Prices of nicotinic compounds and fungicide technicals have rebounded, with clear signs of an overall market recovery.

　　In June, environmental remediation efforts in Jiangsu’s industrial parks and along the Yangtze River remained under intense pressure. With Lianyungang Huatong Chemical ordered to shut down by environmental authorities, and reports emerging of a “follow-up inspection” by the Ministry of Ecology and Environment’s environmental oversight team, market supply-and-demand dynamics grew increasingly tight. Low inventory levels across distribution channels, coupled with production halts and output restrictions at manufacturing plants, underscored a clear upward trend in the market. Downstream formulation manufacturers and foreign‑trade order‑fulfillment activities were buoyed by strong buying interest, standing in stark contrast to upstream producers’ cautious approach to taking on new orders.
　　With the OPEC production-cut agreement remaining unclear, crude oil prices have been trading in a narrow range at elevated levels. Among basic raw materials, niche products such as benzene, phenol‑acetone, and propylene have seen a pronounced rebound, though producers remain cautious about taking on new orders. Lower downstream operating rates have kept demand for these foundational inputs subdued, resulting in weak demand across chlor-alkali, phosphate, bromine, and fluorine chemical sectors, with market conditions largely stable. Meanwhile, constrained supply of intermediates at high price levels continues to provide cost support for active pharmaceutical ingredients.
　　On June 24, 2018, the Zhongnong Lihua active‑ingredient price index stood at 116.04 points (with the base period set at 100.00 points as of July 1, 2014), up 2.49 points month‑on‑month, a gain of 2.19%, and up 24.80 points year‑on‑year, a rise of 27.19%. The number of products recording year‑on‑year and month‑on‑month increases has been steadily growing. This trend is largely driven by a rebound in the market prices of nicotinic‑based active ingredients and a stabilization followed by a recovery in fungicide active ingredients, with clear signs of an overall market rally emerging.
　　Herbicide market
　　On June 24, 2018, the price index for Zhongnong Lihua’s herbicide technical grade reported 107.95 points, up 1.50 points month-on-month, a 1.41% increase, and up 29.09 points year-on-year, a 36.89% rise, primarily driven by the rebound in glyphosate technical grade prices.
　　This month, glyphosate technical inventory remains low, glycine prices stay elevated, and pressure from environmental and safety inspections persists, leading to underutilized capacity. Supported by rising costs and manufacturers’ firm pricing, the market continues to hover at a high of RMB 28,500 per ton, with producers reluctant to sell even on new orders. For ammonium glufosinate technical, both domestic and international demand are weak; traders remain cautious, with only selective restocking, keeping prices below RMB 175,000 per ton. Meanwhile, diquat base product has been weighed down by low end‑user formulation prices and sluggish absorption, resulting in substantial inventories across the supply chain and a price decline to RMB 46,000 per ton.
　　The peak season for amide‑type herbicides has passed, with the market primarily focused on destocking. Upstream intermediate production rates have declined, and both upstream and downstream players are adopting a wait-and-see approach, anticipating the start of off‑season inventory replenishment. Overall market conditions remain largely stable. The spot price for acetochlor technical is RMB 25,500 per ton, metolachlor technical is quoted at RMB 25,500 per ton, isoproturon technical is at RMB 25,500 per ton, propanil technical stands at RMB 40,000 per ton, and butachlor technical is priced at RMB 25,000 per ton.
