LONDON, June 29, 2016 /PRNewswire/ -- In May, the MOA issued a letter to collect opinions on limiting and banning the use of 8 pesticides including 2,4-D butylate and paraquat. In the letter, the MOA suggests no longer accepting and approving the registration application and the update of old registrations for domestic use on 2,4-D butylate-containing products. While those 2,4-D butylate TC producer can still register 2,4-D butylate for export. This marks that 2,4-D butylate will share the same fate with paraquat – being banned. The MOA planned to re- classify paraquat as a highly poisonous substance, and no longer accept and approve the update of old registrations except that for export only. However, domestic enterprises against this plan as they believe it will impact the export business of paraquat and will hinder the development of pyridine.
Affected by the depressed pesticide market, the prices of herbicides remain stable basically. As the pre-emergence production and stock-up of herbicides for corn field come to an end, the tight supply of amide herbicides is relieved. Nevertheless, the post- emergence herbicide market for corn field is still sluggish with price drop.
In recent years, the call of banning 2,4-D butylate is strengthened, which indictes that 2,4-D butylate is going to be unavoidably banned in China. On 9 May, 2016, the MOA issued the opinions and measures about banning 2,4-D butylat. Related policy on the ban of 2,4-D butylate will be officially implemented with in 2016, predicted industry insiders.
On 9 May, 2016, China announced the decision to ban the use of 2,4-D butylate from the domestic market which, fortunately, will not affect its export.
Along with the increasingly fierce market competition, pesticide intermediate enterprises went to extremes oppositely in sales in 2015. This situation will be more obvious throughout 2016.
Encumbered by the falling prices of paraquat and pyridine, Shandong Luba's net profit recorded a YoY fall of 43.40% in 2015. In response to this, the company is focusing on developing the downstream industrial chain of pyridine.
In 2015, ENN Group suffered from YoY falls in total revenue and net profit. However, its revenue and profit from pesticides encountered different degrees of rises mainly thanks to the mounting sales and profit of pesticides.
In 2015, both export volume and value of clethodim TC and formulations achieved large YoY rises although the international market remained depressed. Clethodim, as an export-oriented product, enjoys promising prospect in the export market in the future.
In Q1 2016, China's export market of herbicide formulations still remained sluggish with YoY fall of 2.52% and 9.47% in export volume and export value respectively.
At the moment, the production and use of paraquat AS in China is going to be unavoidably banned and, although the development of non-AS paraquat is stagnant, paraquat is predicted to exit the Chinese market for good around Oct. 2018.
The MOA is planning to re-classify paraquat as a highly poisonous substance. "Changing the toxicity of paraquat is meaningless because that will just affect paraquat export and greatly impact the pyridine industry," was what paraquat enterprises commented.
There were 11 herbicide TC being registered by 8 enterprises in China in April 2016. Of this, benzobicyclon was registered in China for the first time and amicarbazone was registered by domestic enterprise for the first time.
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