Since the second half of 2016 after the beginning of environmental verification, the pesticide market has entered a “suspended animation” state, a variety of pesticide products are in short supply, the price is all the way up, but the volume is not up, this contradictory situation Perhaps in the fourth quarter of this year will be improved.
          Environmental protection constraints in two aspects of the pesticide industry: on the one hand the production of chaos to be suppressed, small production capacity because the cost of environmental protection will be eliminated part of the enterprise, environmental protection will win the development opportunities; The amount of exchange rate, not only enterprises can achieve profit growth, the Government can keep the tax.
          Environmental Protection Department of the original chief engineer Yang Zhaofei on the new “Environmental Law” supporting policy was interpreted, he stressed that the new “Environmental Law” after the introduction of the one hand, from the policy to gradually implement the local government’s environmental responsibility, the current central has sent two Environmental protection inspection team, environmental inspectors in some provinces, and achieved good results, the end of 2017 will be the central environmental protection inspectors full coverage; the other hand, will also greatly improve the cost of illegal enterprises, for industrial enterprises, especially pesticide enterprises, not only To discharge standards, put an end to stealing row, but also take the initiative to upgrade technology, eliminate backward production capacity, but also to strict environmental management, improve the rules and regulations.
          Anhui Rural Agriculture and Rural Information Technology Co., Ltd. Zhang Bo believes that: the Chinese government’s environmental policy is the long-term “magic spell” , an effective tool to clean up the informal small capacity, and strict supervision will lead the leading enterprises. Environmental protection is the focus of pesticide industry to improve the main starting point, more than 90% of sales of less than 100 million yuan enterprises in the shut down tide and “into the park on the environment,” the blow to survive worrying, has shut down small business recovery, Pesticide supply will maintain long-term tension, industry concentration process is expected to accelerate, leading enterprises profitability will be further enhanced.
          To glyphosate as an example. 2017 in the second half of the market, the glyphosate market is expected to remain at 1.9-2.4 million / ton, for the following reasons: First, the second half of 2017, the central environmental protection inspection team to complete the Sichuan, Shandong and other provinces to further implement the pre-environmental The results, as well as the business to honor the environmental commitments; second, 2017 originally planned to put into production glyphosate capacity, and not officially put on the market; third, glycine and other intermediate prices, due to winter heating season may be limited production, Fourth, pesticide formulations export tax rebate can be transferred to 8-13% of the stalls, will be more to stimulate the export of related pesticides. Other pesticide products and glyphosate are mostly similar factors, a variety of factors superposition, when China’s pesticide products is expected to usher in the second wave of the market during the year.