The off-season is far from sluggish, as the tug-of-war between supply and demand intensifies, with active‑ingredient prices for pesticides remaining at elevated levels.

Release Date:

2018-07-26

This week (the week of July 23, 2018; the same applies hereafter), the supply‑demand imbalance in the technical‑grade active ingredient and intermediate markets remained pronounced. On the supply side, the chemical production season has entered its off‑peak period, with a growing number of plants undergoing shutdowns for maintenance. Stringent safety and environmental‑compliance policies have accelerated capacity reductions and industry consolidation, while low operating rates have kept inventory levels steadily declining. Meanwhile, demand‑side channel inventories are being gradually depleted, and both domestic and international restocking cycles have begun earlier than expected. However, uncertainties in raw‑material supplies continue to constrain the supply side, and upstream producers remain reluctant to take on new orders, with no relief in sight. Overall market inquiries have increased, yet trading activity remains subdued; mainstream transactions are focused on clearing previously accumulated low‑priced stock, and ex‑factory prices for technical‑grade active ingredients and intermediates remain persistently high.

　　This week (the week of July 23, 2018; the same applies hereafter), the supply‑demand imbalance in the active‑ingredient and intermediate markets remained pronounced. On the supply side, the chemical industry has entered its off‑peak season, with a growing number of plants undergoing shutdowns for maintenance. Stringent safety and environmental‑compliance policies have accelerated capacity reductions and heightened industry consolidation, while low operating rates have kept inventories steadily declining. Meanwhile, demand‑side channel inventories are being gradually depleted, and both domestic and international restocking cycles have begun earlier than usual. However, uncertainties in raw‑material supplies continue to constrain the supply side, and upstream producers remain reluctant to take on new orders, with no relief in sight. Overall market inquiries have increased, yet trading activity remains subdued. The prevailing trend is the continued absorption of lower‑priced existing stock, keeping ex‑factory prices for active ingredients and intermediates at elevated levels, a situation unlikely to change in the short term.
　　This week, the crude oil market experienced narrow-range downward volatility and consolidation, while basic chemical raw materials remained largely stable. Downstream demand in the chlor-alkali, phosphate, bromine, and fluorine industries remained weak, leading to predominantly narrow‑range trading and consolidation. However, the continued decline in downstream operating rates for intermediates has constrained production and disrupted supply, providing strong support at higher price levels and keeping ex‑factory prices elevated.
　　Herbicide market
　　This week, the market for non-selective herbicides has remained largely stable. Glyphosate technical grade is supported by high glycine prices, while ongoing environmental‑compliance pressures and a slowdown in restocking for export have kept quoted prices at RMB 28,000 per ton, with actual transactions negotiable. Ammonium glufosinate technical grade has seen weak, consolidating trading both domestically and internationally, with tepid inquiry activity and prices holding steady at RMB 170,000 per ton. As for diquat technical grade, inventory levels across the supply chain, coupled with the end of the application season, have kept prices unchanged at RMB 46,000 per ton.
　　As the off-season storage period for amide‑type herbicides approaches, inquiry volumes are rising, while manufacturers show limited willingness to accept new orders. The spot price for acetochlor technical remains at RMB 24,000 per ton, pending the release of manufacturers’ off‑season storage pricing. The quoted price for isopropylamine‑based chloroacetamide technical is RMB 26,000 per ton, while propachlor technical is priced at RMB 40,000 per ton, and butachlor technical 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 sustained high prices. The price of nicosulfuron technical grade remains above RMB 270,000 per ton, while bensulfuron‑methyl technical grade is still out of stock, with quotes exceeding RMB 250,000 per ton. The intermediate for mesotrione is underpinned by elevated raw‑material costs, leading to sluggish procurement and a stable price around RMB 230,000 per ton. Isooctyl ester of fluroxypyr is scarce in the market, with manufacturers fulfilling forward orders, further tightening supply; market quotes have risen to over RMB 180,000 per ton. For quizalofop‑p‑ethyl, intermediate prices remain high, prompting cautious order intake by producers, with prices holding steady at RMB 210,000 per ton. Meanwhile, the intermediate for haloxyfop‑p‑ethyl is trading at elevated levels, with foreign‑trade orders fully booked and supply constrained, driving market quotes to RMB 250,000 per ton.
