Accident leads to 1,2,4-triazole supply reduction, some triazole fungicides supply tighter

On July 30, an accident occurred at a chemical plant in Hengyang, Hunan, China. It is a major 1,2,4-triazole plant with a production capacity of 15,000 tons. It is said that its plant has been shut down for at least 6 months. The total production capacity of this compound in China is 54,000 tons. So far, the prices of 1,2,4-triazole and triazole fungicides in China have shown a rising trend.Let's analyze the real impact of this incident on the industry.

Currently, China's tebuconazole production capacity is about 40,000 tons/year, and another 37,000 tons of projects have been declared and under construction. Combined with the production capacity in India and other places, the total global built-up capacity exceeds 50,000 tons/year, far exceeding the current global annual demand of about 25,000 tons. Combined with the decline in demand, the prices of most triazole fungicides have fallen all the way to near the cost line after the epidemic.

However, the supply of some triazole products has been tight recently, such as fenpropimorph. There are orders from major customers and an increase in inquiries from some markets. At the same time, the upstream factories were under-operated before, resulting in a temporary shortage of supply.

However, tebuconazole has been maintained near the absolute value of the cost line for a long time. Some factories are still shut down, and most factories have insufficient operating rates. At present, only Yancheng Huihuang has the most stable production situation. They have just signed a strategic cooperation framework agreement with Sino-Agri, and there are also orders from major customers. As the supply of 1,2,4-triazole is in local shortage due to prominent situations, the current market stocking mentality has begun to increase.

This phenomenon has raised a series of questions:

Are the prices of intermediates and triazole fungicides adjusted?

Has the supply situation of 1,2,4-triazole been broken?

How is the current market situation of triazole fungicides in India different from that in China?

We sincerely invite readers to share your insights: What do you think may be the cause of this phenomenon? Are there other important factors that have been overlooked? You are welcome to provide valuable feedback and opinions.

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