Monday, May 9, 2011

Pyrethroid Pesticide Tight in Domestic Market

Cyhalothrin and cypermethrin in pyrethroid insecticides is the large varieties in China. At present, the technicals are in short supply in the market, which leads to their prices increased. Cyhalothrin TC is about USD29231/t, up USD15,38.5/t compared with at the beginning of 2011.  Benzene oil cypermethrin is about USD6230/t, up USD384.6/t compared with last year.

There are two main factors affecting the price of cyhalothrin and cypermethrin. First, enterprises can not purchase raw materials in the market. As global crude oil prices rising and the day after the Japanese earthquake products prices increased, the major aldehyde intermediates and Dichlorochrysanthemoylureido at home and abroad are short in the market, causing prices to soar. At present, the price of aldehyde is USD12,769/t, up USD3,077/t - USD4,615/t compared with the same period last year. Although sales prices of cyhalothrin and cypermethrin increased, the high prices of raw materials and the high cost made the enterprises have no profit. In late 2010, some producers stopped the production of cyhalothrin and cypermethrin because of the high cost resulting in lower inventory, and now formulations are in a serious shortage in the market. Second, in the second half of 2010, the high price of raw materials, intermediates and environmental factors made most companies cut or stop production, a great decline in national output.

Cypermethrin is a higher biological activity of pesticides, and many companies launched in 2007. At present, there are more than 30 technical companies, about 270 formulations enterprises and nearly 600 enterprises complex. Through the promotion of plant protection department in recent years, cypermethrin benzene oil application in cotton, grapes, corn, vegetables dramatically increased. Although there are many cypermethrin benzene oil producers in China, only 2 to 3 companies have the normal production and supply, and the output is related limit.

It is predicted that shortage situation of cyhalothrin and cypermethrin may last for a long time, if the market situation of cotton and corn are well later and the shortage situation have not  been changed.

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