LONDON, Sept. 21, 2016 /PRNewswire/ -- On 26 July, 2016, Lianhetech released its financial figures for H1 2016. During this period, the company's pharmaceutical business showed stable growth, while revenue from its pesticide business declined, affected by the downward trending pesticide market.
Given the fact that agrochemicals account for a large part of the company's overall business, the decrease had a direct impact on the company's H1 2016 financial figures.
According to Nutrichem's H1 2016 financial report, the company experienced fall in revenue, affected by the on-going depressed pesticide market, but its net profit rose thanks to strengthened cost control. In addition, the company also extended into upstream and downstream agrochemical businesses through acquisition during the period.
On 8 Aug., 2016, CEFC Anhui announced that it sold the whole agrochemical and agricultural means of production business to CEFC Guangdong and formally divested itself of the business according to the developmental plan.
Hubei Sanonda recently provided an update on recent progress in its contemplated combination with ADAMA. Its plan to issue shares to acquire assets of ADAMA and raise supporting funds came out. After this acquisition, ADAMA will become one of Hubei Sanonda's wholly-owned subsidiaries, providing Hubei Sanonda with great development opportunity and enable it to grow into an international pesticide enterprise.
According to CCM's price monitoring, the domestic market price of abamectin TC has stayed downward since April 2016. In early Aug., the average domestic ex-works price of abamectin 95% TC down 6.69% MoM, 25.81% over Jan. and 35.87% YoY. It is expected that the domestic abamectin TC market will continue being depressed in a short term, with slack demand and slim chance for market price to rebound.
In Aug. 2016, the CCPIA announced that the National Agrochemical Exchange Meeting & ACE 2016 is to be held in Shanghai on 15-18 Oct., 2016.
In Jan.-May 2016, China's export price of fipronil TC went down by 12.48% YoY, while the export volume rose by 21.62% YoY, according to China Customs and CCM.
According to the ICAMA, DuPont's triflumezopyrim 94% TC and triflumezopyrim 10% SC were approved to be registered in China for the first time. Triflumezopyrim, known as an excellent insecticide, is expected to stand out in the market of pesticides for rice plant hoppers.
In July 2016, only 4 insecticide technical were registered in China, 3 official registration valid for 5 years and 1 temporary registration valid for 1 year, according to the ICAMA.
At the end of July 2016, the Legislative Commission of Hainan Provincial People's Congress issued the draft of the Amendments on Regulations on the Control of Pesticides in Hainan Special Economic Zone for public opinions, suggesting changes in provincial regulations on control of pesticides again.
In early Aug. 2016, Zhou Puguo, director of the ICAMA, published an article on the Farmers' Daily, stating that pesticide regulation methods should be innovated to meet new requirements in agricultural industry.
China's market price of abamectin TC continues falling
Since the beginning of 2016, the overall Chinese pesticide market has been in a downturn. Compared with 2015, trading volume and transaction prices didn't go up significantly. Things even went worse affected by the slight overall occurrence of pests and extreme weather like rainstorms and floods.
Abamectin, as one of the most important insecticides, experiences a more obvious depression. According to CCM's price monitoring, the average domestic ex-works price of abamectin 95% TC has continued falling since April 2016. In early Aug., the figure reached USD58,774.77/t, down 6.69% MoM, 25.81% over Jan. and 35.87% YoY.
In fact, the ex-works price rose in early 2016, hitting the highest point this year in the eve of Shanghai CAC Conference in Marc. Yet, the later period saw on-going falls. Industry insiders were not surprised, given:
1. Slack domestic demand: orders reduced during this period.
2. Decreased overseas orders: many foreign purchasers held a "wait-and-see" attitude and delayed their orders by one or two months compared with previous years.
3. Oversupply: The new-added production capacity worsened the oversupply.
4. Impact from downstream industry: demand for emamectin benzoate reduced, dragging down the sales of abamectin (raw material for emamectin benzoate).
5. Stock-up by dealers: some trading companies purchased a large amount of abamectin TC before the Spring Festival and sold them off at low price after the market price went down.
Notably, despite the downward trend since April 2016, the average domestic ex-works price of abamectin 95% TC did not slid by larger degree every month. From May to Aug., the price went down by 7.70%, 10.75%, 10.07% and 6.69% MoM respectively, according to CCM's price monitoring. As the downward price of abamectin 95% TC is approaching the cost, the decline slows down at present.
However, abamectin TC export market is still depressed to date. What's worse, the downstream demand maintained sluggish and dealers continued their selloff. Given all these unfavourable factors, it is expected that the domestic abamectin TC market will continue being depressed in a short term, with slack demand and slim chance for market price to rebound.
Download the full report: https://www.reportbuyer.com/product/4124935/
Reportbuyer is a leading industry intelligence solution that provides all market research reports from top publishers
For more information:
Research Advisor at Reportbuyer.com
Tel: +44 208 816 85 48
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/insecticides-china-news-1608-300332281.html