sample-fungicides china news

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

Fungicides China News

Vol.6 Issue 01 2013

CCM Newsletter Fungicides China News 1301

www.cnchemicals.com Copyright Guangzhou CCM Information Science & Technology Co., Ltd.

E-mail: [email protected]

1

Contents

Editor's note ....................................................................................................................... 1

Market analysis .................................................................................................................. 3

Corn fungicides: an increasing market.................................................................... 3

Seed treatment agents for potato to increase ......................................................... 5

Company dynamics ........................................................................................................... 6

SYRICI approved to be National Technology Innovation Demonstration

Enterprise .................................................................................................................... 6

Huifeng Agrochemical's biggest shareholder pledges stocks again ................... 8

Yangnong Chemical's fungicide business to be enhanced .................................. 9

Jiangsu Sword to consolidate fungicide position ................................................ 10

Taizhou Bailly strengthens fungicide business .................................................... 11

Product.............................................................................................................................. 12

Xian MPC temporarily registers bupirimate in China .......................................... 12

Sevencontinent Green obtains temporary registration of cyproconazole in

China .......................................................................................................................... 13

Registration ...................................................................................................................... 14

New fungicide technical registrations in 2012 ...................................................... 14

Four fungicides' application for formal registration unapproved....................... 17

Price .................................................................................................................................. 19

Price update in Jan. 2013 ........................................................................................ 19

Most fungicides' prices decrease in 2012 ............................................................. 21

Brief news ......................................................................................................................... 23

Editor's note

Products' quality problem, especially pesticide residue problem, has been existing in China for a long time. This

situation didn't change in 2012. In the eye of the public, pesticides still play an inglorious role.

A report released by Greenpeace in April 2012 said that tea products made by top Chinese companies contain

residues of banned pesticides, which shocked the public. Later in 2012, paper bags containing pesticides,

mainly fungicides, were reported to be used for fruit bagging, angering the public again.

However, pesticides should not be criticized so much. In 2012, China's grain production recorded a new high,

which could not be achieved without pesticides. China need to produce more grain to meet the increasing

demand, indicating more pesticide application in the future.

Undoubtedly, China's governments and pesticide companies should do more to guide farmers to apply

pesticides lawfully and scientifically in order to provide adequate and safe food for the people.




2

Target company screening for PE investments

Among hundreds of thousands of companies in China, how to find

the companies with high growth potential and true value? Who are

those urgently seeking for investments and with high potential of

profitable returns and relatively low risks? With China's economic

expansion going on, a huge number of private companies have been

growing fast and facing tight cash flow, thus in bad need of

investments. But they find it hard to get loans from

China's state-owned banks. While at the same time, with information

explosion, it has become increasingly challenging for those investors

with abundant funds to find companies with true value to invest in.

With a research team backed by professional research methods as

well as years of accumulated industry knowledge, CCM can help

investors screen out a list of private companies with high growth

potential and urgent needs to seek for PE investments from the

thousands of companies in China. CCM provides neutral analysis

reports on companies screened out, to help PE firms understand

target companies investment intentions better.

If you have any questions, you can feel free to contact us. (Tel:

+86-20-3761-6606 Fax: +86-20-3761-6968

Email:[email protected] Website:

http://www.cnchemicals.com)

Market reports

>> Market Analysis of Major Fungicides in China

>> Guide of Coming Off-patent Agrochemical Active Ingredients

>> Company Profile of Chinese Pyridine Manufacturers

>> Production and Market of Azoxystrobin in China

>> Data report-Epoxiconazole Survey in China

>> Overview of Pesticide Industry in China 2012-2016

>> Data report-Production Situation of Myclobutanil in China

Newsletters related to fungicides

>> AgriChina Investor

>> Crop Protection China News

>> Crop Protection South America Monthly Report

>> Herbicides China News

>> Glyphosate China Monthly Report

>> Insecticides China News

>> Seed China News

Headlines

Corn fungicides' market will be more and more important with the

adjustment of crop planting structure in China.

Seed treatment agents for seed potato may witness fast

development in the near future.

MIIT and MOF jointly release the list of 2012 National Technology

Innovation Demonstration Enterprise recently and SYRICI is the

only pesticide company (institute) on the list.

Huifeng Agrochemical's biggest shareholder, Zhong Hangen,

continues to pledge his shares in Dec. 2012.

Yangnong Chemical plans to set up a new pesticide production

subsidiary in Jiangsu Province and its fungicide business is

expected to be enhanced with this project.

Jiangsu Sword aims to reinforce its fungicides' market position by

launching some products with bright market prospect.

Taizhou Bailly will expand azoxystrobin capacity and upgrade

fluazinam production line.

Xi'an MPC acquires two temporary registrations of bupirimate

97% TC and 25% ME in mid-Dec. 2012, assisting it to earn much

more profits in the future.

Sevencontinent Green becomes the third company to obtain

cyproconazole TC registration in China.

69 new registrations (not including the update of old ones) of

fungicide technical are approved in China in 2012.

The application for formal registrations of four fungicides are

unapproved by National Pesticide Registration Review Committee

in H2 2012, including pythium oligadrum, ethirimol, berberine and

physcion.

Prices of most fungicides decrease in 2012.




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Market analysis

Corn fungicides: an increasing market

China's corn output hit a new record of about 208.12 million

tonnes in 2012, up 8.0% year on year, according to recent

estimates from National Bureau of Statistics. With an output that

is 3.83 million tonnes more than rice, corn has become the

biggest crop in China by output. With the adjustment of crop

planting structure, demand structure of pesticides will also

change and corn fungicides' market will become more important

in domestic pesticide industry.

The new record corn output in China is mainly boosted by the

increasing planting area. Supported by the strong price, the

planting area of corn in China has increased very quickly in the

past few years. In fact, China's corn planting area exceeded that

of wheat in 2002 and that of rice in 2007, becoming the largest

crop in China by planting area. Moreover, it is expected that corn

will maintain a higher growth rate of planting area compared with

other crops such as wheat and rice.

Domestic demand for corn has witnessed a huge increase in

recent years, and China has tried very hard to increase corn

production to meet the rising demand. However, it still has to

import a large amount of corn since 2010 to meet the gap.

To maintain self-sufficiency in corn, it is expected that China will

release more policies to enlarge the planting area of corn.

China's corn planting area may reach 36.66 million ha. in 2020,

3.24 million ha. more than that in 2011, according to an article

from Mr. Han Changfu, Minister of Agriculture of China. (The

article was published in People's Daily, an official newspaper of

China, in early 2012).

FIGURE 1: Planting areas of rice, wheat and corn in China, 2001-2011

Source: National Bureau of Statistics of China

In addition to the increasing planting area, imitative breeding of corn is very common at home and the homogenization of corn varieties

would cause the increasing risk of outbreaks of diseases in China, which also will boost demand for fungicides. Some corn diseases like

corn stalk rot, rough dwarf disease and leaf blight, are likely to occur seriously in the future.

As revealed by Han Junqiang, Sales Director of Shanxi Tunyu Seed Industry Co., Ltd., most corn planting varieties in Huang-Huai-Hai

Plain, the largest corn planting base in China, have similar genetic background. Mr. Han believes that the successive planting of the

same or similar corn varieties would cause great potential risks for disease occurrence.




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Zhang Shihuang, Chief Expert of National Corn Industrial Technology System, worries that corn stalk rot would probably break out in

Huang-Huai-Hai Plain in future. In recent years, most corn varieties released in Huang-Huai-Hai Plain are susceptible to corn stalk rot.

The enlarged planting of susceptible varieties has increased the potential occurrence risk of corn stalk rot.

Insiders also reveal that continuous cropping will also increase the occurrence of diseases. Due to a lack of farmlands, continuous

cropping for corn and other crops is inevitable in China, which, however, increasing the possibility for disease occurrence.

According estimate released by National Agro-tech Extension & Service Center (NATESC) in July 2012, the total corn disease

occurrence area was 20 million ha. in 2012, which provides a huge market for pesticide companies. Furthermore, both demand and

price of corn fungicides are expected to witness increase in the future. Therefore, pesticide companies should pay more attention to this

market.

TABLE 1: China's corn disease occurrence area, 2012

Disease Affected area, million ha.

