The technical-grade and intermediate markets are trading in a narrow range at elevated levels, with growing wait-and-see sentiment among industry participants.

Market Trend Monitoring
　　This month, the National Plant Protection Conference was held in Chengdu, Sichuan, drawing a record‑breaking attendance. However, formulation manufacturers and distributors are under dual pressure: rising prices of upstream active ingredients and sluggish cost pass‑through to the end market. Against this backdrop, end‑user demand has yet to improve. Meanwhile, persistent smog in northern China has prompted the central environmental inspection team to conduct “follow‑up reviews,” with particular criticism directed at Shandong, Liaoning, and other regions. In Jiangsu, production resumption remains stalled, leaving supply still intermittent. This market stalemate has prompted some capital that entered the active‑ingredient market earlier to seek liquidity, resulting in the emergence of lower‑priced supplies and further intensifying a wait‑and‑see sentiment. As a result, November saw the first monthly decline since April.
　　On November 25, 2018, the Zhongnong Lihua active‑ingredient price index stood at 127.23 points (with the base period set at 100.00 points as of July 1, 2014), down 1.46 points, or 1.14%, from the previous month. Among the tracked products, gains and losses were fairly balanced, with half remaining unchanged. Year over year, the index was still up 0.90 points, a 0.71% increase; 69 products posted year‑on‑year gains, while 34 declined, marking a new low for the second half of the year. Although the index has fallen for three consecutive weeks, it remains at a historically high level, largely driven by persistently elevated prices for conventional insecticides and fungicides. However, this month, nicotine‑based insecticides and pyraclostrobin technicals performed poorly, with market prices declining and pulling the index lower.
　　Herbicide market
　　On November 25, 2018, the price index for Zhongnong Lihua’s herbicide technical grade reported 110.93 points, down slightly by 0.32% month-on-month and up 3.78% year-on-year, primarily due to… Corn Field herbicide, Wheat Herbicides for field crops remain at elevated levels. This month, glyphosate technical grade and amide‑type herbicides, Soybean Herbicides for field crops and other products remain relatively stable, while the raw materials for nicosulfuron, mesotrione, and quizalofop‑p‑ethyl continue to be in short supply. The raw material for glufosinate‑ammonium, the mother solution of diquat, and other bulk herbicides are experiencing steady declines. Wheat Herbicides for rice cultivation remain in short supply.
　　This month, the glyphosate technical market has remained stagnant, with manufacturers holding low inventory levels. Although rising prices of key raw materials such as yellow phosphorus and glycine have prompted producers to push for higher transaction prices, overall market demand remains subdued, leaving quotes hovering around RMB 28,500 per ton. As for ammonium glufosinate technical, after an initial period of coordinated pricing among producers, prices have recently softened; the emergence of unusually low formulations at the National Plant Protection Conference has fueled widespread wait-and-see sentiment, bringing market quotes back down to approximately RMB 175,000 per ton. The outlook ahead remains uncertain. Meanwhile, in the diquat base‑compound market, both technical and formulated product inventories remain relatively high, and the impact of the EU’s ban has kept the market sluggish, with quotes currently at RMB 40,000 per ton.
　　The market volume for amide‑type herbicides has been steadily increasing. Rising prices of liquid chlorine, chloroacetic acid, and MEA have exerted significant cost pressures; however, export orders remain subdued, while the domestic market is largely in a wait-and-see stance. Although the price of pre‑emergence herbicide active ingredient propachlor has fallen to RMB 38,000 per ton, supply remains tight as foreign‑trade orders begin to materialize. The delivered‑to‑warehouse price of acetochlor technical grade currently hovers around RMB 24,500 per ton, showing relative stability. For butachlor technical grade, the quoted price stands at RMB 25,000 per ton; isopropyl‑chloroacetamide technical grade is quoted at RMB 26,000 per ton; and isopropyl‑methyl‑chloroacetamide technical grade is also quoted at RMB 26,000 per ton. Uncertainty surrounding exports has left the market cautious, resulting in limited transaction activity.
