Market Research on Paraquat in China
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1 Market Research on Paraquat in China The Ninth Edition June 1
2 Contents Executive summary... 1 Introduction and methodology Introduction to paraquat industry in China Overview of herbicide industry Position of paraquat in herbicide industry Paraquat upstream industry Brief introduction to raw materials involved in paraquat production Introduction to major raw materials for paraquat production Pyridine Methyl chloride Impact of raw materials on paraquat industry Paraquat industry in China History of paraquat's development Production technology of paraquat Brief introduction to two methods for paraquat production Cyanide method Ammoniacal-cyanide (AC) process Methanol-cyanide (MC) process Other methods Comparison of different methods Production cost Current technology level Current research status Registration of paraquat in China Supply of paraquat in China, 2012 Q Supply of paraquat TK Production Paraquat TK manufacturers Supply of paraquat formulations Circulation of paraquat in China Price of paraquat, 2012 Q Export of paraquat, 2012 Q Consumption of paraquat in China, 2012 Q Consumption trends of paraquat Summary of paraquat market (volume and value) Application of paraquat Share by regions Share by crops Forecast on paraquat industry in China Key factors influencing paraquat industry Demand Policy
3 4.2 Paraquat industry forecast, Conclusion Profile of major paraquat TK manufacturers in China Nanjing Red Sun Co., Ltd Syngenta Nantong Crop Protection Co., Ltd Shandong Luba Chemical Co., Ltd Hubei Sanonda Co., Ltd Shandong Kexin Biochemical Co., Ltd Shandong Lvfeng Pesticide Co., Ltd Hebei Shanli Chemical Co., Ltd Jiangsu Noon Crop Science Co., Ltd Shijiazhuang Baofeng Chemical Co., Ltd Hubei Xianlong Chemical Industry Co., Ltd Zhejiang Funong Biological Technology Co., Ltd LIST OF TABLES Table Classifications of herbicides in China Table Output and consumption of paraquat and corresponding share of all total herbicides in China, Table Capacity and output of pyridine manufacturers in China, 2012 Q1 Table China's imports of pyridine by origin, 2012 Jan. Table Apparent consumption of pyridine in China, , Table Apparent consumption of pyridine in China by downstream industry, Table Capacity of major chloride methane manufacturers in China, , '000 t/a Table Reaction temperatures of sodium metal methods in paraquat production Table Comparison of pollutant discharge between the AC and MC processes, 2013 Table Unit consumption of pyridine in production of paraquat TK in China Table Manufacturing cost of paraquat 42% TK in China by AC process, May Table Valid registrations of paraquat in China, May 2014 May Table Valid registrations of paraquat TK in China, as of May Table Valid registrations of paraquat formulations in China, as of May Table Capacity and output of paraquat TK manufacturers in China, 2012 Q1 Table Geographical distribution of paraquat TK manufacturers in China, 2016 Table Output of paraquat formulations in China by manufacturer, 2012 Q1, Table Change of paraquat's HS code in China Table China's exports of paraquat by month, Q1 Table China's exports of paraquat by month, 2016 Table China's exports of paraquat by month, 2015 Table China's exports of paraquat by month, 2014 Table China's exports of paraquat by month, 2013 Table China's exports of paraquat by month, 2012 Table China's exports of paraquat by destination, Q1 Table China's exports of paraquat by destination,
4 Table China's exports of paraquat by destination, 2015 Table China's exports of paraquat by destination, 2014 Table China's exports of paraquat by destination, 2013 Table China's exports of paraquat by destination, 2012 Table China's exports of paraquat by manufacturer, Q1 Table China's exports of paraquat by manufacturer, 2016 Table China's exports of paraquat by manufacturer, 2015 Table China's exports of paraquat by manufacturer, 2014 Table China's exports of paraquat by manufacturer, 2013 Table China's exports of paraquat by manufacturer, 2012 Table China's exports of paraquat by exporter, Q1 Table China's exports of paraquat by exporter, 2016 Table China's exports of paraquat by exporter, 2015 Table China's exports of paraquat by exporter, 