As a major supplier of imidacloprid, China has many advantages in the production of imidacloprid, including efficient production technology, sufficient raw material supply and low production cost. About 50% of imidacloprid technical producers are located in Jiangsu Province. With the increasingly intense competition in the imidacloprid industry, will China's production of imidacloprid further concentrate in the future? What kind of enterprises will hold dominant positions in China's imidacloprid production?
China is a major imidacloprid export country, and over half of its imidacloprid output is exported to countries all over the world. The export value of imidacloprid in China has witnessed an increase of over 75% in 2012 compared with that in 2011. What are the reasons of this huge increase? Where are the imidacloprid products exported to? Will the export volume of imidacloprid in China continue enlarging in the future years? What is the trend of imidacloprid price in the future?
In China, imidacloprid is mainly used in the control of rice plant hoppers and aphids. It is mainly applied on rice, wheat, cotton and vegetables. Domestic market of imidacloprid has seen a slow growth in recent years, and the market structure has some changes. What is the consumption structure on different crops and in different regions now? What will be the new growth point of imidacloprid in domestic market in the future?
This report can answer the above-mentioned questions and provide you a comprehensive insight of the imidacloprid industry in China. This report attaches importance to the following parts:
- Update all the data related to imidacloprid industry from technical and formulations in China in 2008-H1 2013, including registration, supply, export, price and demand;
- Identify the key players and potential producers of imidacloprid industry in China;
- Emphasize consumption volume of imidacloprid market in 2008-2012, as well as the consumption structure by crops and regions in 2012;
- Figure out the development status and influencing factors including drivers and barriers;
- Forecast imidacloprid industry development from supply, export and demand in 2013-2017;
- Get a clear understanding of the future development trend, and identify China’s position in imidacloprid industry from a global perspective;
- Explore commercial opportunities of imidacloprid industry in China under the context of the new global economy situation;
- Analyze substitutes for imidacloprid products in domestic market.
With fast development in recent years, China's pesticide industry becomes more and more important in the global pesticide industry chain. Imidacloprid, as one of the major insecticides in China, also takes an important role in the global market. China is not only an imidacloprid producer that can guarantee its own agricultural production, but also an important imidacloprid exporter in the world. China has many advantages in the production of imidacloprid, including efficient production technology, stable raw material supply and low production cost, etc.
Production technology of imidacloprid
In China, there are mainly five pathways for the production of CCMP, an important intermediate of imidacloprid, namely DCPD route, morpholine route, 3-methylpyridine route, 2-amino-5-methylpyridine route and benzylamine route. At present, almost all domestic imidacloprid producers except for Jiangsu Yangnong adopt DCPD route in the production of imidacloprid and the rest routes are almost out of use in the production.
Currently DCPD route used for the commercial production of imidacloprid was innovated by Jiangsu Kwin in 2001, which brought in the experimental technology from Shenyang Research Institute of Chemical Industry in 1994.
Though the process of DCPD route is rather long, it has advantages of low production cost, good product quality and abundant supply of raw materials. It has been playing a dominant role in imidacloprid production in China in recent years. However, with the rapid development of technology, some domestic enterprises expect to improve CCMP synthesis by 3-methylpyridine route. In the future, if CCMP's isomers such as 2-chloro-3-methylpyridine can be isolated, the route will be popular thanks to its simple process.
Production & producers
Nowadays, China is a major imidacloprid supplier in the world. China's total capacity of imidacloprid technical has reached XXXt/a as of July 2013. And the country produces about XXX tonnes of imidacloprid technical in 2012.
Thanks to the large demand in overseas market, China's output of imidacloprid will continuously increase with an expected CAGR of XXX% in 2013-2017.
The production of imidacloprid will be gradually concentrated in producers who have advanced production technology and wide distribution channels, such as XXX, XXX and XXX.
There are XXX active producers and 6 suspended producers of imidacloprid technical in China as of July 2013. The top 3 producers by capacity are XXX (XXXt/a), XXX (XXXt/a) and XXX (XXXt/a), with total capacity accounting for XXX% of China's total. Also, there are XXX producers in total with capacity of imidacloprid reaching or over XXXt/a as of July 2013.
