shcri.com - After nearly 30 years of rapid growth, today, traditional marketing model, business model, profit model and even management model of pesticide industry can no longer fully adapt to changes inside and outside of the current industry, posing both challenges and opportunities. Related report: Research Report on Global and China Glyphosate Industry, 2013-2017
In 2013, pesticide price in China was on the rise overall. According to statistics from the agricultural sector, annual pesticide production of 2013 is 3.2 million tons, which has increased by 1.3% YOY. However, downward pressure still exists in the industry, for overcapacity problems are still severe, and industrial restructuring cannot fully adapt to market change yet, and production cost remains high.
From January to November in 2013, revenue of main business in pesticide industry was CNY 251 billion, rising 18.9% YOY, and the profit reached CNY 18.8 billion, increasing 35.2% YOY, which have increased substantially compared with the corresponding period last year.
In the future, pesticide industry in China will still be affected by some factors, such as sales volume decrease caused by maintenance shutdown or operating rate reduction among most pesticide enterprises, market's unclear anticipation of staple pesticide product's price changing trend, obscure result of glyphosate ecology check, and production capacity improvement of certain enterprises. Under the influence of current winter climate warming, insecticide usage may hit the peak in 2014. As a result, there will be more patent insecticide and fungicide manufacturers with larger scales. Fluctuations may happen in the industry considering strengthened national supervision on pesticide industry, especially on environmental protection, and the effect of raw materials' supply and product demand.
It is predicted that the national pesticide demand (commodity amount) in 2014 will be 1.01 million tons, which amounts to 0.33 million tons of 100% purity. It is slightly fewer than that of last year with the reduction rate of 1.38%. Multiple influences considered, glyphosate, paraquat, atrazine and acetochlor will still be leading herbicide of the industry. Estimated demand of insecticide is 0.12 million tons, 1.21% lower than that of last year. Demand of fungicide remains the same with last year which was 84 thousand tons. Estimated demand of acaricide is 10.5 thousand tons, which is 3.38% lower than that of last year. Demand of herbicide is expected to be 109 thousand tons, which decreases 3.91% compared with that of last year. This is the first decline of herbicide demand in recent years, which means demand of herbicide has entered plateau phase from current peak value. Estimation shows that the demand of plant growth regulator will increase to 4456.86 tons, rising 20.27% YOY. Driven by export, it is estimated that market demand of pesticide will keep increasing steadily in 2014.