fungicides china news 201101.pdf

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Fungicides China News

Publication date: 10 January, 2011Vol.4 Issue 1. 2011

Fungicides China News Vol.4 Issue 1. 2011

www.cnchemicals.com CCM International Limited I

ContentFungicides China News Vol.4 Issue 1. 2011

■ Overview ��1Overview of Chinese fungicide industry in 2010 ...................................................................................................1Top 10 events of Chinese fungicide industry in 2010 ............................................................................................1

■ Market analysis �� 3Carbendazim and thiophanate-methyl fungicides: more intense competition ....................................................3Chlorothalonil technical output hits about 18,500 tonnes in 2010 ......................................................................3Difenoconazole technical sales robust .................................................................................................................. 4

■ Pricing �� 5Monthly ex-factory prices of key raw materials, Jan. 2011 ...................................................................................5Monthly ex-factory prices of main fungicides, Jan. 2011 ......................................................................................5Monthly Shanghai port prices and FOB Shanghai of main fungicides, Jan. 2011 ............................................... 6Monthly market prices of main crops, Jan. 2011 .................................................................................................. 6Epoxiconazole price decreases a lot from 2009 ....................................................................................................7

■ Intermediate �� 8Overview of 1,2,4-triazole in 2010 ........................................................................................................................ 8

■ Supply and demand �� 8Coumoxystrobin to be on the market in Feb. 2011 ............................................................................................... 8Shaanxi Meibang to promote 50% epoxiconazole WDG in 2011 ......................................................................... 9

■ Company dynamic ��10A fire broke out in Lier Chemical .........................................................................................................................10SinoChem LYG actively develops fungicides .......................................................................................................10Jiangsu Fengdeng adjusting its fungicide products ............................................................................................ 11Limin Chemical expanding its phosethyl-Al technical ........................................................................................12Mudanjiang Bioseen to enter into jingangmycin market ....................................................................................12

■ Product ��13Hubei Yizailing registers prohexadione calcium .................................................................................................13Promotion of propineb 70% WP in China ...........................................................................................................14

■ Brief news �� 15

China Crop Protection Summit 2011 Will be held

during 18 - 19 March, ShanghaiWelcome to join with us.Click here for Event Details.

Dynamic Database - ValoTracer

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Coming Reports from CCM:- Production and Market of Triazole Pesticides in China

Ready Market Reports:

- Production and Market of Non-Crop Pesticides in China(Issued on 9th Oct. 2010)

- Survey of pesticide industry in China (Edition 2, launched in Sep. 2010 )- MIPA Survey in China -Metalaxyl Survey in China - Future Prospect of Genetically Modified Crops- Seed Treatment Survey in China- Crop Protection China Market: Opportunities and Challenges- Future of Green Biotechnology in China

CCM newsletters related to Fungicides:- Insecticides China News- Crop Protection China News- Herbicides China News- Glyphosate China Monthly Report

http://www.cnchemicals.com/Event/Crop_Protection_2011/EventHomepage.html

http://cnchemicals.com/maindocs/newsletters/samples/Inseciticides China News-sample.pdf

http://www.cnchemicals.com/Report/ProposalDetail.aspx?rptid=1547

http://www.cnchemicals.com/Report/ReportMin.aspx?rptid=1355








http://www.cnchemicals.com/Newsletter/samples/Insecticides China News-sample.pdf

http://www.cnchemicals.com/Newsletter/samples/China Crop Protection Newss_sample3.pdf

http://www.cnchemicals.com/Newsletter/samples/China Herbicide News-sample.pdf

http://www.cnchemicals.com/Newsletter/samples/Glyphosate China Monthly Report 0909- sample.pdf

http://www.cnchemicals.com/tenth-anniversary.html


www.cnchemicals.com CCM International Limited II

Key companies covered in this issue

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.

Entering into 2011, China's fungicide industry has been gradually turning better with the increasing demand from overseas market. Meanwhile, the domestic demand for fungicides in 2011 is estimated to be higher than that of 2010, with the prediction of more serious disease occurrence.

However, the competition of fungicide industry in China will be increasingly fierce in 2011, with more and more players getting into fungicide business. Take Yangnong Group (the biggest producer of pyrethroid pesticide in China) for example, it will launch two fungicide technical production lines, namely 10,000t/a carbendazim and 8,000t/a thiophanate-methyl in Apr. 2011. Some novel fungicides with high efficiency, low toxicity and broad spectrum, such as azoxystrobin, kresoxim-methyl, epoxiconazole, etc., will be popular in China in the near future, aided by many domestic pesticide companies' promotion. If there are any specific topics you would like us to cover or investigate any of the subjects covered in more detail, please contact us.

Headlines of FungicidesChina News 1101

Although the situation of Chinese fungicide industry was gradually getting betters with the economic rebound in 2010,

there are still many difficulties for most domestic enterprises.

Looking back of the past year, top 10 events in Chinese fungicide industry are listed in this article.

The competition situation of carbendazim and thiophanate-methyl will be more intense among domestic producers in the

future.

China’s chlorothalonil technical capacity is about 23,600t/a at present and its total output was about 18,500 tonnes in 2010,

most of which is for export.

Most domestic difenoconazole technical manufacturers are busy producing difenoconazole technical recently.

The price of epoxiconazole technical declined a lot more in 2010 than 2009.

The price of 1,2,4-triazole USD6,102/t was relatively stable at the domestic market in 2010, thanks to its adequate supply.

Coumoxystrobin is going to be marketed in H1 2011.

Shaanxi Meibang has obtained the registration certificate of epoxiconazole 50% WDG, and plans to promote this

formulation in 2011 at domestic market.

A fire broke out in Lier Chemical’s propiconazole production workshop on 21 Dec.

SinoChem LYG has been actively developing triazole fungicides such as tebuconazole, propiconazole and difenoconazole in

recent years.

Jiangsu Fengdeng is actively adjusting its product mix at present, which will improve its competitiveness in fungicide industry to

some extent.

Limin Chemical is expanding its phosethyl-Al technical capacity from 2,000t/a to 5,000t/a, which is expected to be put into

production in 2011.

Mudanjiang Bioseen, a subsidiary company of Beijing Yoloo, will enter jingangmycin market in the near future.

Hubei Yizailing registered the prohexadione calcium technical and formulation, which will make it become the first producer

of prohexadione calcium in China.

Propineb 70% WP is to have a bright prospect with the tendency of being accepted by more and more domestic peasants in the

near future.


www.cnchemicals.com CCM International Limited 1

Overview of Chinese fungicide industry in 2010

■ Overview

China's pesticide industry experienced a much difficult year in 2010. Thereinto, the consumption volume of

insecticides in China in 2010 decreased by about 30% over the previous year mainly due to adverse weather in 2010. Meanwhile abnormal climate in the first half of 2010 also negatively impacted the demand of herbicide in China. Compared with pesticides and herbicides, Chinese fungicide industry was lucky in 2010, with about 10% demand increase.

Although the situation of Chinese fungicide industry was gradually getting better with the economic rebound in 2010, there are still many difficulties for most domestic enterprises.

For the manufacturers, most Chinese pesticide enterprises have made great efforts to shake off the influence of sluggish pesticide market both at home and abroad in 2010. Firstly, strengthening the development of domestic pesticide market has become a consensus in almost all pesticide enterprises. China's fungicides, especially technical, mainly rely on export due to its overcapacity in recent years, leading to most enterprises suffered heavy losses caused by the global financial crisis. Therefore, more and more pesticide enterprises in China actively have been developing the domestic market since 2009.

Besides, some domestic pesticide enterprises implemented the technological transformation of pesticide production lines and , adjustment of product structure, increased investment in R&D and environmental protection or get listed to expand development, etc.

