CCM Data & Primary Intelligence
Production and Market of Imidacloprid in China - A Preliminary Survey
Researched & Prepared by:
Guangzhou CCM Information Science and Technology Co., Ltd Guangzhou, P. R. China
August 2008
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Website: http://www.cnchemicals.com Tel: +86-20-3761 6606
Email: econtact@cnchemicals.com Fax: +86-20-3761 6968
CCM Data & Primary Intelligence Description: Imidacloprid, a kind of chloronicotinyl insecticides, is the third largest insecticide in the world, only next to organophosphorus insecticide and pyrethroid insecticide. The sales volume of imidacloprid is the largest among all chloronicotinyl insecticides, accounting for around 65% of the total. As a major supplier of imidacloprid, China has many advantages in the production of imidacloprid, including efficient production technology, sufficient raw material supply, low production cost, etc. Around 50% of imidacloprid technical producers are located in Jiangsu province. With the increasingly intense competition in the imidacloprid industry, will China's production of imidacloprid further concentrate in the future? What kind of enterprises will hold dominant positions in China's imidacloprid production? The major imidacloprid formulations are 10%WP, 25%WP, 20%SL and 5%EC. Among the 4 formulations, 10%WP, 25%WP and 5%EC are mainly sold in domestic market, while 20%SL are popular both at home and abroad. Among them, whose share will rise and whose will fall and why? Due to the large overseas demand for imidacloprid, the export volume of imidacloprid has been rising rapidly in recent years, and the key market of Chinese imidacloprid has been shifting to overseas countries and regions, especially Southeast Asia and South America. Will the export contribute more to China's imidacloprid, and how much will its share reach in the next five years? In China, imidacloprid is mainly used in the control of rice plant hoppers and aphids. It mainly applies to rice, wheat, cotton, soybean, etc. Due to the increasing resistance to imidacloprid in some pest, especially rice plant hoppers, the domestic market for imidacloprid has been shrinking. The report mainly try to answer the following questions: What is the production situation of imidacloprid in China? What is the export situation of imidacloprid? What is the application situation of imidacloprid in China? Why has the capacity of imidacloprid still been expanding in China, though its domestic market has been shrinking? What influence will domestic market shrink have on China's imidacloprid industry? Main content: No.
I
Content
Page
Executive summary
4
Methodology and Sources
7
Insecticide industry in China
10
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CCM Data & Primary Intelligence I-1
Brief introduction to insecticide industry
10
I-2
Chinese governmental policy on pesticide industry
12
I-3
The position of imidacloprid in insecticide industry
13
II
Production & market of imidacloprid in China
14
II-1
History of imidacloprid
14
II-2
Production technology
15
II-3
Current supply situation
18
II-3.1
Summary of Imidacloprid producer
18
II-3.2
Summary of production
25
II-3.3
Summary of imidacloprid formulation production
28
II-4
Brief introduction to raw materials of imidacloprid
32
II-5
Pricing of imidacloprid in China
36
II-6
Import & export analysis (2007~May 2008)
38
II-6.1
Overview of imidacloprid import & export in China in 2007
38
II-6.2
Tables of imidacloprid import in China in 2007~May 2008
43
II-7
Demand for imidacloprid in China
54
II-8
Competitiveness of Chinese imidacloprid industry
61
III
Forecast to the imidacloprid industry in China (2008~2013)
62
III-1
Key factors and driving forces of imidacloprid in China
62
III-2
Supply and demand forecast in 2008-2013
63
IV
Conclusion
65
V
Appendix: Situation of Chinese manufacturers
66
V-01
Jiangsu Kwin Group (Holding) Co., Ltd
66
...
0
Hubei Sanonda Co., Ltd.
83
V-25
Executive summary: (Note: The following summary is based on the situation in 2008 and maybe different to what it is nowadays. Please be noted.) As a major supplier of imidacloprid, China has many advantages in the production of imidacloprid, including efficient production technology, stable raw material supply and low production cost, etc. Due to the obvious pest resistance to imidacloprid in China, the domestic market of imidacloprid has been shrinking in recent years and the market is gradually shifting to overseas countries, mainly including Southeast Asia and South America, which indicates that the export dependence rate of Chinese imidacloprid industry will continue to rise in the next few years. Production andν Producers Nowadays, China is the major imidacloprid supplier in the world, whose capacity has reached xxxx tonnes as of June 2008. And it produces about xxxx tonnes imidacloprid technical (100%) in 2007.
