Emamectin Benzoate Market Remains Brilliant in 2015

1. Development of emamectin benzoate depends on supply of avermectin

Emamectin benzoate is a new semi-synthetic antibiotic insecticide with high effect. It is used extensively in the prevention and control of various pests in farm crops such as vegetables, fruit trees and cotton.
By February 2015, China’s capacity to make emamectin benzoate active ingredients had already been expanded to around 2 000 t/a. The total capacity includes 200 t/a in Daqing Hefene Biochemical Co., Ltd., 180 t/a in Shenghua Biok Biology Co., Ltd., 100 t/a in Jiamusi Xingyu Biotechnology Development Co., Ltd., 600 t/a in Qilu Synva Co., Ltd., 100 t/a in Shandong Chambroad Agrochemical Co., Ltd., 100 t/a in Hailir Pesticides & Chemicals Co., Ltd. and 300 t/a in Hebei Weiyuan Biochemical Co., Ltd. The capacity of these producers is small, their scale is similar, the capacity concentration degree is low and the dependence on the supply of raw material avermectin is heavy. There are quite a few standards for emamectin benzoate active ingredients in China, such as those for the 90% variety and the 95% variety. By February 2015 there were 225 emamectin benzoate products in China including active ingredients, aqueous emulsions, suspension concentrates, wettable powders, water dispersible granules, emulsifiable solutions and micro emulsions. Due to the increase of biological resistance, the effective ingredients of emamectin benzoate varieties registered by producers these days are a bit higher than before.

2. Price

The overall performance of the emamectin benzoate market in China was quite stable in 2014. The average price was around RMB900 000/t. The price of avermectin concentrate increased somewhat in the first six months. Major factors such as environmental protection pressure, low operating rates and limited market supply led to a price rise of avermectin concentrate to RMB710 000/t. The cost of emamectin benzoate therefore increased considerably. The prices of both avermectin concentrate and emamectin benzoate fluctuated notably. Due to unsatisfactory demand early in the third quarter, avermectin producers restricted operating rates and controlled the market supply to avoid a drastic price reduction. Later, owing to foreign demand, the supply was insufficient, and the price picked up once again, reaching RMB640 000/t, while the price of emamectin benzoate increased to RMB900 000/t accordingly. The price of avermectin concentrate has rebounded slightly to RMB640 000-650 000/t today. Producers are taking measures to control delivery amounts and market supply. Resources in the market are rather tight, but the price of emamectin benzoate is still around RMB890 000/t. The demand will be flat for the near future. With the backing from the price of avermectin concentrate, however, the price reduction will be quite limited.
Benefitting from the high price of emamectin benzoate, avermectin producers made sound sales in 2014.  

Table 1    Emamectin benzoate producers in China, 2015  (t/a)

Producer    Capacity
Daqing Hefene Biochemical Co., Ltd.     200
Shenghua Biok Biology Co., Ltd.     180
Jiamusi Xingyu Biotechnology Development Co., Ltd.     100
Qilu Synva Co., Ltd.     600
Shandong Chambroad Agrochemical Co., Ltd.     100
Hailir Pesticides & Chemicals Co., Ltd.     100
Hebei Weiyuan Biochemical Co., Ltd.     300
Others    300



3. Projection

Supply
The capacity to make avermectin concentrate in Qilu Pharmaceutical Group Co., Ltd. has reached 1 000 t/a – China’s biggest. Avermectin concentrate produced in the company will first of all be supplied to Qilu Synva Co., Ltd. for the production of emamectin benzoate. The expanded avermectin concentrate unit of Shijiazhuang Xingbai Pharmaceutical Group Co., Ltd. will soon start production, making the company’s total capacity 1 000 t/a. Hebei Weiyuan Biochemical Co., Ltd. has its own avermectin concentrate unit with around 500 t/a capacity. Avermectin concentrate produced by Shandong Zhicheng Chemical Co., Ltd. will be put on the market next month – the firm’s capacity is 500 t/a. Daqing Hefene Biochemical Co., Ltd. also has its own avermectin concentrate unit.
The supply of avermectin concentrate in 2015 will be determined by the production status of Qilu Pharmaceutical Group Co., Ltd. and Shijiazhuang Xingbai Pharmaceutical Group Co., Ltd. Shijiazhuang Xingbai Pharmaceutical Group Co., Ltd. and Shandong Zhicheng Chemical Co., Ltd. have no matched downstream units. If the export market for avermectin concentrate is okay in 2015, producers will honor export purchase orders first. The supply in the domestic market will therefore be tight and many emamectin benzoate producers will have a hard time maintaining normal production. It is expected that the operation of emamectin benzoate producers and avermectin concentrate producers will be quite sound in the first half of 2015.
Price
The price of avermectin concentrate will be maintained at around RMB650 000/t in the near future, and is hoped to increase a little afterward due to the tight supply. With the backing from avermectin, the price of emamectin benzoate active ingredients will be around RMB920 000/t and likely increase to RMB960 000/t.
Moreover, with the greater coverage of professional prevention and control of diseases and pests in farm crops, the area using pesticides with high effect, low toxicity and low application amount will grow further in 2015. Single-component or multiple-component emamectin benzoate commodities that feature high effect, low toxicity, low residue and small application amount will have further application dissemination.
With impacts of factors such as warm winter, the demand for insecticides for farm crops will remain considerable in 2015. Not only will insecticides such as imidacloprid, acetamiprid, chlorpyrifos, avermectin, emamectin benzoate, dichlorvos, trichlorfon, monosultap, buprofezin, isoprocarb and high-effect cyhalothrin gain rare business opportunities, but green pesticides that can prevent and control diseases and pests in farm crops will also have excellent chances for development.
Noting that the biological resistance to emamectin benzoate is developing fast, the amount of pesticides applied by farmers is increasing gradually. Producers need to strengthen research and development, increase the content of active ingredients in products, enhance their own risk-withstanding ability and produce high-quality products.
Emamectin benzoate, a biogenic pesticide with high effect and low toxicity has a bright market prospect.