herbicides china news - data from the icama. thereinto, three herbicides are the first...

Herbicides China News

VOL.7 Issue 04, April.28, 2014

Copyright © Guangzhou CCM Information Science & Technology Co.,Ltd

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Contents

HeadlineEditor's notesCompany Dynamics

Huapont-nutrichem's revenue rises by 15.12% YoY, 2013Lier Chemical's net profit of 2013 rises by 18.79% YoYZhejiang Shenghua Biok's pesticide sales revenue increases 26.37% YoY in 2013Shandong Rainbow: enlarges capacity and enrichs product varietyHenan Yingtai Agrochemical drafts an IPO plan to expand product lines

Market AnalysisChina's pesticide industry shows positive change but still faces troublesStrict pesticide MRLs in foreign countries to impact China's pesticie exportsPrice of nicosulfuron soars in the begining of 2014

PolicyChinese MRLs for pesticides increases to 3,650 items

Export analysisChina's metribuzin export volume hits 5,748 tonnes in 2013China's picloram export volume down 21.99% YoY in 2013

RegistrationChina’s new registrations of herbicide TC, March 2014Registrations of herbicides with patents expiring during 2013-2017 in China

Paraquat and pyridineMarket dynamic of pyridine in the first week of April, 2014Market dynamic of paraquat in the first week of April, 2014Market dynamic of pyridine in the second week of April, 2014Market dynamic of paraquat in the second week of April, 2014Supply of pyridine is tight in the third week of April, 2014Supply of paraquat keeps stable in the third week of April, 2014Price of pyridine witnesses slight MoM growth in April 2014Price of 20% paraquat AS keeps stable in April 2014

News in BriefASEAN becomes main import origin of pesticides in Shanghai Custom DistrictForbidden herbicides and substitutes during 2006-2016 in ChinaGlyphosate: 1st batch of enterprises passing environmental protection inspection released in May 2014Disposal of pesticide package wastes gains increasing attentionProfessor from Zhejiang A & F University invents Weeding Vinegar

Price MonitoringEx-factory prices of key herbicide raw materials in China, 8 April, 2014Ex-factory prices of main herbicides in China, 8 April, 2014Shanghai port prices of main herbicides in China, 8 April, 2014FOB Shanghai of main herbicides in China, 8 April, 2014

Herbicides China News 1404CCM Newsletter

www.cnchemicals.comCopyright Guangzhou CCM Information Science & Technology Co., Ltd.E-mail: [email protected]

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http://www.cnchemicals.com

HeadlineHuapont-nutrichem Co., Ltd. (Huapont-nutrichem)'s revenue was USD725.91 million (RMB4.46 billion) in 2013, up 15.12% year onyear. Notably, Huapont-nutrichem's agrochemical division enjoyed a sharp increase in revenue, reaching USD57.41 million(RMB3.53 billion).

In 2013, Lier Chemical Co., Ltd. (Lier Chemical)'s revenue and net profit rose by 12.70% and 18.79% year on year. Also, thecompany's sales volume of products enjoyed a sharp year-on-year increase in that year.

Pesticide sales revenue of Zhejiang Shenghua Biok increased by 26.37% YoY in 2013. However, the net profit of ZhejiangShenghua Biok dropped by 18.28% YoY as a whole.

Some projects of Shandong Rainbow are under public notification of China Environmental Impact Assessment (EIA). The companyis planning to build several new product lines to enlarge its capacity and enrich its product variety.

Henan Yingtai Agrochemical drafted an IPO plan, issuing 31.45 million A shares and raising USD42.28 million (RMB260 million) foradding new product lines.

The focus of pesticide industry is gradually moving to herbicides and fungicides. In 2013, the output of herbicide technical andfungicide technical in China rose by 8.60% and 33.79% year on year respectively. Meanwhile, China's export volume and value ofpesticides both enjoyed a sharp increase last year.

In recent two years, a few foreign countries or regions have revised maximum residue limits of pesticides (MRLs). With the tradeintegration in the world, MRLs of pesticides has become a technical barrier among trading countries. This is bound to impactChina's exports of agricultural produce and pesticide products negatively.

The price of nicosulfuron soared in 2014. For example, in March, 2014, the price of 95% nicosulfuron technical increased by25.72% compared with that of Dec. 2014.

Chinese MRLs for pesticides increases to 3,650 items and the new standard will be put into effect from 1 Aug. 2014.

In 2013, the total export volume of metribuzin technical and formulations in China was about 5,748 tonnes, according to ChinaCustoms and CCM. Thereinto, the total export volume of metribuzin technical was around 5,269 tonnes, and that of metribuzinformulations was about 479 tonnes in this period.

In 2013, the total export volume of picloram technical and formulations in China decreased by 21.99% compared with that in 2012,according to China Customs and CCM. The decline in export volume is mainly attributed to the sharp decline of the picloramtechnical export.

In March 2014, 16 registrations of herbicide technical were approved in China (not include update of old registrations), according tothe data from the ICAMA. Thereinto, three herbicides are the first registration in China.



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Editor's notesIn April 2014, many listed pesticide companies released their 2013 annual financial reports. It is worth noting that most of the listed

pesticide companies have gained a satisfactory performance in 2013, such as Hupont-nutrichem, Lier Chemical and Zhejiang

Shenghua Biok. In addition, many enterprises are optimistic about the market demand for pesticide in 2014, and they believe that

they can obtain good performance in this year. Based on favorable market conditions for pesticide in 2013, some enterprises are

planning to enlarge their capacity of pesticide and enrich product variety in 2014. For instance, both of Shandong Rainbow

and Henan Yingtai Agrochemical are planning to build several new product lines.

As of the end of March, 2014, the MOA released a new standard of MRLs, which standard items will increase to 3,650 and will be

put into effect from 1 Aug. 2014. Some insiders believe that the implementation of the new standard can facilitate the healthy and

sustainable development of the pesticide industry.

Note: 1. All tables and figures in this issue are calculated by the same RMB/USD exchange rate (1USD=6.1490RMB). 2.

Nuances in some data are mainly caused by rounding principle.



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Company DynamicsHuapont-nutrichem's revenue rises by 15.12% YoY, 2013

Summary: Huapont-nutrichem Co., Ltd. (Huapont-nutrichem)'s revenue was USD725.91 million (RMB4.46 billion) in 2013, up

15.12% year on year. Notably, Huapont-nutrichem's agrochemical division enjoyed a sharp increase in revenue, reaching

USD57.41 million (RMB3.53 billion).

Huapont-nutrichem Co., Ltd. (Huapont-nutrichem) released its 2013 financial report, showing that its revenue was USD725.91

million (RMB4.46 billion), up 15.12% year on year and its net profit was USD49.19 million (RMB302.45 million), down 9.01% year

on year in 2013. The increase in revenue was attributed to good operation of all divisions of the company (including agrochemical

division, pharmaceutical division and active pharmaceutical ingredient division). While the reason of decrease in net profit was that

the company obtained USD13.32 million (RMB81.90 million) of earnings in 2012 from its shares of Western Securities Co., Ltd.,

but no earnings in 2013.

Notably, in 2013, Huapont-nutrichem's agrochemical division achieved USD574.10 million (RMB3.53 billion) of revenue and

USD34.48 million (RMB212.00 million) of net profit, increasing sharply compared with 2012. So far, the agrochemical division has

had five production bases—Shangyu Nutrichem Co., Ltd., Hebei Wanquan Lihua Chemicals Co., Ltd., Hebei Wanquan Hongyu

Chemicals Co., Ltd., Yancheng South Chemical Co., Ltd. and Hangzhou Qingfeng Agro-chemical Co., Ltd. As for the company's

pesticide business, herbicide business remains to take up the largest proportion.

Table 1: Huapont-nutrichem's financial indicators, 2013

Item 2013, USD 2012, USD YoY change, %

Total revenue 725,911,634.62 630,572,908.65 15.12

Net profit 49,186,712.30 54,055,020.84 -9.01

/ The end of 2013, USD The end of 2012, USD YoY change, %

Total assets 1,243,720,276.76 963,124,012.41 29.13

Net assets 617,540,978.13 436,280,081.66 41.55

Source: 2013 financial report of Huapont-nutrichem Co., Ltd.