Leaf blight 5.18

Helminthosporium maydis 3.43

Head smut 1.73

Common smut 0.72

Brown spot 2.34

Curvularia leaf spot disease 1.73

Rust 0.73

Sheath blight 1.67

Rough dwarf disease 1.07

Others 1.40

Total 20.00

Note: The data are from an estimate released by National Agro-tech Extension & Service Center in July 2012.

Source: NATESC

FIGURE 2: Major corn production bases in China, 2011

Source: Ministry of Agriculture of China




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Seed treatment agents for potato to increase

"There are totally 337 seed treatment registrations in China till

Nov. 2012. Moreover, the expansion of domestic seed treatment

agent market will stimulate over 180 pesticide enterprises to

enter the market and the registered number of seed treatment

agents in the next two to three years will double, reaching over

700." According to Dr. Li Xianbin from the Institute for the Control

of Agrochemicals, Ministry of Agriculture (ICAMA).

Dr. Li also said that most of the seed treatment agents are

registered on corn, wheat, cotton, etc. Naturally, the seed

treatment agent market of potato, the fourth largest crop by

output in China, owns great potential.

Domestic planting of potato has been increasing very quickly in

the past years. In 2011, China's planting area of potato hit 5.51

million ha., increasing by 20.22% over 2004. The output hit

85.73 million tonnes in 2011. It is expected that the planting area

will continue to expand with the popularity for potato

consumption nowadays. However, the outbreak of some

diseases, such as late blight, early blight and ring rot, hinder the

development of potato industry as lots of yield loss is caused by

these diseases every year.

In general, the low quality of seed potato (some carry diseases),

the large cardinal number of potato late blight pathogen caused

by continuous cultivation for many years and the large planting

area of susceptible varieties should be to blame for the outbreak

of diseases.

In the past years, potato seed treatment was overlooked for the

control of potato diseases. Fortunately, some pesticide

companies and research institutes have recognized the

importance of potato seed treatment recently. They are

developing and promoting potato seed treatment agents. As

reported, properly treated seed has better and uniform

germination. Furthermore, rotting rate of seed tuber can be

reduced and has excellent prevention and treatment effect

against diseases like late blight, early blight and ring rot.

However, the lack of registered products hinders the promotion

of potato seed treatment in China. So far, only five potato seed

treatment products have been approved in China, including two

fungicides. It is far less compared with those on corn and wheat.

As a result, some fungicides, such as thiophanate-methyl,

propineb, carbendazim and chlorothalonil, which are not

registered as potato seed treatment products, are also used by

potato growers to treat seed potato. The effects of these

products are not very satisfactory and even may hurt the growth

of potato sometimes.

With more and more growers recognizing the importance of

potato seed treatment, pesticide companies should develop and

register their products first to capture market share.

TABLE 2: Seed treatment agent registrations for potato in China, 20 Nov., 2012

Product Formulation Target Dose Registrant

Metalaxyl 25% FS Late blight 31.25-37.5g/100kg seed potato Gansu Huashi*

Fludioxonil 25g/L FS Tar spot 2.5-5g/100kg seed potato Syngenta

Thiamethoxam 70% ZF Aphid 7-28g/100kg seed potao Syngenta

Thiamethoxam* 70% ZF Aphid 7-28g/100kg seed potao Syngenta

Imidacloprid 600g/L FS Grub 24-30g/100kg seed potato Bayer

Note: Gansu Huashi*=Gansu Huashi Agricultural Technology Co., Ltd.; Thiamethoxam* is a repackage registration.

Source: ICAMA




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FIGURE 3: China's potato output, tonne, 2004-2011

Source: CCM

Company dynamics

SYRICI approved to be National Technology Innovation Demonstration Enterprise

The Ministry of Industry and Information Technology (MIIT) and

the Ministry of Finance (MOF) of China jointly released the list of

2012 National Technology Innovation Demonstration Enterprise

recently and Shenyang Research Institute of Chemical Industry

(SYRICI) is the only pesticide company (institute) on the list,

indicating its remarkable R&D capability.

Totally 76 enterprises were on the list. According to MIIT's

standards, the selected enterprises should master core

technology with independent intellectual property rights and their

overall technological level should be in leading position in the

industry. Generally, enterprises on the list can get government

support more easily.

China's current pesticide R&D ability is still weak compared with

developed countries, due to shortage in capital support and

unreasonable R&D system. In China, total annual R&D expense

on pesticides by pesticide producers only accounts for less than

2% of their annual sales value, much less than that of foreign

giants, who expend about 10% of their annual sales value on

R&D.

Currently, major pesticide R&D researches in China concentrate

in research institutes, and few companies directly participate in

new pesticides' AI R&D. Research institutes of Chinese

pesticides have made great contribution to the industry with

valuable scientific achievements.

Among these institutes, SYRICI, a subsidiary of Sinochem

Group, is the most successful one. It has developed many

pesticide products with independent intellectual property rights,

most of which are fungicides, such as flumorph, coumoxystrobin,

enostroburin, flufenoxystrobin, fenamistrobin, tricyclopyricarb

and pyrisoxazole.

At present, most fungicides developed by SYRICI have been

registered in China. Specifically, pyrisoxazole, pyrametostrobin,

pyraoxystrobin, fenamistrobin, enostroburin and flumorph are

registered and marketed by Shenyang Sciencreat Chemicals

Co., Ltd., a subsidiary of SYRICI. Furthermore, coumoxystrobin




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and tricyclopyricarb are registered and marketed by Jilin Bada

Pesticide Co., Ltd. and Jiangsu Baoling Chemical Co., Ltd.

respectively.

However, although these products are with independent

intellectual property rights, most of them still capture low market

shares. Insiders reveal that the sales network and promotion of

SYRICI are not as strong compared with oversea companies

and domestic leading formulation companies. Currently, only a

few products such as flumorph products and

fenamistrobintebuconazole 20% SC (brand name: Aike) are

popular in domestic market.

It is expected that SYRICI will continue to extend formulation

registration of its patent AIs and develop more new pesticide AIs.

Apart from strengthening the R&D capability, it should also

improve its promotion ability in order to seize much more shares

or cooperate with strong formulation companies in China to

promote its products.

TABLE 3: Valid registrations of fungicides developed by SYRICI, as of 31 Dec., 2012

Registration number Product Content Type Registrant

PD20093355 Pyrisoxazole+thiram 40% SE

Shenyang Sciencreat Chemicals Co., Ltd.

PD20080774 Pyrisoxazole 25% EC

PD20080773 Pyrisoxazole 90% TC

LS20110249 Pyrametostrobin 20% SC

LS20110235 Pyrametostrobin 95% TC

LS20120247 Pyraoxystrobin+flumorph 25% SC

PD20096616 Fenamistrobin+tebuconazole 20% SC

PD20095213 Fenamistrobin 5% EC

PD20095214 Fenamistrobin 98% TC

PD20096615 Enostroburin+epoxiconazole 18% SC

PD20096896 Enostroburin+cymoxanil 25% WP

PD20095298 Enostroburin+carbendazim 28% WP

PD20070340 Enostroburin 25% EC

PD20070339 Enostroburin 90% TC

PD20060038 Flumorph+mancozeb 60% WP

PD20060039 Flumorph 95% TC

PD20070403 Flumorph+mancozeb 50% WP

PD20095953 Flumorph 20% WP

PD20095462 Flumorph+fosetyl-aluminium 50% WDG

PD20090493 Flumorph+fosetyl-aluminium 50% WP

LS20100160 Coumoxystrobin 96% TC Jilin Bada Pesticide Co., Ltd.

LS20100164 Coumoxystrobin 20% SC

LS20120039 Tricyclopyricarb 95% TC

Jiangsu Baoling Chemical Co., Ltd. LS20120040 Tricyclopyricarb 15% EC

LS20120364 Tricyclopyricarb+tebuconazole 15% SC

Source: ICAMA




8

Huifeng Agrochemical's biggest shareholder pledges stocks again

Jiangsu Huifeng Agrochemical Co., Ltd. (Huifeng Agrochemical),

the largest prochloraz technical producer in China, announced

on 14 Dec., 2012 that Zhong Hangen, the biggest shareholder of

the company, pledged the stock rights of 19 million shares on 13

Dec., 2012 to Huatai Securities Co., Ltd. and the purpose for this

stock pledge is for private financing.

