China Imidacloprid-Serious overcapacity but tight supply?
Imidaclopridis the largest application amount of neonicotinoid insecticide in the world, is embracing a rapid development and becoming a hot spot in China. China records 13,620 tonnes of imidacloprid technical output in 2010, accounting for more than 50% of world’s total, which is 20,000 tonnes. (CCM International)
Imidacloprid TC from April to November(2011)
The price of technical grade imidaclopride has grown by 10% from the first quarter of 2011, reaching RMB130,000 per ton.Tight supply also influences the related formulations.Many formulators are in vain in sourcing the active ingredients from local manufactures.
Analysis as follows:
Insufficient operating rate
There are about 23 imidacloprid manufacturers in China,but according to China Agrigoods Herald only 5-6 factories still operating..Many manufacturers shut down the facilities due to the low price in 2010.The insufficient utilization is the main reason for the price increasing.
Rigorous environment regulations
The government has further reduced the utilization rate of the capacities. It is estimated that only 5-6 ais producers are in normal production in 2011. Please refer to the following list:
(Till now supply situation still uncertain,most manufacturers' production schedule are after Chinese Spring Festival-23th Jan.)
Short supply and incresing price of the intermediates
Two important intermediates, NNI(2-Nitroaminoimidazoline) and ethylene diamine, which heavily rely on imports from German and Japan, their recently increase in price has pushed up the price of the insecticide as well.(Agropages)
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