However, most Chinese pesticide enterprises' performance was not ideal in 2010. According to CCM's survey, about 70% of listed pesticide enterprises saw net profit decrease in 2010.

The demand for fungicides has witnessed increase in 2010, with an about 10% increase rate, aided by unfavourable weather as well as adjustment of planting structure. In H1 2010, the lower temperature and rainy weather caused various diseases, like anthracnose, ring rot, ulcer, wilt, etc., in main Chinese vegetable and fruit

production areas, which increased the demand for some fungicides such as carbendazim, mancozeb, prochloraz, thiophanate-methyl, folpet, etc. Meanwhile, wheat scab occurred heavily, resulting in the increase in the demand for triazole fungicides, such as triadimefon, tebuconazole, etc. In H2 2010, rice disease occurrence, especially rice blast and sheath blight, in the middle and late rice fields, were much severer than last year, about 19.2 million hectares. As a result, some fungicides with good control effect on these diseases such as carbendazim•sulfur, difenoconazole•propiconazole, kresoxim-methyl, ethylicin, jingangmycin,etc., experienced an increasing demand in domestic market.

In terms of fungicide export, Chinese fungicide industry has obviously turned better thanks to recovering demand for fungicides in the overseas market in 2010. The export volume of fungicide in first ten months 2010 reached 51,900 tonnes, valuing USD219.49 million, up 31.39% and 34.46% respectively year-on-year. China's total fungicide export volume is estimated to rise by over 20% in the whole 2010 over that in 2009. But its average export price in 2010 was about USD4,229/t, still at a low level, which greatly reduced the enterprises' sales profits.

As for price, most fungicide prices in China saw increase in the whole 2010 with the gradually rebounding pesticide market both at home and abroad as well as the increasing prices of raw materials. However, they still stayed at lower level in 2010 than that of 2008, the peak price in recent years. It is estimated that prices of most fungicides will continue to go up in 2011 because of sustained inflation and strict energy conservation policy.

In China's fungicide industry, some serious problems such as overcapacity, vicious competition, weakness in R&D, etc., still exist at present, which greatly hinder its healthy development. Moreover, outside conditions for Chinese fungicide industry, including multinational competition, RMB appreciation, increasingly stringent environmental policy, etc., will intensify the competition in this area in the future.

Top 10 events of Chinese fungicide industry in 2010

Fungicide industry in China has entered 2011 after going through a difficult period of three years.

Looking back on the past year, top 10 events in Chinese fungicide industry are listed in this article.

China's No� 1 document continued to focus on agricultural production

On 31 Jan. 2010, Hu Jintao, President of China, announced that China's No.1 Document continued to focus on ‘Sannong’ issue, namely agriculture, rural areas and farmers. It greatly raised Chinese farmers' enthusiasm for planting crops,which can ensure the stable growth of China's crop planting area and guarantee the safety of grain production. In the long run, Chinese fungicide industry will inevitably enjoy opportunities



for development with the increase of grain security consciousness.

Tariff cut promoted China's pesticide export to ASEAN On 1 Jan. 2010, China-ASEAN Free Trade Area was formally formed, in which about 90% of products traded between China and other six member countries (Philippines, Indonesia, Malaysia, Thailand, Singapore and Brunei) of ASEAN enjoyed zero tariff. It is good news for Chinese pesticides, as ASEAN countries are very important export destinations for Chinese pesticides. Tariff cut in China-ASEAN Free Trade Area will further encourage Chinese pesticide producers to export and promote their products within this area in the future.

Long-lasting drought in Southwest China reduced fungicide use The drought in the five provinces of Southwest China (Yunnan, Guizhou, Chongqing, Sichuan and Guangxi) was severe in spring 2010. Statistics from State Flood Control and Drought Relief Headquarters show that, 4.378 million hectares cultivated land was affected bythe drought. Meanwhile,the agriculture irrigation was almost stopped, leading to the reduction of fungicide use.

Chlorothalonil, carbendazim and mancozeb cooperative group founded On 21 May 2010, the Cooperative Group of Chlorothalonil, Carbendazim and Mancozeb was founded in China with the help of China Crop Protection Industry Association (CCPIA) during the Eighth Meeting of CCPIA's Third Council. Jiangsu Lanfeng Bio-Chem Co., Ltd., Limin Chemical Stock Co., Ltd. and Jiangsu Xinhe Agrochemical Co., Ltd. were chosen to be the council members of this cooperative group. The foundation of the cooperative group in China creates a platform for the three fungicid producers to exchange information and meanwhile for government to effectively track the progress of the three fungicides in China.

Pesticide Pollution Management Technological Policy to accelerate industry integration On 15 Jul. 2010, the Policy of Pollution Management Technologies for Pesticide Industry was about to be unveiled, according to Ministry of Industry and Information Technology (MIIT) of the People's Republic of China. In the new technological policy, the state actively encourages pesticide enterprises to develop the wastewater treatment technology for pesticides with large output, and stimulates them to relocate to the industry zones. It is estimated that the new technological policy will highly accelerate integration of pesticide industry.

Zhejiang Wynca got into fungicide business On 3 Sep. 2010, Zhejiang Wynca Chemical Group Company (Zhejiang Wynca), the leading glyphosate player in China, signed an agreement with Ningxia Sanxi Chemical Co., Ltd. (Ningxia Sanxi) to invest about USD11.80 million in Ningxia Sanxi, holding 75% of stakes of Ningxia Sanxi. The

investment could help Zhejiang Wynca get into fungicide business as Ningxia Sanxi is one of the leading carbendazim producers in China.

Pesticide Industry Policy formally promulgated On 19 Sep. 2010, Ministry of Industry and information Technology (MIIT) of the People's Republic of China, jointly with related departments, issued the formal “Pesticide Industry Policy”. As for fungicide, Pesticide Industry Policy focuses on developing new fungicides and virus inhibitors to control diseases in vegetable and fruit fields. At the same time, enterprises should energetically develop new fungicide products in non-agricultural fields (urban afforesting, floriculture, courtyard crops, etc.) with the guidance and support of government policies.

Most fungicide prices started to increase since October 2010 Prices of most fungicides in China started to increase since October 2010, mainly aided by increasing raw material prices. The supply of some raw materials for fungicides was very tight and their prices saw an uptrend as many local governments suspended or shut down those enterprises producing these products to meet environmental targets.

Highly toxic pesticide special-operation management network to implement comprehensively

On 4 Nov. 2010, in the National Highly Toxic Pesticide Special-operation and Management Pilot Meeting held in Weifang City, Shandong Province, the management network of highly toxic pesticide special-operation was decided to be built in major vegetable planting areas in China within next two to three years. Meanwhile, some pilot cities such as Beijing, Tianjin, Hebei and Shandong have obvious improvement in the order of the pesticide market and agricultural product quality as of late 2010.

Jiangsu Huifeng got listed in Shenzhen A-share market

On 9 Nov. 2010, Jiangsu Huifeng Agrochemical Company (Jiangsu Huifeng), the largest prochloraz technical producer in China, successfully got listed in Shenzhen A-share market. After listing, it will expand prochloraz and epoxiconazole technical capacity to 6,800t/a and 1,200t/a respectively, which would consolidate its advantages in domestic market. However, Jiangsu Huifeng will face considerable challenges in the management after listing because of its continuous expansion.