Table 2: Main pesticide production costs of Huapont-nutrichem, 2013

Item Value, USD YoY change Proportion in operating costs

Raw materials 132,251,264.71 16.14% 24.66%

Labor force 8,877,516.24 34.21% 1.66%

Depreciation 7,234,226.30 46.35% 1.35%

Energy 8,058,671.80 48.92% 1.50%




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Table 3: Revenue from main herbicides of Huapont-nutrichem, 2013

Herbicide Revenue, USD YoY change Gross profit margin YoY change, percentage points

Herbicides NC-036 383,970,789.14 27.11% 35% -0.73

Herbicides NC-034 172,464,916.21 15.65% 11.34% 5.17

Herbicides NC-125 155,337,568.00 -1.33% 21.10% 9

Herbicides NC-021 112,005,620.92 53.57% 17.54% -4.25

Herbicides NC-195 107,430,131.84 – 3.45% 3.45


Huapont-nutrichem also revealed future development strategy and business plan of 2014. In particular, agrochemical division will

mainly focus on the following work in 2014:

(1) Implementing the responsible care management and examination to realize the goal of safety, environmental protection; (2)

Strengthening the construction of management information system to realize the integration of business, finance and (production)

supply chain management and improve the overall efficiency and risk control ability of the company; (3) Improving the supply of

pesticide technical produced by agrochemical division itself to further reduce production costs; (4) Promoting and strengthening the

strategic partnership with multinational agrochemical companies; (5) Further integrating the production bases of agrochemical

division.

Lier Chemical's net profit of 2013 rises by 18.79% YoY

Summary: In 2013, Lier Chemical Co., Ltd. (Lier Chemical)'s revenue and net profit rose by 12.70% and 18.79% year on year. Also,

the company's sales volume of products enjoyed a sharp year-on-year increase in that year.

Lier Chemical Co., Ltd. (Lier Chemical) released its 2013 financial report, showing that in 2013 its revenue was around

USD234.25 million (RMB1.44 billion), up 12.70% year on year and its net profit reached about USD16.93 million (RMB104.09

million), up 18.79% year on year. The increase in its revenue was attributed to the growth of its product sales volume.

Lier Chemical's good performance last year was attributed to following three factors:

1. In 2013, 5,800 t/a pesticide and antidote production lines of the company (including technological upgrading of old products like

clopyralid, picloram) have been put into production and contributed USD10.57 million (RMB64.98 million) of gross profit to the

company.

2. The company continued to promote technological upgrading of glufosinate-ammonium and has been basically achieved

commercialized production and sales of glufosinate-ammonium. Also, the company optimized the production technology of

epoxiconazole. Meanwhile, the company established the Shanghai branch company to further promote the development of

international marketing and R&D business. Moreover, the company plans to acquire a land of 400 mu in Xinqiao Industrial Park,

Guang'an Economic Technical Development Zone to expand room to develop.

3. The subsidiary of Lier Chemical, Jiangsu Kuaida Agrochemical Co., Ltd. (Jiangsu Kuaida) is about to complete the 1st batch of

technological upgrading projects and has launched the 2nd batch of projects. In view of the buoyant market, Jiangsu Kuaida's

10,000 t/a glyphosate technical production line has been put into operation since the fourth quarter of 2013.



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Table 4: Lier Chemical's main financial indicators, 2013, USD

Item 2013 2012 YoY change

Total revenue 234,253,219.51 207,853,736.90 12.70%

Net profit 16,927,728.45 14,249,655.49 18.79%

\ The end of 2013 The end of 2012 YoY change

Total assets 292,746,627.10 242,645,393.10 20.65%

Net assets 176,861,684.19 163,915,432.46 7.90%

Source: Lier Chemical Co., Ltd.

Table 5: Lier Chemical's sales of chemical pesticides, 2013, tonne

Item 2013 2012 YoY change

Sales volume 21,968.51 18,238.04 20.45%

Output 23,419.85 18,652.15 25.56%

Storage 4,487.19 3,028.56 48.16%


Table 6: Lier Chemical's revenue from main business, 2013, USD

Item Revenue, USD YoY change Gross profit margin YoY change, percentage point

Pesticide technical 160,433,444.08 4.73% 25.48% 0.29

Pesticide formulations and others 55,094,837.06 24.07% 20.09% 1.19

Trade 10,301,024.14 - 1.11% -


Table 7: Lier Chemical's revenue from domestic and international sales, 2013, USD

Item Revenue, USD YoY change Gross profit margin YoY change, percentage point

International sales 125,210,228.45 1.56% 26.22% -0.22

Domestic sales 100,619,076.82 35.41% 19.11% -0.25


Lier Chemical disclosed its plan for 2014 in its 2013 financial report as well.

(1) The company will ensure the stable production of glufosinate-ammonium and fully implement 2,000 t/a glufosinate-ammonium

technological upgrading project. Also, it will speed up the technology optimization of epoxiconazole, to realize commercial

production as soon as possible.

(2) Jiangsu Kuaida's technological upgrading projects will be fully completed and put into production on schedule.

(3) The company will take full advantage of the business platform of Shanghai branch to strengthen the collection of market

information, to speed up the product registration in foreign countries and to enhance the international market development ability. At



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the same time, it will deepen the integration with Jiangsu Kuaida to achieve resource sharing.

(4) The company will improve R&D ability and to further increase spending on R&D of new products and new technology.

Zhejiang Shenghua Biok's pesticide sales revenue increases 26.37% YoY in2013

Summary: Pesticide sales revenue of Zhejiang Shenghua Biok increased by 26.37% YoY in 2013. However, the net profit

of Zhejiang Shenghua Biok dropped by 18.28% YoY as a whole.

As the biggest business in Zhejiang Shenghua Biok Biology Co., Ltd.(Zhejiang Shenghua Biok), pesticide business obtained

outstanding achievements in 2013—— sales revenue and gross profit margin of pesticide products were both increased year on

year. In particular, pesticide sales revenue of Zhejiang Shenghua Biok reached USD117.34 million (RMB 721.54 million) with a

year-on-year growth rate of 26.37%. And it is noteworthy that its gross profit margin was 16.76% in 2013, up 2.32 percentage

points YoY.

According to Zhejiang Shenghua Biok's 2013 annual report, the increases in pesticides' revenue and gross profit margin were

mainly attributed to two reasons.

1. The 2013 price of the traditional superior product, dicamba, was higher than that in 2012, as a result of a global pesticide

market rebound driven by the increased demand for pesticides in South American dryland farming.

2. Influenced by the industry integration and other factors, the market boom of the intermediate of glyphosate, N－

(Phosphonomethyl) iminodiacetic acid (PMIDA), is on an uptrend and the product prices rise gradually. The smooth implementation

of PMIDA renovation project of subsidiary Ningxia Gerui Fine Chemical Co., Ltd. bring its capacity into full operation and then the

output of PMIDA increased.

However, in general, the total revenue of Zhejiang Shenghua Biok reached USD261.32 million (RMB1.61 billion), down 2.27% YoY

in 2013. What's worse, its net profit in 2013 was USD4.51 million (RMB27.73 million), down 18.28% YoY.

According to Zhejiang Shenghua Biok's 2013 annual report, the decline in other major businesses was the main reason for its

serious downtrend of profit:

1. Veterinary drugs business (the company's the second biggest business): The revenue of the veterinary drugs dropped by

10.67% YoY in 2013 as a result of the influence of bird flu which led to a lasting depression in breed aquatics industry and the

intensified market competition made some of the products go down in price.

2. Zirconium business (the company's the third biggest business): The revenue of zirconium products dropped by 29.45% YoY in

2013. The prices of zirconium products stayed at a low level in 2013 because of the severe over-capacity in zirconium industry and

the weak market demand of zirconium products.

