May. 18, 2018
By Think Real - Since the second half of 2017, under the effect of the environmental protection examination, chemical enterprises had to stop or restrict production, which caused serious short supply of pesticide technical and intermediates and low operating rate of technical enterprises. Moreover, some producers engaged in trading raised the pesticide technical prices and by Nov. 2017, they reached the highest and didn’t fall. Except for some price reduction of some special products, most pesticide technical products maintained at a high price level though the prices didn’t go up to a large extent.
The price surge in 2017 enhanced the prices of most pesticides to another level. Compared with the same period last year, the increase of some pesticide technical even exceeded 100%. However, the price surge only happened to technical, formulation and trading enterprises, which exerted no synchronous influence on distributors. Some of them raised the selling price indeed, but many maintained the same.
There were four main reasons behind the situation.
1. Distributors couldn’t judge if the price surge would last long and so didn’t take any hasty measures.
2. Some distributors had many inventories in the past years and some formulation enterprises also had inventories. Most formulation enterprises didn’t synchronize in the price surge as they were not short of supply.
3. Most formulation enterprises have to maintain their sales volumes and dare not raise the price too much, especially to their large clients. Moreover, wholesalers don’t raise the price much to their terminal retailers, or at all to acquire the competitive advantage in the terminal market. Therefore, formulation enterprises and wholesalers have to lower their profits to offset the negative influence exerted by the pesticide technical price surge.
4. Pesticide users at the terminal end, farmers, are not sensitive about the price surge, which makes it hard for retailers to raise the price easily.
This summer, AgroPages will invite officers and analysts from ICAMA/CCPIA and consulting agencies to give speeches on industry insights at the 2018 China Pesticide Exporting Workshop (CPEW), which will be held in Hangzhou, China.
The attendees will receive important information about the Chinese agrochemical industry, including the impact caused by environment policies, the price and supply trend of pesticide technical and formulations. All the information is critical for pesticide procurement.
More speakers from across the globe, including Ourofino, Caribbean Chemicals & Agencies, Syngenta, Rotam, UPL, Helm, ADAMA and leading export companies in China, are being invited to attend the workshop.
We will also invite some of the leading Chinese suppliers of pesticide technical and formulations to meet face-to-face with the overseas audience. Each participant from overseas will have a 10-15 minute opportunity to introduce their company and their specific needs in a pre-warming meeting to seek supply support from these Chinese companies.