Anti-dumping investigation Ethofenprox is expected to benefit

On June 8, the Ministry of Commerce announced an anti-dumping investigation against imports of meta-phenoxybenzaldehyde originating in India.
This investigation will end before June 8, 2018
.
M-phenoxybenzaldehyde is abbreviated as ether aldehyde.
It is an important pesticide chemical intermediate.
It is mainly used to synthesize pyrethroid APIs such as pyrethroid, cypermethrin, beta-cypermethrin, fenvalerate, and fenvalerate.
It is then used to manufacture pesticide formulations such as pyrethroid insecticides
.
China's consumption of ether aldehydes has been increasing, and India's imports of ether aldehydes have occupied a major position in the domestic market
.
Because pyrethroids have the characteristics of high efficiency, low toxicity and low residues, they are the key domestically promoted varieties.
As the main raw material of pyrethroids, domestic consumption has been rising since 2013.
According to the anti-dumping application form on the Ministry of Commerce website, from 2013 to 2016 In 2015, the domestic consumption of ether aldehydes increased by 37.
84% in total
.
Among them, imports from India were 1571.
4,1954.
3,2471.
2,3637.
8 tons
.
They were up by 24.
36%, 26.
45%, and 47.
21% respectively over the same period of the previous year, and a cumulative increase of 131% in 2016 compared to 2013
.
During the same period, the market share has also risen sharply, and has occupied the leading position in the domestic ether aldehyde market
.
The Indian ether aldehyde has a serious impact on the Chinese industry, and the anti-dumping application is well-founded
.
China's main ether aldehyde manufacturers include Yangnong Chemical, Qinong Chemical, Yinuo Chemical, and Weifang Runnong.
Due to overseas shocks, prices have fallen year after year.
According to the Ministry of Commerce, the average price has fallen from 44,000 yuan in 2013 to 38,000 yuan in 2016.
, Qinong Chemical and Yinuo Chemical have been closed in 2013 and 2015 respectively.
As a major domestic manufacturer, Runnong’s operating rate dropped sharply in 2016 compared to 2013, and the number of employees on the relevant production line fell by nearly 50%, and it suffered losses throughout the year.
Cash flow is negative
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The average price of India’s exports to China was US$5522, and the price of exports to other countries was US$8,685.
The price difference was relatively large, and the reasons for anti-dumping complaints were relatively sufficient
.
If the ruling on the dumping of diethyl ether aldehyde is established, the long-term prosperity of pyrethroid will further increase
.
As a key intermediate for many mainstream pyrethroid varieties, ether aldehyde has a greater impact on the cost of domestic pyrethroids.
According to the anti-dumping tax law, if India's export price to other countries is used as the standard price for anti-dumping duties, it means that the current price of ether aldehydes It will increase by 20,000 yuan/ton, which is equivalent to an increase in the cost of kungfu pyrethroid by nearly 10,000 yuan/ton
.
Driven by cost, the prosperity of pyrethroid will further increase in the future, and domestic pyrethroid companies in the whole industry chain will benefit first
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Investment advice: Benefiting from the anti-dumping investigation of the key intermediate ether aldehyde, the prosperity of pyrethroids is expected to be further improved in the future.
There is one of the two ether aldehyde producers, potentially benefiting the subject)
.
Huifeng shares (2000 tons of kungfu pyrethroid production capacity)
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Risk warning: India's ether aldehyde dumping is not established
.