This is not the first time for Zhong Hangen to pledge his stock

rights of Huifeng Agrochemical. Up to 14 Dec., 2012, Zhong

Hangen totally pledged 31.91 million shares of Huifeng

Agrochemical, accounting for 19.53% of the total shares of

Huifeng Agrochemical. At present, Zhong Hangen owns 52.81%

shares of Huifeng Agrochemical.

In addition to Zhong Hangen, Tang Zhongyi and Cai Yongjun, the

third and fifth biggest shareholders of Huifeng Agrochemical by

the end of H1 2012, pledged all of their shares, according to the

2012 semi-annual report of Huifeng Agrochemical.

Stock pledge is very common in China in recent years due to

fund shortage of company shareholders. However, frequent

stock pledges may exert negative effect on the share market, as

revealed by insiders. The shares Zhong Hangen and some other

shareholders of Huifeng Agrochemical are restricted shares at

present, so they can't sell their shares on secondary market to

raise capital. However, they can choose to pledge their shares to

raise capital. It can be regarded as a way to withdraw from the

company.

In fact, some other shareholders of Huifeng Agrochemical have

already tried to withdraw from the company. Jiuding Capital, a

famous equity investment company in China, has been selling its

shares of Huifeng Agrochemical. It owns over 10% shares of

Huifeng Agrochemical when the company got IPO in 2010, but

its shares declined to 6.18% by the end of H1 2012. And it is

reported that Jiuding Capital continued to sell its shares after

that.

In general, the worse-than-expected performance of the

company in recent years may be the major reason behind big

shareholders' withdrawal. As well known, Huifeng Agrochemical

suffered from net profit decrease for two successive years (2010

and 2011). In detail, the company's net profit dropped by 13.46%

year on year in 2010 to USD15.81 million (RMB100.71 million);

in 2011, its net profit still did not manage to get rid of the decline

trend, decreasing to USD9.79 million (RMB62.35 million), down

38.10% compared with that in 2010. Fortunately, Huifeng

Agrochemical's H1 2012 performance was very satisfactory.

According to the company's semi-annual report in 2012, its net

profit witnessed an increase of 36.06% year on year to USD7.74

million (RMB49.24 million) in H1 2012.

FIGURE 4: Ownership structure of Huifeng Agrochemical, 30 June, 2012

Source: Huifeng Agrochemical




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Yangnong Chemical's fungicide business to be enhanced

Jiangsu Yangnong Chemical Co., Ltd. (Yangnong Chemical), the

largest pyrethroid insecticide player in China, announced on 9

Dec., 2012 that it planned to set up a new pesticide production

subsidiary in Rudong County, Jiangsu Province, with a total

investment of USD28.52 million.

The new subsidiary was temporarily named as Jiangsu Youjia

Chemical Co., Ltd. (Jiangsu Youjia) and will be mainly engaged

in the production and sales of pesticides and pesticide

intermediates, fine chemicals, etc. Yangnong Chemical revealed

that the main purpose of setting up the subsidiary was to further

expand coastal region markets and enhance its competitiveness

in domestic pesticide market.

The company didn't reveal what kinds of pesticides the new

subsidiary will be mainly engaged in, but it is estimated that it will

strengthen its fungicide business with this project.

Yangnong Chemical has mentioned a couple of times to

strengthen its fungicide business in recent years and has made

some tries. However, its performance on fungicide business is

not satisfactory. According to the company's 2012 semi-annual

report, in H1 2012, 59.93% and 35.41% of the revenue was from

insecticides and herbicides respectively. Revenue from other

business only accounted for less than 5%. The company didn't

reveal the exact revenue of its fungicide business.

However, no one believes that Yangnong Chemical will accept

the current situation. Some domestic analysts expect that the

company's revenue from insecticides, herbicides and fungicides

will account for 40%, 40% and 20% of the total respectively in

three years.

At present, Yangnong Chemical (including its subsidiaries

Ningxia Ruitai Technology Co., Ltd. and Youth Chemical Co.,

Ltd.) has only registered four fungicide technical, namely

carbendazim, thiophanate-methyl, propiconazole and fluazinam.

FIGURE 5: Revenue structure of Yangnong Chemical, H1 2012

Source: Yangnong Chemical




10

Jiangsu Sword to consolidate fungicide position

Jiangsu Sword Agrochemicals Co., Ltd. (Jiangsu Sword), a leading triazole fungicide company in China, aims to reinforce its fungicide's

market position by launching some products with bright market prospect and thus increasing its supply ability globally.

In accordance with the requirements of national and local policies of domestic pesticide industry, Jiangsu Sword plans to relocate its

factory to Jiangsu Binhai Coastal Industrial Park. During the relocation course, the company will adjust its pesticide product structure to

meet market demand for pesticides at home and abroad, particularly for fungicides. According to an EIA announcement issued early in

Dec. 2012, Jiangsu Sword plans to launch 3,500t/a fungicide TC production lines in the new factory, including triadimefon, tebuconazole,

trifloxystrobin, kresoxim-methyl, cyprodinil and so forth.

Specifically, trifloxystrobin, a patented fungicide held by Bayer CropScience now, is predicted to enjoy bright market prospect in the

future with its excellent prevention and control of crop powdery mildew, leaf spot, rust, downy mildew, scab, etc. According to the

Institute for the Control of Agrochemicals, Ministry of Agriculture (ICAMA), there is no domestic pesticide company that has ever gained

related registration of trifloxystrobin in China as of late Dec. 2012. In other words, domestic companies who develop trifloxystrobin

earlier could enjoy better market opportunity.

According to ICAMA, registration of kresoxim-methyl, one of the strobilurin fungicides, has been seeing significant rise in China since

early 2012. The total valid registration quantity of kresoxim-methyl has amounted to 42 (including technical and formulations) in China

as of late Dec. 2012, indicating bright future development trend of the product.

As a kind of pyrimidine fungicide, cyprodinil has no cross-resistance with most popular fungicides, such as triazole, imidazole and

morpholine fungicides, and is widely used to prevent and control botrytis cinerea, powdery mildew, scab, web blotch, etc. Cyprodinil is a

relatively popular fungicide worldwide, whose annual sales value has exceeded USD100 million in the world in 2011. Owing to the bright

market prospect, Jiangsu Sword could seize handsome profit in the future with the product.

In general, it is predicted that Jiangsu Sword's fungicide business will be greatly strengthened in the future upon launching of these

fungicides.

TABLE 4: Fungicide TC registrations of Jiangsu Sword in China, as of late Dec. 2012

Registration No. Fungicide Specification Effective date Expiry date

LS20120190 Cyproconazole 95% TC 2012.05.31 2013.05.31

PD20070541 Triadimenol 97% TC 2012.12.03 2017.12.03

PD20080292 Tebuconazole 97% TC 2013.02.25 2018.02.25

PD20081648 Diniconazole 95% TC 2008.11.14 2013.11.14

PD20085796 Bitertanol 97% TC 2008.12.29 2013.12.29

PD20097890 Diniconazole-M 74.5% TC 2009.11.30 2014.11.30

PDN33-95 Triadimefon 95% TC 2010.07.14 2015.07.14

Source: ICAMA




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TABLE 5: New fungicide TC projects of Jiangsu Sword, 2012

No. Fungicide Capacity, t/a

1 Triadimefon 1,000

2 Tebuconazole 1,000

3 Triadimenol 400

4 Trifloxystrobin 200

5 Diniconazole 200

6 Difenoconazole 200

7 Propiconazole 200

8 Kresoxim-methyl 100

9 Epoxiconazole 100

10 Cyprodinil 50

11 Bitertanol 50

Source: Jiangsu Sword

Taizhou Bailly strengthens fungicide business

Taizhou Bailly Chemical Co., Ltd. (Taizhou Bailly), one of the key

fungicide manufacturers in China, is strengthening its fungicide

business through expanding azoxystrobin capacity and

upgrading fluazinam production lines, which will reinforce its

fungicide market position and make it seize handsome profit in

the future.

