China’s Paraquat TK Exports Soar in 2015 Amid Price Declines

By CCM

In 2015, China’s export volume of paraquat TK soared while prices fell sharply, according to analysts CCM.

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China’s overall pesticide market was stagnant in 2015 amid declining prices. Export volume of paraquat, as the leading product in China’s herbicide industry, totaled 114,796 tonnes in 2015, with a year-over-year rise of 43.89%, according to China Customs and CCM’s export analysis.

Chinese Exports of Paraquat TK in 2015

Chinese exports of paraquat TK in 2015; Source: China Customs and CCM

Source: China Customs and CCM

 

 

 

 

 

 

 

 

The export volume of 42% paraquat TK reached 80,215 tonnes, up 33.81% year on year, accounting for 69.88% of the total. The export volume of 45% paraquat TK was 34,581 tonnes, up 74.39% year on year, a proportion of 30.12%.

Compared to the second half of 2015, the year-over-year rise in export volume of paraquat TK was larger especially from March to June, the traditional peak demand season.

However, prices kept falling, with an average year-over-year decline of 29.28%. As a result, paraquat TK manufacturers faced lower profits despite higher export volumes.

The export price of paraquat TK was $2.78/kg, down 29.28% year on year. The average export price was $2.60/kg for 42% paraquat TK, down 38.01% year on year. The price of 45% paraquat TK was $2.95/kg, down 19.27% year on year, according to China Customs and CCM’s export analysis.

Low Prices of Paraquat TK Boost Export Volume

“In fact, the falling export price of paraquat TK boosted the export volume to some extent,” commented Chen Zaoqun, Editor of Herbicides China News. “Low prices made it easy to attract purchasers to stock up goods,” Chen added.

“In 2015, the Ministry of Agriculture of the People’s Republic of China’s attitude towards the future development of paraquat is not clear. Therefore, some overseas purchasers are worrying about the supply of paraquat in China and thus they stock up inventories when the price is low.”

“In the meantime, the progress in developing new paraquat formulation types is very slow, and TK companies have to promote their products to overseas markets. It will be hard for the paraquat export price to rebound under such fierce market competition,” Chen added.

Breaking down paraquat TK export destinations, Thailand ranked first by import volume of China’s paraquat TK in 2015, whose import volume reached 19,218 tonnes, up 81.02% year on year. The U.S. imported 11,109 tonnes, up 243.17% year on year. As a whole, the export destinations were concentrated. China exported pararquat TK to 42 countries/regions in 2015, of which the import volume of top 10 destinations amounted to 97,382 tonnes, accounting for 84.83% of the total.

Formulation Export Volumes Fall

Though the paraquat TK’s export volume increased greatly, the export volume of paraquat AS had a sharp decline.

Paraquat AS produced by domestic manufacturers in 2015 could no longer be sold in China’s market, and so companies cut back on output. Currently, paraquat AS sold was produced before 1 July, 2014.

After losing market share in China, the export market became manufacturers’ sole route to sell product.

Both export volume and price of paraquat AS reported sharp year-over-year declines in 2015.

Exports of Paraquat Formulations in 2015

Source: China Customs and CCM

Source: China Customs and CCM

 

 

 

 

 

 

 

 

China exported just 89,840 tonnes of paraquat AS in 2015, down 60.61%. What’s worse, the export volume of 20% paraquat AS (the major exported formulation) was only 83,374 tonnes, down 62.61% year on year, accounting for 92.80% of the total export volume.

“With the falling price of TK, the foreign manufacturers tend to purchase the TK and produce formulation themselves,” Chen said. “As for exports of paraquat in 2016, there may be not many changes in the exports volumes in both TK and formulation,” Chen added.

 

About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta.

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