LONDON, Nov. 21, 2016 /PRNewswire/ -- In July 2016, China's herbicide market enters the slack season with gradually weakening market demand. More and more manufacturers suspend production for maintenance. This is the first month after paraquat AS was banned in the Chinese market, and substitutes like glyphosate TC, glufosinate-ammonium TC and diquat attract attention. However, although enterprises increase purchase volumes of these substitutes, it seems that they have not gain profit from the ban on paraquat AS immediately. Transactions in the glyphosate market remain slack, mainly affected by the price reduction (even hits a record low) and high inventory pressure. There are not many enterprises produce diquat in China, and the market remains stable. It is known that Nanjing Red Sun has planned to increase production capacity of diquat TC.
Since 1 July, 2016, paraquat AS has been banned in China, according to the No. 1745 Announcement released by the MOA, the MIIT and the AQSIQ. At the moment, related departments in all provinces/ municipalities/ autonomous regions are strengthening inspection on illegal operation, clear-up and return of paraquat AS and enhance supervision on the substitute market.
The fact that China's pesticide market have been in a bad shape since H1 2016, and that such bad condition is esteemed to persist in the short term, is inevitably causing the fall of the herbicide market.
On 29 June, 2016, Hubei Sanonda released an announcement, which indicates that it planned to merge two subsidiaries to support the ongoing asset restructuring program.
On 30 June, 2016, YONON obtained the production license of glufosinate-p 91% TC. So far, the company becomes the first company that can produce and sell glufosinate-p TC legally in China.
Pesticide enterprises are thinking about how to cope with the depressed global agricultural means of production market, the ban of paraquat AS and the suspected carcinogenicity of glyphosate. In early-July 2016, Nanjing Red Sun held a meeting to discuss the development plan for 2016 and for the coming five years.
BSM Chemical is applying for issuing A shares and entering the NEEQ. It is known that as over 60% of BSM Chemical's revenue comes from pendimethalin, market conditions of pendimethalin are key factor influencing the company's performance.
In Jan.-April 2016, China's export volume of pendimethalin TC showed a large YoY rise. Declined price, concentrated export destinations and exporters were major features of the market during this period.
On 1 July, 2016, paraquat AS exited the Chinese pesticide market, though, in mid-July, the MOA has not yet issued any official legal documents about re-classifying paraquat as a highly toxic substance. It means that the toxicity of paraquat is still consistent with the one registered in the ICAMA.
In June 2016, China has 6 new herbicide TC registrations, of which two were dicamba TC. Notably, Hunan Haili registered two herbicide TC this month.
In H1 2016, there were 60 new herbicide TC registrations in China, including 39 active ingredient by 39 enterprises.