The recovery of the pesticide industry in 2017 is expected

The general trend of the pesticide industry is on the rise, and the recovery of the whole industry in 2017 is expected
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The prices of agricultural products on the demand side and the global food price index have shown signs of bottoming out, and the destocking phase of the international agrochemical giants has basically ended, entering a new round of restocking cycle
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On the supply side, as the domestic high-pressure environmental protection situation continues, the industry's competitive landscape is expected to further improve
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On the cost side, with the short-term correction of international oil prices, the price increase of basic chemical products will be eased, which is conducive to the shift of profits in the industrial chain to the original drug manufacturers
.
Therefore, there is a high probability that the pesticide industry will recover in 2017, and the company will fully benefit
.
With the resurgence of production capacity transfer, the export of pesticides has become a driving force for the market
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Since 2010, China’s pesticide industry has shown distinctive export-oriented characteristics.
At the same time, the growth rate of investment by overseas giants in new production capacity has slowed greatly, and foreign innovative pesticide companies have gradually formed The economic model of Chinese companies customizing or imitating the original pesticides and exporting them
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In 2016, China's export volume of pesticide technical materials reached 1.
4 million tons, a 19.
2% increase over the previous year, setting a record high.
It is expected that in the context of capacity transfer, the heavy export volume of pesticides in the next five years will be the cornerstone of the industry's prosperity
.
Pesticides have entered the post-patent era, and generic drug companies are facing strategic opportunities
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2016-2020 is the peak time window for the expiration of patented pesticides.
Due to the increase in research and development costs and the slowdown of new drug releases, the adjustment of the production structure of multinational agrochemical giants will promote the continuous transfer of high value-added pesticide production capacity to China
.
In this process, companies with strong R&D strength, strong technical reserves, and adherence to high value-added and differentiated product routes will stand out
.
Focus on the varieties that have reached a turning point in demand: dicamba and glufosinate
.
As glyphosate becomes increasingly resistant to weeds, the development and application of compound reagents in the future will be driven by the general trend.

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The genetically modified soybean and cotton varieties developed by Monsanto are resistant to glyphosate and dicamba.
The above-mentioned varieties have been approved by markets such as Canada, the United States, and Brazil at the end of 2016.
Dicamba will enter explosive growth in the next three years; the future of glufosinate The increase in demand mainly comes from the substitution of paraquat and the promotion and use of glyphosate-glufosinate-ammonium complex reagents.
Due to high production barriers, there will be no significant expansion of production capacity within two years.
We are optimistic about the industry's prosperity.

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