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 shutdowns to varying degrees. In particular, many upstream intermediate‑product manufacturers have been forced to suspend operations, while downstream facilities 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 has become pronounced among a handful of distributors. If upstream and downstream producers remain unable to resume normal operations, 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 market shortages. Glyphosate producers maintained last week’s quoted price of RMB 28,500 per ton (the same applies below), as glycine production runs at low capacity and overall plant utilization remains subdued, further tightening supply. Glufosinate‑isopropylamine prices stayed around RMB 175,000 per ton, with relatively stable availability. For triazine‑based 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 (97% purity) is quoted at RMB 30,000 per ton, with tight supply; and metolachlor‑isopropylamine is priced at RMB 40,000 per ton, with stable deliveries.
　　Sulfonylurea manufacturers’ quotes remain relatively stable; nicosulfuron prices held steady at RMB 270,000 last week, with supply remaining tight. Fluazifop‑p‑butyl producers raised their prices to RMB 35,000, an increase of RMB 3,000, and supply continues to be constrained. For enester‑cyclohexanone, low operating rates at the key intermediate ketone have led to severe market shortages. Mesotrione’s manufacturer maintained prices above RMB 210,000 last week, with a further RMB 5,000 hike; the intermediate 2‑nitro‑4‑methylsulfonylbenzoic acid is already out of stock, operating rates are low, and supplier inventories are extremely tight. Ethoxysulfuron prices stayed at RMB 175,000, with stable availability. Fluazifop‑p‑butyl producers are concentrated, keeping quotes at a high level of RMB 135,000, while supply remains persistently tight. Halosulfuron has been raised to over RMB 210,000; with low operating rates, supply is tight. Cyhalofop‑butyl is quoted above RMB 250,000, largely because production facilities are currently shut down, supporting firm pricing; manufacturers have ceased quoting altogether.
　　Insecticides continue to perform strongly.
　　Insecticides continued to perform strongly overall, with prices for some products remaining on the rise. Pyrethroid products, constrained by disruptions in intermediate production and severe supply shortages, stayed at elevated levels: channel distributors raised their quotes for cypermethrin to around RMB 300,000, 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 and select distributors maintaining quotes at a high level of RMB 385,000. For neonicotinoid active ingredients—imidacloprid, acetamiprid, and thiamethoxam—production utilization rates remain low, while distributors have begun stockpiling, leading to stable pricing last week. Pymetrozine held steady at RMB 165,000 last week, with reliable supply.
　　In the organophosphate series, amid 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; production utilization rates are low, further tightening supply. Phoxim manufacturers are quoting unchanged at RMB 43,000 per ton (based on 100% active ingredient), with little movement. Due to low operating rates and strong market demand, triazophos prices have remained firm, staying at RMB 68,000 per ton last week. Cyromazine and cartap prices are currently fairly stable, with manufacturers accepting orders: cyromazine is quoted around RMB 68,000 per ton, while cartap—95% active ingredient—is priced at RMB 26,000 per ton, and the 90%‑active‑ingredient grade at RMB 24,500 per ton.
　　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 hubs remain 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; low operating rates have led to severe shortages. Tricyclazole prices were raised to RMB 84,000 per ton, an increase of RMB 2,000, with conditions extremely tight. Fluazinam remains quoted at RMB 290,000 per ton, with stable supply. As for prochloraz, manufacturers report irregular operations and firm pricing; those offering ≥97% active ingredient have stopped quoting, while channel prices exceed 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. For propiconazole, plant operating rates are extremely low, and manufacturers are quoting above RMB 210,000 per ton, amid severe market shortages. The quoted price for pyraclostrobin has edged down slightly; last week it was held at RMB 530,000 per ton, with consistent supply. The price of boscalid remains roughly unchanged at around RMB 420,000 per ton, with stable 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 etheraldehyde 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 utilization rates, with prices holding at RMB 26,000 per ton amid tight market conditions. Ethyl chloride producers kept last week’s quoted price at RMB 27,000 per ton, with constrained supply. Imidazolidine manufacturers have increased their quotes to around RMB 49,000 per ton, a rise of RMB 3,000, also reflecting tight availability. For 2-chloro-5-chloromethylthiazole and triazine, weak downstream operating rates resulted in relatively stable pricing last week: thiazole remained above RMB 58,000 per ton, under significant pressure, while triazine was raised to RMB 49,000 per ton, up RMB 4,000, with stable supply.
　　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 very 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.