Tight Supply and High Prices for Imidacloprid   

The quoted price of 96% imidacloprid from Chinese pesticide makers has risen to RMB128 000-130 000/t now from RMB118 000/t in the first quarter of 2011, because the supply of this product now falls short in the market. There are three reasons behind the tight supply and high prices. First, imidacloprid makers, who had sold products at very low prices before, are forced to halt production amid meager and even negative profit margins in face of rising costs of raw materials, logistics and waste treatment; second, many small and medium-sized producers were forced to shut down their plants because they failed to meet the state environmental standards; and finally, the RMB3 000 - 5 000/t price hike of Germany-made imidazolidinedione, an intermediate of imidacloprid that China relies on imports, and the surging prices of ethylenediamine from Japanese suppliers have pushed up the production costs of imidacloprid and then the prices of the active ingredient.
   Companies that are still producing imidacloprid include Jiangsu Changlong Chemicals Co Ltd, Jiangsu Changqing Agrochemical Co Ltd, Qingdao Hailir Pesticides & Chemicals Group and Shandong United Pesticide Industry Co Ltd. Nanjing Redsun, Jiangsu Kesheng Group, Zhejiang Hisun Pharmaceutical Co Ltd, Anhui Huaxing Chemical Industry Co Ltd, Hebei Yeyong Bio-Chemical Co Ltd, Fujian Sannong Group Co Ltd and Jiangsu Kangpeng, have suspended production of imidacloprid . Jiangsu Changlong also said it can only resume supply in late July. Now, imidacloprid formulation and mixture agent producers can hardly procure imidacloprid. It is estimated that the Chinese market will need 5 000 - 6 000 tons of imidacloprid formulations in 2011, while the export of imidacloprid will be around 8 000 tons this year. Now, imidacloprid active ingredient is in short supply in China. (By Zhang Weinong)