In the coming years, the production of agrochemical intermediates is expected to grow at a modest pace, with the intermediate market size reaching RMB 2.7 trillion by 2023.

Release Date:

2018-07-27

In recent years, influenced by policy factors, the operating rate of pesticide intermediates has declined significantly. From 2011 to 2016, both the production and demand for pesticide intermediates in China showed an upward trend, though the pace of growth gradually slowed. In 2016, China’s pesticide intermediate output reached 491 tons, down 0.41% year on year, while demand stood at 4.75 million tons, a decrease of 1.04% compared with the previous year. In 2017, capacity and demand were approximately 5.04 million tons and 4.65 million tons, respectively. Figure 1: China’s Pesticide Intermediate Production and Demand, 2011–2017 (Unit: 10,000 tons) Based on historical data and environmental policy frameworks, among other factors.

　　In recent years, due to the influence of policy factors, Pesticide The operating rate of intermediates has declined significantly; from 2011 to 2016, in China… Pesticide The production and demand for intermediates have been on an upward trend, but the pace of growth has gradually slowed. In 2016, China… Pesticide Intermediate production stood at 491 tonnes, down 0.41% year on year; demand totaled 4.75 million tonnes, a decline of 1.04% compared with the previous year; in 2017, capacity and demand were approximately 5.04 million and 4.65 million tonnes, respectively.

　　Figure 1: China, 2011–2017 Pesticide Intermediate Production and Demand (Unit: 10,000 tons)

　　Based on historical data and environmental policy frameworks, forward-looking projections indicate that in the coming years, Pesticide Intermediate production will grow at a slower pace. Over the past three years, China… Pesticide Usage has been declining steadily, as… Pesticide The goal of zero growth in consumption has yielded significant results, Pesticide Downstream demand for intermediates remains constrained; however, the emergence of high-value-added products will boost the per-unit value and market prices. According to forward-looking projections, in 2023, China… Pesticide Intermediate production stands at approximately 5.3 million tons; based on the current… Pesticide Based on an average market price of RMB 500 per kilogram for the intermediate, by 2023, Pesticide The intermediate market is valued at approximately RMB 2.7 trillion.

　　Figure 2: China, 2018–2023 Pesticide Intermediate Production Forecast (Unit: 10,000 tons)