■ Market analysis

Carbendazim and thiophanate-methyl fungicides: more intense competition

Jiangsu Yangnong Chemical Group Co., Ltd. (Yangnong Group) will launch two fungicide technical production

lines, namely 10,000t/a carbendazim and 8,000t/a thiophanate-methyl in Apr. 2011. It is estimated that the competition situation of these two fungicides among domestic producers will be more intense in the future. After launching these two technical production lines, total capacity of carbendazim and thiophanate-methyl technical for major Chinese companies will reach about 68,000t/a and 43,200t/a respectively by April 2011. Actually, the capacities of carbendazim and thiophanate-methyl, two important benzimidazole fungicides in China, have witnessed continuous increase in recent years, aided by capacity expansion of most producers. According to CCM’s survey, total capacity of carbendazim technical for major Chinese companies is about 58,000t/a so far, up 34.88% from 43,000t/a in 2008. And the capacity of thiophanate-methyl technical for major Chinese producers reaches about 35,200t/a in China at present, while it was13,600t/a in 2008.

Anhui Guangxin Agrochemical Company (Anhui Guangxin) is the largest carbendazim and thiophanate-methyl producer in China at present. Its carbendazim technical capacity is about 20,000t/a in 2010, while that was 15,000t/a in 2008; its capacity of thiophanate-methyl technical has reached 10,000t/a in early 2010 from about 3,650t/a previously.

Jiangsu Lanfeng Bio-Chem Co., Ltd. (Jiangsu Lanfeng) expandeded its carbendazim capacity to 15,000 tonnes in 2010 from 6,000t/a previously. And its thiophanate-methyl technical capacity keeps at 5,000t/a from 2008 to 2010. Ningxia Sanxi Chemical Co., Ltd. (Ningxia Sanxi) has the same capacity of carbendazim technical with Jiangsu Lanfeng. However, its carbendazim technical capacity

was only 8,000t/a in 2008.

Though Yangnong Group will enter these two fungicides’ production in next year, several leading domestic producers still have confidence in their own products. Mr. Yu, sales manager from Jiangsu Lanfeng, reveals that the company is paying attention to Yangnong Group’s progress but still confident in its own products. “First, in China Yangnong Group has not yet obtained related registration certificates from Institute for the Control of Chemicals, Ministry of Agriculture so far, which will limit its promotion to some extent. Second, it takes much time to register pesticides in foreign countries, which would hinder its product exporting over next years. Third, Yangnong Group doesn't have abundant clients for these two fungicides, while our company’s carbendazim orders from customers have been scheduled to next early February” continues Mr. Yu. According to Ms. Li, Foreign Trade Manager of Anhui Guangxin, the company has no anxiety about Yangnong to join carbendazim and thiophanate-methyl production in 2011. Besides, Mr. Chen, sales manager from Ningxia Sanxi, claims that company has been in carbendazim business for several years, so it has an advantage in marketing channels over Yangnong Group; meanwhile, the company also can produce carbendazim technical with own raw material like Yangnong Group.

Yangnong Group, which holds 36.17% shares of Jiangsu Yangnong Chemical Co., Ltd. (Yangnong Chemical), is the largest pyrethroid insecticide producer in China with capacity of 4,000t/a. Yangnong Chemical has made a five-year plan to develop itself as an integrated pesticide company since 2008. The new fungicide production lines are an important step of the plan.

Chlorothalonil technical output hits about 18,500 tonnes in 2010

China’s chlorothalonil technical capacity has witnessed continuous increase in recent years and it has become

one of the most important fungicides in China with the total capacity about 23,600t/a at present. And its total output was about 18,500 tonnes in 2010, most of which is for export. The total export volume of chlorothalonil technical in China was about 12,000 tonnes in 2010, accounting for 64.86% of total output. Most of the chlorthalonilis produced in China is exported to America, Holland, Italy, Mexico, etc.

Actually China's demand for chlorothalonil was only about 5,050 tonnes in 2010, much lower than its output. Therefore, chlorothalonil technical produced in China is mainly for export in recent years. The chlorothalonil industry is over capacity in China because many producers are continuously expanding their production in recent years. The leading chlorothalonil technical producers in China are Jiangyin Suli Fine Chemical Co., Ltd. (Jiangyin Suli), Limin Chemical Stock Co., Ltd. (Limin Chemical), Jiangsu Xinyi CAC Chemical Company (Xinyi CAC), etc.



Limin Chemical, the largest chlorothalonil technical producer in China, has expanded this fungicide capacity to 7,000t/a at present from 3,500t/a previously. The capacity of chlorothalonil technical for Jiangyin Suli was 3,000t/a in 2006 and it has reached 5,000t/a so far. However, its output was only 3,500 tonnes in 2010, increasing by 400 tonnes from 3,100 tonnes in 2008. Xinyi CAC building a 5,000t/a chlorothalonil technical production line in H1 2009, which makes it become the second largest producer of chlorothalonil technical in China.

However, the demand for chlorothalonil in overseas and domestic markets did not grow fast correspondingly in

the past years. Under this condition, most chlorothalonil technical producers in China lower their products’ price to capture more market share. The export price is only about USD4,100/t at present, down 36.92% from about USD6,500/t in early Dec.2008.

Chlorthalonil, a kind of substituted benzene fungicide, is widely used on vegetables, fruits, rice, wheat, etc. to control rust, anthracnose, powdery mildew and downy mildew. And it also can be for mildewproof treatment in industry (such as leather, coating, paint, etc.)

Difenoconazole technical sales robust

Most domestic difenoconazole technical manufacturers are busy producing difenoconazole

technical at present, aided by the robust demand from overseas and domestic markets. Statistics from Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA) shows that there are 17 producers having registered the difenoconazole technical in China, of which 14 production lines are active so far.

According to CCM's survey, most difenoconazole technical producers in China reveal that they have received many orders and the difenoconazole technical supply is very tight at present. Jiangsu Frey Agrochemicals Co., Ltd. (Jiangsu Frey) is the largest difenoconazole technical manufacturer in China currently, with capacity of 800t/a. Mr. Yin, foreign trade manager of Jiangsu Frey, claims that the company’s difenoconazole technical output reached about 400 tonnes in 2010 and most difenoconazole technical is exported to overseas market by domestic foreign trade companies.

Hangzhou Udragon Chemical Co., Ltd. (Udragon Chemical), mainly engaged in the production of pesticides and medicine intermediates in China, is the second largest difenoconazole technical producer, with capacity of 500t/a at present. “Our order books have been full because the difenoconazole technical production line is operated with full capacity recently” says Miss Bai, foreign trade staff from Udragon Chemical. The difenoconazole technical output of Udragon Chemical was about 300 tonnes

in 2010, most of which is exported, adds Miss Bai. According to Mr. Li, sales manager from Zhejiang Heben Pesticide & Chemicals Co., Ltd. (Zhejiang Heben), the company's difenoconazole technical capacity has reached about 450t/a in 2010 and its output was around 300 tonnes, while only 150 tonnes in 2009. Currently, all difenoconazole technical produced by Zhejiang Heben is sold to a domestic formulation enterprise in Shandong. Other domestic difenoconazole technical producers, like Jiangsu Fengdeng Pesticide Co., Ltd., Limin Chemical Stock Co., Ltd., etc., also claim that they have no stock and its supply is very tight at present. Difenconazole, an excellent triazole fungicide, is popular in some foreign countries, like the U.S., Australia, etc., thanks to its good control effect on crop diseases. The difenconazole sales hit about USD195 million in 2007 all over the world and it has been increasing at an annual rate of 15%, which makes it become the third largest triazole fungicide, just next to tebuconazole and epoxiconazole. Meanwhile, difenconazole has witnessed rapid

FIGURE1: Difenconazole technical output in China, 2009~2010

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Source: CCM International



development in China since 2006, when Syngenta's administrative protection expired. More and more domestic pesticide companies have registered the difenconazole formulation and there are 152 difenconazole formulation registrations in China so far.

