Because of international climate anomalies, the market slow to start, pre-inventory with high pressure, insecticide market in addition to some dichlorvos, endosulfan and other products due to the relocation of enterprises stop production, market under the influence of demand stress was better, most products when the raw material prices rising, due to overcapacity in the slow-moving and down state. In this case, from the beginning of the year has been with good price avermectin due to part of the enterprises selling cheap also suffered the situation of falling prices, manufacturers' confidence has been severely suppressed, and showed panic sell-off trend, in the peak season, avermectin market downturn once again, into an unprecedented slump. When some enterprises get confused by the dropping price, because of profits lowering, part of the abamectin manufacturers have to force discontinued produce to wait a month or more. Some Avermectin production enterprises in order to organize industries self-help, courage to take responsibility for the industry, purchase part of avermectin market sell-off original drug products, to stabilize the market price, this method will undoubtedly like hitting a shot in the arm of severe avermectin prime industry market. Thus, avermectin market sentiment rose again.
In recent years, as a highly selective and highly secure bio-pesticide, avermectin market demand is gradually rising, but since the second half of 2009, only a short period of one year, why avermectin experienced a roller coaster of violent unrest again, we can analyze from the following aspects.
The first is the original drug overcapacity, fierce competition. In previous years, the avermectin sales started in February and March, while the second half of last year and early this year, vendors advance short storage purchase, to a certain extent, ease the avermectin season sales, in March and April by the market of the original drug manufacturers increased production capacity and competitive effects, avermectin end-market consumption is limited, Chinese market appears overstock, China's original drug production reached 3,600 tons, while the actual demand is only 2,800 tons, the original drug market show up the clear trend of oversupply.
Until May of this year, sales should be increased in the peak season, but due to competition and supply and demand imbalance, Avermectin drugs was temporary decline in sales, partly original abamectin suppliers due to funding chain factors eager to sell products, resulting in selling prices significantly lower than production costs, appears extreme market price; in addition, the original drug derivative, emamectin benzoate also encountered difficulties, reduced sales, rising inventories, with the avermectin flour decreasing, emamectin benzoate prices also forced down, prices dragged down again fell to 1,000 yuan/kg or so, fell 16.7% by the highest market price of the previous 1,200 yuan/kg, avermectin flour price also from the previous 700 yuan/kg fell to 500 yuan/kg, the down fell was up to 28.6%, severe trauma of avermectin and emamectin benzoate original drug's normal production.
Furthermore is the market launch delay caused by abnormal season. Drought, cold climate make the major pests are relatively occurring less, this particular climate is not conducive to the occurrence of pests, causing the residues base of crop major pests reduced, the number and frequency of farmers medication reduced; due to inclement weather, pesticide used season delayed, coupled with preparations market last year's inventory larger, the first half year consumed inventory, terminal pesticide dealers reduce the number of purchase, coupled with artificially frequent fluctuations price, dealers with strong mood to wait and see, directly result of the whole industry chain operation slowed down, the original drug significantly reduced demand, a chain of reactions, leading to the original drug market appears unprecedented unsalable crisis.
Source:http://www.cospcn.com