　　The intermediate for florasulam remains at a high price, with strong export demand; domestic applications have ended, inventories are low, and the quoted price stands at RMB 135,000 per ton. For isoxaflutole, domestic use has concluded, while the export market continues to receive orders; the price for high‑concentration technical grade is above RMB 120,000 per ton, while the lower‑concentration grade is holding steady at RMB 85,000 per ton. As for cyhalofop‑butyl, robust foreign‑trade exports are driving prices, though operating rates have dipped slightly; supply remains tight, primarily serving export channels, with market quotes at RMB 170,000 per ton.
　　Affected by plant shutdowns within the industrial park and recent incidents involving the landfilling of solid waste, supply of paraquat technical grade has been constrained; manufacturers have halted production, leading to tight availability and pushing the price of the technical grade above RMB 110,000 per ton. The aqueous formulation is now quoted at RMB 45,000 per ton. Bentazone technical grade remains in low inventory; with park‑based producers idled, effective capacity cannot be brought online, while downstream demand for off‑season stockpiling has strengthened. Manufacturers are cautious about taking new orders, and market quotes have risen to RMB 62,000 per ton. Pendimethalin technical grade is undergoing maintenance at producing plants, yet manufacturers are gradually resuming order intake, with prices holding steady around RMB 52,000 per ton. Cyhalofop‑butyl technical grade is limited by shutdowns at the Lianyungang industrial park, resulting in declining operating rates; market prices have rebounded to over RMB 240,000 per ton, while intermediates remain out of stock, keeping conditions tight. Dicamba technical grade operates at low utilization, as the active‑ingredient season approaches its peak; supported by elevated intermediate prices, quotes have climbed to RMB 390,000 per ton. For atrazine technical grade, the key intermediate cyanuric chloride has stabilized amid sideways trading, with application nearing its end; quotes stand at RMB 23,000 per ton.
　　Pesticide market
　　The overall pesticide market is experiencing a pronounced supply squeeze, with prices continuing to rebound and rise. Spot supplies are extremely limited, and the shortage is unlikely to ease in the near term.
　　This week, manufacturers of the abamectin‑emamectin benzoate technical grade have no new orders to accept, resulting in tight supply. With strong seasonal restocking demand, market prices continue to rise: the quoted price for abamectin technical powder is RMB 730,000 per ton, while the quoted price for emamectin benzoate technical grade (hereafter referred to as “emamectin benzoate”) stands at RMB 1.28 million per ton.
　　Nicotinic insecticides are underpinned by strong support at the CCMP, cyanoethyl ester, and imidazoline intermediate levels, with inventories remaining low and prices staging a noticeable rebound. The quoted price for imidacloprid technical grade has risen to RMB 180,000 per ton, while acetamiprid technical grade is now at RMB 182,000 per ton. For thiamethoxam and clothianidin technical grades, cost‑driven support remains robust; CCMT and nitroguanidine prices are elevated, prompting domestic producers to replenish stocks and leading to reduced operating rates, with quotes adjusted upward to RMB 120,000 and RMB 165,000 per ton, respectively. Operating rates for nitenpyram technical grade have declined, pushing its price to a high of RMB 280,000 per ton. Meanwhile, the price of 3‑cyano‑pyridine, an intermediate for pymetrozine technical grade, has rebounded, while hydrazine hydrate has also risen; with domestic formulation manufacturers increasing their stockpiles, the price has been pushed up to RMB 170,000 per ton.