　　Production in northern Jiangsu remains suspended. Although phenol prices have retreated, supply of the 2,4‑D technical grade is tight, holding at a high of RMB 26,000 per ton. The bensulfuron‑methyl technical grade has been in short supply due to constrained upstream raw material availability, with market prices exceeding RMB 300,000 per ton. As for chlorimuron‑ethyl technical grade, very few producers are operational, while export orders remain robust; market prices have risen to a peak of RMB 320,000 per ton, with supplies still extremely tight.
　　Manufacturers of pendimethalin technical grade are adopting a cautious approach to quoting and accepting orders, as upstream intermediates have seen significant price increases. However, constrained demand and expanding production capacity among various producers have kept the quoted price at RMB 52,000 per ton. For fomesafen technical grade, exports remain the primary outlet; with some distributors eager to realize cash, market prices have declined, while downstream players maintain a wait-and-see stance, resulting in actual transaction prices hovering around RMB 130,000 per ton. Meanwhile, manufacturers of trifluralin technical grade face production restrictions due to environmental regulations, with prices holding above RMB 40,000 per ton.
　　The intermediate for fluazifop‑p‑butyl remains at a high level, while the end‑market is relatively stable, with market quotes hovering around RMB 248,000 per ton. Supply of quizalofop‑p‑ethyl and nicosulfuron technical grades remains tight; upstream intermediates are priced at elevated levels, limiting availability and disrupting manufacturers’ production continuity, resulting in subdued willingness to accept new orders. Prices are quoted at RMB 255,000 per ton and RMB 290,000 per ton, respectively, but actual transactions remain limited due to insufficient supply, and prices are expected to stay elevated going forward. As for isooctyl ester of fluroxypyr, manufacturers have released some lower‑priced offerings, yet constrained intermediate supplies continue to leave a substantial gap, keeping market prices firmly above RMB 255,000 per ton.
　　The sharp rise in resorcinol prices has provided strong cost support for downstream ethofumesate and mesotrione technical-grade products. However, with a certain level of ethofumesate inventory, the market is primarily focused on destocking, driving quotes to around RMB 176,000 per ton. Meanwhile, mesotrione technical-grade supply remains tight, with few producers operating at full capacity, and no signs of relief in raw material availability; both 1,3-cyclohexanedione and 2-nitro-4-methylsulfonylbenzoic acid have remained at multi-year highs. At the beginning of the month, market prices surged, but by month’s end, amid expectations that significant production capacity would come online in December, prices retreated to RMB 245,000 per ton.
　　Environmental compliance pressures are significant across the industrial parks in northern Jiangsu. With few manufacturers of bentazone technical grade coming online, prices this month have remained steady at a high level of RMB 120,000 per ton. Meanwhile, small‑scale producers continue to supply bentazone aqueous formulations, driving market prices below RMB 50,000 per ton. For cyhalofop‑butyl technical grade, manufacturers have gradually resumed production, keeping market prices stable at RMB 240,000 per ton; upstream supplies of 3,4‑difluorobenzonitrile and propionic acid remain tight. As for clodinafop‑propargyl technical grade, demand persists after earlier inventory depletion, resulting in tight supply and quoted prices above RMB 290,000 per ton, with manufacturers prioritizing order fulfillment. Going forward, attention will need to be paid to the resumption of operations at the northern Jiangsu industrial parks.
　　The technical‑grade enesterone inventory is at a low level, and due to environmental‑compliance constraints, both the production capacity utilization of triketones and that of the technical grade are extremely limited. This month, export orders have been steadily increasing, with shipments aiming to reach the U.S. market before year‑end; as a result, the market price remains elevated at RMB 200,000 per ton. Meanwhile, supplies of the technical‑grade isoxaflutole remain tight: domestically sourced lower‑concentration grades are holding steady around RMB 80,000 per ton, while demand for higher‑concentration grades destined for export remains robust, with manufacturers prioritizing production to fulfill export contracts.
