CCM Data & Primary Intelligence
Fipronil Survey in China - The Second Edition June 2010
Researched & Prepared by:
CCM Information Science & Technology Co., Ltd. Guangzhou, P. R. China
Copyright by Guangzhou CCM Information Science & Technology Co., Ltd. (P. R. China) Any publication, distribution or copying of the content in this report is prohibited. Website: http://www.cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968 Email: econtact@cnchemicals.com
Website: http://www.cnchemicals.com Tel: +86-20-3761 6606
Email: econtact@cnchemicals.com Fax: +86-20-3761 6968
CCM Data & Primary Intelligence Description: Fipronil is an outstanding insecticide and has played an important role in pest control in China. However, owing to the harmful effect of fipronil on shellfishes and bees, Chinese government has restricted the use of fipronil in China since 1 October 2009. According to CCM’s market survey, almost all fipronil used on rice has been out of the market in China. However, currently, some fipronil producers still have no production license and these producers can evade the government's market supervision through change the name of fipronil, thus, a small amount of fipronil is still used on rice. It is known that, after Bayer’ fipronil patent expired, attracted by promising market and fat profit, more domestic companies took part in fipronil production, and most of them have on production licenses. Under this situation, most fipronil produced by non-license holders was exported through change product name. In addition, in order to capture the market share, some fipronil producers also have entered animal health segment and built fipronil production lines in South America. This report is focused on the aspects of production, consumption & export situation, production technology, cost, raw material supply, production situation of substitutes, patent issues, governmental policy and its implementation effects and its impact on the industry, market risks and opportunities arising from the restriction on the use of fipronil, manufacturers and experts’ responses to restriction in China, etc. The following points are clearly addressed in the report: - The development and technology level of Chinese fipronil industry. - The route and the cost of fipronil in China - Patent protection of fipronil in China - The background and regulation details of the restriction on the use of fipronil in China - Production and export situation of every fipronil producer in China - Raw material supply situation of fipronil industry and substitute produciton situation - Domestic consumption of fipronil - Responses from every fipronil producers and their plan consequent to the restriction on the use of fipronil in China - Market trend of and impact on fipronil industry from the restriction on the use of fipronil - Policy implementation effects - Market risks and opportunities brought by the restriction on the use of fipronil in China On the basis of the first edition, the second edition highlights the policy implementation effects about the restriction on the use of fipronil, the change situation of its production and consumption structure, the forecast of its production, consumption and exports in the next five years, and market risks and opportunities for investing in fipronil, etc. Main content: No. Code
Content Content Executive summary
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Page 0 4
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CCM Data & Primary Intelligence I I-1 I-2 I-3 I-4 I-5 II II-1 II-2 II-2.1 II-2.2 II-2.3 II-3 II-3.1 II-3.2 II-4 III III-1 III-2 III-2.1 III-2.2 III-2.3 III-2.4 III-3 III-4 IV IV-1 IV-2 IV-3 IV-4 V VI VI-1 VI-2 VII VII-1 VII-2 VII-3 VII-4
Introduction and methodology Technology situation of fipronil in China Fipronil technology development in recent years Current technology level of fipronil R&D Patent Introduction to fipronil researchers in China Fipronil industry in China Registration situation of fipronil Summary of fipronil production Fipronil technical Fipronil formulation Key fipronil manufacturers Consumption of fipronil in China Consumption structure Consumption habit in China Price of fipronil and its trend Key factors influencing fipronil development Raw material and intermediate production situation Ban on the use of fipronil Government attitude toward fipronil Impact on fipronil industry from the restriction on the use of fipronil Producers’ responses and their plan Substitutes Policy implementation effects Patent protection and its related issues Export analysis of fipronil Export volume and value Export price Export destination Export situation of producers Forecast on fipronil output and export, 2010-2014 Risks and opportunities Risks Opportunities Profiles Bayer CropScience(China) Co., Ltd. Anhui Huaxing Chemical Industry Co., Ltd. Jiangsu Tuoqiu Agrochemicals Co., Ltd. SinoChem Ningbo Chemicals Co., Ltd.
