Fungicides China News 1608

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Sep 26, 2016, 06:17 ET

LONDON, Sept. 26, 2016 /PRNewswire/ -- On 9 Aug., 2016, the MIIT released the 3rd list of to-be-issued pesticide technical production licenses, two of which were for
pyraclostrobin TC. This suggested that two more domestic pesticide producers are qualified to produce and sell pyraclostrobin TC.
Since July 2016, most regions in China were stricken by severe weather, leading to increasing occurrence of pests and diseases.
Given this, demand for fungicides and insecticides are likely to rise in the stricken areas in the short term.

In recent years, increasing people inside and outside the agricultural means of production industry set foot in providing service on
unified prevention and control of pests & diseases. Notably, Hunan has already made great achievements in this business and set
good example for other regions after years' rapid growth.

To deal with the on-going downward and intensely competitive pesticide market, Jiangsu Huifeng is actively extending into
emerging industries and has established partnership with foreign-funded enterprise AMVAC. Prior to this, the company also took
action to march into pesticide E-commerce business, expand product range and launch production expansion projects, aiming to
boost financial performance and hunt for new profit growth.

On 22 Aug., 2016, Lanfeng Bio-chem released its financial figures for H1 2016, which showed that the company turned loss into
gain with the help of the well performing pesticide and pharmaceutical businesses.

China's export volume of tebuconazole TC rose slightly in H1 2016. During this period, China's exports of tebuconazole TC showed
falling price, high concentration of export destinations and exporters.

According to the ICAMA, Nissan Chemical was approved to expand the target crop range of its registered amisulbrom 18% SC
into potato late blight in China.

In July 2016, there were 14 new fungicide technical registrations in China, of which 3 were pyraclostrobin TC.

In July 2016, a notice on the Revising Application Materials for Administrative Examination and Approval of Pesticide Production
was issued by the Industrial Raw Material Department of the MIIT. Accordingly, the MIIT planned to revise application materials of
production examination and approval on pesticides that have production standards by manufacturers but no national / industrial
ones.

China introduced more than ten pesticide policies and measures in H1 2016. Due to the implementation of these policies, some
aspects of the pesticide policies which will be introduced continuously deserve attentions in the next few years.

Two more pyraclostrobin TC production licenses issued in China

On 9 Aug., 2016, the Ministry of Industry and Information Technology of the People's Republic of China (MIIT) released the 3rd list of to-be-issued pesticide technical production licenses, of which two were for pyraclostrobin TC, respectively to Jiangsu Frey Agrochemicals Co., Ltd. and Jiangsu Tuoqiu Agrochemicals Co., Ltd. This suggested that two more domestic pesticide producers are qualified to produce and sell pyraclostrobin TC.

Prior to this, there were merely 4 domestic pesticide enterprises eligible to produce pyraclostrobin TC: Shanghai Heben-Eastsun Medicaments Co., Ltd. (Shanghai Heben-Eastsun), Dezhou Luba Fine Chemical Co., Ltd. (Dezhou Luba), Shandong Kangqiao Biotechnology Co., Ltd. (Shandong Kangqiao) and Zhejiang Boshida Crop Science Co., Ltd. (Zhejiang Boshida).

Since pyraclostrobin became off-patent in China on 20 June, 2015, a craze for application for pyraclostrobin registration and production has risen throughout the domestic pesticide industry. A number of enterprises have turned their eyes to pyraclostrobin and obtained the pesticide registration certificates and production licenses.

As of 9 Aug., 2016, there were altogether 145 registration certificates for pyraclostrobin pesticides (including re-packing registration), of which 40 were for pyraclostrobin TCl and 105 for pyraclostrobin formulations, according to the Institute for the Control of Agrochemicals, Ministry of Agriculture.

Meanwhile, the number of production licenses for pyraclostrobin is also surging, according to the MIIT. Most are for pyraclostrobin formulations, a total of 54 approved, vs. 4 for pyraclostrobin TC (as of 9 Aug., 2016).

Specifically, Shanghai Heben-Eastsun obtained the production license for its pyraclostrobin 97.5% TC on 29 Feb., 2016, the first domestic pesticide producer who obtained the "Three Certificates" for pyraclostrobin TC. Following this, 30 June, 2016 witnessed the licensing to Dezhou Luba, Shandong Kangqiao and Zhejiang Boshida. In particular, Shandong Kangqiao's pyraclostrobin 98% TC is the most highly concentrated one.

* Note: Three Certificates refers to certificates for pesticide production, registration and pesticide criteria. Shanghai Heben-Eastsun is also the first enterprise that obtained the "Three certificates" for azoxystrobin TC.

The number of domestic producers licensed to produce pyraclostrobin formulations keeps rising, which is a driving force behind the increasing demand for pyraclostrobin TC. However, still few producers are eligible to produce pyraclostrobin TC after patent expiration, resulting in a small domestic production capacity and tight supply. As a result, the market price of pyraclostrobin TC has maintained high in China so far.

"By the end of 2016, the number of pesticide producers licensed to produce pyraclostrobin TC may mount to 10+. Domestic production capacity will be significantly expanded and therefore the tight supply can be relived. Of course, this will also accelerate the development of pyraclostrobin TC market in China," commented an industry insider.
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