　　The upstream price of cyanuric chloride, the raw material for atrazine, has been raised, but the downstream market remains relatively stable, with manufacturers quoting RMB 24,000 per ton.
　　Pesticide market
　　This month, organophosphate and pyrethroid products remained at high levels, while nicotinic‑based products saw inventory destocking. Although intermediate prices stayed elevated, the end‑market softened. According to the Zhongnong Lihua insecticide active ingredient price index released on November 25, 2018, the index stood at 152.99 points. Driven by persistently high pyrethroid prices, the index edged up 0.23% month over month, but fell 2.20% year over year, largely due to declines in nicotinic‑based products.
　　This month, the supply of abamectin technical-grade products remains tight, with exceptionally constrained availability; manufacturers are prioritizing order fulfillment. The market price for abamectin technical powder stands at RMB 780,000 per ton. Meanwhile, the supply of emamectin benzoate (commonly referred to as “emamectin”) technical-grade has increased, leading to lower‑priced offers from sellers seeking to liquidate inventory, with prices now quoted at RMB 1.24 million per ton. Looking ahead, with staggered production schedules during the upcoming heating season, abamectin technical powder supply is expected to remain tight. Whether the market for emamectin technical-grade will continue to decline remains to be seen and will require further monitoring.
　　Following the ACE meeting, amid a sharp rise in solid‑light prices, CCMP (2-chloro-5-chloromethylpyridine) quotations were raised, while downstream nicotine‑based product manufacturers remained largely on the sidelines. Entering November, solid‑light prices began to decline as market participants sought to realize profits; imidacloprid technical grade was quoted around RMB 187,000 per ton, and low‑priced supplies of acetamiprid technical grade emerged, with quotes at RMB 190,000 per ton, though trading volumes remained subdued. Acetamiprid technical grade held steady at approximately RMB 275,000 per ton. For thiamethoxam and clothianidin technical grades, cost support remained pronounced, production was constrained, and CCMT (2-chloro-5-chloromethylthiazole) prices stayed elevated; however, market sentiment remained cautious, with transactions skewed toward the lower end, quoted at RMB 130,000 and RMB 160,000 per ton, respectively. As for pymidathion technical grade, few producers were operating, while upstream hydrazine hydrate and 3‑cyano‑pyridine prices edged higher; with some inventory available, the price remained stable at RMB 165,000 per ton.
　　There are very few manufacturers of malathion technical grade, leading to tight supply and market prices remaining at a high of RMB 26,000 per ton. Although ethyl chlorophosphate is supported by cost factors, downstream production rates for profenofos, chlorpyrifos, and phoxim technical grades have hit new lows, with more producers halting operations and adopting a cautious approach to order intake. As a result, the price of profenofos technical grade has stayed elevated at RMB 70,000 per ton, chlorpyrifos technical grade has risen to RMB 53,000 per ton, while phoxim technical grade has declined, trading at RMB 43,000 per ton. High levels of “three wastes” in the production processes of organophosphorus products represent a major factor constraining future supply.
　　Fipronil technical‑grade manufacturers are prioritizing order fulfillment, with production capacity remaining constrained and export orders robust; prices have stayed elevated this month, above RMB 700,000 per ton. Meanwhile, due to shortages and high prices of the upstream intermediate 2,6‑difluorobenzamide, downstream technical‑grade producers face production challenges, driving related product market prices to new record highs. Currently, flufenoxuron technical is quoted at RMB 480,000 per ton, flufenprox technical has surged to RMB 420,000 per ton, etoxazole technical stands at RMB 480,000 per ton, and etofenprox technical has reached RMB 450,000 per ton. This product suite has seen substantial price increases, placing significant cost pressure on end‑use applications. With no signs of easing in upstream intermediate supply, tightness is expected to persist; attention should be paid to when production capacity for 2,6‑difluorobenzamide will be released.
