Challenges after COVID-19 in China's Pesticide Market
Pesticides, closely related to crop farming, have become stable products for agricultural production and a critical sector that supports national economy. Exporting is the major way through which Chinese pesticides are consumed, meaning any volatility in the global market could be risks at varying levels for the supply and demand chain in China.
In the past two years, China's pesticide industry went through ups and downs. In price terms, the hike in 2021 was triggered by many factors, such as more stringent regulations and policies on environmental protection in China, international turmoil, rising inflation worldwide. In 2022, the CAPI of pesticides started to fall, and the downtrend proceeded to April 2023, especially in herbicide which has accounted for largest share of China's pesticide production, price plunged during Q1 2023.
In the future, the number of pesticide enterprises will greatly reduce, and the process of industry integration and elimination will speed up. In addition, the tendency of domestic pesticide enterprises to shift to low-cost areas is obvious. In particular, those areas with low labour cost, strong environmental carrying capacity and rich land and energy have become the targets for spatial layout.
In this report, CCM will analyse Pesticide Market in China in Q1 2023 from the following aspects:
In the past two years, China's pesticide industry went through ups and downs. In price terms, the hike in 2021 was triggered by many factors, such as more stringent regulations and policies on environmental protection in China, international turmoil, rising inflation worldwide. In 2022, the CAPI of pesticides started to fall, and the downtrend proceeded to April 2023, especially in herbicide which has accounted for largest share of China's pesticide production, price plunged during Q1 2023.
In the future, the number of pesticide enterprises will greatly reduce, and the process of industry integration and elimination will speed up. In addition, the tendency of domestic pesticide enterprises to shift to low-cost areas is obvious. In particular, those areas with low labour cost, strong environmental carrying capacity and rich land and energy have become the targets for spatial layout.
In this report, CCM will analyse Pesticide Market in China in Q1 2023 from the following aspects:
- Overview on supply and demand of pesticides in China
- Factors for the downturn of China's pesticide industry
- Forecast on China's pesticide market in H2 2023
- Solutions from CCPIA
Executive summary
Methodology
1 OVERVIEW ON SUPPLY AND DEMAND OF PESTICIDES IN CHINA
1.1 Decreased price of pesticide technical as of April 2023
1.2 Depressed China's exports and imports of pesticide technical in Q1 2023
1.3 Diminished supply of China's pesticide technical in Q1 2023
2 FACTORS FOR THE DOWNTURN OF CHINA'S PESTICIDE INDUSTRY
2.1 China's output of pesticide stabilising
2.2 Lower domestic use and overseas demand
2.3 Global economic turmoil
3 FORECAST ON CHINA'S PESTICIDE MARKET IN H2 2023
4 SOLUTIONS FROM CCPIA
Methodology
1 OVERVIEW ON SUPPLY AND DEMAND OF PESTICIDES IN CHINA
1.1 Decreased price of pesticide technical as of April 2023
1.2 Depressed China's exports and imports of pesticide technical in Q1 2023
1.3 Diminished supply of China's pesticide technical in Q1 2023
2 FACTORS FOR THE DOWNTURN OF CHINA'S PESTICIDE INDUSTRY
2.1 China's output of pesticide stabilising
2.2 Lower domestic use and overseas demand
2.3 Global economic turmoil
3 FORECAST ON CHINA'S PESTICIDE MARKET IN H2 2023
4 SOLUTIONS FROM CCPIA
LIST OF TABLES
Table 1.1-1 Monthly changes of China Agrichemical Price Index (CAPI), Oct. 2022–March 2023
Table 1.2-1 Import and export value of China's pesticides in Q1 2023, million USD
Table 1.2-2 Import and export volume of China's pesticides in Q1 2023, tonne
Table 1.3-1 China's pesticide technical output by province/region in Q1 2023, tonne
Table 2.1-1 Potential capacity of glufosinate-ammonium TC in China since H2 2022
Table 1.1-1 Monthly changes of China Agrichemical Price Index (CAPI), Oct. 2022–March 2023
Table 1.2-1 Import and export value of China's pesticides in Q1 2023, million USD
Table 1.2-2 Import and export volume of China's pesticides in Q1 2023, tonne
Table 1.3-1 China's pesticide technical output by province/region in Q1 2023, tonne
Table 2.1-1 Potential capacity of glufosinate-ammonium TC in China since H2 2022
LIST OF FIGURES
Figure 1.1-1 China Agrichemical Price Index (CAPI), August 2021 to March 2023
Figure 1.3-1 Regional output of China's pesticide technical by quarter, Q1 2022-Q1 2023
Figure 1.3-2 China's pesticide technical output in East China, Q1 2022–Q1 2023, tonne
Figure 2.1-1 China's pesticide technical output by province/region in 2022 and Q1 2023, tonne
Figure 2.2-1 Quarterly export volume of chemical pesticide in China, Q1 2022–Q1 2023, tonne
Figure 2.3-1 Monthly prices of London Brent crude oil futures and US WTI crude oil futures, Jan. 2021–March 2023, USD/Barrel
Figure 1.1-1 China Agrichemical Price Index (CAPI), August 2021 to March 2023
Figure 1.3-1 Regional output of China's pesticide technical by quarter, Q1 2022-Q1 2023
Figure 1.3-2 China's pesticide technical output in East China, Q1 2022–Q1 2023, tonne
Figure 2.1-1 China's pesticide technical output by province/region in 2022 and Q1 2023, tonne
Figure 2.2-1 Quarterly export volume of chemical pesticide in China, Q1 2022–Q1 2023, tonne
Figure 2.3-1 Monthly prices of London Brent crude oil futures and US WTI crude oil futures, Jan. 2021–March 2023, USD/Barrel
