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Production status and market analysis of abamectin in China

Posted at August 19, 2014 | By : | Categories : Company News | Comments Off on Production status and market analysis of abamectin in China
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As the price of abamectin is continuing to slump, it has seriously hit the confidence of Chinese abamectin manufacturers, in which some small and medium-sized manufacturing enterprises are forced to stop production or semi stop production. The contradiction between demand prospects and sustained downturn price has influenced on the healthy development of abmactin industry in China.

Abamectin and abamectin derivatives, which have broad spectrum and high efficiency drug properties as well as can mix with most of the pesticides, have expanded the insecticidal spectrum and improved the control efficiency and insecticidal speed. Besides, it has become one of the pesticides that are most consumable and most widely used at present in China. In recent years, the production and sales volume of domestic abamectin and abamectin derivatives are ascending steadily, especially after the delisting of 5 kinds of high toxic organophosphorus pesticides, abamectin is regarded as an important alternative by China Ministry of Agriculture. In 2008-2009, the domestic demands for abamectin and emamectin benzoate are growing fast. In recent years, with the steady growth demands for abamectin in domestic and for export, it has become one of the biopesticides that have strong competitiveness.

The market demand for abamectin in China is growing steadily. Attracted by the good market prospect and large profit space, a construction boom of abamectin market was lifted in China in 2008 and 2009. Until the end of June, 2010, the production capacity of abamectin in China had reached 4000 tons, compared with the production capacity of only less than 1000 tons in 2008, the capacity has increased by more than three times in 3 years; the capacity of emamectin benzoate expands faster, of which the production capacity has reached about 1600 tons/year. Many of the new construction or expansion capacity was released from the next half year in 2009 to the first half year in 2010, which brought great pressure to the production and marketing. Due to the fast expansion of capacity, the price of abamectin continued to slump in 2009. Abamectin price was once rushed to high in the first half year in 2009 but kept decreasing soon afterwards, until 2010, the price slump state was still not reversed except for that in the mid and late of May, the abamectin market was rebounded in a short period and the price was increased due to the increasing export and the measure of “limiting capacity and keeping price” carried out by the insiders of abamectin manufacturers. However, due to the obvious excess capacity and unstable price, the abamectin TC price in the Eastern China dropped sharply. Besides, the price of emamectin benzoate also kept decreasing due to the low raw material price and rapid expansion of capacity.

As the price of abamectin is continuing to slump, it has seriously hit the confidence of Chinese abamectin manufacturers, in which some small and medium-sized manufacturing enterprises are forced to stop production or semi stop production. The contradiction between demand prospects and sustained downturn price has influenced on the healthy development of abmactin industry in China. In order to solve this problem, in the future China’s abamectin market should focus on the following points:

Carefully construct abamectin market and avoid investment risks. Currently the market sales price is almost the same with the cost, in which no profit will be gained in every operation process. As the capacity that increased rapidly in recent years has not been completely digested by the market, those enterprises which plan to construct or expand the abamectin market should carefully increase the capacity and avoid the investment risks although the future market prospect looks promising.

Accelerate the development of derivative products. Although abamactin has many advantages, its market shares are possibly to be occupied by its derivative products as it has high toxic and residue will be left after using, besides, the resistance to abamectin has occurred in some areas currently. At present, emamectin benzoate is largely used on paddy and other crops. In addition, the other derivative products of abamectin, such as ivermectin, acetyl abamectin and milbemectin should also speed up its development space so as to effectively push market demand for abamectin and form serialization development mode at same time.

Improve the technology. Currently there is still a large gap between the fermentation levels of abamectin in China and the international counterparts. Due to the lack of strain that has high output and excellent fermentabilty and also because of the high impurity components in the fermentation broth, low fermentation yield and extraction yield and high wastewater discharge, the production cost and pollution cost of abamectin will both increase. In order to push the industrialization process of abamectin cleaner production, the producing strain breeding and genetic engineering transmission, the optimization of fermentation process, wastewater recycling process, the comprehensive utilization of waste residue and other technologies of abamectin should be improved.

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