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Hebei Lansheng Biotech Co., Ltd. ShangHai Yuelian Biotech Co., Ltd.

Chlorothalonil price down to historic low level, still space for growth in marketqrcode

Aug. 19, 2021

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Aug. 19, 2021

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Due to the impact of multiple factors, the price of chlorothalonil has continued to decline since the second half of 2019. 


At present, the price has dropped to a historic low in recent years. Chinese manufacturers say that if the purchases for stocks in winter pick up in the second half of the year, the price of chlorothalonil may rebound, which is, however, not evident at this time. 


Chlorothalonil is a broad-spectrum protective fungicide, which does not easily cause resistance. Its effect is long-lasting and can be mixed with other active ingredients to improve the efficacy of the application.


Currently, the price of chlorothalonil technical is at a historic low in recent years, which may be attributed to industry consolidation and new capacity becoming operational. In addition, chlorothalonil is banned in the European Union (EU), which has harmed the market. Hence, the price of chlorothalonil has been affected. Moreover, COVID-19 has affected the international trade, logistics and social networking. The reduced demand due to weather conditions and the expansion of capacity all have an impact on the price.


Chlorothalonil manufacturers say that the price of chlorothalonil at this time should have hit the bottom. If the purchases in September and October for stocks in winter can increase, the price of chlorothalonil may rebound, but this is unsure at this time. 

In recent years, chlorothalonil production capacity has been distributed mainly in China, and foreign productions have exited one after another. In 2014, SDS Biotech became a shareholder of Jiangsu Xinhe and two years later shut down its annual 6,000-ton chlorothalonil facility. In 2020, Syngenta announced the shutdown of its 9,000-ton chlorothalonil capacity in the United States.


In terms of new capacity, after the expansion in 2018, the production capacity of chlorothalonil in Xinhe reached annually 30,000 tons. Thereafter, the other 10,000-ton capacity was put into operation in 2020. At present, Xinhe’s total production capacity of chlorothalonil is 40,000 tons per year; Shandong Dacheng Biochemical used to produce 3,000 tons of chlorothalonil per year and decided last year to extend its capacity to 14,000 tons per year. In addition, Suli’s production capacity is maintained at 14,000 tons per year while Weunite’s production capacity of chlorothalonil is maintained at 3,000 tons per year.


Industry experts believe that chlorothalonil is a competitive product at an advantage. Unless the EU’s prohibition causes a substantial impact, there is still room for chlorothalonil in the market. In the future, the chlorothalonil market may become one where the stronger one sustains. 


Chlorothalonil’s production environment and waste treatment requirements are quite high. There are only four chlorothalonil manufacturers in China who are complying with regulations, with all permits granted. For compliant manufacturers, after capacity and process are upgraded, the cost advantage and competitiveness will become prominent. 


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Source: AgroNews

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