　　With upstream methyl benzoate and ether aldehyde prices remaining at elevated levels, and the operating rate of cyfluthrin production insufficient, cost support for pyrethroids as a whole is exceptionally strong. As the month draws to a close, environmental‑compliance issues in Weifang have led to a supply shortage of methyl benzoate, keeping pyrethroid prices firm this month: the spot price for lambda‑cyhalothrin technical grade stands at RMB 375,000 per ton; bifenthrin technical grade remains at a high of RMB 425,000 per ton; cypermethrin technical grade inventories are dwindling, import prices for DV cyano‑acrylate chloride have surged, and the quoted price for the technical has been raised to RMB 135,000 per ton; fenvalerate technical grade is available only in very limited quantities, holding steady at a high of RMB 105,000 per ton; and the mother formulation of beta‑cyfluthrin has seen a sharp increase this month, with quotes now exceeding RMB 55,000 per ton.
　　There are very few manufacturers of the technical-grade active ingredient for pyridaben, resulting in an extremely limited supply on the market and a quoted price of RMB 110,000 per ton. Meanwhile, the technical-grade active ingredients for spirodiclofen and etoxazole remain stable, with prices at RMB 155,000 per ton and RMB 43,000 per ton, respectively.
　　Both the technical-grade insecticide chlorfenapyr and the technical-grade acaricide bifenazate are facing rising production concentration. With constrained capacity, robust demand, and low market inventories, prices have remained at elevated levels this month, hovering around RMB 320,000–460,000 per ton. The supply shortage is unlikely to be resolved in the near term, leaving a substantial market gap.
　　Fungicide Market
　　Although the prices of azoxystrobin technical and triazole fungicides remain at elevated levels, the price of pyraclostrobin technical has edged lower as operating rates have risen. According to the Zhongnong Lihua Fungicide Technical Price Index released on November 25, 2018, the index stood at 130.73 points, down sharply by 5.59% month-on-month, while still registering a slight year-on-year increase of 0.07%. Compared with the same period last year, pyraclostrobin technical saw a substantial decline, whereas other products experienced little price movement, and supply constraints persisted.
　　The production capacity utilization rate of difenoconazole technical-grade manufacturers remains low, while upstream supply of chlorophenol is constrained, driving market prices to RMB 250,000 per ton; inventory levels are depressed, and supply is tight. For propiconazole technical grade, exports have been sluggish, and influenced by existing stock levels, prices have stayed at a low level, declining this month to RMB 128,000 per ton. Hexaconazole technical-grade supply is tight, with market prices holding steady at a high of RMB 175,000 per ton. Supply of tebuconazole technical‑grade intermediates is also constrained, as manufacturers operate on an intermittent basis; however, spot sources are available, with prices reported at RMB 140,000 per ton. For tricyclazole technical grade, few producers are in operation, and the Lianyungang industrial park remains offline, impacting intermediate‑supply availability; market prices have adjusted to RMB 92,000 per ton, accompanied by a corresponding decline in market demand. For fluxapyroxad technical grade, domestic manufacturers maintain low operating rates, prioritizing export orders, and there are few intermediate‑producing facilities; available market supplies have risen to over RMB 700,000 per ton. As for flusilazole technical grade, very few manufacturers remain active, pushing market prices sharply higher to above RMB 360,000 per ton.
　　Although the upstream raw material para‑chloroaniline for pyraclostrobin has risen in price and most manufacturers have suspended production for maintenance, several major domestic agrochemical companies plan to resume operations in the coming period, leading to a cautious market sentiment and a price decline to RMB 205,000 per ton. For azoxystrobin, intermediate supplies from Lianyungang remain tight, keeping the raw‑material price at a high of RMB 370,000 per ton, yet market demand has plummeted. As for trifloxystrobin, with inventory digestion taking precedence, the market price has been raised to RMB 335,000 per ton, though producers are currently idled. The raw material for fluxapyroxad is quoted at RMB 510,000 per ton; with the peak export season over and demand still lagging, its market price has softened. With pyraclostrobin’s raw material trading at lower levels, demand for the other products is expected to be significantly affected.
