The Chinese avermectin market has experienced significant fluctuations over the years, with sharp price increases in 2004 and 2006 prompting a surge in development, production, and expansion among regional companies. As the pesticide industry recovered from a three-year decline in 2012, the demand for bulk varieties like glyphosate soared, leading to increased sales and profitability for businesses. However, challenges such as overcapacity and the presence of illegal small-scale producers remain, underscoring the need for a more stable industry foundation.
China's pesticide industry has made its mark on the international stage through the production of a wide range of active ingredients. With nearly 600 active ingredients in its portfolio, Chinese pesticide companies outpace large international firms in this aspect. Products like glyphosate, paraquat, 2,4-D, imidacloprid, abamectin, acephate, chlorpyrifos, chlorothalonil, and carbendazim give China a competitive edge. Protecting and leveraging these advantages is crucial for enhancing the industry's global competitiveness.
Abamectin, a novel antibiotic with insecticidal, acaricidal, and nematicidal properties, was developed in Japan in 1976 and commercialized in 1985. Chinese researchers identified a strain with the same chemical structure as avermectin in the late 1980s, leading to domestic production starting in 1993. China has since become the largest producer and exporter of avermectin, with global sales reaching $335 million in 2011, a 6.3% increase from the previous year.
The Chinese avermectin market has faced its share of challenges. After the price spikes in 2004 and 2006, the industry saw overcapacity, with more than 20 companies by the end of 2009. The market demand, however, remained stable at 2,500 to 3,000 tons, leading to a price drop and financial losses for producers. This prompted a reduction in output and the number of active producers, which helped stabilize prices.
In 2012, the industry encountered a new hurdle when the Chinese government banned the use of avermectin ointment in EC formulations. This unexpected move caught manufacturers off guard, as avermectin had been safely used for 16 years. Companies are now tasked with evaluating the safety of ointment formulations, improving technology to reduce by-products, and exploring alternatives to solvents like toluene.
The future of China's avermectin market hinges on the industry's ability to address overcapacity, combat illegal production, and adapt to regulatory changes. With concerted efforts to uphold quality and clamp down on counterfeit products, the market is poised for a more sustainable and profitable trajectory.
For more detailed insights into the avermectin market and its impact on the global pesticide industry, readers can refer to authoritative sources such as the China Pesticide Information Network and AgroPages.
Article Source: COSPCN
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