Abamectin and Emamectin Benzoate are in a Bullish Mood in China
Currently, market prices of abamectin and emamectin benzoate are tending towards stability in China, but there will be some upside potential in terms of market trends. There are three main reasons as follows:
Firstly, as a bio-pesticide, global sales of abamectin are the maximum of all single products in 2008. After five kinds of highly toxic pesticides disabled, it shows a high-speed development momentum with consumption increased, and becomes common varieties of agricultural pesticide in China; secondly, due to adjustment of supply and demand, China original drug manufacturers adjust prices with market changes for four or five days, but existing production capacity of abamectin original drugs doesn’t improve obviously; thirdly, abamectin formulations manufacturers are in larger demand for procurement in recent years. In 2008, since pest’s resistance to bio-pesticides develops much fast than that of chemical pesticides, with farmers’ unreasonable medication, pest’s resistance to abamectin gradually increases. Therefore, abamectin and emamectin benzoate formulations on the market will be dominated by high content products in recent years.
In addition, with the promotion of rice, cotton and other cash crops this year, many formulations manufacturers expand applications of abamectin and emamectin benzoate in rice, cruciferous diamondback moth, beet armyworm, cotton bollworm, etc., which promotes market demand for abamectin and emamectin benzoate with a significant price rise. In terms of the time, abamectin and emamectin benzoate market starts in April or May in the past, but earlier this year, abamectin prices show a clear upward trend.
With the advent of pesticide season, current abamectin insecticide production capacity falls short of the demand, which makes abamectin fine powder price rise and increases production costs of emamectin benzoate as well. Although abamectin fine powder price and emamectin benzoate cost are not low, emamectin benzoate price remains relatively stable now, because manufacturers don’t use up a part of abamectin fine powder stored in the slack season early.
Five kinds of highly toxic organophosphorus pesticides out of market free up a huge market space in China. As an environmentally-friendly biogenic pesticide with high efficiency, low toxicity, low residue and non-pollution, emamectin benzoate is widely used, with application range from diamondback moth prevention in vegetables such as cabbage, Chinese cabbage and radish gradually extending to cash crops such as soybeans, cotton, fruit trees, even to field crops such as rice, wheat last year. And it shows unmatched activities for the crop prevention and treatment compared with other pesticides. With the development of green food production, the development potential of bio-pesticides will further increase, and Chinese experts predict that emamectin benzoate bio-pesticide will be dominant in pesticide market in the 21st century.
It is understood that emamectin benzoate capacity in China has increased to around 500 tons due to the production expansion by some manufacturers in 2009, with market demand about 500~600 tons. Therefore, demand for abamectin fine powder has exceeded the demand in former years, and the supply has gradually fallen short of the demand. And abamectin fine powder price is expected to be equal to abamectin ointment price.