As disclosed by Taizhou Bailly, the company is about to expand

its azoxystrobin capacity to 1,500t/a on the basis of 500t/a

production line (including technical and formulations). At the

same time, Taizhou Bailly is going to upgrade its 500t/a

fluazinam production line. The preparation before construction of

the project is under smooth progress.

Both projects currently are undergoing approval of Taizhou

Municipal Environmental Protection Bureau, and it is estimated

to be completed in the second half of 2013, according to Miss Li,

a foreign trade salesman from Taizhou Bailly. If all goes well,

especially passing the environmental protection acceptance by

the local government department, Taizhou Bailly is committed to

launching the 1,500t/a azoxystrobin and 500t/a fluazinam

production lines as soon as possible.

Azoxystrobin, the most popular strobilurin fungicide worldwide,

has been drawing attention from domestic agrochemical

companies, including Taizhou Bailly, driven by its bright market

prospect both at home and abroad in recent years. It is well

known that the annual sales value of azoxystrobin reaches about

USD1.0 billion all over the world in recent few years, thanks to its

high efficiency, broad spectrum and low toxicity. With the

increasing demand for azoxystrobin from domestic and overseas

market, the consumption of azoxystrobin will continue to go up in

the next few years, according to insiders. As a result, Taizhou

Bailly hopes to expand its capacity of azoxystrobin in order to

timely grasp the great opportunity and thus seize more market

shares in the near future.

Moreover, fluazinam is a nitroanilines fungicide with excellent

control effect on bacteria such as alternaria, botrytis,

phytophthora, plasmopara, sclerotinia and venturia. Even though

domestic consumption of fluazinam is still small at present,

overseas demand for this fungicide is stable in recent years,

particularly in some countries and regions in Europe and Middle

East. Although the consumption of fluazinam is not large in

China so far, its sales volume is estimated to witness increase in

the next few years thanks to its excellent control effect on various




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diseases, in terms of some insiders. Taizhou Bailly believes that

there is still large development space for China's fluazinam

industry.

As a matter of fact, Taizhou Bailly is managing to become a

leading global manufacturer of fungicides under the support of its

parent company, Jiangyin Suli Chemical Co., Ltd., a famous

enterprise of fine chemicals in China with nearly 20 years'

development. It is actively developing new fungicide products. At

present, the company's azoxystrobin formulations include

azoxystrobin 250g/L SC, 50% WDG, 80% WDG,

azoxystrobinchlorothalonil 480g/L SC,

azoxystrobinchlorothalonil 560g/L SC,

azoxystrobindifenoconazole 325g/L SC,

azoxystrobincyproconazole 280g/L SC, azoxystrobin 100g/L FS

and azoxystrobintebuconazole 360g/L SC, according to its

official website. And its fluazinam formulations include fluazinam

500g/L SC and 50% WDG.

TABLE 6: Fungicide TC registrations of Taizhou Bailly in China, as of late Dec. 2012

Registration No. Fungicide Specification Effective date Expiry date

PD20080812 Chlorothalonil 98.5% TC 2008.06.20 2013.06.20

PD20081145 Flutolanil 98% TC 2008.09.01 2013.09.01

PD20110032 Cymoxanil 97% TC 2011.01.07 2016.01.07

PD20110483 Azoxystrobin 97.5% TC 2011.04.29 2016.04.29

PD20111235 Tebuconazole 98% TC 2011.11.18 2016.11.18

PD20120024 Fluazinam 97% TC 2012.01.09 2017.01.09

Source: ICAMA

Product

Xian MPC temporarily registers bupirimate in China

Xi'an MPC Stock Co., Ltd. (Xi'an MPC), a key fungicide

manufacturer in China, acquired two temporary registrations of

bupirimate 97% TC and 25% ME from the Institute for the

Control of Agrochemicals, Ministry of Agriculture (ICAMA) in mid

Dec. 2012. Xi'an MPC is the first and the only company that has

gained bupirimate registration in China so far. As an efficient

fungicide, bupirimate is estimated to enjoy a bright market

prospect in the future.

It is understood that with the advantages of high efficacy, low

toxicity and environmental friendliness, bupirimate is a pyrimidine

fungicide with protective and curative activity for the control of

fungal diseases. It is used for the control of powdery mildew on

apples, pears, stone fruits, cucurbits, roses and other

ornamentals, strawberries, gooseberries, currants, raspberries,

hops, beets and other crops. As disclosed by ICAMA, Xi'an

MPC's bupirimate 25% ME is registered to prevent and control

cucumber powdery mildew with the recommended application

dosage of 225-300g/ha. and with the method of spraying.

It is well known that cucumber powdery mildew is one of the

major cucumber diseases all over the world, which can bring

huge loss to cucumber production when it occurs seriously. As a

fungicide with specially excellent effect on powdery mildew,

bupirimate 25% ME has been considered a good substitute for

kresoxim-methyl and triazole fungicides such as tebuconazole,

hexaconazole and difenoconazole. Moreover, the impact of

powdery mildew's resistance to the above fungicides is

increasingly apparent at present.

After several years of development, Xi'an MPC has become the

only domestic enterprise that has gained the registrations of

bupirimate in China, which is very beneficial to the building of this

fungicide's brand image and thus helps Xi'an MPC seize much




13

more profits. Mrs. Liu, a sales manager of Xi'an MPC, said that

bupirimate was produced by Xi'an Modern Chemistry Research

Institute (MCRI) whose production technology of bupirimate is

very mature in China. As a sub-unit of MCRI, Xi'an MPC gained

the right to use the production technology of bupirimate.

In line with the sales strategy of Xi'an MPC, most of its buprimate

will be exported to overseas market through its own foreign trade

department and other domestic trade companies. Currently, the

prices of bupirimate products are still a bit high for domestic

consumers. The ex-works price of bupirimate 97% TC was

USD63,500/t (RMB400,000/t) at the end of Dec. 2012, and that

of bupirimate 25% ME was USD23,800/t (RMB150,000/t)

correspondingly, disclosed Mrs. Liu. Xi'an MPC would keep three

to five tonnes of bupirimate in stock in order to supply new

customers. In accordance, Xi'an MPC is also managing to

register bupirimate 25% ME on other crops from ICAMA and

develop new bupirimate formulations applied in other fields.

It is predicted that bupirimate series products would increase in

variety and receive a lot of attention from domestic pesticide

enterprises. As the price of bupirimate is about to get lower and

lower because of the production technology will continue to

progress, bupirimate will become increasingly popular among

farmers.

TABLE 7: Registration situation of bupirimate in China, as of late Dec. 2012

Registrant Registration No. Specification Effective date Expiry date

Xi'an MPC Stock Co., Ltd. LS20120411 25% ME 2012.12.19 2013.12.19

LS20120412 97% TC 2012.12.19 2013.12.19

Source: ICAMA

Sevencontinent Green obtains temporary registration of cyproconazole in China

On 7 Dec., 2012, Jiangsu Sevencontinent Green Chemical Co.,

Ltd. (Sevencontinent Green), a leading manufacturer of triazole

fungicides in China, gained the temporary registration of

cyproconazole 98% TC in China, according to the Institute for

the Control of Agrochemicals, Ministry of Agriculture (ICAMA). It

is the third company that has gained cyproconazole TC

registration in China, but it is the first one to gain cyproconazole

TC for 98% content so far. In general, developing cyproconazole

would not only be beneficial to Sevencontinent Green, but also

development of the whole industry.

As an excellent triazole fungicide, cyproconazole is worth

developing and draws attention from domestic agrochemical

players. Before Sevencontinent Green, there are two other

pesticide companies which have gained the registration of

cyproconazole 95% TC in China, namely Jiangsu Sword

Agrochemicals Co., Ltd. and Jiangsu Fengdeng Pesticide Co.,

Ltd.

Mr. Xu, Sales Manager of Sevencontinent Green, said that the

company has a little stock of cyproconazole TC now but does

not sell temporarily. And they would use the stock of

cyproconazole TC to develop some formulations, such as

400g/L SC, 250g/L propiconazole+80g/L cyproconazole EC and

30g/L difenoconazole+6.3g/L cyproconazole FS.

