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    The imbalance between supply and demand for pesticides is unlikely to be resolved in the short term, and market prices are expected to remain at elevated levels.


    Release Date:

    2018-07-10

    Under pressure from environmental regulations, regions including Jiangsu, Shandong, Hebei, and Jiangxi have all implemented production restrictions, output caps, and plant shutdowns to varying degrees. In particular, many upstream intermediate‑producing facilities have been forced to close, while downstream operations are barely able to run normally, leading to widespread shortages and stockouts across most product categories. With very limited supply available in the market, price speculation is already evident among certain distributors. If upstream and downstream manufacturers remain unable to resume normal operations, this “price without supply” situation will further drive pesticide prices higher. Herbicides are experiencing severe shortages, with overall prices remaining at elevated levels.

      Under pressure from environmental regulations, regions including Jiangsu, Shandong, Hebei, and Jiangxi have all imposed varying degrees of production cuts, output restrictions, and plant shutdowns. In particular, many upstream intermediate‑product manufacturers have been forced to shut down, while downstream operations have been barely able to resume normal production, leading to widespread shortages and supply disruptions across most product categories. With very limited inventory available in the market, price speculation has become pronounced among certain distributors. If upstream and downstream producers remain unable to operate normally in the coming period, this “price without supply” situation will likely drive prices even higher. Pesticide The rise in prices.
      Herbicides are in severe short supply.
      Herbicide prices remain broadly elevated, with most products operating at low capacity utilization and severe supply shortages. Glyphosate producers maintained last week’s quoted price of RMB 28,500 per ton (the same applies below), as glycine production continues to run at low rates and overall plant utilization remains subdued, further tightening market conditions. Paraquat prices stayed around RMB 175,000 per ton, with relatively stable supply. For triazine‑type raw materials, isopropylamine and the intermediate cyanuric chloride are trading at high levels, while downstream product prices remain firm with limited volatility; however, some manufacturers have begun building inventories, keeping prices elevated: atrazine producers hold steady at RMB 25,000 per ton with relatively stable supply; simazine manufacturers quote RMB 30,000 per ton for the 97%‑purity grade, amid tight availability; and metolachlor producers offer RMB 40,000 per ton with stable supply.
      Sulfonylurea manufacturers’ quotes remain relatively stable, with mesotrione prices holding steady at RMB 270,000 last week amid tight supply. For trifluralin, manufacturers have raised their prices to RMB 35,000—an increase of RMB 3,000—with supply remaining constrained. As for enesterburon, low operating rates at the key intermediate ketone are driving severe market shortages. For mesosulfuron‑methyl, following last week’s maintenance of quotes above RMB 210,000, prices were further increased by RMB 5,000; meanwhile, the intermediate 2‑nitro‑4‑methylsulfonylbenzoic acid is already out of stock, with low plant utilization and extremely tight availability. Ethofumesate manufacturers are keeping their quotes at RMB 175,000, with stable supply. For florasulam, with production concentrated among a few key players, manufacturers continue to hold prices at a high level of RMB 135,000, while supply remains persistently tight. For oxadiargyl, manufacturers have raised prices to over RMB 210,000; low operating rates and constrained supply keep prices firm. Meanwhile, cyhalofop‑butyl is quoted above RMB 250,000, largely because plants are currently idled, supporting strong pricing; manufacturers have ceased issuing new price lists.
      Insecticides continue to perform strongly.
      Insecticides as a whole continue to perform strongly, with prices for some products remaining on the rise. Pyrethroid products, constrained by disruptions in intermediate‑material production and severe supply shortages, are still trading at elevated levels: channel distributors have raised their quotes for cypermethrin to around RMB 300,000 per ton, an increase of RMB 10,000; manufacturers have stopped quoting, and the market is experiencing acute scarcity. Similarly, bifenthrin remains in tight supply due to low operating rates, with manufacturers no longer providing price indications; some distributors are holding firm at a high level of RMB 385,000 per ton. For neonicotinoid active ingredients—imidacloprid, acetamiprid, and thiamethoxam—production utilization rates remain low, while distributors have begun building inventories, leading to stable pricing last week. Pymetrozine prices held steady at RMB 165,000 per ton last week, with reliable supply.
