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 industry has entered its off‑peak season, with a growing number of plants shutting down 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 existing 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 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 inventories 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. 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 sideways 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. Paraquat 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’ willingness to accept orders remains subdued. The spot price for acetochlor technical grade is holding steady at RMB 24,000 per ton, pending the release of manufacturers’ off‑season storage pricing; isoproturon technical grade is quoted at RMB 26,000 per ton, propanil technical grade at RMB 40,000 per ton, and butachlor technical grade 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 persistently 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. For isooctyl ester of fluroxypyr, market availability is limited, with manufacturers fulfilling forward‑order commitments, further tightening supply; quoted prices have risen to over RMB 180,000 per ton. The intermediate for quizalofop‑p‑ethyl is trading at high levels, prompting cautious order intake among producers, with prices holding steady at RMB 210,000 per ton. Meanwhile, the intermediate for haloxyfop‑p‑ethyl is also at elevated levels, with foreign‑trade orders fully booked and supply remaining tight, 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; high‑concentration technical grade is priced above RMB 120,000 per ton, and low‑concentration remains quoted at RMB 85,000 per ton. As for cyhalofop‑butyl, robust foreign‑trade exports have driven prices significantly; operating rates have declined, supply is tight, and the product is primarily allocated to overseas 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, the supply of bentazon 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 inventories remain low; with park‑based producers idled, effective capacity cannot be brought online, prompting downstream players to strengthen their off-season stockpiling intentions. Manufacturers are cautious about taking new orders, and market quotes have risen to RMB 62,000 per ton. Pendimethalin technical grade is also facing production halts for maintenance, yet manufacturers are gradually resuming order intake, with prices holding steady around RMB 52,000 per ton. Cyhalofop‑butyl technical grade is similarly impacted by shutdowns in the Lianyungang industrial park, resulting in declining operating rates and a rebound in market prices to over RMB 240,000 per ton. Meanwhile, key intermediates are out of stock, keeping the tight supply situation ongoing. Bensulfuron‑methyl technical grade operates at low capacity utilization; as the active‑ingredient application season gains momentum, high intermediate prices provide support, driving quotes up to RMB 390,000 per ton. For atrazine technical grade, its key intermediate—cyanuric chloride—remains stable amid sideways trading, while the overall application cycle nears its end, with quotes hovering around 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 “abamectin‑emamectin benzoate”) stands at RMB 1.28 million per ton.
　　Nicotinic insecticides are seeing strong support at the high end for their key intermediates—CCMP, cyanoethyl ester, and imidazoline—while inventories remain low, driving a noticeable market rebound. The spot price of imidacloprid technical has risen to RMB 180,000 per ton, and acetamiprid technical is quoted at RMB 182,000 per ton. For thiamethoxam and clothianidin technicals, cost‑based support remains robust; CCMT and nitroguanidine prices are elevated, with domestic producers primarily replenishing stockpiles and operating rates declining, prompting price hikes to RMB 120,000 and RMB 165,000 per ton, respectively. Meanwhile, the operating rate for nitenpyram technical has edged lower, pushing its price up to a high of RMB 280,000 per ton. As for pymetrozine technical, the price of its intermediate—3‑cyano‑pyridine—has rebounded, hydrazine hydrate has risen, and with inventories remaining tight, domestic formulation manufacturers have increased their procurement, lifting the price to RMB 170,000 per ton.
　　Organophosphorus products, supported by the cost of phosphorus pentasulfide, are experiencing noticeably firm pricing, with the overall market tightening. The active‑ingredient production rate for malathion remains low, with quotes at RMB 26,000 per ton. Driven by overseas demand and underpinned by elevated costs—amid supply constraints in upstream sodium trichloropyridinol and declining downstream operating rates—cypermethrin API prices have rebounded to RMB 48,000 per ton. Phoxim API is quoted at RMB 44,000 per ton, while profenofos API faces tight inventory levels and high bromine prices, with quotes reaching 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. Cyhalothrin acyl chloride, cyfluthrin acid, and biphenyl alcohol are also in short supply, providing strong cost support. Manufacturers are holding firm on their quotes and exercising caution in accepting orders, driving continued price increases in the market. The price of lambda‑cyhalothrin technical grade stands at RMB 300,000 per ton, with cyhalothrin mother liquor stable at RMB 50,000 per ton. Cyhalothrin technical grade has rebounded to RMB 130,000 per ton, while bifenthrin technical grade is quoted 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‑1‑carbonitrile technical grade, and flufenoxuron‑2‑carbonitrile technical grade—are experiencing tight spot‑market availability, with no near‑term relief in supply. Prices have accordingly risen to 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 due to reduced channel availability and low operating rates, with spot prices exceeding 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 also in short supply, with market quotes at RMB 92,000 per ton. Meanwhile, bifenazate technical grade sees low operating rates, minimal manufacturer inventories, and growing export orders, pushing its quoted price up to RMB 450,000 per ton.
　　Fungicide Market
　　The fungicides market is broadly consolidating at elevated levels, with a high proportion of stocks showing 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 constrained by the shutdown of production at the Lianyungang industrial park, and chlorination processes are likewise restricted, 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 is affected by limited inventory, keeping prices steady at RMB 135,000 per ton. Hexaconazole producers are concentrated, with low operating rates, and market quotes stand at RMB 165,000 per ton. Tebuconazole technical grade remains in short supply, with low domestic demand partially offset by stronger domestic sales, trading at RMB 135,000 per ton. Tricyclazole technical grade is also in tight supply, with few manufacturers back in operation; intermediate prices remain elevated, pushing the technical‑grade quote to RMB 85,000 per ton. As for fluxapyroxad technical grade, producers are prioritizing export orders, resulting in low operating rates, while domestic availability is priced at RMB 670,000 per ton or higher.
　　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 on new orders, while domestic restocking 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 trifloxystrobin, 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 oxymafluorfen being gradually brought online, its price has retreated to above RMB 520,000 per ton.
　　Carbendazim technical and thiophanate‑methyl technical, 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, facing limited production capacity and low inventories, has seen market prices rise to RMB 130,000 per ton. Thifluzamide technical, with no significant capacity release due to plant shutdowns in restricted industrial parks and disruptions in intermediate supply, remains in short supply, trading at RMB 340,000 per ton. Iprodione technical and ethirimol technical both have low inventories, with manufacturers idled and tight supply; exports dominate, priced at RMB 165,000 per ton and RMB 130,000 per ton, respectively. For metalaxyl‑M technical, few producers are operating, pushing the price up to RMB 165,000 per ton; for cymoxanil technical, intermediate shortages have driven the price to RMB 125,000 per ton; and for prochloraz technical, low operating rates and a substantial market gap—coupled with rising intermediate costs—have pushed the price above RMB 140,000 per ton. Fluazinam technical, hampered by constrained intermediate supplies and low operating rates, sees downstream demand surging while supply remains tight, with prices climbing 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, polarized 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 chemistry, plant utilization has 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, with easing supply pushing quotes to RMB 27,000 per ton. Fluorochemicals 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 risen to RMB 145,000 per ton, while CCMT supplies are scarce, with quotes at RMB 58,000 per ton; kufu acid, biphenyl alcohol, and cyhalothrin acyl chloride all face severe supply constraints and remain at high price levels, with no near‑term relief in sight—kufu acid is 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, supply and demand are locked in a tug‑of‑war, and industry consolidation is accelerating.