemical

Fungicides China News 1301

Jiangsu Sword to consolidate fungicide position

Fungicides China News 1301

Source: Jiangsu Sword

Taizhou Bailly strengthens fungicide business

Fungicides China News 1301

azoxystrobin chlorothalonil azoxystrobin chlorothalonil

Product Xian MPC temporarily registers bupirimate in China

Fungicides China News 1301

Sevencontinent Green obtains temporary registration of cyproconazole in China

Fungicides China News 1301

powdery mildew prevention and control.

Registration New fungicide technical registrations in 2012

Fungicides China News 1301

Fungicides China News 1301

Fungicides China News 1301

Four fungicides' application for formal registration unapproved

registrations of the seven products.

Source: National Pesticide Registration Review Committee

Fungicides China News 1301

Two formal registration applications of ethirimol from Jiangxi Heyi

and the environment, to get the formal registration of the product.

Fungicides China News 1301

Price Price update in Jan. 2013

Fungicides China News 1301

Fungicides China News 1301

Most fungicides' prices decrease in 2012