The total capacity of difenconazole technical is about 4,500t/a in China so far, aided by many domestic producers launching their difenconazole production. With the domestic difenconazole technical capacity expansion in recent years, its price is about USD30,100/t in early Jan. 2011, down 20.64% from USD37,929/t in Jul. 2008.

Difenconazole is estimated to meet a promising market in domestic and overseas markets over next years due to gradually reducing price and its high control effect on various crop diseases.

■ Pricing

Monthly ex-factory prices of key raw materials, Jan� 2011

Raw material/intermediate

Ex-factory price Market price

10 Jan� 2011 10 Dec� 2010 Jan� 2010 10 Jan� 2011 10 Dec� 2010 Jan� 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 8,832 58,550 8,602 57,450 10,985 75,000 8,900 59,000 8,684 58,000 11,032 75,320

2,4,6-Trichlorophenol 2,195 14,550 - - - - 2,263 15,000 - - - -

o-phenylenediamine 5,212 34,550 - - - - 5,279 35,000 - - - -

M-xylene 1,516 10,050 1,662 11,100 1,391 9,500 1,584 10,500 1,744 11,650 1,438 9,820

Ethylenediamine 7,474 49,550 - - - - 7,542 50,000 - - - -

1,2,4-Triazole 6,418 42,550 6,438 43,000 6,078 41,500 6,486 43,000 6,521 43,550 6,125 41,820

Sulphur 155 1,030 207 1,380 176 1,200 223 1,480 289 1,930 190 1,300


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

Technical10 Jan� 2011 10 Dec� 2010 Jan� 2010

Formulation10 Jan� 2011 10 Dec� 2010

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

Dimethomorph 95%TC 17,128 113,550 16,388 109,450 16,503 112,680 50% WP 9,284 61,550 9,950 66,450

Chlorothalonil 98%TC 4,156 27,550 4,192 28,000 4,420 30,180 75% WP 3,929 26,050 - -

Mancozeb 90%TC 3,598 23,850 3,594 24,000 3,249 22,180 80% WP 3,281 21,750 3,212 21,450

Isoprothiolane 97%TC 5,212 34,550 5,158 34,450 4,493 30,680 - - - - -

Carbendazim 98%TC 5,664 37,550 5,607 37,450 4,201 28,680 50% SC 3,251 21,550 3,137 20,950

Thiophanate-methyl 96%TC 4,910 32,550 5,158 34,450 4,786 32,680 70% WP 4,759 31,550 4,919 32,850

Phosethyl Al 97%TC 2,874 19,050 2,837 18,950 2,516 17,180 - - - - -

Triadimefon 95%TC 8,379 55,550 7,883 52,650 7,349 50,180 15% WP 2,346 15,550 2,014 13,450

Tebuconazole 97%TC 11,698 77,550 11,597 77,450 11,817 80,680 43% SC 6,192 41,050 - -

Tricyclazole 95%TC 8,681 57,550 8,452 56,450 7,349 50,180 - - - - -

Propiconazole 95%TC 27,989 185,550 23,875 159,450 22,655 154,680 - - - - -

Metalaxyl 98%TC 13,659 90,550 13,992 93,450 13,590 92,800 - - - - -

Prochloraz 97%TC 6,871 45,550 6,656 44,450 6,544 44,680 25% EC 3,779 25,050 - -

Difenoconazole 95%TC 30,100 199,550 29,565 197,450 24,852 169,680 10% WDG 5,362 35,550 - -

Propamocarb 98%TC 6,871 45,550 7,105 47,450 7,276 49,680 - - - - -

Cymoxanil 98%TC 9,737 64,550 - - - - - - - - -




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

Technical

Shanghai port price FOB Shanghai

Formulation

Shanghai port price

10 Jan�2011

10 Dec�2010

Jan�2010

10 Jan�2011

10 Dec� 2010

10 Jan�2011

10 Dec�2010

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 17,196 114,000 16,471 110,000 16,550 113,000 16,535 15,914 50% WP 9,352 62,000 10,032 67,000

Chlorothalonil 98%TC 4,224 28,000 4,275 28,550 4,467 30,500 4,120 4,350 75% WP 3,997 26,500 - -

Mancozeb 90%TC 3,665 24,300 3,676 24,550 3,295 22,500 3,586 3,229 80% WP 3,349 22,200 3,294 22,000

Isoprothiolane 97%TC 5,279 35,000 5,241 35,000 4,540 31,000 5,131 4,420 - - - - -

Carbendazim 98%TC 5,732 38,000 5,690 38,000 4,247 29,000 5,564 4,140 50% SC 3,319 22,000 3,219 21,500 Thiophanate-methyl96%TC

4,978 33,000 5,241 35,000 4,833 33,000 4,842 4,701 70% WP 4,827 32,000 5,001 33,400

Phosethyl Al 97%TC 2,941 19,500 2,920 19,500 2,563 17,500 2,893 2,528 - - - - -

Triadimefon 95%TC 8,447 56,000 7,966 53,200 7,396 50,500 8,162 7,154 15% WP 2,413 16,000 2,096 14,000

Tebuconazole 97%TC 11,766 78,000 11,679 78,000 11,863 81,000 11,338 11,429 43%SC 6,260 41,500 - -

Tricyclazole 95%TC 8,749 58,000 8,535 57,000 7,396 50,500 8,451 7,154 - - - - -

Propiconazole 95%TC 28,056 186,000 23,957 160,000 22,702 155,000 26,928 21,801 - - - - -

Metalaxyl 98%TC 13,727 91,000 14,075 94,000 14,060 96,000 13,215 14,210 - - - - -

Prochloraz 97%TC 6,939 46,000 6,738 45,000 6,591 45,000 6,719 6,383 25% EC 3,846 25,500 - -

Difenoconazole 95%TC 30,168 200,000 29,647 198,000 24,899 170,000 28,949 23,903 10% WDG 5,430 36,000 - -

Propamocarb 98%TC 6,939 46,000 7,187 48,000 7,323 50,000 6,719 7,083 - - - - -

Cymoxanil 98%TC 9,805

65,000- - - - 9,461 - - - - - -

Note: Shanghai port price =ex-factory price plus transport fee from production plant to Shanghai portFOB price =port price + handing and THC +trading companies′ProfitSource: CCM International

Crops10 Jan� 2011 10 Dec� 2010 Jan� 2010

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

Wheat 318 2,106 319 2,133 308 2,100 Yellow maize 294 1,946 292 1,948 269 1,840 Peanut Kernel 1,388 9,200 1,378 9,200 1,113 7,600 Indica rice 465 3,080 428 2,856 405 2,766 Japonica rice 589 3,903 587 3,917 498 3,400 Banana 597 3,960 524 3,500 410 2,800 Cucumber 403 2,670 329 2,200 331 2,260 Apple 1,112 7,370 898 6,000 586 4,000


Monthly market prices of main crops, Jan� 2011



Epoxiconazole price decreases a lot from 2009

The price of epoxiconazole technical declined a lot in 2010 over 2009 and it is estimated to continue to decline in the future. The price decrease cuts the application cost of the product, which increases its competitiveness in domestic

formulation market. The price of epoxiconazole technical was USD97,744/t at the beginning of 2009. Since then, the price had kept falling and dipped to USD67,669/t at the beginning of 2010, down 30.77% year on year.

Its price remains at around USD67,669/t in most of the time in 2010. Although the price declined to USD60,150/t in May 2010, it has witnessed some degree of recovery, reaching USD67,669/t again by the end of 2010. The much lower price of epoxiconazole technical in 2010 compared with that of 2009 is mainly caused by the large-scale capacity expansion of the product. Before 2009, the capacity of epoxiconazole technical was very small in China and the price was very high. However, its capacity has witnessed considerable increase since 2009, forcing down the price of the product. The capacity of epoxiconazole technical expanded from about 300t/a in 2008 to 650t/a at the end of 2009.

