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Abamectin Market in China

Posted at May 4, 2014 | By : | Categories : Company News | Comments Off on Abamectin Market in China

As Chinese pesticide industry gets out of the decline after three consecutive years in 2012, it develops slowly. The bulk commodity represented by the glyphosate is in great demand resulting in the price rising, driving companies to profit. Of course, overcapacity still exists and many illegal small businesses are reviving as well as industry foundation is still not solid.

China’s pesticide industry status in the international market is mainly embodied in these specific products. For example, major international companies depend on several pillar products based on the international arena. China’s pesticide companies can produce nearly 600 active ingredients, not a big company can do internationally, of which a considerable part of the products has a strong advantage such as glyphosate, paraquat, 24-D, imidacloprid, abamectin, acephate, chlorpyrifos, chlorothalonil and carbendazim, etc. If the advantage can be effectively maintained, then it is undoubtedly a great boost for the entire industry competitiveness in the international market.

Abamectin is a new antibiotic insecticide, acaricide and nematicide, and it has sixteen-membered ring lactone structure, developed by the Japanese in 1976 and commercialized in 1985. In the late 1980s, Chinese researchers isolated and screened 7,051 strains from soil, and proved that the strain had the identical chemical structure with abamectin. In 1993, China began to study and produce abamectin. At present, China has become the largest and the only abamectin exporter and producer all over the world. In 2011, global sales reached US $335 million, with an increase of 6.3%.

Since market prices of the abamectin rose sharply in 2004 and 2006, many companies from different regions in China had flocked to develop and produce the abamectin. By the end of 2009, there were more than 20 companies, and the original drug production capacity rose dramatically. In 2010, production capacity of 13 companies reached about 4,500 tons, while the actual market demand has remained between 2,500 to 3,000 tons. Thus there was also a serious excess capacity and sales prices were falling rapidly, which cause losses of the entire abamectin production industry and company’s cutbacks and shutdowns. After nearly two years of market coordination, the actual production enterprises are only 5 to 6, cutting in half compared with the original quantity, with yields also falling more than 1,000 tons, which made abamectin prices in a gradual recovery and become more reasonable after a trough in last year. In this year, companies through a variety of means to carry out the joint anti-counterfeit for those who illegally produce abamectin and its downstream products “emamectin”, which  ensures that prices of abamectin drugs rise in this year’s peak season.

In 2012, in addition to the previous problem of increasing resistance, abamectin encountered a new problem, namely abamectin ointment. Chinese government banned the use of the ointment in the emulsifiable concentrate. The ban was rather sudden and surprised for abamectin manufacturers. Using the abamectin for sixteen years, preparation products made of original drugs or ointment have been safe.

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