Price & supply trend: Insufficient release of pesticide capacity in China after COVID-19 epidemic

Fungicide market

 

The production capacity of difenoconazole technical is low and stocks are also low, resulting in a wide gap between demand and supply. The export of propiconazole technical declined and its price remains low, due to a high level of stocks. The demand for hexaconazole technical has increased while production capacity is low, so supply will remain tight in the short period-term. The production capacity and stock levels of tebuconazole technical are low while export demand for upstream intermediates is large. The production capacity of epoxiconazole technical among domestic manufacturers is low, and supply is extremely tight. Triazole fungicide stocks still remain low. Affected by the shortage of triazoles for mixture, the demand for pyraclostrobin technical has not been met by downstream formulation manufacturers, therefore, supply has increased, which may cause competition among manufacturers at a later date. The supply of the upstream intermediate, azoxystrobin technical, is tight, as demand recently increased. The majority of manufacturers of kresoxim-methyl technical are under shutdown, causing low stocks. The domestic manufacturers of trifloxystrobin have not yet restarted production so stocks are low. As certain problems related to the import of raw materials for kresoxim-methyl technical and trifloxystrobin technical are present, the supply of both will be tight in the future. Stocks of prochloraz technical cannot be replenished after delayed production, so this is expected to be tight for some time. The production capacity of cyazofamid is inadequate and there are few stocks available on the market. It should be noted that the currently depressed market has covered up the supply shortage.  

 

Breakdown of domestic fungicide prices:

 

This month, crude oil prices fell sharply, the cost of basic chemical raw materials could not be sustained, actual CCMP transactions fell, and CCMT supplies decreased while prices rose. Pyrethroid intermediates, such as dimethyl-4-pentenoic acid methyl ester and m-Phenoxybenzaldehyde, are relatively stable, but stocks of lambda-cyhalothric acid have slightly rebounded after consumption. 

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