　　Sulfonylurea herbicides are experiencing tight supply due to production restrictions or shutdowns at upstream intermediates, resulting in low operating rates and persistent seasonal shortages. The price of nicosulfuron technical grade remained stable this month at RMB 270,000 per ton, while bensulfuron‑methyl technical grade remains out of stock, with quotes climbing above RMB 240,000 per ton. For mesotrione technical grade, the intermediate cyclohexanedione is trading at elevated levels, and benzoyl acid supplies are constrained; supported by strong export demand and widespread production cuts or shutdowns among manufacturers, prices rebounded this month to RMB 190,000 per ton. For chlorfluropyroxypyr‑isooctyl ester technical grade, the key intermediate pentachloropyridine is severely scarce, prompting manufacturers to adopt a cautious approach to order intake; market quotes have risen to over RMB 160,000 per ton amid tight supply. The intermediate for quizalofop‑p‑ethyl is currently out of stock, with prices holding steady at RMB 210,000 per ton. As domestic applications of haloxyfop‑p‑ethyl technical grade near completion, export orders are increasing, leading manufacturers to proceed cautiously with new bookings; consequently, the market price has climbed to RMB 250,000 per ton.
　　The intermediate for florasulam remains at a high price, with strong export demand; domestic applications are nearing completion, and the quoted price stands at RMB 135,000 per ton. For isoxaflutole technical grade, the market is currently working through previously accumulated inventory, with domestic use now winding down; the quoted price is RMB 85,000 per ton. As for mesotrione technical grade, its intermediates are out of stock, driven by robust foreign‑trade exports; production utilization has declined, supply is tight, and priority is being given to overseas channels, prompting a price increase to RMB 160,000 per ton.
　　Affected by the park’s production halt, paraquat technical grade has been subject to environmental inspections, leading to plant shutdowns and tight supply; its price has risen above RMB 100,000 per ton, while the aqueous formulation is quoted at RMB 40,000 per ton. For bentazone technical grade, the application season has ended, with prices now at RMB 55,000 per ton. As for pendimethalin technical grade, manufacturers face significant environmental pressures, driving up intermediate prices; the quoted price stands at RMB 51,000 per ton. Cyhalofop‑butyl technical grade is constrained by the Lianyungang park’s shutdown, resulting in lower operating rates; market prices have rebounded to over RMB 240,000 per ton, with intermediates out of stock and tight supply persisting. For bensulfuron‑methyl technical grade, low operating rates coincide with the peak application season, supported by elevated intermediate prices; quotes have climbed to RMB 390,000 per ton. Meanwhile, the intermediate trichlorocyanuric acid for atrazine technical grade remains stable amid consolidation, as the application period nears its end; prices are around RMB 25,000 per ton.
　　Pesticide market
　　Nicotinic‑based products, pyrethroids, and the abamectin series all rebounded this month. According to the Zhongnong Lihua insecticide technical‑grade price index released on June 24, 2018, the index rose 3.01% month over month to 129.28 points, an increase of 3.78 points; year over year, it climbed 23.15 points, up 21.81%. This month, manufacturers of abamectin‑emamectin benzoate technicals have been cautious about accepting orders, leading to a decline in available supply. Driven by strong seasonal restocking demand, market prices have risen: abamectin technical is quoted at RMB 680,000 per ton, while emamectin benzoate technical is priced at RMB 1.2 million per ton or higher.
　　This month, prices for various nicotine‑based insecticide intermediates, including CCMP, have continued to rise, with inventories being depleted relatively quickly and export orders providing upward momentum, driving a market rebound. The quoted price for imidacloprid technical grade has climbed to RMB 175,000 per ton, while acetamiprid technical grade is now at RMB 180,000 per ton. For thiamethoxam and clothianidin technical grades, cost support remains strong; with CCMT and nitroguanidine trading at elevated levels, domestic order activity has boosted demand, leading manufacturers to reduce operating rates and raise their quotes to RMB 110,000 and RMB 152,000 per ton, respectively. Meanwhile, the cost of nitenpyram technical grade has increased, prompting a price hike to RMB 280,000 per ton. As for pymetrozine technical‑grade intermediate 3‑cyano‑pyridine, its price has also rebounded; with manufacturers and distributors gradually working down existing inventories and domestic formulation producers ramping up stockpiling, the price has risen to RMB 158,000 per ton.
