Avermectin Price Possibly Increase in 2010   

By Peter Zong   

After experiencing downturn in 2009, China's domestic market for various pesticides began to restore in early 2010. Avermectins, an insecticide with the biggest consumption in China, witnessed price rebound in January.  
   At the end of January, the price of avermectin technical material increased to RMB720 per kilogram from RMB600 per kilogram at the end of 2009. Price of emamectin benzoate that is a derivative of avermectin went up from the bottom RMB1 050 per kilogram to the current RMB1 200 per kilogram.
   The Chinese producers of avermectin technical material have completed capacity expansion in 2009, bringing the national total capacity to 3 800 t/a. However, the fragile confidence and slack market caused several manufacturers that just completed expansion can not operate at full capacity, which affected the market supply of avermectin technical material. Additionally, oversea order for avermectin technical material and emamectin benzoate surged in 2010, causing the price to go up.
   It is reported that China's capacity of producing emamectin benzoate technical material reached 1 500 t/a as of 2009, doubled that in 2008. Emamectin benzoate's demand for avermectin refined powder grew continuously.  
   According to data supplied by the AgriGoods Herald, China exported 127 tons of avermectin technical material in the first ten months of 2009, mainly delivering to the Asian countries.