Hebei Lansheng Biotech Co., Ltd.

China’s January, February pesticide sales enlightening: Output increased 35.1%, export increased 65.7%qrcode

Apr. 1, 2021

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Apr. 1, 2021

Driven by the demand for winter storage and spring sowing, the year’s first quarter witnessed the excellent performance of the Chinese pesticide market. With the normalization of environmental compliance and work safety regulations, production in Yancheng and Lianyungang resumed in an orderly manner after the Xiangshui Explosion in 2020/21. Therefore, domestic pesticide technical production volume in January and February 2021 significantly increased compared to the same period in 2019 and 2020. The supply and demand of the industry flourishing in the spring peak season.

Pesticide technical yields also reached a three-year record high. According to data from the State Bureau of Statistics, the total output of chemical pesticide technicals (converted at 100% content) in China in January and February 2021 was 385,000 tons, 35.1% up year-on-year. Due to certain reasons, a market analytical organization indicated that firstly, the prices of intermediates and technical materials rose with higher profitability due to the re-emergence of Covid-19 in Shijiazhuang while the capacities of other provinces was already fully utilized. Secondly, the uncertainty caused by the pandemic was expected and, therefore, travel restrictions were adopted during China’s Spring Festival peak travel period, while manufacturers considered the difficulty in resuming production once suspended, so factories mainly kept running during the holiday. Thirdly, there were purchases made for the purposes of winter storage and spring sowing that led to a period of prosperity, when manufacturers were active in running production.

Pesticide output from 2020 April to 2021 Feb, China 


Export volume increased significantly year-on-year but remained flat month-on-month. From January to February 2021, China's total export of herbicides, insecticides and fungicides reached 290,700 tons, which is an increase of 65.7% year-on-year. 

According to the market analytical organization, the reasons for these facts are, firstly, the overseas business environment has become unstable because of the pandemic and overseas production has been limited, so, therefore, there is increased dependence on Chinese pesticide supplies. Secondly, there is a strong demand for advanced purchases with the expectation of a price rise and continued short supply in the long run.

From March to May, the demand from domestic formulation manufacturers and international buyers will be strong, and the supply of most major technical material varieties, represented by glyphosate, will continue to be short, so prices will keep increasing.

Source: AgroNews

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