3. Meanwhile, other businesses also had different degrees of decline in revenue in 2013.



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Table 8: Performance of major businesses of Zhejiang Shenghua Biok in 2013

Product Sales revenue, million USD YoY change, % Gross profit margin, % YoY change, percentage point

Pesticide products 117.34 26.37 16.76 2.32

Veterinary drugs 73.15 -10.67 2.96 -8.46

Zirconium products 44.84 -29.45 5.85 -6.60

Chemical products 11.57 -27.69 6.26 2.65

Electricity and steam 9.68 10.47 24.63 3.54

Others 1.37 -53.38 33.91 4.05

Source: Zhejiang Shenghua Biok

Table 9: Pesticide cost of Zhejiang Shenghua Biok in 2013

Cost Sum in 2013, million USD YoY change, %

Raw material cost 83.84 19.05

Labour cost 4.62 68.34

Manufacture cost 9.21 46.72

Total cost 97.67 22.94


Table 10: Performance of Zhejiang Shenghua Biok in 2013

Major accounting data 2013, million USD 2012, million USD YoY change, %

Sales revenue 261.32 268.64 -2.72

Net profit 4.51 5.52 -18.28

\ At the end of 2013, million USD At the end of 2012, million USD YoY change, %

Total asset 378.23 360.24 5.00

Net asset 220.31 218.95 0.62


Shandong Rainbow: enlarges capacity and enrichs product variety

Summary: Some projects of Shandong Rainbow are under public notification of China Environmental Impact Assessment (EIA).

The company is planning to build several new product lines to enlarge its capacity and enrich its product variety.

In recent years, Shandong Weifang Rainbow Chemical Co., Ltd. (Shandong Rainbow) has been enlarging its capacity and

enriching its product variety energetically. It is said that so far, the company is building some projects actively such as 2,4-D project

and dicamba project. In addition, the company is planning to build several new product lines and most of which are for herbicides.

It is disclosed on the official website of Weifang Binhai Economic-Technological Development Area that Shandong Rainbow has

several projects which are under public notification of China Environmental Impact Assessment (EIA). Details are as follows:

Project No. 1: 300t/a carfentrazone-ethyl and 1,200t/a sulfentrazone. This project is divided into two stages and one product line for

each stage. The production scale of the first stage is 100t/a carfentrazone-ethyl and 200t/a sulfentrazone and the production scale

of the second stage is 1,200t/a sulfentrazone. After the establishment of the second stage, the product line of the first stage is only

used to produce carfentrazone-ethyl. At that time, the whole project will have a production ability of 300t/a carfentrazone-ethyl and



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1,200t/a sulfentrazone.

Project No. 2: 1,000t/a glufosinate-ammonium. According to the company's plan, this project will start working in May 2014 and put

into production in Oct. 2014.

Project No. 3: 900t/a propanil TC and its formulations project. This project mainly uses 3,4-dichloroaniline and propionic acid as

materials.

Project No. 4: Shandong Rainbow glyphosate high-salt waste water recycling project. After the establishment of this project,

Shandong Rainbow will be able to handle 150,000t/a glyphosate high-salt waste water.

In fact, according to data from the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA), as of the beginning of

April 2014, Shandong Rainbow has obtained 159 registrations and the increase of registration number is quite obvious in these

two years.

At present, superior varieties of herbicides in Shandong Rainbow mainly include atrazine, glyphosate, 2, 4-D and ester

products, MCPA, and so on. According to the official website of Shandong Rainbow, what worth noting is that the annual sales

revenue of Shandong Rainbow has surpassed USD439.10 million (RMB2.7 billion) in 2013. Meanwhile, according to the list of the

2013 top ten pesticide export volume, Shandong Rainbow was ranked the third in 2013. It is predicted that with the new capacity of

Shandong Rainbow successfully putting into production, new products will bring considerable achievements for the company.

Table 11: As of the beginning of Apr. 2014, main projects under construction of Shandong Rainbow

NO. Project

1 Process of 500t/a AS, 50t/a EC and 500t/a GR

2 5,000t/a atrazine 90%WDG, 1,000t/a diuron 90%WDG and 1,000t/a simazine 90%WDG

3 10,000t/a 2, 4-D and its ester products

4 16,000t/a phenoxy herbicides

5 Reformation of processing technic of exhaust gas and effluent from 2,4-D and its ester products

6 2,000t/a dicamba

Source: Shandong Rainbow EIA announcement

Table 12: As of the beginning of Apr. 2014, valid pesticide registration quantity of Shandong Rainbow

Year Quantity of registration

2007 2

2008 13

2009 26

2010 12

2011 4

2012 4

2013 74

2014 24

Total 159

Source: ICAMA



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Henan Yingtai Agrochemical drafts an IPO plan to expand product lines

Summary: Henan Yingtai Agrochemical drafted an IPO plan, issuing 31.45 million A shares and raising USD42.28 million (RMB260

million) for adding new product lines.

In order to enhance its business, Henan Yingtai Agrochemical Co., Ltd. (Henan Yingtai Agrochemical) drafted an IPO (Initial Public

Offerings) plan. According to its IPO prospectus, Henan Yingtai Agrochemical plans to issue 31.45 million A shares and raise

USD42.28 million (RMB260 million) which are mainly used to build new product lines for MEA production equipment (20,000t/a),

metolachlor production equipment (10,000t/a), pretilachlor production equipment (5,000t/a) and also an R&D center. All of these

projects have already obtained approval from EIA (Environmental Impact Assessment) in 2013.

According to data from the website of the Department of Environmental Protection of Henan Province, Henan Yingtai Agrochemical

is applying for environmental protection verification for its IPO plan. Inspection projects included MEA (10,000t/a), DEA (10,000t/a)

and acetochlor (10,000t/a) and the inspection period was from Jan. 2010 to Oct. 2013.

As indicated in the EIA announcement of Henan Yingtai Agrochemical, apart from those projects mentioned above, there are also

new projects to enrich production variety, such as acetochlor production equipment (10,000t/a), butachlor production equipment

(10,000t/a) and propisochlor production equipment (3,000t/a).

Data from the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA) show that Henan Yingtai Agrochemical has

five registrations as of the beginning of April, 2014 and all of them are herbicide technical. In particular,

Henan Yingtai Agrochemical is the first domestic enterprise to gain registration for quinmerac technical and its production line for

quinmerac has been well equipped and is on a stage of pilot production at present.

Henan Yingtai Agrochemical engages in production, sales and import & export trade of MEA, acetochlor and DEA. Its products are

sold to great agricultural provinces such as Henan, Shandong and Jiangsu provinces and exported to foreign countries and areas

such as Europe and Southeast Asia. Henan Yingtai Agrochemical has built up two big manufacturing bases and it is a major MEA

producter in China. What worth noting is that MEA and DEA are important raw materials for herbicides such as acetochlor,

pretilachlor and metolachlor. In other words, the company's new product lines will have advantages over raw materials which in

particular are stable source and low production cost. Furthermore, products the company planning to produce are all in great

demand in the market. As a result, some analysts predicted that the production of these products would bring considerable

achievements to the company.



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Table 14: Output of main products in Henan Yingtai Agrochemical

Product Capacity

Output during the inspection time, tonne

2010. 01–2010. 12 2011. 01– 2011.12 2012. 01–2012. 12 2013. 01– 2013. 10

MEA and DEA 20,000.00 14,039.70 18,916.82 22,376.44 18,019.00

Acetochlor 10,000.00 0.00 0.00 4,288.33 3,240.00

Source: Henan Yingtai Agrochemical

Table 15: Status of proposed product lines in Henan Yingtai Agrochemical, 2014

NO. Product Planning capacity Status

1 DEA 5,000t/a Planning

2 Acetochlor 10,000t/a Planning

3 Butachlor 10,000t/a Planning

4 Propisochlor 3,000t/a Planning

5 Metolachlor 10,000t/a Planning

6 DIPA 1,500t/a Planning

7 MEA 20,000t/a Planning

8 Metolachlor 10,000t/a Planning

9 Pretilachlor 5,000t/a Planning

Note: NO. 7/8/9 are the IPO's investment projects.


Table 16: Registered pesticides in Henan Yingtai Agrochemical as of early April 2014

Registration number Active ingredient Specification Expiry date

PD20110830 Acetochlor 97% TC 2016.08.10

PD20130919 Pretilachlor 95% TC 2018.04.28

PD20140151 Metolachlor 97% TC 2019.01.22

PD20140155 Quinmerac 96% TC 2019.01.28

PD20140624 Butachlor 90% TC 2019.03.07


Market AnalysisChina's pesticide industry shows positive change but still faces troubles

Summary: The focus of pesticide industry is gradually moving to herbicides and fungicides. In 2013, the output of herbicide

technical and fungicide technical in China rose by 8.60% and 33.79% year on year respectively. Meanwhile, China's export volume

and value of pesticides both enjoyed a sharp increase last year.