　　Organophosphorus products, supported by the cost of phosphorus pentasulfide, are under firm cost pressure. The production utilization rate for malathion technical grade is low, with quotes at RMB 26,000 per ton. Driven by foreign trade and bolstered by high costs, coupled with declining downstream operating rates, chlorpyrifos technical grade is quoted at RMB 47,000 per ton, while phoxim technical grade stands at RMB 44,000 per ton. For profenofos technical grade, market inventories remain low, manufacturers have suspended operations, and prices have been raised to RMB 63,000 per ton, resulting in overall tight supply.
　　Pyrethroid technicals are facing tight supply across the upstream chain, with methyl benzenecarboxylate, ether aldehyde, DV cyhalothrin chloride, kungfu acid, and biphenyl alcohol all in short supply. Sodium tert‑butoxide remains at elevated price levels, and prices for these products have been consolidating at high levels, with further increases observed this month. The price of lambda‑cyhalothrin technical has risen to RMB 265,000 per ton, while the price of cyhalothrin mother solution has stabilized at RMB 50,000 per ton. Cypermethrin technical is quoted at RMB 115,000 per ton, bifenthrin technical at RMB 380,000 per ton—both amid tight availability—and fenvalerate technical is now priced at RMB 104,000 per ton.
　　Intermediate 2,6-difluorobenzamide is experiencing severe supply shortages, leading to tight spot availability of downstream active ingredients—etoxazole technical, flufenoxuron technical, flufenoxuron‑1‑carbonitrile technical, and flufenoxuron‑2‑carbonitrile technical. With supply unlikely to ease in the short term, prices have risen to RMB 410,000/ton, RMB 320,000/ton, RMB 370,000/ton, and RMB 450,000/ton, respectively.
　　Inventory of spirodiclofen technical grade remains low, while butyryl chloride supply has eased somewhat, with prices at RMB 150,000 per ton. Supply of cyflumetofen technical grade is tightening due to dwindling channel stocks and low operating rates, quoted at RMB 255,000 per ton. With only a few manufacturers producing fipronil technical grade and heavy export order backlogs, supply continues to be tight, with market quotes at RMB 660,000 per ton. The price of etoxazole technical grade remains stable at RMB 43,000 per ton. Dicofol technical grade inventory is also low, with market quotes at RMB 92,000 per ton. For bifenazate technical grade, operating rates are sluggish, manufacturer inventories are lean, and export orders are increasing; by month-end, the quoted price was raised to RMB 425,000 per ton.
　　Fungicide Market
　　The price of azoxystrobin technical grade has rebounded. According to the Zhongnong Lihua fungicide technical‑grade price index released on June 24, 2018, the index stood at 117.27 points, up 2.99 points month‑on‑month, or 2.61%, and up 18.40 points year‑on‑year, a rise of 18.61%.
　　This month, production at the Lianyungang site has been constrained, and the phenol chlorination unit is operating at reduced capacity, driving up prices for chlorophenols and providing cost support. Triazole‑based active ingredients remain at elevated levels. For difenoconazole technical grade, supply is tight, with quotes at RMB 225,000 per ton; propiconazole technical grade is similarly limited by inventory, holding steady at RMB 130,000 per ton. Hexaconazole producers are concentrated, with low operating rates, and market quotes stand at RMB 165,000 per ton. Tebuconazole technical grade is in short supply, supported by robust domestic demand, with market prices at RMB 130,000 per ton. Tricyclazole technical grade remains scarce, with few manufacturers in operation; intermediate prices are high, hydrazine‑based feedstocks have surged, and the technical grade is quoted at RMB 85,000 per ton. As for fluxapyroxad technical grade, producers are prioritizing export orders, resulting in low operating rates, while domestic supply prices are reported above RMB 670,000 per ton.