The price of the product is estimated to witness further decrease in the future with its capacity continuing to increase. It is estimated that a 150t/a epoxiconazole technical production line of Lier Chemical Co., Ltd. will be launched in 2011. Besides, Jiangsu Huifeng Agrochemical Co., Ltd. is expanding its epoxiconazole technical capacity from 200t/a to 1,200t/a. But the price decrease of epoxiconazole technical is not all bad news for pesticide formulation companies and farmers. With the expansion of epoxiconazole technical, the epoxiconazole formulation price will also witness decrease. The price decrease of the epoxiconazole formulation cuts the application cost of the product, which increases its competitiveness in domestic formulation market.

At present, most epoxiconazole technical produced in China is for export and the consumption in domestic market is small due to its high price. But the application in China is estimated to witness increase with the continuously declining price and its high efficacy in controlling banana leaf spot and wheat rust. At present, including BASF, only 9 companies registered epoxiconazole formulation in China, but the number is increasing. The product now is mainly registered on the control of banana leaf spot and wheat rust at present. Besides, the product has huge potential in the rice pesticide market. It is an ideal pesticide to control rice false smut and rice sheath blight. It will compete fiercely with those widely applied products, such as tebuconazole, 300g/L difenoconazole•propiconazole EC, etc.

Epoxiconazole, a triazole fungicide developed by BASF, has good effect in prevention and treatment of more than ten kinds of diseases in cereal crops, fruit trees, etc.

FIGURE2: Price of epoxiconazole technical, 2009~2010




■ Intermediate

Overview of 1,2,4-triazole in 2010

Price

The average price of 1,2,4-triazole, an important intermediate of triazole fungicides, reached USD6,102/t at the domestic market in 2010, only a little increase, up 6.20% over 2009. The price of 1,2,4-triazole increased by 5.92% from USD6,078/t in Jan. 2010 to USD6,438/t in Dec. 2010. Moreover, it was USD6,884/t in early Nov. 2010, the highest level in recent two years, rising by 23.04% year on year, mainly aided by the price rise and tight supply of its raw materials. Actually, 1,2,4-triazole price change was not significant in the first ten months at domestic market, fluctuating from USD5,687/t to USD6,229/t, thanks to its adequate supply. And the demand for triazole fungicides did not grow rapidly compared with its gradually expanding capacity in recent years, which also results in the currently stable price of 1,2,4-triazole price.

Production

According to CCM's investigation, the capacity of 1,2,4-triazole has reached 22,100t/a by late 2010 for 17 major 1,2,4-triazole manufacturers in China, with total output of 14,400 tonnes. In China, most 1,2,4-triazole manufacturers had kept stable production in the whole year of 2010 except for about one to two months' equipment maintenance. For example, Jiangsu Sword Agrochemicals Co., Ltd. (Jiangsu Sword), one of the leading triazole fungicide producers in China, produces triazole fungicides with its

own 1,2,4-triazole. And its 1,2,4-triazole capacity is 3,000t/a. Mr. Zhang from Jiangsu Sword reveals that the company's 1,2,4-triazole production line has kept operating in 2010 and its output was about 2,500 tonnes by late Dec. 2010.

Consumption

Most homemade1,2,4-triazole in China is used to produce triazole fungicides by domestic producers, such as tebuconazole, triadimefon, propiconazole, paclobutrazol, difenoconazole, etc. Statistics from CCM show that about 3,220 tonnes 1,2,4-triazole is used to produce tebuconazole technical by domestic pesticide manufacturers in 2010, accounting for 22.36% of the total output. Thus, the consumption of 1,2,4-triazole in tebuconazole technical production is the largest compared with that in other triazole fungicides. And its consumption volume in triadimefon, propiconazole, difenoconazole, and epoxiconazole technical production reached about 1,520 tonnes,1,284 tonnes, 500 tonnes and 112 tonnes respectively in 2010.

Prospect

It is estimated that the price of 1,2,4-triazole will continue to advance in H1 2011 with increasing raw material prices and the coming of consumption peak season. However, the average price growth rate of 1,2,4-triazole will be not more than 10% in 2011, because of its ample capacity and stable production.

■ Supply and demand

Coumoxystrobin to be on the market in Feb� 2011

Jilin Bada has registered the coumoxystrobin 20% SC, with registration number of LS20100164.

And the registration certificates of other two mixed formulations, namely coumoxystrobin•tebuconazole and

coumoxystrobin•dimethomorph, will soon be approved by Institute for Control of Agrochemical, Ministry of Agriculture.



Jilin Bada began to construct coumoxystrobin 96% technical production line with capacity of 100t/a at Lingdong Industrial Park, Gongzhuling City of Jilin Province in Jun. 2010. After about six months’ construction, the company has finished the construction of this production line now.

According to Mr. Chen, product manager of marketing department from Jilin Bada, the 100t/a coumoxystrobin 96% technical production line should be put into operation in Dec. 2010; but it will be launched in H1 2011 because of the cold weather in Northeast China currently.

As a novel strobilurin fungicide, coumoxystrobin (SYP-3375) was developed by Shenyang Research Institute of Chemical Industry (SYRICI) in 2003. Jilin Bada Pesticide Co., Ltd. (Jilin Bada) bought this fungicide patent from SYRICI, and became the exclusive producer of coumoxystrobin 96% technical.

Mr. Chen reveals that about 60%~70% of coumoxystrobin technical to be produced will be sold mainly to domestic pesticide companies and the rest will be used to produce related formulations by itself in the future. For the moment, Jilin Bada has not planned to explore overseas markets due to complicated registration procedures abroad, adds Mr. Chen. Jilin Bada will mainly promote coumoxystrobin formulations in main apple production areas, such as Shaanxi, Gansu, Shandong, Hebei, etc., thanks

to its excellent control effect on apple canker. Take coumoxystrobin 20% SC for an example, the control effect on apple canker can reach about 90%, while that of ambam 45% AS for apple canker is only about 67%. Coumoxystrobin, a broad-spectrum fungicide, can be used to control not only apple canker but also late blight, downy mildew, powdery mildew, etc. in vegetable and fruit fields. Therefore, Sourthern areas like Guangdong and Hainan where many vegetables and fruits are planted will also be important markets for Jilin Bada, according to Mr. Chen. Though coumoxystrobin is an excellent fungicide, it may face many challenges from other fungicides such as azoxystrobin, kresoxim-methyl, propiconazole, etc., which have been promoted for several years in Chinese pesticide market. However, Jilin Bada is optimistic about coumoxystrobin's market prospect aided by its nationwide marketing channels. Jilin Bada, established in 1996, is a specialized pesticide formulation producer in Northeast China. The company has been strengthening its fungicide development and production in recent years, including coumoxystrobin, prochloraz, isoprothiolane, etc.

Shaanxi Meibang to promote 50% epoxiconazole WDG in 2011

On November 10, Shaanxi Meibang Pesticides Co., Ltd. (Shaanxi Meibang) has obtained the registration

certificate of epoxiconazole 50% WDG, with registration number of LS20100150,and plans to promote this formulation in late Jan. 2011 at domestic market. Epoxiconazole 50% WDG of Shaanxi Meibang is registered to control banana leaf spot with application dosage of 125~166.7mg/kg. As an excellent triazole fungicide with broad spectrum, epoxiconazole can be widely used to control banana leaf spot and black spot, grape anthracnose, cucumber powdery mildew, wheat rust, etc.