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Author: Wang Jianwo Secretary-general of Hunan Provincial Crop Protection Industry Association, deputy secretary-general of

Hunan Provincial Petroleum and Chemical Industry Association, vice chairman of the Entomological Society of Hunan Province and

visiting professor of Central South University and Hunan Agricultural University.

On 12 March, 2014, China Crop Protection Industry Association (CCPIA) held a conference in Qingdao, Shandong Province. At the

conference, Li Zhonghua, secretary general of CCPIA reported the operation situation of pesticide industry for 2013, showing that

the development of this industry presented positive changes.

1. The industrial structure adjustment has achieved initial success. The focus of pesticide industry is gradually moving to herbicides

and fungicides.

According to data from National Bureau of Statistics, the output of pesticide technical reached 3,189,525 tonnes in 2013, slightly

increasing by 1.6% year on year. Notably, output of fungicide technical and herbicide technical enjoyed a relatively significant

increase in last year. In 2013, the output of fungicide technical in China rose by 33.79% year on year, accounting for 6.4% of

China's total pesticide output; output of herbicide technical rose by 8.60% year on year, accounting for 56.4% of China's total;

output of insecticide technical decreased by 8.97%, accounting for 19.2% of China's total.

2. Pesticide exports enjoyed a sharp increase thanks to strong demand from international market.

According to data from China's Customs, the export value of China's pesticide rose by 28.5% year on year to USD4,437 million in

2013. And the trade surplus of China's pesticides was USD3,050 million, up 34.7% sharply year on year last year. In 2013, China

imported 76,000 tonnes of pesticides, up 10.6% year on year and the value of the imported pesticides was USD690 million, up

16.8% year on year. Notably, imported fungicides accounted for the largest proportion of China's total imported pesticides last

year. In 2013, China exported around 1.10 million tonnes of pesticides, up 22.1% year on year. It is the first time China's pesticide

exports has exceeded 1 million tonnes. The export value of China's pesticides sharply rose by 31% year on year to USD3.75 billion

last year. Notably, the export volume and value of herbicides remained a sharp increase.

The growth in export value of pesticides exceeded that in export volume, which showed the export structure of pesticides in China

was more reasonable and the exports of high added value pesticide formulations continued to increase.



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Table 18: Import situation of pesticides in China by category, 2013

Category Volume, 000' tonne YoY change, % Value, million USD YoY change, %

Pesticides 76 10.6 691.67 16.8

Insecticides 10 17.9 150.25 15.3

Fungicides 27 12.1 293.56 11.5

Herbicides 24 -4.1 166.51 19.2

Source: China Customs

Table 19: Export situation of pesticides in China by category, 2013

Category Volume, 000' tonne YoY change, % Value, million USD YoY change, %

Pesticides 1,095 22.1 3,745.50 31.0

Insecticides 225 16.9 908.14 17.7

Fungicides 72 1.8 374.2 11.1

Herbicides 756 26.3 2,374.48 42.0

Source: China Customs

Meanwhile, Li Zhonghua pointed out that pesticide industry would remain to face three major problems in 2014:

1. Homogenization of products

The overcapacity of popular products is hard to be controlled effectively, especially new varieties of products. For example, over 40

enterprises have registered azoxystrobin and over 20 enterprises have registered thiamethoxam, which intensifies the market

competition, reduces profit and wastes resources.

2. Environmental protection

The treatment of wastes generated during pesticide production has been a difficulty for pesticide producers. Moreover, the

environmental verification of glyphosate/pmida production forces enterprises to pay a greater attention to environment protection.

3. Product structure adjustment

In China, the export volume of fungicides just accounted for 6.6% of the total pesticide export volume and export value of these

products accounted for less than 10%, far lower than 26%, the share that fungicides takes up in global pesticide market.



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Strict pesticide MRLs in foreign countries to impact China's pesticie exports

Summary: In recent two years, a few foreign countries or regions have revised maximum residue limits of pesticides (MRLs). With

the trade integration in the world, MRLs of pesticides has become a technical barrier among trading countries. This is bound to

impact China's exports of agricultural produce and pesticide products negatively.

In recent two years, a few foreign countries or regions have revised maximum residue limits of pesticides (MRLs). For instance, the

US revised MRLs of acetochlor, linuron, saflufenacil, pendimethalin, chlorantraniliprole, diflubenzuron; EU revised MRLs of

aminopyralid, metalaxyl-M, cyflufenamid, chlorantraniliprole, quinoxyfen; Canada revised MRLs of methoxyfenozide, fenpropidine.

This shows foreign countries' MRLs standards will increasingly strict and specific for food safety and their trade benefit. With the

trade integration in the world, MRLs of pesticides has become a technical barrier among trading countries. This is bound to impact

China's exports of agricultural produce and pesticide products negatively. As the threshold of imported agricultural products of

developed countries is improving, producers of agricultural produce will control the use of certain varieties of pesticides to avoid

excessive pesticide residues. And demand for these pesticides will reduce, which will bring a great negative impact to pesticide

enterprises. In addition, the declined demand for these pesticides from foreign countries will be bound to affect the export trade of

China's pesticide producers.

In fact, excessive pesticide residue remains a main obstacle to expand exports of agricultural produce and domestic demand in

China. With people's concern on food safety, pesticides with high toxicity and residue will be replaced with pesticides with low

toxicity and residue certainly. Given that, experts have following suggestions for pesticide enterprises.

1. Striving to develop new-type environmental friendly chemical pesticides

2. Striving to develop biopesticides and pay attention to the development of botanical pesticides.

3. Restructuring and optimizing product structure of pesticide formulations.

4. Introducing bioengineering technology into the development and production of pesticides.

5. Establishing group company to coordinate pesticide production, operation and sales, which can improve operating efficiency,

economic benefit and market competitiveness.

6. Strengthening service during sales and application of pesticides, promoting crop solutions, standardizing control measures of

diseases and pests and guiding farmers to apply pesticides reasonably.

Compared with the developed countries, China started late on the construction of system of pesticide MRLs. there was no specific

law of produce quality safety standards in China until 2006, when the Agricultural Produce Quality Security Act was carried out.

Then in 2009, Food Safety Law was released. Before the implementation of Food Safety Law, there were a dozen of different

standards related to pesticide residue limits which were repeated or even inconsistent.

On 1 March, 2013, the Ministry of Agriculture of P.R.C. (MOA) implemented the MRLs of pesticides in Food. Hence, the number of

new pesticide MRLs reached 2293. Moreover, according to the plan of MOA, by the end of 2015, the number of pesticide MRLs in

China will climb to 7000. Nevertheless, the number of pesticide MRLs in our country is still far less than that in international Codex



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Alimentarius Commission (CAC), the US and Japan. Currently there are 3,820 pesticide MRLs in CAC, 11,000 in the US and

50,000 in Japan.

Price of nicosulfuron soars in the begining of 2014

Summary: The price of nicosulfuron soared in 2014. For example, in March, 2014, the price of 95% nicosulfuron technical

increased by 25.72% compared with that of Dec. 2014.

The price of nicosulfuron is on an upward trend in 2014. According to price monitoring data from CCM, in March, 2014, the price of

95% nicosulfuron technical soared to USD40,611/t from USD32,304/t in Dec. 2013, up 25.72%. And in early April 2014, the price

of nicosulfuron is still on an upward trend. In particular, the price of 95% nicosulfuron technical in 8 April, 2014 was USD40,633/t.

The increase of nicosulfuron price mainly caused by three reasons:

1. Increase demand of nicosulfuron. The demand of nicosulfuron is very huge, especially in foreign market. The great demand gives

rise to the increase of sales volume of nicosulfuron and then leads to increase in nicosulfuron price. The peak demand season for

nicosulfuron is in the first half of year and may last into July or August.

