Market Downturn for Pyrethroid Insecticides in China

China’s price of pyrethroid insecticides rose slightly this spring; however, entering May 2013, the demand for pyrethroid insecticides has been soft and the market has been slack – unexpectedly slack in the usual peak season. There are three reasons for this. First, the use of seed coating agents in cotton, which is the major crop using pyrethroid pesticides for pest control, and the use of high-efficiency and low-toxicity pesticides such as avermectin, emamectin benzoate, imidacloprid, chlorpyrifos and imported insecticides in most vegetables and fruit trees for pest control make pyrethroid insecticides lost a big market share. Second, most pyrethroid pesticides are highly toxic to fish and silkworms, making its use in rice fields and mulberry fields subject to certain restrictions. Third, resistance to pyrethroid pesticides has increased rapidly, and users have responded by switching to other varieties.
　Lambda-cyhalothrin is a bulk pesticide variety. Due to its tight supply, the price of lambda-cyhalothrin increased in April and May. At present, the quoted price of lambda-cyhalothrin has dropped slightly to RMB168 000 per ton, being 7.1% lower than the price of RMB180 000 per ton in the same period of 2012. The main reasons for this include less purchase orders from downstream sectors and small export volume. The quoted price of cypermethrin decreased slightly to RMB78 000 per ton. Due to slack market demand, the pesticide technical enterprises have linked operating schedules to deliveries. Due to the relatively low production cost of cypermethrin benzene oil and a certain reliable market demand, the price of cypermethrin technical has remained at RMB80 000-90 000 per ton, and the price of cypermethrin benzene oil is RMB35 000 per ton, being basically the same as that in the same period of 2012. The price of high-efficiency cypermethrin has decreased from RMB135 000 per ton this spring to RMB130 000 per ton during the summer. Due to weak demand, the price is likely to fall. The price of bifenthrin has never increased since the beginning of 2013. At present, the quoted price of bifenthrin is RMB210 000 per ton, being RMB10 000 per ton lower than in the same period of 2012. Due to high environmental pressures, quite a few cyfluthrin enterprises suspended production or switched over to producing other products, resulting in a tight supply of cyfluthrin technical. The quoted price of cyfluthrin technical is now RMB210 000 per ton, a rise of 12% over the same period of 2012. The price of high-efficiency cyfluthrin is RMB260 000 per ton, slightly higher than that in the same period of 2012. Among pyrethroid pesticides that are commonly used, the prices of products like deltamethrin, fenvalerate, permethrin and etofenprox have decreased constantly.
　Pyrethroid insecticides have the advantages of high insecticidal activity, less dosage, low residue and low toxicity. However, as pests are not serious in 2013, the market competition of insecticides is very fierce. At present, the product sales value of Jiangsu Yangnong Chemical Group Co., Ltd and Nanjing Redsun Group – China's leading pyrethroid insecticide producers – has reduced.