      In the organophosphate series, due to tight supply of the intermediate ethyl chloride and firm pricing, some technical-grade products remain relatively stable. The price of chlorpyrifos technical grade has held steady at RMB 47,000 per ton, up by RMB 1,000; plant operating rates are low, and supply remains constrained. Phoxim manufacturers are quoting unchanged at RMB 43,000 per ton (based on 100% active ingredient), with little movement. Triazophos, supported by low operating rates and strong market demand, is holding firm, last week remaining at RMB 68,000 per ton. Cyromazine and cartap hydrochloride prices are currently fairly stable, with manufacturers all accepting orders: cyromazine is quoted around RMB 68,000 per ton, while cartap hydrochloride is priced at RMB 26,000 per ton for 95% purity and RMB 24,500 per ton for 90% purity.
      Fungicide prices continue to rise.
      Overall, fungicide operating rates remain low, with most products commanding relatively strong prices and some continuing to rise. Among triazoles, prices are firm as the northern Jiangsu production complex remains shut down; last week, manufacturers of difenoconazole held steady at RMB 230,000 per ton, reflecting tight supply. Propiconazole producers maintained quotes at RMB 135,000 per ton, showing relative stability. Cyproconazole manufacturers kept their offers at RMB 360,000 per ton, with normal deliveries. For triadimefon, amid tight intermediate supplies, manufacturers offering ≥95% active ingredient have held prices at RMB 90,000 per ton, while operating rates remain low and shortages are severe; triazolone has been raised to RMB 84,000 per ton, up RMB 2,000, with very tight availability. Flusilazole is currently quoted at RMB 290,000 per ton, with stable supply. As for prochloraz, manufacturers are reporting irregularities in operations, keeping prices firm; those offering ≥97% active ingredient have stopped quoting, with channel prices exceeding RMB 130,000 per ton.
      The manufacturer’s quoted price for dimethomorph remains at RMB 130,000 per ton, with supply relatively tight. The price of azoxystrobin is holding steady at RMB 300,000 per ton, with stable availability. The price of fludioxonil stays around RMB 1.02 million per ton, supported by ample supply. Pyriproxyfen manufacturers are operating at very low capacity utilization; their quoted prices remain above RMB 210,000 per ton, and the market is experiencing severe shortages. The manufacturer’s quoted price for pyraclostrobin has edged down slightly; last week it was held at RMB 530,000 per ton, with stable supply. The quoted price for boscalid is staying near RMB 420,000 per ton, with consistent availability. As for difenoconazole, prices are currently fairly stable, with ample supply and little movement.
      Intermediate prices are trading in a narrow range at higher levels.
      The intermediate market has been trading at elevated levels, with low operating rates and firm prices. Production at kraft acid manufacturers remains disrupted, keeping market quotes steady at RMB 270,000 per ton, while ether‑aldehyde prices have been raised to RMB 80,000 per ton, with severe supply shortages across the board. Cyanuric chloride producers are maintaining export quotations at RMB 15,000 per ton, but transaction volumes remain sluggish. Polyamine manufacturers face substantial wastewater generation and low operating rates, with prices holding at RMB 26,000 per ton amid tight market conditions. Ethyl chloride manufacturers kept last week’s quoted price at RMB 27,000 per ton, though supply remains constrained. Imidazolidine producers have increased their quotes to around RMB 49,000 per ton, a rise of RMB 3,000, with tight availability. As for 2‑chloro‑5‑chloromethylthiazole and ?‑diazine, with downstream demand subdued, prices remained relatively stable last week: thiazole stayed above RMB 58,000 per ton, reflecting very tight supply, while ?‑diazine was raised to RMB 49,000 per ton, up RMB 4,000, with stable availability.
      Future Market Forecast
      In July, although the domestic peak-season for pharmaceuticals has passed and market demand is unlikely to surge, environmental‑related pressures are expected to keep upstream producers operating at extremely low capacity utilization. Moreover, as temperatures rise, even the few companies that have been managing to maintain normal production are likely to shut down for maintenance. As a result, supply on the market may shrink further, and the imbalance between supply and demand is unlikely to ease in the near term. It is anticipated that most… Pesticide Market prices remain at elevated levels, leaving the current situation unchanged.

     

    Author: China Agricultural Inputs Media Source: China Agricultural Inputs Media

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