　　Carbendazim technical grade and thiophanate‑methyl technical grade manufacturers are exercising caution in accepting orders. Environmental regulatory pressures remain significant in Ningxia and Jiangsu, with inventories at low levels. Market prices have been quoted at RMB 39,000 per ton for carbendazim and RMB 34,000 per ton for thiophanate‑methyl, remaining relatively stable.
　　The supply of the technical-grade active ingredient for pyrimethanil is tight, with low operating rates, driving market prices to a high of RMB 165,000 per ton. Demand for the technical-grade active ingredient of fludioxonil is rising, with production concentrated among a few manufacturers and robust demand from the South American market; prices have now climbed to RMB 330,000 per ton, leaving a significant supply gap. Meanwhile, producers of the technical-grade active ingredient for prochloraz are facing operational constraints, resulting in low inventory levels and continued price increases to above RMB 180,000 per ton, amid severe capacity shortages.
　　Demand for cyazofamid technical grade has not seen a significant uptick, and with production capacity coming online, prices remain below RMB 720,000 per ton. Meanwhile, upstream producers of thifluzamide technical grade have yet to resume operations, keeping market prices firm at a high level of RMB 350,000 per ton.
　　Supply of dimethomorph technical grade, ethirimol technical grade, and isoprothiolane technical grade is tight, with manufacturers operating at record-low capacity utilization. Major international agrochemical companies have placed orders, driving a sharp rise in the prices of these active ingredients to RMB 160,000/ton, RMB 140,000/ton, and RMB 175,000/ton, respectively, and easing supply is unlikely in the near term.
　　Intermediate market
　　This month, crude oil prices plunged, while natural gas remained at elevated levels, suggesting that cost pressures will soon be passed on to basic raw materials. Liquid chlorine prices surged sharply due to regional transportation restrictions, keeping the chlor-alkali market firmly supported at high levels. Bromine inventories are low and operating rates remain subdued, driving prices higher to RMB 35,000 per ton. The fluorochemicals market experienced volatile consolidation this month, with stable conditions across both upstream and downstream segments. With the wet‑season phase in the phosphate chemicals sector now over, prices are expected to rise; however, weak downstream demand has weighed on ethyl chloride, pushing its price down to RMB 23,000 per ton. Ethers and aldehydes, methyl benzenedicarboxylate, CCMP, and other products all stayed at elevated levels: ethers and aldehydes held steady at RMB 75,000 per ton, methyl benzenedicarboxylate climbed to RMB 75,000 per ton, and CCMP remained near a peak of RMB 155,000 per ton. CCMT supply remains tight, with quotes above RMB 60,000 per ton. Kufu acid, biphenyl alcohol, and DV chrysanthemate chloride continue to face severe supply constraints, with prices remaining high—Kufu acid is stable at RMB 320,000 per ton, though supply is expected to stay tight going forward, leaving a sizable export gap. Meanwhile, pyridazines, imidazolines, and cyanoethyl esters have remained relatively stable, with pyridazines trading at RMB 45,000 per ton as low operating rates keep inventory digestion as the primary driver. Demand for certain intermediates has been somewhat constrained by the lack of end‑user plant start-ups.
　　The environmental situation remains tense, and the supply outlook for November is far from optimistic. Although shifting market sources have heightened caution among buyers, this has not dampened the purchasing enthusiasm of global agrochemical giants. Currently, most supplies are earmarked for export, which is the sole positive driver of demand in the market. Looking ahead, it will likely take some time to work down existing inventories, and the level of those inventories will determine how long the market remains in a consolidation phase.

Author: Zhongnong Lihua Technical Grade Active Ingredient Editor: xwbj1