Market Research Reports - Ken Research Future Outlook China Insecticides Industry | Page 2

groups are acquiring and merging with the smaller manufacturers to eliminate inefficient
capacities and improve industry concentration along with the adjustment of national macro
policies. It is believed that mergers and acquisitions (M&A’s) are becoming a common practice
among Chinese international agrochemical leading players.
The depressing global economy and the need for eco-friendly pesticide products have resulted
in the decline of supply and demand of domestic pesticides in the recent years. It was studied
that there is a pesticide abuse in crops causing increase in horrible food safety. The Chinese
government is releasing stricter policies for environmental protection, raising threshold,
phasing out highly toxic and highly residual pesticides.
China produces 500 kinds of pesticides technically, out of which 300 pesticides have the actual
productive capacity which is generic products. The largest proportion of China's pesticide
products are traditional pesticides like glyphosate and chlorpyrifos. Traditional pesticides
comprise of simple production technologies, mature production processes, stable market
demand and sufficient raw material supply, and easier registration approval. The country also
produces 100 kinds of insecticide active ingredients and over 1,500 types of insecticide
formulations. The leading insecticides are organophosphorus insecticides, carbamate
insecticides and pyrethroid insecticides in the organic insecticides category.
The chemical element, phosphorous is used in various products such as detergents, water
treatment, flame retardants, batteries, chemical intermediates, and phosphorous fertilizers.
71% of the phosphate rock is used for the production of phosphorous fertilizers. There is a huge
demand for the derivatives of phosphorous such as yellow phosphorous. Phosphorous industry
in China is well established with complete industrial systems enabling various products
manufacturing. The industry starts from mining of phosphate rock to the production of basic
and fine phosphorous chemicals. The increase in the demand for phosphate fertilizer has
initiated an increase in the production capacity which resulted in overcapacity and oversupply
of phosphate fertilizers in the recent years. Yellow phosphorus is a very important basic
industrial raw material used for the production of red phosphorous, phosphoric acids,
phosphorous compounds, and various pesticides. The increasing consumption of phosphorous
fertilizers will witness a steady growth in the p