The phenol is one of the principal raw material for 2,4-D, which is the direct influence to the price of 2, 4-D. The price of phenol reached RMB14500 per ton in May this year which is USD2.13 per kg. Some phenol's factories have stopped production for maintenance, such as Yan Shan Petrochemical Industry Factory and Gao Qiao Petrochemical Industry Factory, resulted by the status of phenol's price. On the other hands, some middle men kept the stocks instead of selling since Apr , which caused the price growing very fast, from USD1.7 per kilogram to USD2.13 per kilogram.

Nevertheless, the price has been falling rapidly in June, from USD2.06 per kg to USD1.7 per kg. The business is downturn now. The middle men began to sell their stocks. Most factories recover the production, which resulted in the product quantity increase. The price is fluctuating at present and  long term follow-up is needed.

By Alex

From April 2009 to March 2010, the freight flow volume of pesticide formulation products has reached 346 billion yen (3.8 billion dollars). It increased 0.7% over last year and maintain continuous growth in two years. It is mainly due to the rising of product’s price. The demand is increasing, but the exchange rate of yen appreciated that sales may be more severe.

The sum of total sales of Agricultural pesticides in is 273 billions yen, about 80% of total pesticide sales. As the farmers prefer to plant organic crops in Japan and the rice acreage has also declined that make the demand of domestic pesticide bottom out. Benfiting from the government stimulating policies and rising of price, the total sales has increased. The sum of total sales of non-agricultural pesticides is 24.1 billions. It is mainly used as the herbicide for golf course. But the profession of golf in Japan has been long-term depressed, and thus these pesticides had been sold at low price. The sales of pesticides used in gardening was 17.5 billions. The industry of gardening is booming that the demand is hopefully to keep stable. But the competition will be harsher and the sales will be more and more severe.

By Grace

The new tax rebate cancellation policy released by Ministry of Finance which will be effective from July 15th involved some part of steel products, nonferrous metals and work materials, silver powder, alcohol, maize starch, as well as some plastic/glass/rubber and Chemical products.

Pesticides (Such as: Glyphosate, Dalapon, Tabatrex, chlorfenvinphos, sulfotep) and phosphorus chemicals (Such as: phosphate, polyphosphate, phosphate), as well as basic chemical raw materials ( such as phenols, hydrazine hydrate, and benzene series) are all include in the list. Of these products, all of them used to enjoy tax reimbursement at 5% ~ 17% rates. The whole price level will be directly pushed up.

Let’s focus on the impact of pesticide market caused by this new policy. Beyond any doubt, Glyphosate has now been in the limelight since its tax rebate has dropped down from 9% to a big zero. Especially for those Glyphosate export-oriented enterprises, such as Anhui Huaxing Chemical Industry, Nantong Jiangshan Agrochemical, not to mention Zhejiang Wynca Chemical, things become very tough. Aside from this effect, the prospection of appreciation of RMB and anti-dumping policy has made things worse still. From current situation, chinese glyphosate manufacturers are downwind by the loss of price advantage in the fierce competition with international companies.

On the other side, the cancellation of dimethyl carbate, Dalapon, Hexachloroacetone, Acequinocyl, erbon has considered to have no big influence on export business owe to small export quantity. Since all of these high toxic substances are listed in POPs, we suspect that this policy is a clear signal for the government to forbidden the export and thus the production of high pollution materials and finally lead to the development and application of more environment friendly chemical products.

Ref: http://www.chinapesticide.gov.cn/doc10/10062509.html, http://www.chinapesticide.gov.cn/doc10/10062907.html

By Cherry