Decreasing Jingangmycin Market Share in China

Market share of jingangmycin, which is an antibiotics fungicide and has dominated domestic rice sheath blight control market for almost 30 years, has been gradually shrinking in Chinese main rice planting areas in recent years mainly due to its decreasing control effect and thinner profits, as well as the competition from other products, according to CCM’s September Issue of Fungicides China News.

With good control effect on rice sheath blight in the early stage of application, jingangmycin become popular among domestic producers since 1970s. The output of jingangmycin (calculated by 5% AS, similarly hereinafter) had increased in China over the last few decades, especially in the late 1980s.

However, the decreasing control effect on rice sheath blight is one of the key factors leading to the market shrinkage of jingangmycin. After several decades of successive use, the control effect of jingangmycin 5% AS against rice sheath blight has been reduced from about 90% to 65%.

Moreover, the persistent period of jingangmycin has also been shortened by around 65% to 7 days from original 20 days. Last but not least, many domestic dealers and retailers are reluctant to sell jingangmycin mainly due to the decreasing profit, which has hindered the development of jingangmycin accordingly.

Actually, some domestic producers of jingangmycin technical have gradually cut back or stopped their production in consideration of the shrinking market. It is estimated that the output of jingangmycin in China will continue to go down to a certain extent in the near future with the gradual reduction of jingangmycin production; the situation of the shrinking market share for this biological fungicide will remain grim.

The following highlights are covered in Fungicides China News:

-Jiangsu Lanfeng has achieved a significant increase in its fungicide business in H1 2011.  

-Noposion has achieved a steady performance growth in H1 2011. 

-Changqing Agrochemical's fungicide performance was poor in the first half of 2011.   

-Jingangmycin's market share has been gradually shrinking in Chinese main rice planting areas in recent years.

-Zhejiang Longwan's thiediazole copper will vitalize the market of disease control in the near future.

-Shandong Dacheng will further cement its fosetyl-aluminium production after completing the first stage relocation.

-Sichuan Lomon launched its 20t/a abscisic acid technical production line on 22 Aug. 2011.

-Shaanxi Meibang's fenoxanil 20% WP is about to be on the market of Guangdong Province.

-Hunan Haili plans to expand its thiophanate-methyl technical production to 5,000t/a by the end of 2012.

-Demand for trimethyl orthoformate from the domestic and overseas market will keep rising in the field of pesticides in the near future.

-Ethylenediamine's capacity in China has witnessed jump in the past months of 2011.

-The application of chemical pesticides witnesses decline in China.

-Fungicides to control rice blast sell well recently in main middle and late rice planting areas.

-Price of azoxystrobin technical has plummeted in the domestic market since 2008.

-Southern rice black streaked dwarf continues spreading in the southern rice planting areas recently.

-Cotton verticillium wilt has stepped into a high occurrence period especially in most cotton planting areas of Jiangsu, Anhui and Hebei.

 (Guangzhou China, September 19, 2011)

About CCM

CCM is dedicated to market research in China, Asia-Pacific Rim and global market. With a staff of more than 150 dedicated highly-educated professionals. CCM offers Market Data, Analysis, Reports, Newsletters, Buyer-Trader Information, Import/Export Analysis all through its new proprietary product ValoTracer.
Please visit http://www.cnchemicals.com for more information or contact econtact@cnchemicals.com

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.
17th Floor, Huihua Commercial & Trade Mansion, No.80 Xianlie Zhong Road, Guangzhou 510070, China

Market Share of Jingangmycin Gradually Shrinking in China

Jingangmycin, an antibiotics fungicide, had ever dominated the domestic market of rice sheath blight control for as long as around 30 years. However, its market share has been gradually shrinking in Chinese main rice planting areas in recent years mainly due to its decreasing control effect and thinner profits, as well as the competition from other products., according to CCM’s September Issue of Fungicides China News 2011.

As one of the major rice diseases, the occurrence area of rice sheath blight all over the country exceeds accumulatively 16.67 million ha. every year, which has been seriously threatening the production of rice in China. Since the advent of jingangmycin in 1970s, this biological fungicide has been received favourably in the domestic market.

Thanks to the good control effect on rice sheath blight in the early stage of application, many domestic producers attached great importance to the development and production of jingangmycin. Therefore, the output of jingangmycin (calculated by 5% AS, similarly hereinafter) had increased in China over the last few decades, especially in the late 1980s.