2014 Table China's exports of paraquat by exporter, 2013 Table China's exports of paraquat by exporter, 2012 Table Rating of importance of factors influencing the development of the paraquat industry in China, May Table Restricted pesticides in Pesticide Production Entrance Conditions (draft) [2009] Table Capacity and output of paraquat TK in Nanjing Red Sun, 2006 Q1 Table Paraquat export volume in Nanjing Red Sun, 2013 Q1, Table Capacity and output of pyridine in Nanjing Red Sun, 2006 Q1 Table Capacity and output of paraquat TK in Nantong Syngenta, 2006~Q1 Table Paraquat export volume in Nantong Syngenta, 2013-Q1, Table Capacity and output of paraquat TK in Shandong Luba, 2006 Q1 Table Paraquat export volume in Shandong Luba, 2013 Q1, Table Capacity and output of pyridine in Shandong Luba, 2010~Q1 Table Capacity and output of paraquat TK in Hubei Sanonda, 2006 Q1 Table Paraquat export volume in Hubei Sanonda, 2013 Q1, Table Capacity and output of paraquat TK in Shandong Kexin, 2006~Q1 Table Paraquat export volume in Shandong Kexin, 2013-Q1, Table Capacity and output of paraquat TK in Shandong Lvfeng, 2006~Q1 Table Paraquat export volume in Shandong Lvfeng, 2013-Q1, Table Paraquat TK production situation in Hebei Shanli, 2008~Q1 Table Paraquat export volume in Hebei Shanli, 2015-Q1, Table Capacity and output of paraquat TK in Jiangsu Noon, 2006~Q1 Table Paraquat export volume in Jiangsu Noon, 2013-Q1, Table Capacity and output of paraquat TK in Shijiazhuang Baofeng, 2006~Q1 Table Paraquat export volume in Shijiazhuang Baofeng, 2013-Q1, Table Capacity and output of paraquat TK in Hubei Xianlong, 2006~Q1 Table Paraquat export volume in Hubei Xianlong, 2013-Q1, Table Capacity and output of paraquat TK in Zhejiang Funong, 2006~Q1 Table Paraquat export volume in Zhejiang Funong Biological Technology Co., Ltd., 3
5 2013-Q1, LIST OF FIGURES Figure Output and share of herbicides in China's pesticide industry, Figure Output structure of pesticides in China, 2016 Figure Output and demand of herbicides in China, Figure Consumption share of herbicides in China by product, 2016 Figure Consumption volume of major herbicides in China, Figure China's imports of pyridine, 2007 Jan. Figure Ex-works price of 99.9% pyridine in China, 2008 Figure Output of chloride methane in China, Figure Ex-works price of 99% methyl chloride in China, 2008 May Figure Flowchart of AC process for production of paraquat TK in China Figure Chemical principle of MC process for paraquat production Figure Chemical principle of sodium metal method for paraquat production Figure Chemical principle of acetic anhydride-zinc method for paraquat production Figure Capacity and output of paraquat TK (calculated by 42% TK) in China, 2008 Q1 Figure Ex-works prices of 99.9% Pyridine and Paraquat 42% TK in China, 2012 May, USD/t Figure Ex-works price of paraquat 42% TK and 20% AS in China, 2012 May, USD/t Figure China's exports of paraquat, 2012-Q1 Figure Export share of paraquat TK in China by key destination, 2012 Q1 Figure Export share of paraquat formulations in China by key destination, 2012 Q1 Figure Consumption pattern of paraquat TK (calculated by 42% TK) in China, 2009 Q1 Figure Actual consumption volume and market value of paraquat in China, 2012 Q1 Figure Consumption of paraquat (calculated by 42% TK) in China by region, 2016 Figure Consumption structure of paraquat in China by crop, 2016 Figure Consumption of paraquat (calculated by 42% TK) in China by orchard crop, 2016 Figure Forecast on output of paraquat (calculated by 42% TK) in China, 2021 Figure Forecast on consumption of paraquat (calculated by 42% TK) in China,
6 1. Introduction CCM's ninth edition report on Chinese paraquat industry, Market Research on Paraquat in China, was finished in June. This report attaches importance to the following parts: - supply of paraquat (capacity, output and key manufacturers) and demand by volume & value in China in 2012 Q1 ; - detailed study of paraquat's upstream industry (pyridine's supply, manufacturers, import, price, technology, etc.); - production technology and production cost of paraquat; - price of paraquat in 2012 Q1 and export of paraquat products in 2012 Q1 ; - forecast on paraquat's supply & demand in China in 2021; - key factors influencing development of paraquat in China. 5