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CCM Data & Primary Intelligence Thanks to the large imidacloprid demand in overseas market, China’s output of imidacloprid will continuously increase with the CAGR of xx% in 2008~2013. Meanwhile, domestic imidacloprid industry’s dependence rate on export of will increase from xx% in 2007 to xx% in 2013. Importν & Export Thanks to the large global demand for imidacloprid, more and more Chinese imidacloprid has been exported, with the CAGR of its export volume (100%) of xx% in 2003~2007. And the export share of imidacloprid has increased from around 25% in 2004 to xx% in 2007. It is forecasted that the export of imidacloprid will keep growing with the CAGR of xx% in next 5 years and Chinese imidacloprid will be increasingly dependent on the overseas market. Consumptionν & Demand At present, major imidacloprid formulations in China are 10% WP, 20% SL, 25% WP and 5% EC, among which the consumption of 10% WP is the largest, accounting for xx% of the total in China in 2007. Due to the growing pest resistance, more and more imidacloprid formulation with higher content is needed, such as 50% WP, 70% WP, etc. Imidacloprid is mainly used in the control of rice plant hoppers and aphid in rice, wheat, soybean, cotton, etc. Rice is the largest application scope of imidacloprid. Pricing of imidacloprid technicalν In 1996~2004, the price of imidacloprid decreased rapidly from 1.40 million yuan per tonne to 0.11 million yuan per tonne because of the technology advancement. In 2004~2007, the price of imidacloprid technical (100%) was stable on the whole. Entering 2008, the price of imidacloprid has been soaring. Production technology of imidacloprid In China, about xx% of imidacloprid producers adopt DCPD route in the production of imidacloprid....... 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-3.1 Summary of Imidacloprid producer Through CCM‘s investigation in June 2008, XX companies have been confirmed to involve in the production of imidacloprid technical, among which -
XX are active in the imidacloprid production
-
X have stopped the imidacloprid production
-
X have suspended their imidacloprid production
It is estimated that the production of imidacloprid from these XX companies accounts for 95~98% of the total imidacloprid output in China’s marketplace. Most active producers’ production scale of imidacloprid is small, and only 5 producers have the capacity of more than XXXt/a, accounting for XX% of the total in China. Table II-3.1-1 Number of imidacloprid producers by capacity in China as of June 2008 No.
Imidacloprid capacity t/a)
Number of producers
1
3,000
X
2
1,500~1,000
X
3
600~900
X
4
500
X
5
400
X
6
300
X
7
200~100
X XX
Total
Table II-3.1-3 Production situation of active producers of imidacloprid technical in China No.
Producer
Route
FOB
Capacity
Price
Jun.
Jun.2008
2008
Capacity
Output
Operation
'07
'07
rate
V-01
XXXXXXXXXXXX
XXXX
XXXXXX
XXXXX
XXXXX
XXX
XXXXXX
V-02
XXXXXXXXXXXXXX
XXXX
XXXXXX
XXXXX
XXXXX
XXX
XXXXXX
V-03
XXXXXXXXXXXXXXXXX
XXXX
XXXXXX
XXXXX
XXX
XXX
XXXXXX
V-04
XXXXXXXXXXXXXXXXX
XXXX
XXXXXXX
XXX
XXX
XXX
XXXXXX
V-05
XXXXXXXXXXXX
XXXX
197,000
XXX
XXX
XXX
XXXXXX
V-06
XXXXXXXXXXXXXXXX
XXXXXXXX
215,000
XXX
XXX
XXX
XXXXXX
V-07
XXXXXXXXXXXXXX
XXXX
230,000
XXX
XXX
XXX
XXXXXX
V-08
XXXXXXXXXXXXXXXX
XXXX
220,000
XXX
XXX
XXX
XXXXXX
V-09
XXXXXXXXXXXXXXXX
XXXX
210,000
XXX
XXX
XXX
XXXXXX
V-10
XXXXXXXXXXXXXXXXX
XXXX
220,000
XXX
XXX
XXX
XXXXXX
V-11
XXXXXXXXXXXXXXXX
XXXX
XXXXXXX
XXX
XXX
XXX
XXXXXX
V-12
XXXXXXXXXXXX
DCPD
XXXXXXX
XXX
XXX
XXX
XXXXXX
V-13
XXXXXXXXXXXXXXXXXX
DCPD
XXXXXXX
XXX
XXX
XXX
XXXXXX
V-14
XXXXXXXXXXXX
DCPD
XXXXXXX
XXX
XXX
XXX
XXXXXX
V-15
XXXXXXXXXXXXX
DCPD
XXXXXXX
XXX
XXX
XXX
XXXXXX
V-16
XXXXXXXXXXXXX
DCPD
XXX
XXX
X
X
X
V-17
XXXXXXXXXXXXXXXX
XXXX
XXX
XXX
X
X
-
V-18
XXXXXXXXXXXXXXXXX
XXXX
XXX
XXX
X
X
-
V-19
XXXXXXXXXXXXX
XXXX
XXXXXXX
XXX
XXX
XXX
XXXXXX
V-20
XXXXXXXXXXXXXX
XXXX
XXXXXXX
XXX
XXX
XXX
XXXXXX
V-21
XXXXXXXXXXXXXXX
XXXX
XXXXXXX
XXX
XXX
XXX
XXXXXX
V-22
XXXXXXXXXXXXXXX
XXXX
XXXXXXX
XXX
XXX
XX
XXXXXX
V-23
XXXXXXXXXXXXXX
XXXX
XXXXXXX
XXX
XXX
XXX
75.00%
V-24
XXXXXXXXXXXXXX
XXXX
XXXXXXX
XXX
XXX
XX
46.70%
V-25
XXXXXXXXXXXXX
XXXX
XXX
XXX
XXX
XX
80.00%
X
XX
XXX
XXX
40.2%
XXXXXXX
XXXXXX
XXXXX
XXXXX
XXXXXX
Idle or stopped producers Total
II-6 Import & export analysis (2007~May 2008) II-6.1 Overview of imidacloprid import & export in China in 2007 Owing to the large global demand for imidacloprid, more and more imidacloprid has been exported, the CAGR of its export volume (AIs) being XXX% in 2003~2007. And the export share of imidacloprid has been growing gradually, and it has reached XXX% in 2007. It is forecasted that the export of imidacloprid will keep growing with the CAGR of XX% in next 5 years and China’s imidacloprid will become an insecticide mostly depending on the overseas market.
