2,4-D Survey in China Edition (4)

Published: February 2018
No. of Pages: 44
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From 2012 to 2016, 2,4-D industry in China had witnessed increasing capacity, meanwhile it also confronted with challenge not only from severe competition due to oversupply, but also from environmental protection pressure. The overall operating rate of 2,4-D manufacturers was unstable during these five years. From 2015 to 2016, the output of 2, 4-D technical increased by 12.57% and 25.28% year on year respectively. In 2016, the capacity of 2,4-D technical increased by 32.29% year on year, while the operating rate of 2,4-D technical producers did not decline sharply, which contributed to the significant increase in the output of 2,4-D technical in 2016. This report gives detailed information about which enterprise possesses the largest capacity of 2,4-D technical and which enterprise possesses the largest output of 2,4-D technical in 2012–2016. Besides, major 2,4-D technical producers are also introduced in this report.

In China, over 60% of 2,4-D technical (converted into 96% technical) was exported in 2012–2016, and the rest was used to produce other 2,4-D products, mainly including 2,4-D butylate, 2,4-D amine salt, 2,4-D-ethylhexyl and 2,4-D Na. In China, 2,4-D products are utilized as herbicides in the form of esters and amine salts. In the domestic market, the main specifications of 2,4-D formulations include 2,4-D butylate 57% EC, 2,4-D amine salt 720g/L SL, 2,4-D amine salt 860g/L SL. In the past five years, the domestic apparent consumption volume of 2,4-D fluctuated along with the changes of supply and demand. Detailed information about 2,4-D consumption, like application fields and which kind of crops consumed the most are provided in this report.

In recent years, 2,4-D industry in China also confronted with barriers, including sluggish demand from overseas market, pressure from the illegal producers, difficulty in pollutant treatment, etc. Many illegal factories have been producing 2,4-D products during 2011–2012, which had dragged down the growth of market price to some extent because of their additional supply. Otherwise, the growth of 2,4-D's market price should be larger since the demand from downstream industry were impressive at that time. For years, although some legal enterprise associations have tried to beat the illegal production through the authorities, however, this effort was hardly rewarding. What's worse, some illegal 2,4-D manufacturers even exported their 2,4-D products with the help of some import & export companies.

Pollutant treatment is a major problem to 2,4-D technical manufacturers. A great deal of wastewater is generated during the production of 2,4-D technical. With stricter requirements about environmental protection, the pollution problems would restrict the development of 2,4-D industry to some extent. For illegal 2,4-D producers, they don't invest in the pollutant treatment devices, which gives their products an edge on price; thus, the 2,4-D industry was severely disturbed.

Oversupply have occurred in China's 2,4-D industry. It is predicted that policies issued by the government, especially environmental protection policies, will impose the largest effect on its future development.

 

Published By: CCM International
Product Code: CCM International481


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