China’s Chlorantraniliprole industry being deployed, granule formulations promising

Chlorantraniliprole, the leading bisamide insecticide, has been sold in over 100 countries since its market launch in 2018. It offers high efficiency and broad-spectrum, being applicable to a large variety of field crops, vegetables and fruit crops, with excellent control effects against most chewing mouthparts, especially against lepidoptera pests. Chlorantraniliprole has become one of the most attractive insecticidal substances on the global market.

Production deployment of chlorantraniliprole progressing constantly

Since the start of this year, the price of chlorantraniliprole in China has decreased, but an expansion of chlorantraniliprole capacity is often reported in the media, which is having an ongoing impact on the initial industrial structure. The table below shows the capacity distribution of chlorantraniliprole technical in China:

Source of infromatin: Available from open information, which may not be the actual capacity.

Chlorantraniliprole’s technical production deployment involves the following:

1) Capacity expansion: With the continuous growth of the chlorantraniliprole market,  technical material manufacturers have begun to increase their capacities in order to meet market demand. The major Chinese technical material companies include Youdao Chemical, Lier Chemical, Flagchem, Red Sun and Shunyi Group. In addition, many enterprises have cooperated with technical material manufacturers in chlorantraniliprole licensing to obtain formulation registration data.

2) Technological research and development: The technological research and development of chlorantraniliprole technical are key to production deployment. Currently, many Chinese enterprises have good command of the core technology used in the production of chlorantraniliprole, and have been enhancing their innovation and continuously upgrading, to enhance the quality and competitiveness of their products.

3) Quality management: The quality management of chlorantraniliprole is key to ensuring product quality and product stability. Chinese technical material manufacturers have begun strengthening their quality management by utilizing advanced production equipment and technology, to achieve product quality and stability.

4) Market expansion: As the market demand for chlorantraniliprole has been rising constantly, technical material companies are actively developing and expanding their market share. In addition to marketing in the domestic market, some companies have begun to grow in the international market, to further expand their market share in the international chloramphenicol technical market.

What needs to be noted is that the market potential of chlorantraniliprole still exists, which could usher in a new golden era in the coming years. Therefore, manufacturers must actively contribute to chlorantraniliprole-related industries, and strengthen their technical research and quality management to seize market opportunities, backed up by enhanced product and market competitiveness.

Chlorantraniliprole price trends

The price of chlorantraniliprole technical remained high until 2023, ranging from RMB2.4 million to 3 million yuan per ton. However, with the continuous rise in production capacity, the price of chlorantraniliprole technical began to fall gradually. According to Youdao Chemical, by March 2023, the price of chlorantraniliprole technical dropped to RMB580,000 yuan per ton. The price fall is mainly due to intensified competition in the technical material market, downstream manufacturers’ positive production deployment and increased market demand. According to the Sino Agri Price Index, the price has now fallen to RMB405,000 yuan per ton.

Granule formulation registration rises continually, pesticide-fertilizers have potential for growth

Currently, the production capacity of chlorantraniliprole technical in China continues to increase, while the terminal product market is progressing positively. Taking granule formulations as an example, currently, a total of 28 granule registrations have been granted. Among them, there are more than 20 pesticide fertilizer registrations, mainly for application on sugarcane, wheat and peanut.

With the rise in the registration of granules and the implementation of a land transfer policy, labor-saving and high-efficient pesticide-fertilizers have created a new business model, where enterprises can see many new opportunities.

The volume of the Chinese domestic pesticide fertilizer market is nearly RMB170 billion yuan, three times the value of the pesticide market. The crop planting area in China is 1.9 billion mu (1mu=1/15 ha), out of which 880 million mu are allocated to pesticide-fertilizers. However, the actual total pesticide-fertilizer market value is currently no more than RMB10 billion yuan, which offers room for market growth. Therefore, the current pesticide-fertilizer market is a rising market with many opportunities for growth. The pesticide-fertilizer market continues to grow rapidly, which will enable it to become the second source of growth for many enterprises.

Looking at the pesticide-fertilizer market, besides applications on sugarcane, wheat and peanut, which account for a large market share, there are many other types of applications for pesticide-fertilizers, which have just begun. Applications of pesticide-fertilizers on cash crops is still being explored but is not yet established, offering a business opportunity for pesticide-fertilizer manufacturers.