　　Organophosphorus products, bolstered by the influence of phosphorus pentasulfide, are under clear cost support, with the overall market trending tighter. The active‑ingredient production rate for malathion remains low, and its quoted price has risen to RMB 26,000 per ton. Driven by foreign trade and supported by elevated costs, coupled with constraints in the supply of upstream sodium trichloropyridinol and declining downstream operating rates, the quoted price for chlorpyrifos technical grade has rebounded to RMB 48,000 per ton. The quoted price for phoxim technical grade stands at RMB 44,000 per ton, while cypermethrin technical grade is trading at a low inventory level, with bromine prices remaining high, pushing its quoted price to RMB 65,000 per ton.
　　Pyrethroid technical-grade products are facing tight supply of upstream precursors—benthiavalproic acid and ether aldehydes—while sodium tert‑butoxide remains at elevated prices. Cypermethrin acyl chloride, cyfluthrin acid, and biphenyl alcohol are also in short supply, providing strong cost support. Manufacturers are holding firm on their quotes and proceeding with caution when taking orders, driving continued price increases in the market. The price of lambda‑cyhalothrin technical grade stands at RMB 300,000 per ton, while the quoted price for cypermethrin concentrate has stabilized at RMB 50,000 per ton. Cypermethrin technical grade has rebounded to RMB 130,000 per ton, bifenthrin technical grade is at RMB 400,000 per ton, and fenvalerate technical grade has risen to RMB 104,000 per ton. Overall, the market is expected to remain broadly rangebound at elevated levels going forward.
　　Affected by a supply shortage of the intermediate 2,6-difluorobenzamide, its price has surged to a record high, while manufacturers’ operating rates remain extremely low. Consequently, downstream products—etoxazole technical grade, flufenoxuron technical grade, flufenoxuron technical grade, and flufenoxuron technical grade—are experiencing tight spot‑market availability, with no near‑term relief in supply. Prices have been quoted at RMB 410,000/ton, RMB 400,000/ton, RMB 380,000/ton, and RMB 450,000/ton, respectively. The tight supply situation for this intermediate is expected to persist in the short term.
　　Inventory of spirodiclofen technical grade is at low levels, prompting manufacturers to begin accepting off-season orders at a quoted price of RMB 150,000 per ton. Supply of chlorfenapyr technical grade has dwindled across distribution channels, with low operating rates; spot prices are above RMB 300,000 per ton. With only a handful of fipronil technical‑grade producers and heavy export order backlogs, supply remains tight, driving market quotes to RMB 670,000 per ton. The quoted price for etoxazole technical grade remains steady at RMB 43,000 per ton. Dicofol technical grade is trading at low inventory levels, with market quotes at RMB 92,000 per ton. For bifenazate technical grade, operating rates are subdued, manufacturer inventories are low, and export orders are increasing, pushing the quoted price to RMB 450,000 per ton.
　　Fungicide Market
　　The fungicide market as a whole remains in a high‑level consolidation, with a large proportion of products showing signs of a rebound. Ongoing attention should be paid to how trends in intermediate‑product prices and operating rates influence market dynamics.
　　Triazole technical-grade products are under pressure due to production halts at the Lianyungang industrial park and constraints in the chlorination process, driving up the price of chlorophenol and providing strong cost support. For difenoconazole technical grade, supply is tight and delivery pressures are significant, with quotes above RMB 230,000 per ton. Propiconazole technical grade faces inventory‑related limitations, keeping prices steady at around RMB 135,000 per ton. Hexaconazole producers are concentrated, but low operating rates have kept market quotes at RMB 165,000 per ton. Tebuconazole technical grade remains in short supply, with limited active manufacturers; amid elevated intermediate prices, the base product is quoted at RMB 85,000 per ton. For flusilazole technical grade, manufacturers prioritize export orders and maintain low utilization rates, while domestic availability is priced at over RMB 670,000 per ton.