The output of imidacloprid formulations is about XXX tonnes in China in 2012. The major imidacloprid formulations are XXX, XXX, XXX and XXX. XXX is still dominating the domestic market, but its market share is being transferred to formulations of high content.
Import & export
Thanks to the large global demand for imidacloprid, more and more Chinese imidacloprid has been exported, with the CAGR of its export volume reaching XXX% in 2008-2012. The export volume of imidacloprid calculated by 97% technical witnesses an annual growth rate of XXX% in 2012, owing to the growing demand from overseas market mainly caused by the expiration of imidacloprid patent in South America. It is forecasted that the export volume of imidacloprid calculated by 97% technical will keep growing with a CAGR of XXX% in 2013-2017 and Chinese imidacloprid will be increasingly dependent on overseas market.
In 2012, the total export volume of imidacloprid in China is XXX tonnes, including XXX tonnes of technical and XXX tonnes of formulations, with a CAGR of XXX% in 2008-2012. And the total export volume of the product calculated by 97% technical is around XXX tonnes, accounting for XXX% of the total output in 2012.
Imidacloprid XXX was firstly exported in 2011, with a export volume of XXX tonnes, or XXX% of the total formulation export volume calculated by 97% technical; while in 2012, it took the place of XXX, became the top one formulation by export volume, with a export volume of XXX tonnes (converted to 97% technical), accounting for XXX% of the total export volume of imidacloprid formulations. The export volume of XXX also showed an increasing trend in 2012, up to XXX tonnnes from XXX tonnes in 2011, accounting for XXX% of the total export volume of imidacloprid formulations calculated by 97% technical in 2012. The export volume of XXX was still very large, which ranked third. However, its export volume showed a decreasing trend since 2011, down to XXX tonnes (converted to 97% technical) in 2012 from nearly XXX tonnes (converted to 97% technical) in 2010.
Because of the abundant supply and high quality of homemade imidacloprid, China imports little imidacloprid, except for a quantity of imidacloprid formulations imported from Bayer CropScience.
Consumption & demand
At present, major imidacloprid formulations consumed in China are XXX, XXX, XXX and XXX, among which the consumption of XXX is the largest. Owing to the growing pest resistance, more and more imidacloprid formulations with high content are needed, such as XXX and XXX.
Imidacloprid is mainly used in the control of rice plant hoppers and aphids on rice, wheat, vegetables, cotton, etc. Rice is the largest application field of imidacloprid, and wheat ranks second by consumption of imidacloprid (converted to 97% technical). For these two crops, about XXX tonnes of imidacloprid (converted to 97% technical) have been consumed in 2012, accounting for XXX% of the total consumption. Owing to high imidacloprid resistance of rice plant hoppers, the consumption of imidacloprid on rice is estimated to decline in the next several years until the resistance recovers to a normal level. As for wheat, cotton, fruits and vegetables, the consumption of imidacloprid will keep a stable growth. The application of the seed treatment technology will boost the demand for imidacloprid, especially from wheat.
Imidacloprid is effective on nymph and adult of rice plant hoppers. At present, there are mainly several insecticides which can be used to substitute it, including acetamiprid, pymetrozine, etc.
Price change of imidacloprid technical
Since 2008, the price of imidacloprid has been soaring. For example, the ex-works price of imidacloprid 95% technical was USDXXX/t in June 2008, increasing by about a half over the end of 2007. In 2009, the imidacloprid industry suffered a depressed market demand, and the average ex-works price of 95% imidacloprid technical was about USDXXX/t, down XXX% year on year.
In 2010, the price of imidacloprid technical rebounded and witnessed an uptrend, and it has been soaring in 2011-2013, especially entering 2012 because of the tight supply caused by the prosperous export market. The ex-works price of 95% imidacloprid technical hits USDXXX/t in July 2013, up XXX%, XXX% and XXX% compared with the average price in 2012, 2011 and 2010, respectively.