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Abamectin Prices Trend toward the Stabilization

Posted at May 8, 2014 | By : | Categories : Company News | Comments Off on Abamectin Prices Trend toward the Stabilization

Abamectin, with broad-spectrum and high-efficiency potency, is currently one of the largest consumption and the most wide use insecticides in China. On the current market situation, the market price of abamectin is more stable. Extensive use of abamectin in the rice has opened up the abamectin market, so it is estimated that abamectin will occupy a larger market space in the future.

As the abamectin market matured gradually and product categories of abamectin derivatives increased, abamectin will develop from a product into a complete product line, with production and sales further expanded and the price more stable, especially the abamectin will become a new growth point of the market. Abamectin production and sales in recent years has been steadily rising. Since 1995, abamectin original drugs have increased at an annual rate of around 50%. In 2008, China’s Ministry of Agriculture recommended abamectin as an alternative to entering the rice market; so many manufacturers have introduced abamectin and emamectin benzoate series products into the market so as to seize rice insecticide market.

In 2009, due to more crop pests, abamectin production enterprises adapt to market demand and expand production capacity. Among them, the market demand for abamectin is greater in the first half year while declines in the second half year, with the actual production and sales of about 1,800 tons from January to August this year. Total demand for the year is still expected to grow, with an increase of more than 30% and an increment of about 2,400 tons.

Abamectin pesticide application

China is the largest producer and exporter of abamectin. This year, India, Thailand, Vietnam and other countries have increased imports of abamectin from China, more than one hundred tons. China is expected to further increase the number of exports. In terms of product categories, since abamectin is versatile and in large quantities, its series products such as insecticide, miticide, insect repellents of dual-use for crops and livestock and family health drugs will have a place in the future pesticide market .

Currently, abamectin prices have experienced a rise after a long slump in China. However, industry insiders believe that abamectin prices are too underpowered to continue a bullish market outlook, and the overall market trends to stabilize. Based on the three points below:

Firstly, the third quarter of 2009, abamectin prices fell sharply, from 1,050 yuan (price per ton, the same below) dropped to 650 yuan, a lot of original drug manufacturers enter into the downtime, which is the main reason for the price rise of abamectin in a short term. However, with the price rise in the current round of abamectin original drugs, market confidence improved, some Chinese abamectin enterprises gradually complete equipment maintenance and start production, thus market supply will increase and usher in a new round of the expansion peak. Currently abamectin production capacity is approximately 3,800 tons per year and the status quo of the overcapacity does not change, so the price rise is difficult to sustain for long.

Secondly, the short storage period of Chinese pesticides has ended, the demand for abamectin is expected to further decrease in the fourth quarter, and enterprise’s expansion peak driven by this round of price rise requires a certain period to show up in the market.

Thirdly, the price of abamectin from more than 10,000 yuan/kg in 1997 falls to less than thousand yuan at present, mainly because of sharp reduction in production costs for expansion of production scale and technology advances. With the improvement of production technology, abamectin market will be gradually mature and stable so as to provide support to maintain a low price of abamectin original drugs in a long term.

As an emerging industrial system of pesticides, abamectin derivatives, such as ivermectin, acetyl abamectins, abamectin milbemectin, emamectin benzoate and other products, can be used in the prevention and control of a variety of important crops pests. With the emamectin benzoate and other products large-scale use in the rice, these products have opened up the abamectin market, and emamectin benzoate is expected to occupy a larger market space in the future.

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