According to CCM's survey, Shaanxi Meibang began to develop epoxiconazole 50% WDG five years ago and it takes about three years to register this formulation. Mr. Wang, sales manager from Guangdong from Shaanxi Meibang, reveals that the company has begun to produce this new WDG formulation (500g/vial) at present, and is about to promote it in banana production areas in late Jan. 2011 at domestic market, such as Guangdong, Hainan, Guangxi, Fujian, etc.

Mr. Wang expresses that this new formulation will enjoy a bright market prospect with its advantages over the traditional formulations. For instance, epoxiconazole 50% WDG is more environmentally friendly compared to the traditional formulation types like EC and WP.

Besides, this new formulation product will largely reduce the production cost, including the packing and transportation cost, with the rise in active ingredient content. Moreover, the crop growers will also benefit from this new formulation because it enjoys a relatively lower application dosage (125~166.7mg/kg) compared with other formulations, like epoxiconazole 12.5% SC (125~250mg/kg). With the above advantages, epoxiconazole 50% WDG is expected to have a promising market prospect in the future. Currently, the popular commercial epoxiconazole product is the 12.5% SC. In total, there are six companies who have registered epoxiconazole 12.5% SC to control banana leaf spot and wheat rust, according to data from the Institute for Control Agrochemicals, Ministry of Agriculture (ICAMA).

Shaanxi Meibang, a subsidiary of Xi'an Meibang Co., Ltd., is a leading pesticide formulation company in Northwest China. It has obtained over 200 pesticide registration certificates, including insecticides, fungicides and herbicides.



A fire broke out in Lier Chemical

■ Company dynamic

Lier Chemical Co., Ltd. (Lier Chemical), a Sichuan-based company, reports on the evening of 21 Dec. 2010 that

a fire broke out in its propiconazole production workshop in the afternoon of that day. The company says that there were no casualties, no leak of dangerous chemicals and no explosion in the fire. According to the report, the fire broke out in the company’s propiconazole production workshop and was extinguished timely. So the damage is only limited to its propiconazole production workshop and other production workshops of the company were not impacted. The company says that the economic loss caused by the fire is less than USD300,751 (RMB2 million). Lier Chemical is repairing the damaged propiconazole production line at present. Before the fire, Lier Chemical was test running its propiconazole production line. At present, Lier Chemical says the exact time of launching the production line is not sure because of the fire and it will release related news timely in the future. Lier Chemical’s propiconazole production line, with

capacity of 600t/a, was started to be constructed in 2008. The total investment for the production line is USD7.12 million (RMB48.58 million), including around USD6.06 million fixed assets and USD1.02 million circulating fund.After the launch of this production line, Lier Chemical will be one of the leading propiconazole producers in China. Actually, Lier Chemical has already begun the promotion of propiconazole. The company purchases propiconazole from other companies and then sells it at present. This strategy will benefit the promotion of the production in the future when the company launches its propiconazole production line. Besides, Shandong Zhongshi Chemical Industry Co., Ltd. (Shandong Zhongshi) also suffered a fire on 8 Dec. Although the fire has been extinguished, Shandong Zhongshi’s pesticide production is hit heavily. Hence, education programs on production safety should be enhanced in pesticide companies to avoid accident occurrence.

SinoChem LYG actively develops fungicides

SinoChem Lianyungang Chemicals Co., Ltd. (SinoChem LYG), a subsidiary of SinoChem Ningbo Ltd. (SinoChem

Ningbo), has been actively developing fungicides, especially triazole fungicides such as tebuconazole, propiconazole and difenoconazole in recent years.

SinoChem LYG was founded by SinoChem Ningbo in 2007, with total investment of USD25.52 million (RMB170 million). As an important chemical production base of SinoChem Ningbo, SinoChem LYG has successfully developed six pesticide products including one insecticide, two herbicides and three triazole fungicides in recent three years. As for three fungicides, thereinto, its tebuconazole 96% TC and propiconazole 95% TC capacities reach about 700t/a and 1,000t/a separately at present. And difenoconazole technical production line with capacity of 120t/a is in the course of construction currently, which is estimated to be launched in late 2011, according to Mr. Jiang, sales manager from SinoChem LYG. Ms. Jiang reveals that tebuconazole 96% TC and propiconazole 95% TC produced are mainly exported to overseas market like EU, South America, Middle East, Southeast Asia and Africa, aided by its wide-coverage international sales network. Besides, SinoChem LYG has been strengthening domestic market development since global financial crisis broke out in late 2008.

Meanwhile, SinoChem LYG also actively develops related fungicide formulations to increase its downstream products, including propiconazole 25% EC, tebuconazole 43% SC and difenoconazole 10% WDG. It is well known that triazole fungicides are very popular ones all over the world, thanks to their excellent disease control effect on major cash and grain crops. Take propiconazole for an example, it can effectively control banana leaf spot, grape anthracnose, strawberry powdery mildew, wheat powdery mildew, rust, etc. The field tests indicated that the control effect of 25% propiconazole EC for wheat powdery mildew could reach about 80%, while 50% thiram WP, an organosulfur fungicide, has poorer effect on wheat powdery mildew, about 60% or even lower. In addition, the former effective dosage (112.50~131.25g/ha.) is much lower than the latter (675.00~937.50g/ha.), which can reduce pesticide residue and protect environment to a great extent. Therefore, many Chinese producers including SinoChem LYG have been developing triazole fungicides in recent years, aided by their bright prospect in the overseas and domestic markets. SinoChem LYG and SinoChem Ningbo Chemicals Co., Ltd. (SinoChem NB) are two production bases of SinoChem



Ningbo. The two companies' products include agrochemicals, pesticides and pharmaceutical intermediates, etc. SinoChem Ningbo established in 1987, is a subsidiary of SinoChem Group, a key state-owned enterprise, which has been listed

among the Fortune Global 500 Companies for 19 consecutive years.

TABLE1: Main pesticide products of SinoChem LYG, 2010

Fungicide Capacity (t/a) Launch timetebuconazole 700 It has been launched but the detail time is unknown.propiconazole 1,000 It has been launched in Oct. 2010.difenoconazole 1,20 It is estimated to be launched in late 2011.


Jiangsu Fengdeng adjusting its fungicide products

Jiangsu Fengdeng Pesticide Co., Ltd. (Jiangsu Fengdeng), one of the leading triazole fungicide producers in China,

is actively adjusting its product mix at present, which will improve its competition ability in fungicide industry to some degree. According to Jiangsu Fengdeng’s development plan, the company is eliminating part of its old production capacities and increasing some potential fungicide products, with total investment of USD18.06 million, to accommodate changing market condition and strengthen competiveness. After adjusting the product structure, the number of all pesticide products in the company will be reduced to 32 from 38, and its pesticide production capacity will decrease to 5,990t/a from 6,940t/a accordingly. And meanwhile, it is expanding the fungicide varieties from triazole to anilinopyrimidines, trichloro-methylthio and amides. On one hand, Jiangsu Fengdeng is carrying out technological transformation of six existing production lines for triazole fungicides, namely tricyclazole, propiconazole, tebuconazole, difenoconazole, flutriafol and hexaconazole. Jiangsu Fengdeng is adjusting several old products’ capacities on the basis of the technological transformation. According to CCM's survey, the capacity of tricyclazole, propiconazole, flutriafol and tebuconazole is decreased to 1,000t/a, 600t/a, 100t/a and 500t/a from previously 1,500t/a, 800t/a, 300t/a and 1,000t/a separately. And the capacity of another two triazole fungicides, namely difenoconazole and hexaconazole, still maintains at 200t/a and 100t/a respectively. On the other hand, the company increases six fungicides, including two triazoles, epoxiconazole and cyproconazole with capacity of 200t/a respectively, two anilinopyrimidines, cyprodinil and fenoxanil, with capacity of 100t/a respectively, and two amides, folpet and captan, with capacity of 150t/a respectively. Jiangsu Fengdeng acquired Changzhou Yalong Spice Additive Co., Ltd. (Changzhou Yalong) in 2009, and converted it into a new pesticide production base currently. All production lines of six new fungicides for Jiangsu

Fengdeng are constructed in this new plant, according to Mr. Hou, foreign trade manager from Jiangsu Fengdeng. Mr. Hou revealed that the company had launched the 100t/a fenoxanil production line in mid-2010, and other five new fungicides’ production lines will be launched in late 2011. Besides, Jiangsu Fengdeng is also constructing a 1,2,4-triazole (an important intermediate for triazole fungicides) production line with capacity of 200t/a in this new plant. After completing the construction of this intermediate production line, its production cost of triazole fungicides will be greatly decreased in the future. Jiangsu Fengdeng, established in 1979, is a specialized chemical enterprise mainly engaged in the production of pesticides, pesticide intermediates and chemicals. The company has kept exploring the international market in recent years and strengthened the R&D efforts for its products.