7 2. Approach for this report This report has been drafted by diverse methods which are as follows: Desk research Sources of desk research are various including published magazines, journals, governmental statistics, industrial statistics, customs statistics, associated seminars as well as information from the internet. A lot of works have been done to compile and analyze the information obtained. When necessary, checks were made with Chinese market players regarding market information such as production, demand, consumption and competition. Telephone interview The interviewees cover: - paraquat manufacturers - agricultural experts & researchers - traders - farmers - industrial associations. CCM carried out extensive telephone interviews with almost all paraquat TK producers and some formulations producers. From those active producers and even producers who have idled or stopped production, CCM sourced and verified the detailed production and market situation as well as players' comments on paraquat. In a bid to understand the application of paraquat formulations in China, CCM also made contact with domestic traders, distributors and farmers as well. To directly analyse the export situation of paraquat TK and formulations, many exporters were contacted whenever the verification was needed. Raw material & intermediate suppliers were also contacted to get the price, supply as well as government policies on raw materials and their impact on paraquat. Data processing and presentation The data collected and compiled are sourced from: - published articles from Chinese periodicals, magazines, journals and third-party databases - governmental statistics & customs statistics - telephone interviews with Chinese manufacturers, traders, government and farmers - comments from industrial experts - CCM's innovative database - professional databases from other sources 6
8 - information from the internet The data from various channels have been combined to make this report as precise and scientific as possible. Throughout the process, a series of internal discussions have been held in order to analyse the data and draw conclusions from it. 3. Executive summary China's herbicide industry has kept developing stably in recent years, reflected by the sharply increasing output and enriching varieties. As the largest supplier of herbicides in the world, China produced about XXX s of herbicides (calculated by 100% technical) in 2016, retaining its top position in the world. As one of the key non-selective herbicides in the world, paraquat has witnessed a fast development in the past few years in China, which has been playing an increasingly important role in the world. - Production China is the largest manufacturer of paraquat TK and formulations in the world. As of May, its paraquat TK capacity has reached XXX t/a (calculated by 42% TK). The output of paraquat TK was XXX s in 2016, up by XXX% year on year. The output of China's paraquat formulations (calculated by 200g/L AS, similarly hereinafter) has grown fast from XXX s in 2007 to XXX s in 2011 and XXX s in 2016, mainly attributed to the rapid growth of overseas demand. - Manufacturer There were XXX active paraquat TK producers in China as of Q1. Key production regions include Shandong, Jiangsu, Hubei and Anhui, whose output accounting for around XXX% of the domestic total in The top four producers of paraquat TK in China include Nanjing Red Sun Co., Ltd. (XXX t/a), Syngenta Nantong Crop Protection Co., Ltd. (XX t/a), Shandong Luba Chemical Co., Ltd. (XXX t/a) and Hubei Sanonda Co., Ltd. (XXX t/a). - Price The price of paraquat TK in China stopped rising and started to drop in H The average ex-works price of paraquat 42% TK reached USDXXX/t in 2014 but dropped to USDXXX/t in Jan. May. 7
