Though May is the traditional peak season of pesticide sales in China, pesticide dealers take a dim view of the sales due to the current slack market demand in China. Drought in South China and draggy sales of vegetables are the major factors leading to the depressed market demand, which also breaks pesticide manufacturers' previous expectation of large pesticide consumption in 2011. Market prices of most pesticides, especially insecticides, remain relatively stable in May.
In this month, a lot of domestic insecticide manufacturers are reported to be affected by the shortage of power supply in China. With the increasing production cost and relatively stable market prices of insecticides, the profit of insecticide manufacturers in China is further squeezed. Some insecticide manufacturers like Jiangsu Laike and Ganzhou Wenong are not affected greatly as they are busy with the overall relocation.
It's estimated that more insecticide manufacturers will carry out overall relocation and move into chemical industrial parks in the future, which is indicated again in the recent-released Development Plan of Pesticide Industry in the 12th Five-Year Plan Period. In the plan, cleaner production, mergers & acquisitions, chemical industrial parks and green pesticides remain the key words, which are in line with that in Pesticide Industry Policy released on 19 Sept. 2010.
