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    Imidacloprid supply is tight—what lies ahead for the market?


    Release Date:

    2021-10-26

    Market Overview

    Overall, in October, imidacloprid prices rose, and the market trend strengthened.

    Imidacloprid prices have risen, and market sales remain strong. Overall operating rates at major producers remain low, leading to tight supply; some active manufacturers are prioritizing fulfillment of earlier orders and currently have no capacity to accept new business. On the cost side, prices for 2-chloro-5-chloromethylpyridine and imidazolidine remain elevated, providing support to imidacloprid prices and driving them higher.

    From a market perspective, the following key points deserve attention:

    First, the high prices of imidazolinyl‑2‑chloro‑5‑chloromethylpyridine and imidazoline—upstream products of imidacloprid—provide cost support.

    Second, according to manufacturers, overall plant utilization rates continue to decline, leading to tight market supply.

    Third, market enthusiasm remains strong, and sales are performing well.

    Price Trend

    According to monitoring by BaiChuan YingFu, since the beginning of 2021, the imidacloprid market has seen monthly price increases, driven by sustained rises in upstream raw material costs and robust demand.

    As of October 21, 2021, 97% imidacloprid is currently quoted by most companies only on a non‑binding basis. Rumors suggest a premium‑grade price of RMB 260,000–300,000 per ton, while actual transaction prices have risen to RMB 250,000 per ton. Recent spot deals are being negotiated on a case‑by‑case basis.

    Raw Material Analysis

    This month, the price of 2-chloro-5-chloromethylpyridine has risen, with mainstream ex‑factory prices in East China reaching RMB 155,000 per ton. Strong downstream sales have drawn increased attention, while producers are operating at low capacity, tightening market supply. Meanwhile, elevated upstream raw material prices are providing robust support and driving up the market price of 2-chloro-5-chloromethylpyridine.

    This month, imidazolidine prices have risen, with mainstream ex‑factory prices in East China at RMB 80,000 per ton. Upstream raw materials such as ethylenediamine dicyanamide have seen price increases, providing strong cost‑side support and driving up imidazolidine market prices. Production plants are operating at relatively stable capacity, with earlier orders being fulfilled through scheduled production runs. Sales remain robust, and the market is likely to stay range‑bound in the near term.
    Future Market Forecast

    From a market perspective, imidacloprid prices are likely to remain range-bound, with the possibility of an upward adjustment not ruled out. The main reasons are as follows:

    First, at the cost end, the high prices of 2-chloro-5-chloromethylpyridine and imidazoline provide strong support for imidacloprid.

    Second, most suppliers have gradually resumed operations following maintenance shutdowns, but utilization remains low, keeping overall inventories at subdued levels and maintaining tight market supply.

    Third, downstream market demand remains strong, sales are robust, and manufacturers are fulfilling earlier orders, leaving no room for new order placements at this time.

     

    Source: BaiChuan YingFu

     

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