　　This month, although end‑user restocking demand for pyraclostrobin technical remained subdued, the number of plants undergoing maintenance increased, leading the market to focus on destocking. By month’s end, supply tightened somewhat, with prices rising to RMB 215,000 per ton. For azoxystrobin technical, the key intermediate benzofuranone was out of stock, resulting in tight supply and a sharp surge in export orders; market prices rebounded to RMB 285,000 per ton. As for kresoxim‑methyl technical, few manufacturers were in operation, inventories remained low, and supply stayed constrained, with quotes climbing to RMB 300,000 per ton. Meanwhile, with capacity for oxyma‑methyl technical coming online, prices retreated to RMB 520,000 per ton.
　　Carbendazim technical and thiophanate‑methyl technical are being supplied steadily, with quoted prices of RMB 37,000/ton and RMB 30,000/ton, respectively; however, supplies of thiophanate‑methyl technical are becoming tighter as the month draws to a close. For dimethomorph technical, constrained manufacturers maintain low operating rates and inventory levels remain low, driving market quotes up to RMB 125,000/ton. As for thifluzamide technical, production capacity has yet to be fully released due to plant shutdowns in designated industrial parks, which have disrupted intermediate supply and tightened availability; market prices stand at RMB 325,000/ton. Isoprothiolane technical and ethirimol technical are both experiencing tight supply this month, with manufacturers idled; isoprothiolane is primarily destined for export, quoted at RMB 160,000/ton, while ethirimol remains stable at RMB 130,000/ton. Few producers of iprodione technical are currently in operation, with quotes reaching RMB 165,000/ton; metalaxyl technical faces tight intermediate supply, with prices climbing to RMB 125,000/ton; and prochloraz technical, with low operating rates and no domestic inventory, has seen prices rise above RMB 130,000/ton. Fluazinam technical, constrained by limited intermediate availability and low operating rates, continues to face tight supply amid robust downstream demand, with prices now up to RMB 300,000/ton.
　　Intermediate market
　　This month, amid the trade war, the international crude oil market has been trading in a high‑range consolidation, providing strong cost support to basic raw materials and the chemical subsectors. Markets such as benzene, propylene derivatives, phenols–ketones, and acrylonitrile–acetonitrile have exhibited volatile but broadly stable price action. Downstream chemical production utilization rates have declined, leading to a tug‑of‑war between supply and demand. In the chlor‑alkali sector, polarized trends persist: liquid caustic soda prices have eased from their recent highs; bromine prices remain firm at around RMB 28,000 per ton; phosphorus‑chemical output has fallen, with yellow phosphorus producers maintaining prices at RMB 14,500 per ton; and red phosphorus continues to find support at elevated levels. Ethyl chloride prices also stay high, though supply pressures have eased somewhat, with quotes hovering around RMB 27,000 per ton. In the fluorochemicals segment, an increasing number of plants are undergoing maintenance, while weak downstream demand from the refrigeration industry keeps overall market conditions largely stable. This month, the upward momentum in active pharmaceutical ingredients (APIs) has been driven primarily by intermediate‑related factors. Key intermediates—including ether aldehydes, methyl benzoate, and 2‑chloro‑5‑chloromethylpyridine—have all remained at elevated levels: ether aldehyde is quoted at RMB 80,000 per ton; methyl benzoate hovers around RMB 80,000 per ton amid tight supply; CCMP is priced at RMB 145,000 per ton, while CCMT stands at RMB 56,000 per ton. Meanwhile, supplies of kufu acid, biphenyl alcohol, and DV chrysanthemum acyl chloride are scarce, keeping prices at premium levels—kufu acid at RMB 260,000 per ton amid constrained availability—and diazine at RMB 50,000 per ton.
　　At present, the national supply situation is far from optimistic. Environmental inspections remain stringent, and once inventories of certain products have been depleted, prices have rebounded sharply. Formulation manufacturers are becoming more active in building up off-season stockpiles, while overseas orders are increasing. As a result, ex‑factory prices for technical-grade active ingredients and intermediates are expected to stay elevated in the near term, with producers growing increasingly reluctant to sell. The market is likely to see steady price hikes going forward.

Author: Zhongnong Lihua Technical Grade Product Source: Zhongnong Lihua Technical Grade Product