TABLE2: Capacities of major fungicide technicals of Jiangsu Fengdeng, 2011

Fungicide Capacity, t/a Remark

Tricyclazole 1,000

Old products under tech-nological transformation

Propiconazole 600

Tebuconazole 500

Difenoconazole 200

Flutriafol 300

Hexaconazole 100

Epoxiconazole 200

Newly added products

Cyproconazole 200

Cyprodinil 100

Fenoxanil 100

Folpet 150

Captan 150




Limin Chemical expanding its phosethyl-Al technical

Limin Chemical Stock Co., Ltd. (Limin Chemical), one of key fungicide producers in China, is expanding its

phosethyl-Al technical from 2,000t/a to 5,000t/a, which is expected to go into production in 2011. After finishing the expansion, Limin Chemical will be in the first place with Zhejiang Jiahua Chemical Co., Ltd. (Zhejiang Jiahua) among the list of phosethyl-Al technical producers in China. Additionally, Limin Chemical will greatly strengthen its competitiveness and make it capture more profits from this fungicide in overseas and domestic markets. According to Mr. Sun, a staff from Jiangsu Limin, this 5,000t/a phosethyl-Al technical production line is located in Fujing Aoyang Industrial Park of Funing County in Jiangsu Province. And it is expected to be launched in 2011 according to the company's plan, but Mr. Sun didn't disclose the detail schedule. Mr. Mao, Foreign Trade Manager from Jiangsu Limin, reveals that most phosethyl-Al technical is sold abroad by its own overseas business department and other domestic trading companies; the rest is sold to domestic formulation enterprises or used to produce phosethyl-Al formulation by itself.

Thanks to stable demand for phosethyl-Al technical from overseas and domestic market, Jiangsu Limin hopes to enhance its phosethyl-Al technical supplying ability to gain more market share. “Our company's orders of phosethyl-Al technical have been scheduled to early Feb. 2011, most of which are

from overseas thanks to the coming consumption peak in overseas market (the first half year in 2011)” Ms. Li says, foreign trade staff from Limin Chemical.

Besides, Mr. Yang, sales manager in charge of Guangdong market in Limin Chemical, expresses that the company can not accept other domestic pesticide companies' orders at present, since there are no ready stocks; the situation will get back to normal by the end of February next year.

Phosethyl-Al, a kind of systemic fungicide, has good control effect on diseases of vegetables, fruits' downy mildew, blight, ring rot, etc. In addition, lower price coupled with broad spectrum and low toxicity attracts most peasants to apply it in prevention and control crop diseases. Till now, there are four leading phosethyl-Al technical producers in China. Among these producers, Zhejiang Jiahua is the largest producers, and its phosethyl-Al technical output was about 3,000 tonnes in 2009, while about 1,000 tonnes for Limin Chemical in 2009.

With expanding phosethyl-Al technical capacity, Limin Chemical will more actively exploit overseas and domestic markets in the future, which will lead to fierce competition in Chinese producers. Limin Chemical is the largest mancozeb technical producer with capacity of 20,000t/a in China at present. The company has been striving to get listed in recent years, and it has attended pre-listing tutoring by Western Securities Co., Ltd. in Jan. 2010.

TABLE3: Capacities of major fungicide technicals of Limin Chemical, 2010

Fungicide Capacity, t/aMancozeb 20,000

Chlorothalonil 7,000Cymoxanil 2,000

Metam-sodium 5,000Propineb 5,000

Phosethyl-Al 2,000Folpet 2,000

Pyrimethanil 500Difenconazole 100Azoxystrobin 100


Mudanjiang Bioseen to enter into jingangmycin market

Mudanjiang Bioseen Science & Technical Co., Ltd. (Mudanjiang Bioseen), a subsidiary company of

Beijing Yoloo Pesticide Co., Ltd. (Beijing Yoloo), will enter jingangmycin market in the near future. Mudanjiang Bioseen constructed a 2,000t/a jingangmycin technical production line through transforming the previous equipment in late Mar. 2010. This production line also produces spinosad technical (a kind of microbial insecticide) with capacity of 300t/a. And the production line has passed the Environmental Impact Assessment

(EIA) by the Department of Environmental Protection of Heilongjiang Province on July 23, 2010. According to CCM's survey, Mudanjiang Bioseen performed jingangmycin lab-scale fermentation in three 3m3 fermentation cylinders in Jul., pilot fermentation test in three 30m3 fermentation cylinders in late Sept. and trial production in six 330m3 fermentation cylinders in late Oct. 2010. Currently, Mudanjiang Bioseen is waiting for jingangmycin



technical registration certificate from Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA). The company is predicated to soon win this certificate and the 2,000t/a jingangmycin technical production line will be launched by then, according to Ms. Jiang, sales manager from Mudanjiang Bioseen. Jingangmycin, a kind of agro-antibiotic fungicide with low toxicity, is mainly applied to controlling rice sheath blight thanks to its good control effect and low application cost. As a major grain crop, rice is widely cultivated in 120 countries and regions world wide and its planting area accounts for about 30% of total grain crop area in China. And statistics show that jingangmycin application area is about 13.33 million hectares every year in rice producing areas in China. With the stable market demand for jingangmycin in recent years as well as its not-bad profit, Mudanjiang Bioseen hopes to possess certain market share by entering this fungicide production. At present, there are five major jingangmycin technical producers in China, namely Zhejiang Qianjiang Biochemical Co., Ltd. (Qianjiang Biochemical), Zhejiang Tonglu Huifeng Biochemistry Co., Ltd. (Zhejiang Tonglu), Wuhan Kernel

Bio-tech Co., Ltd. (Wuhan Kernel), Pucheng Green Shell Biological Technology Co., Ltd. (Pucheng Green) and Jiangsu Lvye Agrochemical Company (Jiangsu Lvye). Among the five producers, Qianjiang Biochemical's jingangmycin capacity is the largest, about 2,000t/a. And 20% of its jingangmycin products are for export, mainly to Southeast Asia, especially Vietnam, Korea, Japan, etc. Besides, its jingangmycin products take up about 40% in the Chinese market. Though the consumption of jingangmycin was large in past years, its sales volume is estimated to witness a downward tendency in the future due to its increasing resistance as well as lower profit.

Mudanjiang Bioseen, established in late 2009, is an important production base of Beijing Yoloo. It was reorganized from Mudanjiang Lvjin Biological Co., Ltd. with total investment of USD36.6 million by Beijing Yoloo. As a new player in biological pesticide industry, Mudanjiang Baijiaxin will have a long way to go for the promotion of jingangmycin and other biological pesticide products in the future.