　　The price of the active ingredient for pyraclostrobin has risen due to supply constraints on key intermediates, with more manufacturers halting production for maintenance. Companies are cautious about taking new orders, while domestic restocking demand has increased, pushing prices back up to RMB 230,000 per ton. For azoxystrobin, limited availability of intermediate raw materials has tightened supply, driving market quotations sharply higher to RMB 320,000 per ton. As for difenoconazole, few producers have resumed operations, resulting in low inventory and tight supply, with prices climbing to RMB 320,000 per ton. Meanwhile, with capacity for fluxapyroxad being gradually brought online, prices have retreated to above RMB 520,000 per ton.
　　Carbendazim technical grade and thiophanate‑methyl technical grade, pressured by environmental inspections in Ningxia and constrained by inventory levels, are holding steady at RMB 37,000 per ton, with some quoting RMB 30,000 per ton. Ethirimol technical grade, facing production restrictions, sees low operating rates and minimal stock, driving market prices up to RMB 130,000 per ton. Thifluzamide technical grade has not yet seen a meaningful capacity release; plant shutdowns within the industrial park and disruptions in intermediate supply have tightened availability, pushing market quotes to RMB 340,000 per ton. Iprodione technical grade and iprodione‑based active ingredient are also trading at low inventories, with manufacturers idled and supply tight; exports dominate transactions, priced at RMB 165,000 per ton and RMB 130,000 per ton, respectively. For metalaxyl‑M technical grade, few producers are running, with quotes climbing to RMB 165,000 per ton; for mefenoxam technical grade, intermediate shortages persist, pushing prices to RMB 125,000 per ton; and for prochloraz technical grade, low operating rates and significant market gaps—coupled with rising intermediate costs—have driven prices above RMB 140,000 per ton. Fluazinam technical grade, hampered by constrained intermediate supplies and subdued operating rates, faces robust downstream demand, keeping supply tight and lifting prices to RMB 300,000 per ton.
　　Intermediate market
　　The international crude oil market has been volatile yet consolidating, providing cost support to the basic raw materials and chemical sub‑sectors. Markets such as the benzene–toluene–xylene trio, the propylene series, phenols and ketones, and acrylonitrile–acetonitrile have all experienced fluctuating, range‑bound trading. Downstream chemical plants have seen lower operating rates, leading to a tug‑of‑war between supply and demand. In the chlor‑alkali sector, divergent trends persist: liquid caustic soda prices have eased from their recent highs; bromine remains quoted at RMB 29,000 per ton, with inventories at low levels; in phosphorus chemicals, operating rates have declined, and yellow phosphorus producers are holding firm at RMB 14,500 per ton; red phosphorus continues to find support at elevated levels, while ethyl chloride stays at high price points as supply conditions ease somewhat, with quotes around RMB 27,000 per ton. Fluorine‑chemicals markets remain stable. Ether aldehydes, methyl benzenedicarboxylate, and 2‑chloro‑5‑chloromethylpyridine continue to trade at strong levels: ether aldehydes benefit from anti‑dumping measures, with quotes at RMB 80,000 per ton; methyl benzenedicarboxylate is also quoted at RMB 80,000 per ton amid tight supply; CCMP prices have been raised to RMB 145,000 per ton, while CCMT supplies remain constrained, with quotes at RMB 58,000 per ton; kufu acid, biphenyl alcohol, and cyhalothrin nitrile face severe supply shortages and command premium pricing, with kufu acid quoted above RMB 280,000 per ton; imidazolidine, cyanoethyl ester, and pyridazine are subject to environmental and safety inspections, resulting in low inventories and tight supply; pyridazine is quoted at RMB 50,000 per ton.
　　Conclusion
　　The intensity of safety and environmental inspections continues to mount, and the painful phase of park‑level rectification, industrial upgrading, and rising industry concentration persists, with market inventories gradually being worked off. Meanwhile, robust demand from both domestic and international markets is intensifying supply‑demand imbalances for certain products. Market panic is spreading, inquiry activity remains strong, and as supply and demand continue to clash, industry consolidation is accelerating.