For example, the total output of jingangmycin in Zhejiang, one of the provinces distinguished for its jingangmycin production, had reached about 57,000 tonnes in 1987. It is worth noting that the annual output of jingangmycin in China has been reduced to 30,000~40,000 tonnes in recent years, which indicates that jingangmycin is encountering the predicament of shrinking market domestically.

The decreasing control effect on rice sheath blight is one of the key factors leading to the market shrinkage of jingangmycin. After several decades of successive use, the control effect of jingangmycin 5% AS against rice sheath blight has been reduced from about 90% to 65%.

Moreover, the persistent period of jingangmycin has also been shortened by around 65% to 7 days from original 20 days. Under the circumstances, increasing its application dosage and frequency has been a common way in recent years so as to achieve better control effect.

With some new products to control rice sheath blight constantly emerging, the market share of jingangmycin in China's main rice planting areas has suffered carve-up to a great extent. In particular, these new fungicides mainly include hexaconazole, tebuconazole, prochloraz, propiconazole•difenoconazole, polyoxin and so on.

Thereinto, the sales of hexaconazole with high efficiency has been heating up in the domestic rice sheath blight control market in recent years. Owing to the enhanced promotion, some companies' hexaconazole formulation products are very popular, such as 30% SC produced by Shaanxi Sunger Road Bio-Science Co., Ltd., 50% WDG produced by Shaanxi Meibang Pesticide Co., Ltd., 10% EC produced by Lianyungang Liben Agro-chemical Co., Ltd., etc.

Besides hexaconazole, propiconazole•difenoconazole, an excellent mixed formulation to control rice sheath blight, has also been in popularity in the domestic market, especially in Hunan, Hubei, Zhejiang, etc. It is estimated that the market share of propiconazole•difenoconazole will continue to go up in 2011.

Last but not least, many domestic dealers and retailers are reluctant to sell jingangmycin mainly due to the relatively thinner profit, which has hindered the development of jingangmycin accordingly. Although many fungicides' prices have witnessed rise with the increasing production cost, it is rather difficult for most domestic peasants to accept the price increase of jingangmycin as its previous price is very low and keeps stable for many years. It is inevitable that the profit margin of jingangmycin will confront further decrease.

Actually, some domestic producers of jingangmycin technical have gradually cut back or stopped their production in consideration of the shrinking market. For instance, a staffer of Jiangsu Jiatai Chemical Co., Ltd. revealed that the company has not produced this product for several years.

It is well known that Zhejiang Qianjiang Biochemical Co., Ltd. is the largest domestic producer of jingangmycin technical with a capacity of 2,000t/a. As reported in Fungicides China News 1104, the company has begun to reduce jingangmycin's production since 2010.

It is estimated that the output of jingangmycin in China will continue to go down to a certain extent in the near future with the gradual reduction of jingangmycin production; the situation of the shrinking market share for this biological fungicide will remain grim.

Source: Fungicides China News 1109

http://www.cnchemicals.com/Newsletter/NewsletterDetail.aspx?id=2

(September 13, 2011, Guangzhou)

Main content of Fungicides China News 1109:

Jiangsu Lanfeng's fungicide business significantly increases in H1 2011

Noposion's performance steadily grows in H1 2011

Changqing Agrochemical's fungicide business performs poor in H1 2011

Market share of jingangmycin gradually shrinking in China

Thiediazole copper to vitalize the market of disease control

Shandong Dacheng to further cement fosetyl-aluminium production

Sichuan Lomon launches 20t/a abscisic acid technical production line

Shaanxi Meibang's fenoxanil to be on the market

Hunan Haili to expand thiophanate-methyl technical production

Demand for trimethyl orthoformate to keep rising in pesticide field

Ethylenediamine capacity sees jump in China

Chemical pesticide application shows decreasing trend in China

Fungicides to control rice blast sell well recently

Azoxystrobin: price plummets amid capacity expansions since 2008

Southern rice black streaked dwarf continues spreading

Cotton verticillium wilt stepping into high occurrence period

Fungicides China News, a monthly publication issued by CCM International on 10th of every month, provides a wealth of exclusive information and analysis, research and development dynamics of domestic competitors, analysis on import and export of key products, cooperative opportunities with domestic and foreign companies, and market information of foreign patent-expired products.

Please visit http://www.cnchemicals.com/ for more information or contact us at econtact@cnchemicals.com

CCM International Ltd.
Guangzhou CCM Information Science & Technology Co., Ltd.