2. Tight supply of nicosulfuron. The tight supply of nicosulfuron intensifies the increasing price. With the coming of the peak selling

season, the stock of nicosulfuron in domestic market is becoming lower and lower. However, the operating rate of nicosulfuron in

domestic manufacturers is not high and even some manufacturers were not resumed production at the beginning of 2014. There

are two main reasons for this situation: Firstly, during the Spring Festival, most of the manufacturers recessed. Secondly, severe

national environmental protection requirements force some manufacturers to lower operating rate or even suspend production

temporarily.

3. Increase price of raw materials. The increase price of raw materials caused the increase of price of nicosulfuron. Since from Jan.

2014, pyrilamine, the important intermediate of nicosulfuron, has increased in price due to the tight supply and lack of spot goods.

Some experts disclosed that the supply of pyrilamine even stopped for a while and the tight supply of pyrilamine was mainly

because of the low operating rate influenced by the heavy environmental protection pressure.

Some nicosulfuron manufacturers disclosed that there are many orders for nicosulfuron at present, but spot goods are very few. So

it is predicted that the price of nicosulfuron will still keep an upward trend in the near future.



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Figure 1: Ex-works price of 95% nicosulfuron technical in China, Jan. 2013-8 April, 2014

Source: CCM

PolicyChinese MRLs for pesticides increases to 3,650 items

Summary: Chinese MRLs for pesticides increases to 3,650 items and the new standard will be put into effect from 1 Aug. 2014.

Author: Wang Jianwo Secretary-general of Hunan Provincial Crop Protection Industry Association, deputy secretary-general of

Hunan Provincial Petroleum and Chemical Industry Association, vice chairman of the Entomological Society of Hunan Province and

visiting professor of Central South University and Hunan Agricultural University.

As of the end of March, 2014, the Ministry of Agriculture of the People's Republic of China (MOA) released a new standard

of maximum residue limits for pesticides (MRLs), the Maximum Residue Limits for Pesticides in Food (GB2763-2014) (the 2014

Version). The new standard has set 3,650 limiting indexes for 387 varieties of pesticides in 284 kinds of food. Compared to the

Maximum Residue Limits for Pesticides in Food (GB2763-2012) (the 2012 Version), there are 1,357 new limiting indexes for 65

varieties of pesticides in 43 kinds of food. The new standard will be put into effect in 1 Aug. 2014 and meanwhile, the 2012 version

will be abolished.

There are four features in the 2014 Version:

1. Food variety has been expanded;

2. Pesticide variety in common use has been covered;

3. Limiting indexes of fresh agricultural produce such as vegetable and fruit were emphatically added;

4. The new standard integrates with international standards.

The release of the new standard indicates that the government has a positive attitude towards food safety.



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The author thinks that the implementation of the new standard can facilitate the healthy and sustainable development of the

pesticide industry which is reflected from the following details:

1. Accelerating the construction of industry responsibility and solicitude system as well as increasing enterprises' self-discipline

ability and urging them to change their corporate image with actions;

2. Promoting the progress and innovation of science and technology in pesticide industry and strengthening product structure

adjustment as well as accelerating the elimination speed of high toxic and high residue pesticides and energetically developing low

toxin and low residue pesticides;

3. Encouraging merging and reorganization between pesticide enterprises to form international competitive business groups;

4. Promoting industry reputation and brand construction and ensuring food safety and agriculture development;

5. Expediting the speed of transformation and upgrading between low-cost advantage and resource-conserving and environmental

friendly production;

6. Guiding benign development of pesticide industry and raising enterprises' intellectual property rights awareness in order to

transform the pesticide industry from made in China to created by China;

7. Accelerating the transformation between science and technology achievements and productivity and improving the core

competitiveness of pesticide industry by improving the technology and equipment of pesticide production.

Export analysisChina's metribuzin export volume hits 5,748 tonnes in 2013

Summary: In 2013, the total export volume of metribuzin technical and formulations in China was about 5,748 tonnes, according to

China Customs and CCM. Thereinto, the total export volume of metribuzin technical was around 5,269 tonnes, and that of

metribuzin formulations was about 479 tonnes in this period.

In 2013, the total export volume of metribuzin technical and formulations in China was about 5,748 tonnes, according to the General

Administration of Customs of the People's Republic of China (China Customs) and CCM. Thereinto, the total export volume of

metribuzin technical (covering 97% metribuzin technical mainly) was around 5,269 tonnes. And that of metribuzin formulations was

about 479 tonnes in this period. This figure mainly covers 70% metribuzin WDG, 480g/L metribuzin SC, 70% metribuzin WP and

75% metribuzin WDG.

The average export price of metribuzin technical was USD16.78/kg in 2013, and that of metribuzin formulations was USD14.74/kg.

In this period, China's major exporters (by manufacturer) of metribuzin technical were Jiangsu Sword Agrochemicals Co., Ltd.,

Jiangsu Sevencontinent Green Chemical Co., Ltd., Changzhou Henglong Chemical Co., Ltd. and Changzhou Wujin Henglong

Pesticide Co., Ltd. The major export destinations of China's metribuzin technical were the US, Brazil, Isreal, Colombia and South

Africa.



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In addition, China's major exporters (by manufacturer) of metribuzin formulations were Jiangsu Sevencontient Green Chemical Co.,

Ltd., Changzhou Wujin Henglong Pesticide Co., Ltd. and Shandong Weifang Rainbow Chemical Co., Ltd. The major export

destinations of China's metribuzin formulations were Argentina, South Africa, Australia, Pakistan and Australia.

Figure 2: Export volume and price of metribuzin technical in China, 2013

Source: China Customs and CCM

Figure 3: Export volume and price of metribuzin formulations in China, 2013

Note: There is no metribuzin 70% WDG export in June-July 2013. There is no metribuzin 75% WDG export in Feb.-Dec.

2013.There is no metribuzin 70% WP export in Oct. 2013.




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China's picloram export volume down 21.99% YoY in 2013

Summary: In 2013, the total export volume of picloram technical and formulations in China decreased by 21.99% compared with

that in 2012, according to China Customs and CCM. The decline in export volume is mainly attributed to the sharp decline of

the picloram technical export.

In 2013, the total export volume of picloram technical and formulations in China was about 3,008 tonnes, decreasing by 21.99%

compared with that in 2012, according to the General Administration of Customs of the People's Republic of China (China

Customs) and CCM. The decline in export volume is mainly attributed to the sharp decline of the picloram technical export.

In 2013, the total export volume of picloram technical (covering 95% picloram technical mainly) in China was about 2,525 tonnes,

dropped by 27.27% year on year. Even though the total export volume of picloram formulations (covering 240g/L picloram SL

mainly) witnessed a year-on-year growth of 25.73% to 483 tonnes in China, it still does not reverse the decline in the

whole picloram export volume in 2013.

During this period, China's average export price of picloram technical was around USD25.52/kg, slightly decreasing by 0.25% year

on year. On the contrary, China's average export price of picloram formulations increased by 1.89% year on year to USD8.36/kg in

2013.

The major exporters (by manufacturer) of picloram technical in China in 2013 were Lier Chemical Co., Ltd., Hebei Wangquan Lihua

Chemicals Co., Ltd., Zhejiang Yongnong Chem. Ind. Co., Ltd. and Hunan Xiangda Bide Chemical Co., Ltd. Meanwhile, the major

export destinations of China's picloram technical were the US, Australia, South Africa, Brazil and Colombia. In addition, in 2013, the

major exporters (by manufacturer) of picloram formulations in China were Lier Chemical Co., Ltd. and Zhejiang Yongnong Chem.

Ind. Co., Ltd. The major export destinations of China's picloram formulations were Brazil, Colombia and Argentina.

Figure 4: Export volume and price of picloram technical in China, 2013




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Figure 5: Export volume and price of picloram technical in China, 2012


Figure 6: Export volume and price of picloram formulations in China, 2013

Note: Export price of picloram 240g/L SL shows zero in Feb. 2013 because there is no this product export in this month.




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Figure 7: Export volume and price of picloram formulations in China, 2012

Note: There is no picloram 240g/L SL export in April 2012.


RegistrationChina’s new registrations of herbicide TC, March 2014

Summary: In March 2014, 16 registrations of herbicide technical were approved in China (not include update of old registrations),

according to the data from the ICAMA. Thereinto, three herbicides are the first registration in China.