9 Affected by the anti-dumping investigation into imported pyridine, the average ex-work price of 99.9% pyridine in China has been increasing sharply since 2013, reaching USDXXX/t in 2013 and USDXXX/t in But due to the steady domestic supply, the price dropped to USDXXX/t in Jan.-May. - Export A large proportion of paraquat produced in China is exported annually, with the share of about XXX% in 2016, a historical record high. China's export volume of paraquat TK and formulations were XXX s and XX s in 2016, seeing a yearly growth rate of XXX% and XXX% respectively. Indonesia was the largest export destination of Chinese paraquat TK in 2016 in terms of export volume, followed by Thailand and the US. And the total export volume of paraquat TK to these three destinations reached XXX% of the national total export volume in It was XXX% in 2014 and XX% in 2015 respectively. The top five destinations of China's paraquat formulations are Nigeria, Australia, Ghana, Thailand and Brazil, with their export volume together accounting for XXX% of the national total in Technology As of May, only cyanide method was adopted in China. According to different solvents used, the cyanide methods can be classified into three types of processes, including the ammonia-cyanide (AC) process, the methanol-cyanide (MC) process and the water-cyanide (WC) process. The WC process has been eliminated in China due to its lack of competitiveness compared with the other two processes. Among the XXX active paraquat TK manufacturers in China, XXX adopt AC process and XXX adopts MC process at present. The capacity adopting AC process and MC process were XXX t/a and XXX t/a as of Q1, respectively. - Consumption The consumption of paraquat in China kept decreasing in 2015 and 2016, reaching XXX s and XXX s respectively, as influenced by the Notice No of ban on sales and use of paraquat AS formulations from June In China, paraquat formulations are mainly consumed in orchards and corn fields, with their consumption volume taking up of about XXX% of China's total consumption volume of the products in
10 4. What s in this report? Note: Key data/information in this sample page is hidden, while in the report it is not. Table Output and consumption of paraquat and corresponding share of all total herbicides in China, Output, Consumption, Year Herbicide Paraquat 42% TK Share Herbicide (by 100% technical) Paraquat (by 100% TK) Share 2007 XXX XXX XXX XXX XXX XXX 2008 XXX XXX XXX XXX XXX XXX 2009 XXX XXX XXX XXX XXX XXX 2010 XXX XXX XXX XXX XXX XXX 2011 XXX XXX XXX XXX XXX XXX 2012 XXX XXX XXX XXX XXX XXX 2013 XXX XXX XXX XXX XXX XXX 2014 XXX XXX XXX XXX XXX XXX 2015 XXX XXX XXX XXX XXX XXX 2016 XXX XXX XXX XXX XXX XXX Note: Output is calculated by the most frequently used technical. Herbicide output is sourced from the China Crop Protection Industry Association (CCPIA). Source: CCPIA and CCM 9
11 Table Capacity and output of pyridine manufacturers in China, 2012 Q1 Status, Capacity, t/a Output, No. Company Abbreviation as of Q1 Q Q XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 2 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 3 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 4 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 5 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 6 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 7 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 8 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Others XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Total XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Note: Nanjing Red Sun Co., Ltd. has two pyridine production plants, namely Anhui Costar Biochemical Co., Ltd. and Nanjing Red Sun Biochemical Co., Ltd. with the capacities of XXX t/a and XXXt/a respectively. Table China's imports of pyridine by origin, 2012 Jan Jan. Region XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 10
12 Table Apparent consumption of pyridine in China, , Year Output Export Import Apparent consumption 2009 XXX XXX XXX XXX 2010 XXX XXX XXX XXX 2011 XXX XXX XXX XXX 2012 XXX XXX XXX XXX 2013 XXX XXX XXX XXX 2014 XXX XXX XXX XXX 2015 XXX XXX XXX XXX 2016 XXX XXX XXX XXX Note: Apparent consumption = Output + Import - Export Source: China Customs and CCM Table Apparent consumption of pyridine in China by downstream industry, Output, Consumption, Apparent Year Paraquat Diquat Chlorpyrifos (by pyridine Paraquat Diquat Chlorpyrifos (by pyridine Others consumption of pyridine, route) route) 2009 XXX XXX XXX XXX XXX XXX XXX XXX 2010 XXX XXX XXX XXX XXX XXX XXX XXX 2011 XXX XXX XXX XXX XXX XXX XXX XXX 2012 XXX XXX XXX XXX XXX XXX XXX XXX 2013 XXX XXX XXX XXX XXX XXX XXX XXX 2014 XXX XXX XXX XXX XXX XXX XXX XXX 2015 XXX XXX XXX XXX XXX XXX XXX XXX 2016 XXX XXX XXX XXX XXX XXX XXX XXX Note: Output of the three pesticides is calculated by the most frequently used TC/TK respectively. Table Unit consumption of pyridine in production of paraquat TK in China Process Unit consumption (t/t) Yield rate AC process XXX XXX MC process XXX XXX Note: Unit consumptions are calculated by 99.9% pyridine. 11