As disclosed by Mr. Xu, Sevencontinent Green has finished the

pilot scale production of cyproconazole TC in Aug. 2012. The

capacity of cyproconazole TC that the company originally

designed is 800t/a. However, cyproconazole series products

haven't been put into mass production for the moment as the

company believed that the current production base is not

suitable for the product's mass production. The company is

going to put the cyproconazole production line into another

production base, but the specific production base has not been

disclosed. Thus, the specific time of mass production of the

product hasn't been determined yet. But it is predicted that the

production base for the cyproconazole production line maybe in




14

one of Sevencontinent Green's subsidiaries' production bases or

a newly built one. The earliest time for mass production of

cyprocinazole is estimated to be the second half of 2013.

Furthermore, as introduced by Sevencontinent Green, its

cyproconazole is mainly for overseas market since the product is

rarely used in China currently. And the company believes it will

bring handsome profit in the future and is worth developing. In

line with the sales strategy of the company, it would export its

cyproconazole mainly by itself while through other domestic

trade companies.

Apart from benefiting the company's future development, some

insiders predicted that the registration quantity of cyproconazole

will increase to a certain degree in China because of its broad

spectrum and excellent efficiency, favoring the whole industry's

growth. In accordance with the other two registrants of

cyproconazole, the product is selling well in overseas market.

(Please refer to Fungicides China News 1208 Jiangsu Sword to

launch 500t/a cyproconazole technical in Oct. 2012)

Cyproconazole could be applied to fight against many crop

diseases like grape powdery mildew, peanut, sugar beet leaf

spot, apple scab and peanuts white rot, on various grain crops

and fruit trees. In addition, it is also reported that the effect of

cyproconazole is better than that of triadimefon in wheat

powdery mildew prevention and control.

TABLE 8: Registration situation of cyproconazole in China, as of Dec. 2012

Registrant Registration No. Specification Effective date Expiry date

Jiangsu Sevencontinent Green Chemical Co., Ltd. LS20120394 98% TC 2012.12.07 2013.12.07

Jiangsu Fengdeng Pesticide Co., Ltd. LS20110174 95% TC 2012.07.04 2013.07.04

Jiangsu Sword Agrochemicals Co., Ltd. LS20120190 95% TC 2012.05.31 2013.05.31

Source: ICAMA

Registration

New fungicide technical registrations in 2012

69 new registrations (not including the update of old ones) of fungicide technical were approved in China in 2012.

Among the total, azoxystrobin was the hottest registered product in 2012. The total registration quantity of azoxystrobin technical

reached 22 in China in 2012, accounting for 31.88% of the total new fungicide technical registration in 2012 and 84.62% of the

azoxystrobin technical registration of all time. The registration soar was boosted by the patent expiry and bright market prospect of the

product.

However, problems associated with the registration soar of azoxystrobin technical have grown in China in recent two years, such as

capacity surge, vicious competition and price plummeting. Therefore, it is very necessary that domestic companies reasonably plan

production to avoid potential risks.

Except azoxystrobin technical, the registration number of other fungicides was very small. Difenoconazole and tebuconazole technical

were still hot in 2012, with three new registrations for each. Products with two new registrations included propiconazole, picoxystrobin,

epoxiconazole, fludioxonil and cyproconazole.




15

Seven fungicide technical were first approved in 2012, including picoxystrobin, tricyclopyricarb, bupirimate, zoxamide, initium,

tetramycin and albendazole. Moreover, the formal registrations of six fungicide technical were first approved in 2012, including

fluopyram, cyprodinil, JS399, fentin hydroxide, fungous proteoglycan and ipconazole.

TABLE 9: New registrations of fungicide technical in 2012 in China

Product Content Registrant 2012* Total*

Azoxystrobin

97% Shandong Hailier Chemical Co., Ltd.

22 26

97% Anhui Guangxin Agrochemical Co., Ltd.

95% Jiangsu Luye Agrochemicals Co., Ltd.

98% Jiangsu Repont Pesticide Factory Co., Ltd.

98% Sichuan Leshan Fuhua Tongda Agro-Chemical Technology Co.,

Ltd.

98% Mesa Tech Co., Ltd.

95% Jingma Chemicals Co., Ltd.

97% Hebei Veyong Bio-chemical Co., Ltd.

97% CAC Nantong Chemical Co., Ltd.

95% Nanjing Redsun Co., Ltd.

96% Shandong United Pesticide Industry Co., Ltd.

98% Jiangsu Xinyi Taisong Chemical Co., Ltd.

98% Jiangsu Weunite Fine Chemical Co., Ltd.

95% Shanghai HeBen-EastSun Medicaments Co., Ltd.

95% Limin Chemical Co., Ltd.

96% Jiangsu Subin Agrochemical Co., Ltd.

96.50% Jiangsu Flag Chemical Industry Co., Ltd.

95% Jiangsu Greenscie Chemical Co., Ltd.

95% Jiangsu Fengdeng Pesticide Co., Ltd.

95% Zhejiang Boshida Crop Technological Co., Ltd.

95% Lier Chemical Co., Ltd.

98% Shandong Weifang Shuangxing Chemicals Co., Ltd.

Difenoconazole

95% Jiangsu Sevencontinent Green Chemical Co., Ltd.

3 15 95% Shandong Weifang Shuangxing Chemicals Co., Ltd.

95% Limin Chemical Co., Ltd.

Tebuconazole

96% Jiangsu Subin Agrochemical Co., Ltd.

3 44 96% Jiangsu Jianshen Biological Agricultural Chemical Co., Ltd.

97% Rudong Zhongyi Chemical Co., Ltd.

Propiconazole 95% Changzhou Wujin Henglong Pesticide Co., Ltd.

2 40 96% Sinochem Ningbo (Lianyungang) Chemicals Co., Ltd.

Picoxystrobin 97% DuPont

2 2 97% DuPont

Epoxiconazole 97% Jiangsu Huifeng Agrochemical Co., Ltd.

2 5 95% Jiangsu Sevencontinent Green Chemical Co., Ltd.




16

Fludioxonil 98% Shangyu Nutrichem Co., Ltd.

2 3 97% Zhejiang Boshida Crop Technological Co., Ltd.

Cyproconazole 98% Jiangsu Sevencontinent Green Chemical Co., Ltd.

2 3 95% Jiangsu Sword Agrochemicals Co., Ltd.

Bacillus subtilis 10 billion

spores/g Taiwan Biotech Limited Company 1 3

Chlorothalonil 98.50% Shijiazhuang Richem Co., Ltd. 1 18

Carbendazim 98% Suzhou Bianjing Agro-Biochemical Co., Ltd. 1 19

Polyoxin B 31% Shanxi Green Sea Pesticide Technology Co., Ltd. 1 3

Hymexazol 99% Jiangxi Bafit chemical Co., Ltd. 1 12

Dithianon 95% Jiangsu Huifeng Agrochemical Co., Ltd. 1 2

Fluopyram 96% Bayer 1 2

Fluazinam 97% Jiangsu Taizhou Bailly Chemical Co., Ltd. 1 3

Flusilazole 95% Zhejiang Heben Pesticide & Chemicals Co., Ltd. 1 12

Metalaxyl 98% Jiangsu Heye Agrochemicals Co., Ltd. 1 17

Dimetachlone 96% Jiangxi Heyi Chemical Co., Ltd. 1 1

Captan 97% Hebei Guanlong Agrochemical Co., Ltd. 1 4

Prochloraz 97% Jiangsu Changlong Chemicals Co., Ltd. 1 13

Kresoxim-methyl 95% Lier Chemical Co., Ltd. 1 4

Cyprodinil 98% Syngenta 1 2

JS399 95% Jiangsu Pesticide Research Institute Co., Ltd. 1 1

Thifluzamide 95% Zhejiang Boshida Crop Technological Co., Ltd. 1 2

Thiabendazole 99% Shijiazhuang Richem Co., Ltd. 1 9

Fentin hydroxide 95% Zhejiang Heben Pesticide & Chemicals Co., Ltd. 1 1

Propamocarb

hydrochloride 95% Zhejiang Heben Pesticide & Chemicals Co., Ltd. 1 7

Cymoxanil 98% Shaanxi Hentin Chem-tech Co., Ltd. 1 11

Probenazole 95% Tianjin Xinwei Chemnical Co., Ltd. 1 3

Fungous

proteoglycan 10% Shandong Sheng Peng Pesticide Co., Ltd. 1 1

Iprodione 96% Jiangsu Changlong Chemicals Co., Ltd. 1 7

Ipconazole 97% DuPont 1 2

Tricyclopyricarb 95% Jiangsu Baoling Chemical Co., Ltd. 1 1

Bupirimate 97% Xi'an MPC Stock Co., Ltd. 1 1

Zoxamide 97% Dalian Kaifei Chemical Co., Ltd. 1 1

Initium 98% BASF 1 1

Tetramycin 15% Liaoning Wkioc Bioengineering Co., Ltd. 1 1

Albendazole 98% Guizhou Daoyuan Technology Co., Ltd. 1 1

Note: 2012* means registration number in 2012, Total* in the table means the total number of valid technical registrations as of 31 Dec., 2012.