In March 2014, 16 registrations of herbicide technical were approved in China (not include update of old registrations), according to

the data from the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA). Thereinto, 2 herbicides belonged to

fluroxypyr-meptyl technical.

It is worth noting that three herbicides are the first time that registered in China.

Isoxaflutole is a broad spectrum herbicide, acting on a wide range of annual grasses and broadleaf weeds. At present, isoxaflutole

is mainly applied to corn and sugar cane. As of the end of March 2014, the number of valid registrations of isoxaflutole technical

was only one in China, and Shangyu Nutrichem Co., Ltd. was the first company and the only one that obtained isoxaflutole technical

registration.

As of the end of March 2014, sulfosulfuron technical was first approved in China and registered by Zhejiang Boshida Crop

Technological Co., Ltd. Besides, the number of valid registrations of sulfosufuron technical was only one in China. Sulfosulfuron is a

post-emergence herbicide primarily for wheat. It controls annual and perennial grasses and a number of broadleaf weeds including

cleavers (Galium aparine).

Jiangsu Nantong Jiahe Chemicals Co., Ltd. was the first company that gained picolinafen technical registration in China as of the

end of March 2014. In addition, the valid registration of this product was only one in China. The active ingredient is mainly used for



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cereals post-emergence weeds control, including cleavers, viola, veronica and other broadleaf weeds.

Table 20: New registrations of herbicide TC in China, March 2014

No. Active ingredient Specification Registrant Accumulative number of technical registrations

1 Imazapic 97% TC Jiangsu Flag Chemical Industry Co., Ltd. 6

2 Tribenuron-methyl 95% TC Jiangsu Maoqi Chemical Co., Ltd. 28

3 Bentazone 98% TC Yancheng South Chemical Co., Ltd. 19

4 Fluroxypyr-meptyl96% TC Shangyu Yongnong Chem. Ind. Co., Ltd.

2195% TC Shandong Weifang Rainbow Chemical Co., Ltd.

5 Isoproturon 98% TC Lianyungang Jindun Agrochemical Co., Ltd. 6

6 Fomesafen 98% TC Shandong Keyuan Chemical Industry Co., Ltd. 23

7 Carfentrazone-ethyl 91% TC Shandong Weifang Rainbow Chemical Co., Ltd. 10

8 Clodinafop-propargyl 95% TC Nanjing Redsun Biochemical Co., Ltd. 10

9 Butachlor 90% TC Henan Yingtai Agrochemical Co., Ltd. 23

10 Ethoxysulfuron 95% TC Zhejiang Tide CropScience Co., Ltd. 3

11 Pendimethalin 97% TCMAX (Rudong) Chemicals Co., Ltd.

24

12 Trifluralin 97% TC 20

13 Isoxaflutole 98% TC Shangyu Nutrichem Co., Ltd. 1

14 Sulfosulfuron 96% TC Zhejiang Boshida Crop Technological Co., Ltd. 1

15 Picolinafen 97% TC Jiangsu Nantong Jiahe Chemicals Co., Ltd. 1

Note: New registrations did not include update of old registrations;Accumulative number of technical registrations refers to the

number of valid technical registrations, as of the end of Jan. 2014.

Source: ICAMA

Registrations of herbicides with patents expiring during 2013-2017 in China

According to statistics, there will be 31 major pesticides with patents expiring during 2013-2017 around the world and 11 of them

are herbicides. Based on data from the Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA), as of March

2014, in China there was no registration of benzobicyclon, foramsulfuron, fentrazamide, pyraclonil and flufenpyr-ethyl; no domestic

enterprises obtained registrations of pyraclonil, benzobicyclon, fentrazamide, mesosulfuron-methyl, pyribenzoxim,

foramsulfuron or flufenpyr-ethyl; only one domestic enterprise obtained registration of oxaziclomefone which was for technical; there

were two registrations of monosulfuron, one of which was for technical and the other was for formulation; there were seven

registrations of penoxsulam (including four temporary ones), all of which were for formulations.



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Table 21: Expiry information of patented herbicides in China, 2013-2017

Pesticide Expiry date Global market value in 2012, USD million Mainly applied in

Benzobicyclon 2014.01.07 20.00 Rice

Oxaziclomefone 2013.01.29 75.00 Rice

Mesosulfuron-methyl 2014.10.11 290.00 Grain

Foramsulfuron 2015.04.11 130.00 Corn

Penoxsulam 2016.09.22 250.00Rice

Non-crop

Monosulfuron 2013.02.26 - -

Monosulfuron ester 2014.12.06 - -

Fentrazamide 2014.02.24 45.00 Rice

Pyraclonil 2013.10.11 100.06 Rice

Pyribenzoxim 2014.11.10 1.34 Rice

Flufenpyr-ethyl 2016.08.18 - -

Source: CCM

Paraquat and pyridineMarket dynamic of pyridine in the first week of April, 2014

The market of pyridine was slightly weak in the first week of April, 2014. Though importers were cutting back pyridine supply for

Chinese market, the growth of pyridine price was slowing down.

The reasons for the weak market are as follow:

1. The import volume of pyridine in April was a little less than that of March, but domestic companies' production equipment was put

into operation stably.

2. At present, as the market of paraquat shows an inkling of decline, people resist for the high price of pyridine.

Production and sale dynamic of some pyridine manufacturers on 4 April:

1. Nanjing Redsun Co., Ltd.: No quotation for pyridine at present; equipments were put into operation stably; produced 60–70

tonnes of pyridine daily and it was mainly for internal use; not accepting new orders at present and no specific information of date of

accepting new orders.

2. Tangshan Chenhong Industrial Co., Ltd.: Price of pyridine was stable; equipments were put into operation stably; produced about

40 tonnes of pyridine daily; sales were in good condition and new orders are acceptable.



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Market dynamic of paraquat in the first week of April, 2014

In the first week of April, 2014, the supply of paraquat was stable. Almost all of the manufacturers' production equipment were put

into operation and it was a full-load production. However, the price of paraquat dropped slightly at the same period.

There are two reasons for the fall in price:

1. As the crazy purchase period in the domestic market has passed, the purchase ability has gradually weakened, leading to a

saturating stock.

2. Price is comparatively a little higher in China while the receptivity of the overseas market is limited.

On 4 April, 2014, the status of major paraquat TK manufacturers are as follows:

1. Shandong Kexin Biochemical Co., Ltd. produces 50 tonnes of 42% paraquat TK daily. It is trying to complete its previous orders

at present and will receive new orders in late April or early May.

2. Hubei Sanonda Co., Ltd.'s price of paraquat keeps stable. The company is trying to complete its previous orders at present and

it hasn't disclosed the specific date for accepting new orders.

3. Hubei Xiantao Xianlong Chemical Industry Co., Ltd. produced 20 tonnes of 42% paraquat TK daily and has no quotation for

paraquat temporarily. It is trying to complete its previous orders at present and receive new orders in April.

Market dynamic of pyridine in the second week of April, 2014

In the second week of April, 2014, the price of pyridine dropped slightly, but some experts predicted that the price may rise a little in

late April.

The situations of some pyridine manufacturers in the second week of April, 2014 are as follows:

1. Tangshan Chenhong Industrial Co., Ltd.: The sales of pyridine is good and the price of pyridine keeps stable. The company

produces 30 tonnes of pyridine daily and new orders are acceptable.

2. Nanjing Redsun Co., Ltd.: Situations of the second week of April, 2014 are similar to that of the first week of April, 2014.

Market dynamic of paraquat in the second week of April, 2014

In the second week of April, 2014, the supply of paraquat was stable. All of the paraquat manufacturers kept a high operation rate

and the prices of 42% paraquat TK and 20% paraquat AS were stable this week.

The situations of some 42% paraquat TK manufacturers in the second week of April, 2014 are as follows:

1. Shandong Luba Chemical Co., Ltd.: The price of paraquat is stable and it produces 100 tones of paraquat daily. The company is

trying to complete its previous orders at present and new orders are acceptable.

2. Zhejiang Yongnong Chem. Ind. Co., Ltd.: The price of paraquat is stable and the company mainly produces paraquat AS for the

domestic market at present. New orders are acceptable in late April.



