In the first nine months of 2014, the country’s cumulative production of active ingredients totaled 2.747 million tons, up 3.7% year on year. Among these, fungicides posted the strongest growth, with output reaching 173,000 tons, a year-on-year increase of 13.6%; insecticide production stood at 444,000 tons, down 4.7% from the same period last year; and herbicide output reached 1.317 million tons, up 5.5% year on year.
In the first nine months of 2014, the country’s cumulative production of active ingredients totaled 2.747 million tons, up 3.7% year on year. Among these, fungicides posted the strongest growth, with output reaching 173,000 tons, a year-on-year increase of 13.6%; insecticide production stood at 444,000 tons, down 4.7% year on year; and herbicide production reached 1.317 million tons, up 5.5% year on year.
Recently, the 30th China Plant Protection Information Exchange and Pesticide & Equipment Fair was held in Wuhan, Hubei Province. At the event, the Pesticide and Equipment Division of the National Agricultural Technology Extension Service Center under the Ministry of Agriculture released a summary of the 2014 pesticide and equipment market in China and provided an outlook for market trends in 2015.
According to Zhao Qing, Deputy Director of the Pesticide and Application Equipment Division at the National Agricultural Technology Extension Service Center, “In 2014, the pesticide market remained generally stable. Influenced by adjustments in cropping patterns and the promotion of high-efficiency application technologies, China’s pesticide demand in 2015 is expected to remain broadly unchanged from this year. Notably, seed treatment agents are set to maintain strong growth, while high-efficiency application machinery will encounter new opportunities for development.”
Market characteristics in 2014:
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Overall stable, ample supply, little price fluctuation, and meeting prevention and control needs.
Regarding the varying development trends and specific impacts observed across different product categories, Zhao Qing offers the following explanation:
First, the insecticide market has contracted, with the peak season failing to deliver strong demand. At the beginning of the year, persistent low temperatures slowed the market’s recovery. In particular, late-spring cold snaps in Northeast China and Xinjiang, coupled with prolonged droughts in provinces such as Henan, Hebei, Shandong, and Liaoning, kept overall insecticide sales sluggish. Meanwhile, heavy rainfall in many southern regions, including Guizhou and Hunan, led to flooding, further reducing insecticide demand and application rates.
The main reasons for the lackluster peak season in the insecticide market can be summarized as follows: First, climatic conditions—drought in the north and flooding in the south. Second, ample market supply has led to oversupply, driving prices lower. Third, domestic conventional products are under pressure from high‑efficacy new offerings by multinational firms, resulting in shrinking market shares and reduced volumes of commercial pesticide use. Fourth, international markets, affected by weather patterns and economic conditions, have seen purchasing volumes decline by roughly 40% compared with previous years, hampering exports and keeping prices on a downward trajectory. Fifth, this year has not witnessed any severe outbreaks of crop pests; in southern rice‑growing regions, aside from relatively heavy infestations of brown planthoppers in Hunan and Xuzhou, Jiangsu, pest pressures across other areas have been moderate. Consequently, sales of commonly used planthopper control agents—such as pymetrozine, imidacloprid, buprofezin, nitenpyram, and thiamethoxam—have plummeted, accompanied by significant price declines. Moreover, the continued reduction in cotton‑planting acreage has further dampened demand for insecticides. Amid this generally sluggish market, certain products—including abamectin, emamectin benzoate, and cartap hydrochloride—have nonetheless posted simultaneous gains in both volume and price.
Second, fungicide prices have remained stable, while application rates have increased. Fungicide prices are broadly unchanged from last year, yet usage has risen. The main reasons are: first, government procurement, with higher application volumes for certain conventional varieties on wheat; second, the expansion of acreage devoted to cash crops such as fruits and vegetables; and third, the emergence of high levels of resistance among various pathogens to some standard fungicides, leading to a marked decline in efficacy, which prompts farmers to increase dosages in an effort to achieve better control.
Third, the herbicide market has been relatively subdued, with volumes declining. This year, influenced by the broader agrochemical consumer market and persistently low agricultural commodity prices, the herbicide sector has also remained tepid. For instance, glyphosate prices peaked at RMB 37,000 per ton at the beginning of the year; however, delays in the release of the list of companies approved following environmental inspections for glyphosate (and PMIDA) led to the reactivation of some idle production capacity. Coupled with reduced domestic procurement in South America, glyphosate prices have gradually eased to around RMB 24,000 per ton today. Atrazine and acetochlor have continued to trade at low levels, at RMB 23,000 and RMB 21,000 per ton, respectively. Only paraquat, nicosulfuron, and quizalofop‑p‑ethyl have been subject to environmental‑driven production restrictions, resulting in significant capacity constraints and sustained high price levels. Overall, the remaining herbicide segments have remained stable, with prices remaining relatively subdued.
Fourth, the application rate of plant growth regulators has increased significantly. These regulators have demonstrated strong efficacy in enhancing crop stress resistance, boosting yields, and improving both quality and output; their demonstration and promotional efforts have been effective, gradually earning farmers’ acceptance and leading to a rise in their usage.
2015 Demand Forecast:
Maintaining a stable trend, with a marked increase in seed‑treatment applications, rising pesticide use in cash crops, and broad prospects for high‑efficiency application equipment.
According to statistical forecasts and analyses from plant protection and quarantine stations at the provincial, autonomous region, and municipality levels across 31 provinces nationwide, total national pesticide demand in 2015 is projected at 1.0094 million tons, equivalent to 325,800 tons of 100% active ingredient—roughly unchanged from the previous year. Pesticide varieties with annual demand exceeding 10,000 to 20,000 tons include glyphosate, dichlorvos, copper sulfate, acetochlor, carbendazim, chlorpyrifos, and atrazine.
