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Imidacloprid’s prime intermediate CCMP cost in China rose 40.7% in 2016
Jan. 24, 2017
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China
The price of 2-Chloro-5-chloromethylpyridine (CCMP), an important intermediate required in the production of imidacloprid, increased by 40.7 per cent in a year, Yancheng Zhida Chemicals said.
The price rose from Yuan67.500/ton to Yuan95,000/ton, with the months of November and December witnessing the sharpest hike, Yancheng Zhida Chemicals told AgroPages.
The CCMP is an important intermediate required in a number of processes while synthesizing imidacloprid.
Imidacloprid is one the world’s largest consumed insecticide variety.
China’s imidacloprid output accounts for 80 per cent of the global share. How imidacloprid does in the market directly impacts the CCMP market.
A review of the price trend for imidacloprid in 2016 showed that the price started rising from the end of August. The product remained in short supply, a situation expected to continue in 2017. Therefore, the Chinese share of the CCMP market is expected to remain big.
In recent years, some CCMP manufacturers have exited the market because of the constraints of a slow market and stringent environmental compliance regulations.
Yancheng Zhida Chemical is one of the few manufacturers that held on. As Asia’s largest imidacloprid intermediate CCMP manufacturer, Yancheng Zhida Chemical has an output of 3,500 tons.
In the past years, the company made considerable investment in technical upgrade of its CCMP process.
At present, it has state-of-the-art equipment at its 3,500-ton CCMP annual production facility. It has a high yield rate and low waste discharge, resulting in reduced production cost and easing of environmental pressure. It has also enabled the company to extend its production output and capture a larger market share.
Li Bo, the general manager of the company, told AgroPages that CCMP was currently in short supply and the price is expected to further rise after the Chinese New Year.
The company already has new orders lined up till April this year.
Additionally, Li Bo said in order to expand the market, the company is prepared to launch its new product varieties—2,3-dichloro-5- (trifluoromethyl) pyridine and 2-amino-3-chloro-5-trifluoromethylpyridine—with a production capacity of 1,500 tons and 1,000 tons, respectively.
The former is an intermediate for haloxyfop, fluazinam and chlorfluazuron while the latter is an important intermediate for fluopicolide synthesis. After completion of the new projects, Yancheng Zhida Chemical will become China’s largest producer of such products.
Source: AgroNews
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