Source: ICAMA




17

Four fungicides' application for formal registration unapproved

National Pesticide Registration Review Committee (the

Committee) held a meeting to review pesticide registrations in

Aug. 2012 and the results were released recently. The

Committee reviewed 14 formal registration applications of

fungicides. Among the total, seven formal registration

applications were approved (the first time for these products),

while the left seven were unapproved.

The seven formal registrations (approved) involve four fungicide

AIs, namely JS399, fluopyram, maleic hydrazide and

picoxystrobin. In Nov. 2012, based on the results from the

Committee, the Institute for the Control of Agrochemicals,

Ministry of Agriculture (ICAMA), approved the formal

registrations of the seven products.

JS399 is a novel fungicide developed by Jiangsu Pesticide

Research Institute Company Ltd. (JPRI). The company got two

temporary registrations of the product in 2007, which were

outdated in 2011. The approval of the formal registration this time

will benefit it in the further promotion of the product (please refer

to Fungicides China News 1212, JPRI formally registers JS399).

The formal registration of picoxystrobin 97% TC and 250g/L SC

were obtained by DuPont. However, the formal registration of

250g/L SC this time was only registered to prevent and control

watermelon gummy stem blight and anthracnose. And its

application to prevent and control banana leaf spot and banana

black spot was unapproved by the Committee. The reason

behind this is that the residue of picoxystrobin on banana

exceeds the European standard, indicated the Committee. As a

matter of fact, DuPont got two temporary registrations of the

product in June 2012, namely picoxystrobin 97% TC and 22.5%

SC, the second of which was registered on nine diseases of six

crops (see Fungicides China News 1212, DuPont obtains formal

registration of picoxystrobin in China).

The formal registration of maleic hydrazide 99% TC was

obtained by Chemtura. The company first introduced this

product to China in 2003, but its registration was outdated in

2004. Apart from Chemtura, seven domestic companies also got

three temporary registrations for TC and five temporary

registrations for formulations in the past years. All of the

formulations were registered as suppression of sprouting on

tobacco.

Moreover, Bayer also obtained two formal registrations of

fluopyram. The company introduced this product to China in

2010.

TABLE 10: Fungicides approved by National Pesticide Registration Review Committee, H2 2012

Product AI

content Type Application target Applicant

JS399 95% TC / Jiangsu Pesticide Research

Institute Company Ltd. 25% SC Wheat (scab), rice (bakanae)

Fluopyram 96% TC /

Bayer 41.70% SC Cucumber (powdery mildew)

Maleic hydrazide 99% TC / Chemtura

Picoxystrobin 250g/L SC

Watermelon (gummy stem blight, anthracnose),

banana (leaf spot, black spot) DuPont

97% TC /

Source: National Pesticide Registration Review Committee

However, not every one heard the good news. The other seven

formal registration applications of fungicides were unapproved

by the Committee, including four fungicide AIs, namely pythium

oligandrum, ethirimol, berberine and physcion. There are no




18

valid registrations (both temporary and formal) for these four

fungicides AIs at present (data were monitored on 14 Dec.,

2012).

Two formal registration applications of pythium oligandrum from

Czech Biopreparaty, spol. sr.o (Czech Biopreparaty) were not

approved by the Committee. According to the comments

released by the Committee, Czech Biopreparaty should provide

more data about the product's hazard to humans and

environment to get formal registration. In addition, it should

provide instruction from domestic institutes that the product is not

pathogenic bacteria.

Czech Biopreparaty introduced pythium oligandrum to China to

control tomato late blight in 2009. The temporary registration it

got in 2009 was outdated in 2011. The failure to get a formal

registration will hinder the company's promotion of the product in

China.

Two formal registration applications of ethirimol from Jiangxi Heyi

Chemical Co., Ltd. (Jiangxi Heyi) were also unapproved.

According to the comments released by the Committee, Jiangxi

Heyi should provide more data about the product's performance,

hazard to humans, residue, etc. Jiangxi Heyi got two temporary

registrations of ethirimol in 2007 and the company built a 300t/a

ethirimol TC production line. So far, only Jiangxi Heyi has got the

registration of the product in China.

The formal registration of 0.50% berberine AS from Zhejiang

Huajing Biotech Co., Ltd. was not approved. The Committee

reveals that the company should register berberine TC first.

Furthermore, the company should provide more data about the

product's hazard to humans and the environment. Four

companies got the temporary formulation registrations of

berberine in the past, but none has got the berberine TC

registration in China yet.

In addition, Inner Mongolia Kingbo Biotech Co., Ltd. also should

provide more data about physcion, such as hazard to humans

and the environment, to get the formal registration of the product.

TABLE 11: Pesticides unapproved by National Pesticide Registration Review Committee temporarily, H2 2012

Product AI content Type Application target Applicant

Pythium

oligandrum

5 million

spores/g TC /

Czech Biopreparaty, spol.

sr.o 1 million

spores/g WP Tomato (late blight)

Ethirimol 95% TC / Jiangxi Heyi Chemical

Co., Ltd. 25% SC Cucumber (powdery mildew)

Berberine 0.50% AS Tomato (botrytis cinerea, fulvia fulva), cucumber (powdery mildew,

pseudoperonospora cubensis), pepper (phytophoracapsici)

Zhejiang Huajing Biotech

Co., Ltd.

Physcion 8.50% TK / Inner Mongolia Kingbo

Biotech Co., Ltd. 0.50% AS Cucumber (powdery mildew)

Source: National Pesticide Registration Review Committee




19

Price

Price update in Jan. 2013

TABLE 12: Ex-factory prices of main fungicides in China, Jan. 2013

Product 8-Jan-13 7-Dec-12

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

Tricyclazole 95% TC 9,155 57,500 8,425 53,000

Mancozeb 90% TC 2,834 17,800 2,829 17,800

Mancozeb 80% WP 2,675 16,800 2,670 16,800

Difenoconazole 95% TC 25,476 160,000 25,274 159,000

Propiconazole 95% TC 18,789 118,000 18,280 115,000

Azoxystrobin 95% TC 38,692 243,000 35,765 225,000

Hexaconazole 95% TC 17,674 111,000 17,485 110,000

Kresoxim-methyl 95% TC 47,290 297,000 46,733 294,000

Epoxiconazole 95% TC 60,187 378,000 60,403 380,000

Trifloxystrobin 96% TC 98,720 620,000 98,552 620,000

Dimethomorph 95% TC 14,808 93,000 14,783 93,000

Chlorothalonil 98% TC 4,140 26,000 4,133 26,000

Isoprothiolane 97% TC 5,175 32,500 5,087 32,000

Carbendazim 98% TC 4,458 28,000 4,419 27,800

Thiophanate-methyl 96% TC 4,299 27,000 4,244 26,700

Phosethyl Al TC 97% TC 2,946 18,500 2,941 18,500

Triadimefon 95% TC 8,757 55,000 8,266 52,000

Tebuconazole 97% TC 12,738 80,000 12,398 78,000

Metalaxyl 98% TC 14,808 93,000 14,942 94,000

Prochloraz 97% TC 9,554 60,000 9,537 60,000

Propamocarb 98% TC 6,687 42,000 6,994 44,000

Cymoxanil 98% TC 8,121 51,000 8,107 51,000

Propineb 85% TC 4,777 30,000 4,769 30,000

Thiram 97% TC 1,497 9,400 1,494 9,400

Flusilazole 95% TC 38,214 240,000 38,626 243,000

Myclobutanil 97% TC 17,833 112,000 17,962 113,000

Hymexazol 97% TC 18,470 116,000 19,392 122,000

Iprodione 95% TC 18,629 117,000 18,598 117,000

Note: CCM makes some adjustment of the product mix and it will monitor more products since Jan. 2013. Meanwhile, some products

are removed from the table.