5 7 7 8 11 12 13 15 15 17 17 19 20 23 23 25 25 28 28 30 30 31 32 33 35 35 37 37 42 43 45 48 49 49 50 51 51 52 54 55
Executive summary: Fipronil, an outstanding insecticide in crop protection, had been recommended as a substitute for highly toxic insecticides and played an important role in pest control in China. Owing to the expiration of fipronil patent since Jun. 2008 and restriction on application in domestic market since Oct. 2009, the output and consumption of fipronil have plunged sharply. Attracted by promising market and fat profit, many domestic companies took part in fipronil production,
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CCM Data & Primary Intelligence and most of them without license. At present, there are XXX active fipronil producers in China, with total production capacity of XXXt/a. Compared with XXXactive producers in 2008, the number of active producers rose by XXX Technologies adopted by domestic companies are more or less the same, without great improvement in recent years. They use 3,4-Dichlorobenzotrifluoride or 2,6-dichloro-4-trifluoromethylaniline synthesized from 3,4-Dichlorobenzotrifluoride as starting material. And the quality of the products produced by this technology is lower than that of Bayer’s. In 2009, China’s output of fipronil technical (100%) was XXX tonnes, among which XXX tonnes were processed into fipronil formulation( including XXX tonnes XXX fipronil SC and XXX tonnes 80% fipronil WP), accounting for XXX of the total in 2009. And about XXX tonnes out of XXX tonnes, taking up about XXX were consumed in domestic market. In order to change consumption structure and enlarge demand, more and more fipronil producers enter animal health segment in China. In addition, China exported XXX tonnes of fipronil technical and XXX tonnes of 5% fipronil SC in 2009. In 2009, the average export price of fipronil technical (95%) and 5% SC were USDXXX/kg and USDXXX/kg, down XXX and XXX respectively, compared with 2008. Export price of fipronil from Bayer CropScience (China) was XXX higher than that of domestic producers. In Q1 2010, China exported XXX tonnes of fipronil technical and XXX tonnes of 5%SC, with export price of USDXXX/kg and USDXXX/kg respectively. China’s fipronil is mainly exported to Asian countries and South America, driven by low environmental protection requirement. It will face threats from stricter environmental protection requirement, export pressure and brutal industry competition, etc.to invest in fipronil industry. Every coin has two sides. It is helpful to seizing some market opportunities to invest in fipronil industry. For instance, more high concentration fipronil as veterinary drugs will be used in animal health segment in the future in China. At the same time, more fipronil may be consumed in hygiene, and seed-coating agents, thanks to China’s economic stimulus package. In addition, in order to reduce transportation costs and production costs, more and more fipronil producers will or plan to bulid fipronil production lines in overseas markets in the future. Character of CCM' Report: The aim of this report is to provide powerful assistance to the strategy group and the management team in making correct decision as how to penetrate the ever-increasing China market and how to catch the maximum commercial opportunities. The report is formulated independently by CCM’s professional market researchers, based on the first-hand and primary data which are analyzed by scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and presented in a logic way.
Sample pages：
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II
Fipronil industry in China
II-2 Summary of fipronil production II-2.1 Fipronil technical China’s fipronil technical production is concentrated in Jiangsu, Zhejiang, Anhui and Hubei. And the number of fipronil producers had reached XX in 2009, Table II-2.1.1 Production distribution of fipronil technical in China, as of May 2010 Producer No.
Province
Output’09 (t/a)
Capacity ’10 (t/a)
Share/Output
Share/Capacity
number 1
Zhejiang
XX
XX
XX
XX
XX
2
Jiangsu
XX
XX
XX
XX
XX
3
Anhui
XX
XX
XX
XX
XX
4
Hubei
XX
XX
XX
XX
XX
5
Shanghai
XX
XX
XX
XX
XX
6
Shandong
XX
XX
XX
XX
XX
7
Hebei
XX
XX
XX
XX
XX
8
Hebei
XX
XX
XX
XX
XX
9
Others
XX
XX
XX
XX
XX
XX
XX
XX
XX
Total Source: CCM International
II-2.3 Key fipronil manufacturers Table II-2.3.1 Overview of fipronil producers in China, as of May 2010 Capacity’10,t/a No.
Producer
Output’09, tonnes
Product
80% TC
5% SC
80% WP
TC
5% SC
WP
1
XX
XX
XX
XX
XX
XX
XX
XX
2
XX
XX
XX
XX
XX
XX
XX
XX
3
XX
XX
XX
XX
XX
XX
XX
XX
4
XX
XX
XX
XX
XX
XX
XX
XX
……
XX
XX
XX
XX
XX
XX
XX
XX
45
XX
XX
XX
XX
XX
XX
XX
XX
46
XX
XX
XX
XX
XX
XX
XX
XX
47
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
Total Source: CCM International
At present, some fipronil producters have involved in producing fipronil which was used in animal health segment. And the fipronil used in animal health segmen was mainly export to European and the US.
Table II-2.3.2 Fipronil producers involved in animal health segment, 2009 Producer
Capacity’10,
Output’09
Export
Export
Technolog
t/a
, tonnes
proportion
destination
y source
Product
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
XX
Source: CCM International
III Key factors influencing fipronil development III-1 Raw material and intermediate production situation ¾
2,6-dichloro-4-trifluoromethylaniline
2,6-dichloro-4-trifluoromethylaniline is a key intermediate of fipronil. CCM has identified XX Chinese producers of 2,6-dichloro-4-trifluoromethylaniline, with their total output of XX tonnes in 2009, XX of which is exported to European and the US. However, because of the restriction on the use of fipronil from Oct.1 2009, capacity and output of 2,6-dichloro-4-trifluoromethylaniline has an obvious shrinkage. Table III-1.1 Capacity and output of 2,6-dichloro-4-trifluoromethylaniline producers in China, as of May 2010 No.
English name
Capcity'10 t/a
Output' 09, tonnes
Concentration
Price, USD/t
1
XX
XX
XX
XX
XX
2
XX
XX
XX
XX
XX
3
XX
XX
XX
XX
XX
4
XX
XX
XX
XX
XX
5
XX
XX
XX
XX
XX
6
XX
XX
XX
XX
XX
7
XX
XX
XX
XX
XX
8
XX
XX
XX
XX
XX
9
XX
XX
XX
XX
XX
10
XX
XX
XX
XX
XX
11
XX
XX
XX
XX
XX
XX
XX
XX
XX
Total Source: CCM International