Pesticide industry will enter the price increase forecast this year

With the official introduction of the 12th Five-year Development Plan for the Pesticide Industry, the promotion of the production of pesticide raw materials will be further concentrated, and the merger and reorganization will accelerate the industrial integration. High-quality enterprises will face good opportunities for development. From the perspective of related pesticides and fertilizers benefiting stocks, pesticides and herbicides are the main varieties of pesticide production in China.

At present, the fundamentals of the pesticide industry remain flat. Since 2011, weak demand from abroad has increased the domestic sales pressure of pesticides. In addition, the application of extreme weather and the reduction of pests and diseases caused by the application of pesticides has been less prominent. This has caused the contradiction between supply and demand to be prominent. Industry inventories are large, product prices are low, and sales are relatively flat.

The glyphosate stocks also have a good performance in the recent market. Glyphosate is a herbicide developed by the Monsanto Company in the United States. Last year, as the price continued to rise, the industry has fully turned around to profitability. The relatively low inventory and the strong demand for downstream agriculture led the gradual transition of the glyphosate industry chain to the restocking phase, ushering in a new spring for industries that have been quiet for nearly three years. In the second half of 2012, as Monsanto withdrew from the glyphosate market and increased the promotion of genetically modified crops, it effectively supported the moderate increase in the price of glyphosate, and the market's hype over the market has also gradually increased.

In addition, there are also trading opportunities for listed companies that are used to control pests and diseases in agriculture, as well as to regulate the growth of plants and other herbicides such as weeding. These include mainly listed companies that use pyrethroid insecticides as their leading products. Lier Chemicals, which mainly manufactures pyridine pesticides and pharmaceuticals; Novozymes specializes in the research, development, production and sales of insecticides, fungicides, herbicides and plant nutrients; New shares such as chlorpyrifos and other pesticide products, Jiangshan shares, etc.