TABLE4: Main producers of jingangmycin technical in China, 2010

Company Capacity, t/aZhejiang Qianjiang Biochemical Co., Ltd. 2,000Zhejiang Tonglu Huifeng Biochemistry Co., Ltd. 2,000Wuhan Kernel Bio-tech Co., Ltd. 750Pucheng Green Shell Biological Technology Co., Ltd. 500Jiangsu Lvye Agrochemical Company 360Mudanjiang Baijiaxin Science & Technical Co., Ltd. 2,000

Note: Mudanjiang Baijiaxin’s 2,000t/a jingangmycin technical line will be launched in 2011Source: CCM International

■ Product

Hubei Yizailing registers prohexadione calcium

Hubei Yizailing Agricultural Science and Technology Co., Ltd. (Hubei Yizailing) firstly registered the

prohexadione calcium, a novel plant growth regulator, on regulating rice growth recently, especially for anti-lodging.

The registration includes two items, 85% technical and 5% PP formulation, with the registration numbers of LS20100133 and LS20100132 respectively. Prohexadione calcium is registered to improve the rice resistance power of lodging, and the use dosage is 315~450g/ha.

Prohexadione calcium was developed by Prof. Zhangjun from China Agricultural University with the efforts for many years on the basis of the overseas research. Hubei Yizailing has been cooperating with the College of Biology in China Agricultural University in recent ten years to achieve the industrial production of prohexadione calcium.

In past three years, National Agricultural Technology Extension and Service Center completed the field test on prohexadione calcium 5% PP regulating rice growth in rice

production regions of 14 provinces all over the country, with the area of over 1,333ha. The result of field test shows that prohexadione calcium can effectively improve rice anti-lodging ability and increase rice yield by 5%~15%. Besides, the experiment on resistance lodging of super hybrid rice by prohexadione calcium 5% PP has been finished by the National Hybrid Rice Technology Center and the result also shows that rice has strong lodging resistance after applying the novel plant growth regulator. Recently, Hubei Yizailing has signed a cooperation agreement with the National Hybrid Rice Technology Center to supply prohexadione calcium 5% pp to the latter to develop high-yield rice.

According to Mr. Chen, sales manager from Hubei Yizailing, the prohexadione calcium 5% PP can be marketed in 2011 and the company has choosen a general agent for the product in Guangdong Province at present. In addition, the company's prohexadione calcium 85% technical would be used to produce prohexadione calcium 5% PP by itself,



an employee of the company's technological department reveals. Besides, Zhengzhou Zhengshi Chemical Co., Ltd. (Zhengshi Chemical), jointly with Hennan Agricultural University, has also been developing the prohexadione calcium in recent years. "Our company's prohexadione calcium technical production line is under pilot run at present and the company is estimated to obtain the registration certificate within two years" says Mr. Wang, sales manager from Zhengshi Chemical.

Rice is one of the most important grain crops, but lodging has been a serious problem in rice growth stages, which not only results in yield cut but also reduces rice quality. Prohexadione calcium can shorten the length of the rice internodes and make rice stem become much thicker to

improve its anti-lodging ability. In addition, prohexadione calcium can also be used to improve other crops' anti-lodging ability, such as wheat, corn, soybean, peanut, etc.

Hubei Yizailing, established in 1998, was mainly engaged in production and sales of environmentally friendly pesticides. Its major products are hymexazol•isoprothiolane 20% EC and chlorpyrifos 40% EC.

Zhengzhou Zhengshi, established in 2001, is a fine chemical enterprise. The major fungicide products of the company are thiamethoxam 95% TC, flusilazole 8% ME, oxadixyl•mancozeb 64% WP, etc.

Picture1: Field test on resistance lodging of rice by Prohexadione calcium 5% PP

Note: The left part is control area and the right is treated areaSource: Hubei Yizailing Agricultural Science and Technology Co., Ltd.

Promotion of propineb 70% WP in China

Propineb 70% WP, a kind of popular propineb formulation in China, has been promoted at domestic

market by many companies in recent years. It is predicated to have a bright prospect as it is predicted to be gradually accepted by more and more domestic peasants in the near future.

Currently, there are 15 companies having obtained the registration certificate of 70% propineb WP since Bayer CropScience firstly registered it in 1998 in China. And most companies have been actively promoting it in recent years, aided by its excellent preventative effect on various crop diseases as well as relatively high safety on crops.

Shenzhen Noposion Agrochemicals Company (Noposion), the largest formulation producer in China, has begun to promote propineb 70% WP in 2007. According to a sales staff in Guangzhou from Noposion, this formulation of the company was promoted well, especially in the Pearl River Delta region, which is the main fruit and vegetable planting area. "Some big retailers of pesticide formulations are actively promoting this product at present."expresses the sales staff.

Limin Chemical Stock Co., Ltd. (Limin Chemical), the largest propineb technical producer in China with capacity of 5,000t/a, is the first domestic company having registered

propineb 70% WP. Mr. Chen, foreign trading manager of Limin Chemical, reveals that company has promoted this product for several years in domestic and overseas markets and it has just expanded this formulation capacity and enhanced the product quality to capture more market share in the future.

Additionally, other domestic companies, like Shaanxi Sunger Road Bio-Science Company, Shaanxi Meibang Pesticide Company, Jiangsu Sword Agrochemicals Co., Ltd. and Nantong Baoye Chemical Company, etc., are also the main producers of propineb 70% WP at present.

Actually, Bayer CropScience China Co., Ltd. still dominates Chinese market of propinb 70% WP aided by its good brand image, high product quality as well as wide promotion channels. The company has successfully promoted this product on apple and orange to prevent related diseases in past years, according to a sales manager in Guangdong from Bayer.

Propineb, developed by Bayer CropScience, is an excellent protective fungicide with broad spectrum, high efficiency and low toxicity. Its common formulation is 70% propineb WP, which can be used to control various crop diseases, such as alternaria leaf spot, ring rot and anthracnose on apple, blight disease on potato and tomato, downy mildew



on cucumber and rape, etc.

With more and more cash crops being planted as well as its wide-range promotion in China, the demand for 70%

propineb WP is expected to see an increase in the near future.

■ Brief news

Vivando is to be approved by APVMA

BASF's Vivando, a new fungicide for the control of powdery mildew on grape and melon crops, is to be approved by Australian Pesticides and Veterinary Medicines Authority (APVMA). Besides, it has gained the registration certificate in America not long ago.

82 kinds of pesticides' MRL to be formulated

According to Ministry of Agriculture of the People's Republic of China, 82 kinds of pesticides’maximum residue limits (MRL) for pesticides in agricultural products and foods are to be formulated. Compared to America, Europe, Japan and Canada, pesticide residue standards in China are few. Currently, the number of pesticide residue standards is only 807 in China, far smaller than some developed countries. For instance, America has over 10,000 pesticide residue standards, and the number of that in Japan is over 50,000.

The consumption of fungicides for cereals decreases in France

The application area of fungicides in France decreases by 11% this year due to less disease occurrence, and that in cereal fields is only two-thirds the previous. Therefore, the consumption of

fungicides for cereal fields cuts down by 14% over last year.

The sales of pesticide products increased 24.7% in first ten months

The sales of pesticide products among about 950 pesticide enterprises in China reached about USD6.54 billion in the first ten months, up 24.7% over the same period of last year. Among all products, the sales of chemical pesticide products are USD5.77 billion, up 19.6% year on year. (Note: growth rate caculated by RMB)

Pesticide import volume in first 11 months up 19�7% year on year

According to China Customs' statistics, China has imported 46,746 tonnes pesticide products as of late Nov. 2010, valuing USD386.083 million, up 19.7% and 27.3% respectively year on year. And China imported 2,685 tonnes pesticide products in Nov. 2010, valuing USD19.699 million.

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