With increasing domestic and overseas orders, China’s mancozeb market has remained in peak season. Currently, the market price keeps stable while the supply is getting tight. It is expected that mancozeb’s price would keep rising in China in the near future, according to analyst CCM.
The overall mancozeb market in China has gone up steadily since the beginning of 2016, although it is not as high as the price in the beginning of 2015. The domestic average ex-works price of mancozeb technical reached USD2,860/t in the first half of April 2016, according to CCM's price monitoring.
Monthly ex-works price of mancozeb technical in China, Jan. 2015-April 2016
At present, leading Chinese mancozeb technical producers are in stable operation, according to CCM’s research.
Jiangsu Nantong Baoye Chemical Co., Ltd., with the capacity of 3,000 t/a, is in stable operation and produces 20 tonnes of mancozeb daily. Its quotations remain stable and the sales keep on well.
Shaanxi Xi'an MPC Stock Co., Ltd., with the capacity of 5,000 t/a, produces 15-20 tonnes of mancozeb daily. Just like Jiangsu Nantong Baoye Chemical Co., Ltd., its quotations also remain stable and the sales keep on well.
Hebei Shuangji Chemical Co., Ltd., with the capacity of 15,000 t/a, is in normal production. And it is receiving increasing orders from overseas market with a few inventories for new orders.
In addition, the production facilities of Limin Chemical Co., Ltd. (Limin Chemical) is in stable operation and it remains in good sales, with the capacity of 20,000 t/a.
On 12 April, 2016, Limin Chemical signed an agrochemical purchase contact (mainly on mancozeb) with Corpovex South America, a foreign trade company in Venezuela, with the total value reaching USD46.94 million.
Thanks for brisk downstream demand, stable orders for export and little chance for the price regulation, the price of mancozeb would be stable and possible to rise in short term.
“As it is the peak season, domestic mancozeb plants have been fully booked and production is mainly for current orders. In the meanwhile, some producers' orders have scheduled to the end of this quarter, while some others are under pressure from supply. It has been a good market condition for mancozeb,” analyzed Zhou.
“Moreover, as current market price is acceptable for both producers and purchasers, it is not likely to regulate the price of mancozeb greatly in short term,” Zhou added.
The “rational” mancozeb
Domestic market price of mancozeb technical has always remained relatively stable in the past few years, compared with those of other fungicides. Therefore, it makes the producers more rational towards changes in the market.
"Besides demand, competition with foreign enterprises and costs are also vital factors affecting China's mancozeb market," said Zhou.
Currently, major rivals in the international mancozeb market include Dow AgroSciences, whose plant was constructed in China and three Indian producers, namely United Phosphorus Limited, Indofil Industries Limited and Sabero Organics Gujarat Limited, according to an unnamed employee in Limin Chemical.
“They all have good capacity in producing mancozeb, which make them equal rivals against the Chinese mancozeb producers,” said Zhou.
"Also, production cost is the key in the competition," Zhou stated.
Ethylenediamine, manganese sulfate and carbon disulfide are the main raw materials for mancozeb, which also directly affect its market price.
For instance, in the peak season of 2015, domestic average market price of mancozeb technical surged to USD3,100/t, due to the rising costs on raw materials, like carbon disulfide and sulphur.
Moreover, these production costs didn't fall in the slack season. Thus, from May to Oct. 2015, the market price of mancozeb just decreased slightly.
So far, there have been Chinese producers starting to produce ethylenediamine already, while India mainly depends on imported ethylenediamine, manganese sulfate and carbon disulfide.
On 20 March, 2016, Limin Chemical announced to launch a 10,000 t/a ethylenediamine project to realize self-supply, reduce production costs and improve its competitiveness.
“Chinese mancozeb producers are still competitive in costs for raw materials,” Zhou added.
CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & ingredients and life science markets. Founded in 2001, CCM offers a range of data and content solutions, from price and trade data to industry newsletters and customized market research reports. Our clients include Monsanto, DuPont, Shell, Bayer, and Syngenta.