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Supply of pyridine is tight in the third week of April, 2014

In the third week of April, 2014, the price of pyridine increased slightly due to the tight supply of pyridine. Reasons for the tight

supply of pyridine are as follows: Firstly, most enterprises are trying to complete their previous orders at present and their ability to

accept new orders is limited. Secondly, the import of pyridine was influenced by the dissatisfactory operation of oversea

manufacturers, and as a result of this, the supply of pyridine is limited.

Supply of paraquat keeps stable in the third week of April, 2014

In the third week of April, 2014, the supply of paraquat in the domestic market still keeps stable. The slight increase of pyridine price

this week has not influenced the price of paraquat deeply. As paraquat has a lucrative market at present, most of the paraquat

manufacturers keep a high operating rate. Details of some 42% paraquat TK manufacturers in this week are as follows: 1. Zhejiang

Yongnong Chem. Ind. Co., Ltd.: The price of paraquat has been adjusted a little. In particular, the FOB price of 42% paraquat TKL

dropped by USD162.63 (RMB1,000)/t. At present, the daily output of 42% paraquat TKL is 20–30 tonnes and after processed into

AS, they are mainly sold in the domestic market. New orders are acceptable at present. 2. Hubei Xiantao Xianlong Chemical

Industry Co., Ltd.: The price of paraquat is stable and the daily output is about 20 tonnes. At present, the company is trying to

compete its previous orders and the date of accepting new orders has been put off to middle May. 3. Shandong Qiaochang

Chemical Co., Ltd.: The company has no quotation for paraquat temporarily. The daily output of paraquat is 20 tonnes and the

company is trying to compete its previous orders at present and planning to receive new orders in late April.

Price of pyridine witnesses slight MoM growth in April 2014

In April 2014, the average ex-works price of pyridine was USD5,930/t in China, witnessing a slight increase of USD59/t compared

with that of USD5,871/t in March 2014, according to CCM's price monitoring.

In this month, Nanjing Redsun Co., Ltd. (Nanjing Redsun), the largest pyridine manufacturer in China, has no quotation for pyridine

and its pyridine was mainly for internal use. Besides, Nanjing Redsun produced 60-70 tonnes of pyridine daily in April and does not

accept new orders at present. Tangshan Chenhong Industrial Co., Ltd., one of the major pyridine manufacturers in China, produced

30-40 tonnes of pyridine daily and it can accept new orders.

Price of 20% paraquat AS keeps stable in April 2014

In April 2014, the average ex-works price of 20% paraquat AS was USD3,447/t (RMB21,200/t) in China, which kept relatively

steady compared with that in March 2014, according to CCM's price monitoring. In this month, the steady in price of

20% paraquat AS is mainly attributed to the relatively stable price of paraquat technical. There were a few parquat manufacturers

offering paraquat formulation price in April 2014, and most of them are trying to complete their previous orders at present. In

addition, supply of 20% paraquat AS was still tight. It's estimated that the price of 20% paraquat AS will remain high or even

increase in the near future, because traders would purchase paraquat formulations in advance to sell in the sales season.



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News in BriefASEAN becomes main import origin of pesticides in Shanghai Custom District

According to statistics from Shanghai Customs District People's Republic of China (Shanghai Customs District), during Jan. to

Feb. 2014, Shanghai Customs District imported 9,816.8 tonnes of pesticides with a year on year growth of 16.4% and the import

value was USD89.45 million (RMB550 million), up 30.0% YoY.

Association of Southeast Asian Nations (ASEAN) and European Union (EU) were two major pesticide import sources of Shanghai

Customs District, accounting for 69.6% of Shanghai Customs District's total pesticide import volume in this period. In the first two

months of 2014, Shanghai Customs District imported 4,538.1 tonnes of pesticides from ASEAN with a YoY growth of 8.3% and

imported 2,290.2 tonnes from EU with a YoY decrease of 7.2%. In the same period, Shanghai Customs District also imported

854.5 tonnes of pesticides from India, increased by 1.6 times YoY and 780.8 tonnes from the US, up 29.6% YoY.

Shanghai Customs District's total import volume of herbicides, anti-sprouting products and plant growth regulators was

4,884.0 tonnes, accounting for 49.6% of total pesticide import volume in Shanghai Custom District. Meanwhile, Shanghai also

imported 2,722.0 tonnes of fungicides, up 27.3% YoY and 821.0 tonnes of insecticides, up 45.9% YoY.

Forbidden herbicides and substitutes during 2006-2016 in China

In recent years, high-toxic pesticides have faced a hard situation of being banned or restricted in China as a result of people's

concern about food safety, environmental protection and pesticide residue as well as the development of pesticides with new

ingredients and low-toxic pesticides. According to the announcement issued by the Ministry of Agriculture of the People's Republic

of China (MOA), five varieties of herbicides are banned to use in China during 2006-2016.

Table 22: Forbidden herbicides and substitutes during 2006-2016 in China

Forbidden herbicide Forbidden date Forbidden scope Substitute

Paraquat AS 2016.07.01 All the crops New formulation of Paraquat (SG, GW）

Chlorsulfuron, ethametsulfuron, metsulfuron-methyl 2015.12.31 All the crops Ametryn, glyphosate

10% glyphosate AS 2012.01.01 All the crops 41% glyphosate AS

Chlorsulfuron, ethametsulfuron,metsulfuron-methyl 2006.12.31 All the crops except for wheat and rice Tribenuron-methyl, isoproturon, fluroxypyr

Source: MOA



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Glyphosate: 1st batch of enterprises passing environmental protectioninspection released in May 2014

Recently, Zhu Weijuan, deputy director of the China Crop Protection Industry Association (CCPIA), said that the 1st batch of

enterprises passing the environmental protection inspection would be released in May 2014.

Numerous domestic glyphosate manufacturers aggravate the problem of glyphosate effluent. As a result of that, agricultural pollution

becomes more and more serious. In order to solve this problem, the Environmental Protection of the P.R.C. united with the

CCPIA and started up the environmental protection inspection of glyphosate in June 2013. In spite of this, the stress of eco-friendly

glyphosate production has not reduced.

In March 2014, the national average price of glyphosate technical was USD5,605/t (RMB34,375/t), USD150/t (RMB917/t) higher

than that in Feb. 2014. The increased price of glyphosate technical was attributed to two reasons: 1) the price of raw material of

glyphosate, namely glycine, is rising because of its short supply and pressure from environmental protection; 2) demand increased

with the entering into sales season. In addition, the environmental policy on glyphosate production is still unclear. Purchasers are

taking a wait-and-see attitude toward the market of glyphosate in the near future and it's predicted that the price of glyphosate will

be stable in a short term.

Disposal of pesticide package wastes gains increasing attention

People are paying more and more attention to the disposal of pesticide package wastes and its influence to the environment. And

at present, pesticide effluent and packages generated in the process of using pesticides have become key points of pesticide

waste management as the secondary pesticide pollution from pesticide package wastes is as serious as the direct pollution to the

agricultural produce from pesticides. There are dozens of pesticide package wastes, such as plastic bags and bottles, glass

bottles, aluminum foil bags and paper bags. They generate two kinds of pollution: firstly, from the packages themselves to the

environment; secondly, from the pesticide residues inside the packages.

Notably, the quantity of pesticide package wastes in China is very huge. According to statistics from Jin Guobin, director of the

Shanghai Packaging Technology Expert Committee and China Packaging Technology Association, as the second largest

pesticide manufacturing country, China has more than 250 varieties of pesticide technical and over 3000 varieties of pesticide

formulations. Its annual output of formulations is over 1.2 million tonnes and two third of which are liquid formulations. Currently, in

China, 60% of pesticide packages are glass bottles, 20% are plastic bottles and the other 20% are composite flexible packaging

bags (pesticides of composite flexible packaging bags are all small doses). As glass and plastic bottles have many disadvantages,

Chinese pesticide packaging tends to apply plastic instead of glass and bags instead of bottles.

