Market rebound enables increased sales of China’s top 20 pesticide producers

Date:09-30-2013

The year of 2012 is a year of harvesting for Chinese pesticide industry, where China’s top 20 pesticide producers have all achieved their respective growth to different degrees. Via the merger of Nutrichem Company, Huapont-Nutrichem has extended its business line and ranked No.1 among the top 20 with annual sales of Yuan 3.0 billion, having exceeded Zhejiang Wynca Chemical Group who always used to be on the top of the chart.

The Ranking Chart shows that the hot sale of glyphosate played a very obvious role in the growth of the glyphosate-based producers in 2012, when demand for glyphosate and the price rose significantly turning producers from loss to profitability. Significant growth has been achieved by major producers, including Wynca Chemical Group, Sichuan Leshan Fuhua Tongda Agro-chemical Technology, Nanjing Red Sun, Shandong Weifang Rainbow Chemical, Sanonda and Jiangsu Yangnong Chemical. Among them Nanjing Red Sun achieved highest rate of increase, followed by Wynca Chemical Group being the No.2 with its sales of Yuan 2.83 billion and a 32.2% increase. Though glyphosate sales is the main reason for the growth of these companies, they would still maintain a prudent position toward the further development of glyphosate because the market may be affected by the change of price of raw materials, environment and safety regulation, as well as the anti-dumping risk.

Shandong Binnong Technology ranked No.5 with its sales of Yuan 2.46 billion, it is interesting to note that it is the only non-public-listed company among the top 5. Zhejiang Jinfanda Biochemical ranked No.8 with its sales of Yuan 2.25 billion, 4 places down over that of 2011.

The rebound of glyphosate is an offset to the downturn of pyrethroid for Jiangsu Yangnong Chemical, who eventually achieved sales of Yuan 2.17 billion, 20.6% up year on year, ranking No.9 on the chart. Nantong Jiangshan Agrochemical & Chemicals, Jiangsu Huifeng Agrochemical and Noposion Agrochemicals ranked No. 10, 11 and 12 respectively. Nantong Jiangshan Agrochemical & Chemicals said that it continued its effort to consolidate its traditional market while positively opened up domestic formulation market, resulting in the sales of Yuan 1.54 billion only from glyphosate being 24.76% up year on year. Jiangsu Huifeng Agrochemical achieved sales of Yuan 1.64 billion in 2012 attributable to its marketing effort and acquisitions. Noposion Agrochemicals achieved sales of Yuan 1.58 billion in 2012 being 3.3% up year on year, where insecticide sales of Yuan 730 million accounted for the largest portion of the increase. Jiangsu Changlong Chemicals ranked No.13 with sales of Yuan 1.56 billion.

Sinochem Agro, another newly born enterprise in 2012 through merger and acquisition, made a remarkable achievement in 2012, ranking No.14 with sales of Yuan 1.54 billion, followed immediately by Sinochem International, who voiced that its growth was due to the agricultural policy change, resumed productions, centralized glyphosate business and the increased varieties of product of the company in 2012.

Jiangsu Lianhe Chemical Technology strengthened its R&D and marketing effort, as well as a cost control plan, resulting in a 28% sales increase which led to sales of Yuan 1.29 billion; the other two non-public-listed companies -- Shandong Qiaochang Chemical and Jiangsu Good Harvest-Weien Agrochemical ranked No. 16 and 18 respectively with sales of Yuan 1.30 bilion and Yuan 1.29 billion.

The insecticides and injection products of Jiangsu Changqing Agrochemical were sold quite well in 2012, which enabled its sales to increase by 27%; Lier Chemical achieved 30% increase, reaching sales of Yuan 1.21 billion and ranking No.20, attributable to its grown international registration and domestic market growth, said by the company.


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