LONDON, March 9, 2016 /PRNewswire/ -- That ChemChina announced to acquire Syngenta becomes the most hottest topic in China's pesticide industry in Feb. 2016. This is the largest acquisition case ChemChina initiates in agrochemical field after it has acquired AMADA, the seventh largest pesticide producer in the world. It is believed that this will pose a huge impact on the agrochemical market both at home and abroad.
As the Chinese Spring Festival ends, China's herbicide market is still depressed. The transaction prices of most herbicides remain at low levels and even keep declining. For example, market prices of major herbicides like glyphosate, paraquat and acetochlor all report drops. Under the stagnant pesticide industry and the rapidly expanded capacity, the price of glufosinate-ammonium, the popular one among the market, shows large decline. The good news is that the sales volumes of some products are still rising. In year 2015, the export volume of paraquat TK achieved a YoY rise of 43.89% in China.
In the past few years, Weifang Rainbow has assumed the lead in China's pesticide industry as a result of its development strategy -"Platform + Partner + Innovation".
About 98% of Weifang Rainbow's revenue from major business is from overseas market. And the overseas sales gross profit is its main source of income. Meantime, most of its revenue comes from herbicide business.
On 3 Feb. 2016, ChemChina announced that it will acquire Syngenta. Syngenta is likely to be integrated into ChemChina's agrochemical platform - Hubei Sanonda.
As paraquat is about to withdraw from the market, glufosinate-ammonium, an excellent substitute, is embracing a new boom in China. However, its future is filled with challenges.
Although some pesticide enterprises suffered from losses in both revenue and profit in 2015, some were able to go against the market trend and improve their performances through restructuring their products and by expanding their agrochemical services.
In 2016, the No.1 Central Document, focuses on e-commerce for the agricultural means of production, which is a major part in developing rural e-commerce. The document highlights the importance the Chinese government attaches to supply reform in ecommerce.
In 2015, China's export volume of paraquat TK recorded YoY soar while the export price kept falling sharply.
As China has banned the production of paraquat AS for domestic use and sales, export market becomes the only chance for paraquat enterprises. Some domestic TK enterprises reduced the output of paraquat AS. However, in year 201 5, paraquat AS did not make any good results in the export market; both its export volume and price all suffered from large declines.
For more than a year, China's pyridine market fell into downturn. Regarding the current market situation, it is predicted that there will be not many positive factors supporting the pyridine market in a short run.
On 5 Feb., 2016, the MOC announced to continuously levy anti-dumping duty on pyridine which is imported from India. However, the anti-dumping duty was reduced from 24.6% to 17.6%. It is believed that this will pose positive effect on China's pyridine import market but will impact the domestic pyridine market to some extent.
In Jan. 2016, 12 herbicide TC were newly registered in China. Notably, two TC registrations were respectively on active ingredients 2,4-D and nicosulfuron.
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