“As the population grows, the three major staple crops—wheat, rice, and corn—will continue to operate in a state of tight supply‑demand balance, and the rigid demand for agrochemical products will remain unchanged. Accordingly, the pesticide market is expected to maintain a stable trajectory in 2015,” said Zhao Qing. He added that 2015 will see a gradual expansion in the cultivation of cash crops—such as specialty vegetables, nursery stock and ornamental plants, forestry trees, edible mushrooms, and traditional Chinese medicinal herbs—which will drive an increase in pesticide usage.
Regarding the market demand for specific products next year, Zhao Qing also offered relevant forecasts:
First, the total volume of insecticides is on a downward trend, with significant structural adjustments. Total demand is projected at 110,300 tonnes, down 8.27% from the previous year.
Among these, demand for organophosphorus pesticides has declined significantly, while the use of high‑efficacy, low‑toxicity formulations with long residual activity has increased. Total demand is projected at 77,700 tonnes, down 6.12% from the previous year. In recent years, organophosphorus pesticide consumption has been steadily decreasing. The major products accounting for the largest share of demand include dichlorvos, chlorpyrifos, trichlorfon, phoxim, acephate, omethoate, and triazophos.
Carbamate‑based pesticides are expected to see demand of 5,200 tonnes, down 18.81% year on year. The major demand drivers are isoprocarb, carbofuran, and thiodicarb; the products with the most significant increases include indoxacarb, methomyl, aldicarb, and thiodicarb. By contrast, the largest declines are observed in thiophos‑methyl, aldicarb, and carbofuran.
Pyrethroid demand is projected at 3,600 tonnes, down 15% year on year. The key products with the highest demand are lambda‑cyhalothrin, fenvalerate, and cypermethrin. Among the varieties experiencing the most significant increases are bifenthrin and S‑fenvalerate.
Demand for other types of insecticides is projected at 23,900 tonnes, down 11.31% year on year. The highest‑demand products include cartap, imidacloprid, pymetrozine, Bacillus thuringiensis (BT), diflubenzuron, avermectin, and acetamiprid. In addition, demand declined for 22 other active ingredients, including avermectin, emamectin benzoate, buprofezin, cartap, and thiamethoxam.
Second, demand for acaricides is rising. It is projected to reach 10,900 tonnes, up 3.59% year on year. The major products driving this demand include crystalline lime sulfur, etoxazole, pyridaben, dicofol, triazotin, and amitraz. Among them, crystalline lime sulfur is expected to see the most significant increase in demand.
Third, demand for fungicides continues to trend upward. It is projected to reach 91,200 tonnes, an increase of 8.5% year over year. The major products driving this demand include copper sulfate, carbendazim, mancozeb‑based formulations, thiophanate‑methyl, copper hydroxide, tricyclazole, validamycin, chlorothalonil, triadimefon, metalaxyl‑M, and isoprothiolane. Among the products experiencing particularly strong growth are cyprodinil, fluxapyroxad, azoxystrobin, myclobutanil, copper hydroxide, pyraclostrobin, benomyl, fenamidone, thiram, and mancozeb‑based products.
Fourth, herbicide demand is expected to remain broadly unchanged from the previous year, at approximately 109,400 tonnes. The major products driving this demand include glyphosate, acetochlor, atrazine, paraquat, butachlor, 2,4‑D butyl ester, bentazon, metolachlor, dichlorprop‑P, fluroxypyr, quinclorac, and trifluralin.
The crop protection products experiencing the most significant demand growth include oxyfluorfen, chlorimuron‑ethyl, sethoxydim, bentazone, diquat, cyhalofop‑butyl, imazethapyr, pretilachlor, chlorimuron‑ethyl, metolachlor, fenoxaprop‑p‑ethyl, prometon, amidosulfuron, and oxaziclomefone, among others.
Fifth, demand for plant growth regulators is expected to decline. Total demand is projected at 3,986.83 tonnes, down 10.55% year on year. The major products driving this demand are ethephon, paclobutrazol, and mepiquat chloride.
Sixth, demand for rodenticides has declined slightly, with an estimated 50.86 tonnes expected. The most in-demand products are sodium warfarin and bromadiolone, while sodium chlorophacinone has seen a more pronounced drop; currently, the range of rodenticide formulations available on the market remains relatively limited.
Zhao Qing also specifically pointed out that, in recent years, the seed‑treatment‑agent industry has experienced robust growth, driven by key advantages such as “multiple functions per product, labor and time savings, enhanced efficacy with reduced inputs, concealed application, and environmental safety.” Both domestic and international agrochemical companies have shown strong enthusiasm, rushing into the market and ramping up R&D and marketing efforts. At present, seed‑treatment agents have become a popular category for registration applications and a new engine of growth for the industry. The market for seed‑treatment agents still holds substantial untapped potential, and over the next two to three years, the number of registered seed‑coating products is expected to continue rising. For more information, please refer to the report published by China Report Hall.
2014–2018 China Agricultural Industry Development Prospects Forecast Report ».
“In addition, a survey of 83 specialized pest‑control organizations nationwide reveals that these entities widely endorse new, high‑efficiency application equipment and exhibit strong purchase intent. Meanwhile, as land‑transfer processes deepen and new‑type family farms and large-scale growers flourish, demand for such advanced spraying machinery is set to grow steadily. We are confident that, with the continued strengthening of policy support, high‑efficiency application equipment will usher in a period of robust development,” Zhao Qing added when discussing future trends in the pesticide market.