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Market analysis of fungicide azoxystrobin in China

Date:2014-8-29   Hits:

Developed and patented by Syngenta, azoxystrobin (strobilurin fungicide) and its formulated products are no longer protected by patents in China, Which highlighted more market value for azoxystrobin related products. Since March of 2013, more Chinese agrochemical companies started the manufacture and launch of azoxystrobin products, imposing a large impact on fungicides of other categories.    
 
Registration and manufacture
 
Since the patent expiration of azoxystrobin in 2010, Chinese agrochemical companies raised a hot wave of registration. Currently, 33 companies received registration, however, a few can realize scale production. 
 
By May of 2014, the number of azoxystrobin technical producers is more than 10, with total production capacity over 3700 tonnes/a. The majority producers are from provincial regions of Zhejiang , Jiangsu and Hebei. This includs Jiangyin Suli Chemical with production of 1000 tonnes/a, Shanghai Heben-Eastsun Medicaments 800 tonnes/a, Shangyu Nutrichem 600 tonnes/a, Limin Chemical 500 tonnes/a and Hebei Veyong Bio-Chemical 200 tonnes/a. Moreover, as reported, by August 2013, China has nine construction projects to be completed regarding to azoxystrobin technical production. The production capacity is estimated to be 5000 tonnes/a, and full operation is expected in 2014.  
  
Azoxystrobin production in China is mainly for export, including exportation to Uruguay, South America and Italy. From year 2008 to 2012, the price of azoxystrobin technical has plunged greatly from Yuan 1000 thousand/tones to Yuan 280 thousand/tones.   
 
Outlook
From a long term, the price of azoxystrobin will continue to decline, due to mature production techonologies, increasing number of producers, adequate supply of raw materials, and small unlicensed producers' competition. On the other hand, the cost of saline organic wastewater treatment when producing azoxystrobin is pretty high. Producers such as Hebei Veyong Bio-Chemical and Limin Chemical are upgrading their technologies to deal with stringent environmental protection pressure. Low margin brought by fierce competition and environmental protection will be the main constrain factors of azoxystrobin market development in China. 
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