The content of hexamethylbenzene in chlorothalonil 98% TC is 40ppm.

The color of carbendazim 98% TC is white. Ex-factory price includes VAT.

Source: CCM




20

TABLE 13: Shanghai Port prices and FOB prices of main fungicides in China, Jan. 2013

Product

Port price FOB price

8-Jan-13 7-Dec-12 8-Jan-13 7-Dec-12

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

Tricyclazole 95% TC 9,227 57,950 8,496 53,450 9,092 8,379

Mancozeb 90% TC 2,906 18,250 2,901 18,250 2,925 2,920

Mancozeb 80% WP 2,747 17,250 2,742 17,250 2,770 2,765

Difenoconazole 95% TC 25,548 160,450 25,345 159,450 25,014 24,817

Propiconazole 95% TC 18,860 118,450 18,351 115,450 18,490 17,993

Azoxystrobin 95% TC 38,763 243,450 35,836 225,450 37,907 35,051

Hexaconazole 95% TC 17,746 111,450 17,557 110,450 17,403 17,218

Kresoxim-methyl 95% TC 47,362 297,450 46,804 294,450 46,295 45,751

Epoxiconazole 95% TC 60,259 378,450 60,474 380,450 58,878 59,088

Trifloxystrobin 96% TC 98,791 620,450 98,623 620,450 96,469 96,305

Dimethomorph 95% TC 14,880 93,450 14,854 93,450 14,607 14,582

Chlorothalonil 98% TC 4,212 26,450 4,204 26,450 4,199 4,192

Isoprothiolane 97% TC 5,246 32,950 5,158 32,450 5,209 5,122

Carbendazim 98% TC 4,530 28,450 4,490 28,250 4,510 4,471

Thiophanate-methyl 96% TC 4,371 27,450 4,316 27,150 4,354 4,300

Phosethyl Al TC 97% TC 3,017 18,950 3,012 18,950 3,034 3,029

Triadimefon 95% TC 8,829 55,450 8,337 52,450 8,704 8,224

Tebuconazole 97% TC 12,810 80,450 12,470 78,450 12,587 12,256

Metalaxyl 98% TC 14,880 93,450 15,013 94,450 14,607 14,737

Prochloraz 97% TC 9,625 60,450 9,609 60,450 9,481 9,464

Propamocarb 98% TC 6,759 42,450 7,066 44,450 6,684 6,983

Cymoxanil 98% TC 8,192 51,450 8,178 51,450 8,083 8,069

Propineb 85% TC 4,848 30,450 4,840 30,450 4,820 4,812

Thiram 97% TC 1,568 9,850 1,566 9,850 1,621 1,618

Flusilazole 95% TC 38,286 240,450 38,698 243,450 37,441 37,843

Myclobutanil 97% TC 17,905 112,450 18,033 113,450 17,558 17,683

Hymexazol 97% TC 18,542 116,450 19,464 122,450 18,179 19,079

Iprodione 95% TC 18,701 117,450 18,669 117,450 18,335 18,304

Note: Shanghai Port price = ex-factory price + transportation fee from warehouse to Shanghai Port, and the ex-factory include VAT.

FOB Shanghai price considers factors of Shanghai Port price, port sur-charges, loading charges, traders profits and export rebates. And the

shipment cost shall be paid by the buyer.

Source: CCM




21

Most fungicides' prices decrease in 2012

2012 was a very tough year for domestic fungicide industry, with

both output and price witnessing decrease. Its situation was in a

sharp contrast to the good performance of domestic herbicide

industry, which was mainly boosted by the strong price of

glyphosate. Among the 16 fungicides monitored by CCM, the

prices of 14 showed a downtrend (Dec. 2012 price compared

with March 2012 price) in 2012. And only the prices of

tebuconazole 97% TC and tricyclazole 95% TC witnessed a little

increase thanks to the rebound in recent months.

As a matter of fact, Chinese fungicides enjoyed a good

performance before 2012. However, demand for them from

oversea market, especially some major products, turned weak in

2012. As domestic fungicides are very dependent on export, the

weak export in 2012 hit the price heavily.

China's total export volume of fungicides declined by 7.85% year

on year from Jan. to Oct. 2012 to 59,394 tonnes, according to

the General Administration of Customs of the People's Republic

of China (China Customs). In addition, the total export value of

fungicides also witnessed a fall of 10.91% year on year from Jan.

to Oct. 2012 to about USD278.13 million, due to fungicides' sink

in export volume and price.

The export performance of domestic fungicide industry was

much worse than the total situation of domestic pesticide

industry in the same period, which recorded a 12.6% and 17.3%

increase in export volume and export value respectively, mainly

contributed to glyphosate's increase in both export volume and

export price.

Among all fungicide products, the prices of carbendazim,

mancozeb, propiconazole, difenoconazole and dimethomorph

decreased the most. In detail, the prices of these products in Dec.

2012 decreased by over 5% compared with that in March 2012

and over 10% compared with that in March 2011.

Take carbendazim for example, Brazil, Argentina and India were

the major export destinations for domestic carbendazim, but the

demand from Brazil and India decreased sharply due to the

drought in the two countries. Moreover, carbendazim, which was

banned in the US, was found in the orange juice exported to the

US from Brazil, which further reduced demand for carbendazim

in Brazil, revealed an insider from Jiangsu Lanfeng Biochemical

Co., Ltd. (Lanfeng Biochemical).

TABLE 14: Monthly ex-factory prices of main fungicides in China, 2011-2012, USD/t

Product

2011 2012 Compared

with

March

2011*

Compared

with

March

2012

March June Sept. Dec. March June Sept. Dec.

Mancozeb 90% TC 3,737 3,786 4,230 3,224 3,324 2,971 2,838 2,861 -23.44% -13.93%

Propiconazole 95% TC 23,221 21,829 22,605 21,231 20,261 18,647 18,604 18,646 -19.70% -7.97%

Thiophanate-methyl 96% TC 5,335 5,020 4,728 5,040 4,480 4,267 4,178 4,292 -19.55% -4.20%

Carbendazim 98% TC 5,411 5,397 4,934 5,158 4,828 4,583 4,414 4,469 -17.41% -7.44%

Difenoconazole 95% TC 29,683 30,773 28,078 28,080 26,909 26,233 25,383 25,558 -13.90% -5.02%

Dimethomorph 95% TC 17,208 18,436 17,311 17,142 15,829 15,329 15,293 14,949 -13.13% -5.56%

Cymoxanil 98% TC 9,103 8,412 8,687 9,208 9,054 8,692 8,435 8,198 -9.94% -9.45%

Triadimefon 95% TC 8,608 9,723 9,156 9,515 8,627 8,534 8,356 8,359 -2.89% -3.11%

Propamocarb 98% TC 7,238 7,641 7,475 6,888 7,123 6,953 6,937 7,073 -2.28% -0.70%




22

Isoprothiolane 97% TC 5,259 5,328 5,247 5,276 5,334 5,294 5,266 5,144 -2.19% -3.56%

Chlorothalonil 98% TC 4,262 4,326 4,308 4,010 4,353 4,267 4,099 4,179 -1.95% -4.00%

Tricyclazole 95% TC 8,608 8,335 7,983 7,950 8,231 7,822 7,568 8,519 -1.03% 3.50%

Phosethyl-Al 97% TC 2,976 3,015 29,79 2,996 3,087 3,034 2,964 2,974 -0.07% -3.66%

Metalaxyl 98% TC 14,392 14,581 15,255 15,498 15,433 15,408 15,372 15,110 4.99% -2.09%

Tebuconazole 97% TC 12,223 13,347 12,909 12,746 12,822 12,168 11,351 13,181 7.84% 2.80%

Prochloraz 97% TC 7,390 9,954 9,000 9,365 9,735 10,035 9,775 9,645 30.51% -0.92%

Note: * means the Dec. 2012 price compared with prices of March 2011 and March 2012.