For the disposal of pesticide package wastes, some experts made some advice:

Firstly, instructions and technical guidance of how to use the product safely should be marked clearly on the packages;

Secondly, establishing a thorough recycling system of pesticide packages;

Thirdly, strengthening efforts on research and develop of eco-friendly materials for pesticide packaging such as soluble packaging

materials.



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Professor from Zhejiang A & F University invents Weeding Vinegar

According to Zhejiang Daily, Professor Ma Jianyi from Zhejiang A & F University developed a new kind of herbicide, named

Weeding Vinegar. This herbicide's raw materials are bamboo and wooden vinegar (a kind of light yellow faintly acidic liquid

generated after condensation, storage and purification of smog collected during the process of making bamboo and wooden

carbon). It took Professor Ma seven years to research and explore for ecological weeding.

Professor Ma said that Weeding Vinegar was a kind of ecological pesticide which was as safe as table vinegar and it could take

place of glyphosate. At present, Professor Ma has already reached agreement of cooperation with two companies to produce

Weeding Vinegar (but he didn't disclose the specific names of these companies). Professor Ma also predicted that in the near

future, farmers would be able to use cheap and efficient ecological herbicides made of bamboo and wooden vinegar.

Price MonitoringEx-factory prices of key herbicide raw materials in China, 8 April, 2014

Table 23: Ex-factory prices of key herbicide raw materials in China, 8 April, 2014

No. Raw materials20140308 20140408

RMB/t USD/t RMB/t USD/t

1 98% Glycine 13,600 2,222 15,500 2,519

2 92% Iminodiacetonitrile 11,000 1,797 11,300 1,837

3 99% Isopropylamine 13,050 2,132 12,000 1,950

4 98% N-(Phosphonmethyl) Iminodiacetic acid 16,500 2,696 16,700 2,714

5 99% Phosphorus trichloride 5,200 850 5,200 845

6 99.9% Pyridine 36,000 5,882 36,000 5,851

Note: Ex-factory price includes VAT.

Source: CCM



29/33


Ex-factory prices of main herbicides in China, 8 April, 2014

Table 24: Ex-factory prices of main herbicides in China, 8 April, 2014

No. Product20140308 20140408


1 92% Acetochlor technical 20,000 3,268 20,000 3,251

2 97% Atrazine technical 22,700 3,709 22,200 3,608

3 96% Bensulfuron-methyl technical 119,000 19,444 119,000 19,341

4 92% Butachlor technical 20,000 3,268 20,000 3,251

5 95% Clomazone technical 105,000 17,157 105,000 17,066

6 95% Cyhalofop-butyl technical 206,000 33,660 206,000 33,481

7 97% Diuron technical 28,000 4,575 27,000 4,388

8 98% Fenclorim technical 112,000 18,300 112,000 18,203

9 95% Fenoxaprop-P-ethyl technical 192,000 31,372 191,000 31,043

10 96% Fluroxypyr technical 134,000 21,895 135,000 21,942

11 95% Fomesafen technical 97,000 15,849 97,000 15,765

12 95% Glyphosate technical 34,000 5,555 34,250 5,567

13 95% Haloxyfop-P-methyl technical 287,000 46,895 288,000 46,809

14 97% Metolachlor technical 23,700 3,872 23,700 3,852

15 95% Metsulfuron-methyl technical 108,000 17,647 108,000 17,553

16 95% Nicosulfuron technical 248,000 40,522 250,000 40,633

17 97% Oxyfluorfen technical 125,000 20,425 127,000 20,641

18 42% Paraquat TK 29,000 4,738 28,500 4,632

19 95% Pendimethalin technical 50,000 8,170 50,000 8,127

20 95% Pretilachlor technical 34,200 5,588 34,000 5,526

21 97% Pyrazosulfuron-ethyl technical 217,000 35,457 217,000 35,269

22 80% Quinclorac technical 92,000 15,032 92,000 14,953

23 95% Quizalofop-P-ethyl technical 220,000 35,947 245,000 39,820

24 95% Tribenuron-methyl technical 109,000 17,810 109,000 17,716

25 95% Trifluralin technical 24,500 4,003 24,500 3,982

Note: Ex-factory price includes VAT.

Source: CCM



30/33


Shanghai port prices of main herbicides in China, 8 April, 2014

Table 25: Shanghai port prices of main herbicides in China, 8 April, 2014

No. Product20140308 20140408


1 92% Acetochlor technical 20,480 3,346 20,480 3,329

2 97% Atrazine technical 23,180 3,788 22,680 3,686

3 96% Bensulfuron-methyl technical 119,480 19,523 119,480 19,419

4 92% Butachlor technical 20,480 3,346 20,480 3,329

5 95% Clomazone technical 105,480 17,235 105,480 17,144

6 95% Cyhalofop-butyl technical 206,480 33,738 206,480 33,559

7 97% Diuron technical 28,480 4,654 27,480 4,466

8 98% Fenclorim technical 112,480 18,379 112,480 18,281

9 95% Fenoxaprop-P-ethyl technical 192,480 31,450 191,480 31,121

10 96% Fluroxypyr technical 134,480 21,973 135,480 22,020

11 95% Fomesafen technical 97,480 15,928 97,480 15,843

12 95% Glyphosate technical 34,480 5,634 34,730 5,645

13 95% Haloxyfop-P-methyl technical 287,480 46,973 288,480 46,887

14 97% Metolachlor technical 24,180 3,951 24,180 3,930

15 95% Metsulfuron-methyl technical 108,480 17,725 108,480 17,631

16 95% Nicosulfuron technical 248,480 40,601 250,480 40,711

17 97% Oxyfluorfen technical 125,480 20,503 127,480 20,719

18 42% Paraquat TK 29,480 4,817 28,980 4,710

19 95% Pendimethalin technical 50,480 8,248 50,480 8,205

20 95% Pretilachlor technical 34,680 5,667 34,480 5,604

21 97% Pyrazosulfuron-ethyl technical 217,480 35,535 217,480 35,347

22 80% Quinclorac technical 92,480 15,111 92,480 15,031

23 95% Quizalofop-P-ethyl technical 220,480 36,026 245,480 39,898

24 95% Tribenuron-methyl technical 109,480 17,889 109,480 17,794

25 95% Trifluralin technical 24,980 4,082 24,980 4,060

Note: Port price equals the ex-factory price plus the transport fee from the factory to the port, and the ex-factory price includes

VAT.

Source: CCM



31/33


FOB Shanghai of main herbicides in China, 8 April, 2014

Table 26: FOB Shanghai of main herbicides in China, 8 April, 2014

No. Product 20140308 USD/t 20140408 USD/t

1 92% Acetochlor technical 3,358 3,340

2 97% Atrazine technical 3,788 3,689

3 96% Bensulfuron-methyl technical 19,139 19,038

4 92% Butachlor technical 3,358 3,340

5 95% Clomazone technical 16,907 16,818

6 95% Cyhalofop-butyl technical 33,007 32,832

7 97% Diuron technical 4,633 4,450

8 98% Fenclorim technical 18,023 17,928

9 95% Fenoxaprop-P-ethyl technical 30,776 30,454

10 96% Fluroxypyr technical 21,530 21,575

11 95% Fomesafen technical 15,632 15,549

12 95% Glyphosate technical 5,590 5,600

13 95% Haloxyfop-P-methyl technical 45,919 45,834

14 97% Metolachlor technical 3,948 3,927

15 95% Metsulfuron-methyl technical 17,385 17,293

16 95% Nicosulfuron technical 39,702 39,809

17 97% Oxyfluorfen technical 20,095 20,306

18 42% Paraquat TK 4,970 4,862

19 95% Pendimethalin technical 8,140 8,097

20 95% Pretilachlor technical 5,621 5,560

21 97% Pyrazosulfuron-ethyl technical 34,761 34,576

22 80% Quinclorac technical 14,835 14,756

23 95% Quizalofop-P-ethyl technical 35,239 39,016

24 95% Tribenuron-methyl technical 17,545 17,452

25 95% Trifluralin technical 4,075 4,054

Note: Shanghai FOB price = port price + handling and THC + trading companies' profit - VAT rebate.

Source: CCM



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Journalist: Zaoqun ChenEditor: Ivy XianChief Editor: Ohgao. OuPublisher: Guangzhou CCM Information Science &Technology Co.,Ltd

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