13 Table Manufacturing cost of paraquat 42% TK in China by AC process, May No. Raw material Content Unit consumption (t/t) Price (USD/t) Unit cost (USD/t) 1 Pyridine 99.9% XXX XXX XXX 2 Sodium cyanide 99.5% XXX XXX XXX 3 Methyl chloride 99.0% XXX XXX XXX 4 Liquid Chlorine 99.6% XXX XXX XXX Other raw materials / / / XXX Other costs / / / XXX Waste treatment cost / / / XXX Total / / / XXX Table Capacity and output of paraquat TK manufacturers in China, 2012 Q1 No. Company Abbreviation Status Q1 Q1 Capacity, t/a Q1 Output, XXX XXX Active XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 2 XXX XXX Active XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 3 XXX XXX Active XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 4 XXX XXX Active XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 5 XXX XXX Active XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Active XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Active XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Active XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Active XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Others XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Total XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 12
14 Table Geographical distribution of paraquat TK manufacturers in China, 2016 Capacity Output Province Manufacturer Volume, t/a Share Volume, Share Shandong XXX XXX XXX XXX XXX Jiangsu XXX XXX XXX XXX XXX Anhui XXX XXX XXX XXX XXX Hubei XXX XXX XXX XXX XXX Hebei XXX XXX XXX XXX XXX Zhejiang XXX XXX XXX XXX XXX Total XXX XXX XXX XXX Note: Anhui Costar Biochemical Co., Ltd. is one of the wholly-owned subsidiaries of Nanjing Red Sun. Nanjing Red Sun owns 70% of Shandong Kexin's shares. Table Output of paraquat formulations in China by manufacturer, 2012 Q1, No. Manufacturer Q XXX XXX XXX XXX XXX XXX XXX 2 XXX XXX XXX XXX XXX XXX XXX 3 XXX XXX XXX XXX XXX XXX XXX 4 XXX XXX XXX XXX XXX XXX XXX 5 XXX XXX XXX XXX XXX XXX XXX 6 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Others XXX XXX XXX XXX XXX XXX Total XXX XXX XXX XXX XXX XXX Note: 1) Outputs include those of 200g/L AS and 250g/L AS. 2) Others refer to those who produce paraquat formulations only, such as XXX, XXX, Jilin Bada Pesticide Co., Ltd. and XXX 13
15 Table China's exports of paraquat by destination, 2016 Paraquat 42% TK Paraquat 45% TK Paraquat 20% AS Paraquat 25% AS No. Destination 1 XXX XXX XXX XXX XXX XXX XXX XXX XXX 2 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX 24 XXX XXX XXX XXX XXX XXX XXX XXX XXX 25 XXX XXX XXX XXX XXX XXX XXX XXX XXX Others XXX XXX XXX XXX XXX XXX XXX XXX Total XXX XXX XXX XXX XXX XXX XXX XXX Source: China Customs & CCM Table China's exports of paraquat by manufacturer, 2016 Paraquat 42% TK Paraquat 45% TK Paraquat 20% AS Paraquat 25% AS No. Manufacturer 1 XXX XXX XXX XXX XXX XXX XXX XXX XXX 2 XXX XXX XXX XXX XXX XXX XXX XXX XXX 3 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Not sure XXX XXX XXX XXX XXX XXX XXX XXX Total XXX XXX XXX XXX XXX XXX XXX XXX Source: China Customs & CCM 14
16 Table China's exports of paraquat by exporter, 2016 Paraquat 42% TK Paraquat 45% TK Paraquat 20% AS Paraquat 25% AS No. Manufacturer 1 XXX XXX XXX XXX XXX XXX XXX XXX XXX 2 XXX XXX XXX XXX XXX XXX XXX XXX XXX 3 XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX Not sure XXX XXX XXX XXX XXX XXX XXX XXX Total XXX XXX XXX XXX XXX XXX XXX XXX Source: China Customs & CCM Figure Consumption pattern of paraquat TK (calculated by 42% TK) in China, 2009 Q1 CCM Note: 1) TK here includes 42% TK and 45% TK. 2) Formulations here include 200g/L AS and 250g/L AS. 3) Apparent consumption = Output + Import - Export. Source: China Customs and CCM 15
17 Figure Consumption structure of paraquat in China by crop, 2016 CCM If you want more information, please feel free to contact us Tel: Fax:
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