Source: CCM

Furthermore, domestic over-capacity of carbendazim became

more serious in 2012 with the capacity expansion of Lanfeng

Biochemical and production line launch of some new producers,

such as Ningxia Ruitai Technology Co., Ltd. (a subsidiary of

Jiangsu Yangnong Chemical Co., Ltd.) and Lianyungang Jindun

Agrochemical Co., Ltd.

Thus, the ex-factory price of carbendazim 98% TC in China was

only USD4,469/t in Dec. 2012, down 7.44% and 17.41%

compared with those in March 2012 and March 2011

respectively. The price of thiophanate-methyl, a product which is

similar to carbendazim in function and production cost, also

witnessed sharp price decrease in recent two years.

Due to the strong competition from India, the price of mancozeb

decreased the most among all fungicide products. India's

mancozeb capacity is over 160,000t/a at present, much bigger

than the capacity in China. In addition, the production cost in

India is lower than that in China. In recent years, Indian

producers not only compete with domestic producers in oversea

market, but enhance their mancozeb export to China.

As a result, the ex-factory price of mancozeb 90% TC decreased

to USD2,861/t in Dec. 2012, down 13.93% and 23.44%

compared with those in March 2012 and March 2011

respectively. And it is expected there is still difficult time ahead for

domestic mancozeb technical producers with the strong

competition from India.

According to CCM's export analysis, China's propiconazole

technical export was 1,141 tonnes in the first eight months of

2012, about the same as that in the same period in 2011.

However, more and more domestic pesticide producers enter

into propiconazole market, and the capacity of propiconazole

technical in China sees fast increase accordingly. Therefore,

Chinese propiconazole producers have to compete against each

other, leading to obvious price decrease of propiconazole in

recent two years.

Price of difenoconazole technical also witnessed large reduction

due to capacity expansion and export decrease. According to

CCM's export analysis, China's difenoconazole technical export

in the first eight months of 2012 was only 266 tonnes, much less

than that in the same period in 2011, forcing domestic producers

to cut down export price.

However, tricyclazole 95% TC and tebuconazole 97% TC

witnessed price increase. Specifically, the price of tricyclazole

95% TC was USD8,519/t in Dec. 2012, up 3.50% over March

2012; the price of tebuconazole 97% TC was USD13,181/t in

Dec. 2012, up 2.80% over March 2012.

The price increase of these two products is attributed to the price

soar of their raw materials, o-toluidine and hydrazine hydrate, in

recent two months. In fact, the prices of these two products in

Sept. 2012 were still much lower than those in early 2012.




23

Brief news

No. 1 Central Document of 2013 to focus on

agricultural issues again

Entering 2013, the content of domestic high-profile policy of

2013the No. 1 Central Document (Document 2013), will

become one of the hot topics in China. Document 2013, which is

about to be released during the period from Jan. to Feb. 2013, is

predicted to continue to focus on agricultural issues in China. If

the prediction is true, it will be the tenth consecutive for Chinese

central document to concentrate on agricultural issues

(2004-2013).

In detail, Document 2013 will mainly highlight the reformation

and innovation of domestic agricultural management system. An

expert explained that the basic principle of the agricultural

management system in Document 2013 will still be the

household contract responsibility system (farmers contract for

agricultural means of production such as farm land, and

production tasks from collective organizations in the unit of

family), but the system will be innovated and bring new

agricultural production and operation modes to encourage

farmers to work together to better deal with natural and market

risks. It means that aiming to ensure grain security, encouraging

more professional crop production, developing better collective

organizations and realizing the industrialization of agriculture will

be good options for the innovation and reformation of the present

agricultural management system in China.

CCPIA issues new limit standard for harmful

solvents in pesticide EC formulation

Along with the enhanced environmental protection

consciousness in China, EC formulations of pesticides have to

face challenges in future development and it is inevitable for the

use of harmful solvents to be reduced. In mid-Dec. 2012, China

Crop Protection Industry Association (CCPIA) made a plan on

limit standard and implementation scheme for harmful solvents

in EC formulations of pesticides.

In line with the plan, the use of five harmful solvents, namely

benzene, toluene, dimethyl benzene, methanol and dimethyl

formamide, will be restricted in China. The total use volume of

the five harmful solvents could be reduced by more than 90%

compared with their current use volume within three years after

the standard is put into effect.

It is understood that EC formulation is a main type of pesticide

formulation in China at present. According to the Institute for the

Control of Agrochemicals, Ministry of Agriculture (ICAMA), the

valid registration of EC formulations reached 9,017 as of Aug.

2012 in China, accounting for 42% of the total registration of

pesticide formulations. However, the solvents mainly used in

pesticide EC formulations cause severe environmental pollution

(please see Crop Protection China News 1224 for more details).

China's agricultural machinery purchasing

subsidy soars by 25.6% in 2012

In 2012, the agricultural machinery purchasing subsidy allocated

by the central government of China soars to USD3.4 billion

(RMB21.5 billion), with a year-on-year growth of 25.6%,

according to the Ministry of Finance of the People's Republic of

China. It covered 5.95 million sets of various types of agricultural

machinery in total, benefiting 4.56 million rural households.

Stimulated by the policy of agricultural machinery purchasing

subsidy, on one hand, farmers have benefited a lot and show

great enthusiasm in purchasing agricultural machinery; on the

other hand, domestic agricultural machinery industry has seen

flourishes in both production and sales, which has greatly

contributed to China's agricultural mechanization level.

Legend Holdings expands investment in kiwi

business

On 23 Dec., 2012, Legend Holdings Ltd. (Legend Holdings), a

leading IT technology company in China, announced that its

subsidiary named Beijing Huaxia Liancheng Fruit Co., Ltd.




24

(Huaxia Liancheng) has signed a strategic cooperation

agreement on kiwi business with Xixia County, Henan Province.

Zhao Yu, Chairman of Huaxia Liancheng, expressed that the

prophase investment with around USD24 million (RMB150

million) will be mainly spent on construction of logistics centers,

refrigerators, a demonstration plantation with an area of 666 ha.

(10,000 mu) and introduction of new varieties. In addition,

Legend Holdings will cooperate with local farmers to better

control planting cycle and purchase kiwi with a high price.

It is reported that the planting area and output of China's kiwi

contribute to 60% and 40% to the world's total respectively at

present. However, the output value of Chinese kiwi only takes up

8% of the world's total, indicating a huge potential market for

domestic kiwi industry.

China's grain self-sufficient rate drops to below

90%

In 2012, China's grain yield is expected to hit a record high and

achieve the ninth consecutive annual increase for the first time.

According to National Bureau of Statistics of China, domestic

grain yield is predicted to increase to 589.57 million tonnes in

2012, up 3.2% over the previous year. Meanwhile, China's

import of grain also increases accordingly. In the first eleventh

months of 2012, the import volume of grain in China has hit

65.89 million tonnes, accounting for around 11% of the nation's

total grain yield according to official statistics, which means that

China's grain self-sufficient rate has dropped below 90%.

Noposion to buy back shares

Shenzhen Noposion Agrochemical Co., Ltd. (Noposion), the

largest pesticide formulation company in China, announced on

18 Dec., 2012 that it planned to invest USD28.62 million of

self-owned capital to buy back 21,176,400 shares from the

secondary market, accounting for 5.85% of its total shares.

Noposion disclosed that the main reason for the share buyback

was the low price of its shares in the market. Actually, the share

price of Noposion has sunk to the lowest level on 4 Dec., 2012

after its IPO on 18 Feb., 2008, reaching USD0.96 per share,

down 39.6% over that when it got listed. Aiming to maintain its

image in capital market and boost the confidence of its investors

in the company, Noposion decided to carry out the buyback of its

shares. (please refer to Crop Protection China News 1224 for

more details)

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Adress: 17th Floor, Huihua Commercial & Trade Building, No.80 Xianlie Zhong Road Guangzhou, 510070, P.R.China

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Website: www.cnchemicals.com

Journalist: Echo Ju, Jocqueen ChenEditor: Peony WangChief Editor: Michelle LiPublisher: Guangzhou CCM Information Science & Technology Co., Ltd.

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