………. Table II-6.1-1 The export situation of imidacloprid by species in 2007 Species
Volume (t)
Percentage
Technical
XXXXX
XXXXX
20%SL
XXXXX
XXXXX
25%WP
XXXXX
XXXXX
10%WP
XXX
XXXX
70%WS
XXX
XXXX
50%WP
XX
XXXX
XXXXX
XXXXXX
Total
Table II-6.2-3 Export situation of imidacloprid formulations by destination in China in 2007 10%WP No.
Country
20%SL
25%WP
50%WP
70%WS
Quantity
Price
Quantity
Price
Quantity
Price
Quantity
Price
Quantity
Price
(t)
(USD/kg)
(t)
(USD/kg)
(t)
(USD/kg)
(t)
(USD/kg)
(t)
(USD/kg)
1
Pakistan
XX
XXXX
XXX
XXXX
XXX
XXXX
X
X
X
X
2
Thailand
XX
XXXX
XXX
XXXX
XXX
XXXX
X
X
X
X
3
Malaysia
XX
XXXX
XXX
XXXX
X
XXXX
X
XXXX
X
XXXXX
4
Vietnam
XXX
XXXX
XXX
XXXX
XX
XXXX
X
XXXX
X
X
5
Ghana
X
X
XXX
XXXX
X
X
X
X
X
X
6
Coted Lvoire
XX
XXXX
XXX
XXXX
X
X
X
X
X
X
7
Ukraine
X
X
XX
XXXX
XX
XXXX
X
X
X
XXXX
8
Myanmar
XX
XXXX
XX
XXXX
XX
XXXX
X
X
X
X
9
Turkey
X
X
XX
XXXX
XX
XXXX
X
X
XX
XXXXX
10
Saudi Arabia
XX
XXXX
XX
XXXX
X
X
X
X
X
X
11
Bengal
XX
XXXX
XXX
XXXX
X
XXXX
X
X
X
X
12
S. Africa
X
X
XXX
XXXX
XX
XXXX
X
X
X
X
13
Indonesia
X
XXXX
XX
XXXX
XX
XXXX
X
X
X
X
14
Colombia
X
X
XX
XXXX
XX
XXXX
X
X
X
X
15
Yemen
X
X
XX
XXXX
XX
XXXX
X
X
X
X
16
Kazakhstan
X
X
XX
XXXX
X
X
X
X
X
X
17
Lebanon
X
XXXX
XX
XXXX
XX
XXXX
X
X
X
X
18
Peru
XX
XXXX
XX
XXXX
XX
XXXX
X
X
X
X
19
Singapore
XX
XXXX
XX
XXXX
XX
XXXX
X
X
X
XXXXX
20
Philippines
XX
XXXX
XX
XXXX
X
XXXX
X
XXXX
X
XXXX
21
Others
XXX
XXXX
XXX
XXXX
XXX
XXXX
XX
XXXX
XX
XXXXX
XXX
XXXX
XXXXX
XXXX
XXXXX
XXXX
XX
XXXX
XXX
XXXXX
Total
II-7 Demand for imidacloprid in China As a systemic chloro-nicotinyl insecticide, imidacloprid is mainly used in the control of rice plant hoppers, and it has played an important part in the agricultural production in China for a long period. Thanks to the excellent effect of imidacloprid on many pests such as rice plant hoppers, and its low price, the consumption of imidacloprid (calculated by AIs) had increased with the CAGR of XX% in 2004~2007, which was XXXXX tonnes in 2007, increasing by XXX% year on year. Table II-7-1 China’s consumption situation of imidacloprid by different formulation in 2007 Formulation(t) Item
Total 10% WP
20%SL
25%WP
5%EC
Others
Apparent consumption
XXXXX
XXXXX
XXXXX
XXXXX
XXXXX
XXXXXX
Percentage
XXXXX
XXXX
XXXXX
XXXX
XXXXX
XXXXXX