Feature of Post-Patent Pesticides: Chlorothalonil Price Surge – Global Market Dynamics Amid China’s Capacity Control

In recent years, China's pesticide industry has made significant progress in the R&D and production of off-patent pesticides, establishing a complete industrial chain and continuously consolidating its advantages. Despite the generally low prices in 2024, the industry still showed resilience, with some products such as chlorothalonil, abamectin, and emamectin benzoate even experiencing price increases and performing well in the market. In some varieties, China's pesticide industry has shifted from being a "follower" to a "leader." For example, with technological and cost advantages, China has brought chlorantraniliprole from the high-priced "pedestal" to the mainstream.

This special report, published in the latest 2025 China Pesticide Industry Watch magazine, selects several off-patent pesticides with industrial and technological advantages for in-depth analysis. It provides global buyers with insights into product trends and development directions in China's pesticide market to assist industry decision-making.

Featured Article to be released in succession:

• Chlorothalonil Price Surge – Global Market Dynamics Amid China’s Capacity Control

• Abamectin and emamectin benzoate demonstrate strong market performance in 2024, fueled by multiple factors for continued growth potential

• Navigating patent expiration and market transformation: Chlorantraniliprole as a case study in technological advancements by Chinese agrochemical companies

Chlorothalonil, a broad-spectrum protective fungicide, has been a crucial player in global agricultural production since its introduction in the 1960s. Its multi-site action mechanism effectively mitigates the risk of pathogen resistance, providing it with a distinct advantage in disease management. In recent years, despite restrictions and bans on chlorothalonil in several countries and regions, including the European Union (EU), demand remains robust in key markets such as Brazil and the US, particularly for controlling soybean rust. From a market perspective, the price of chlorothalonil surged from RMB16,500 per ton in 2024 to RMB27,500 per ton at the beginning of 2025, marking a 66% increase and highlighting a growing supply-demand imbalance. This article delves into the current landscape and development trends of chlorothalonil, examining various aspects such as its global development history, market structure, regulatory environment, and innovation trends.

Global Development History and Characteristics

Chlorothalonil was initially launched in 1963 by the American company Diamond Alkali Co. (now ISK Biosciences Corp.). In 1997, it was acquired by Zeneca Agrochemicals (now Syngenta Group), becoming a core product for the agricultural chemical giant. Chlorothalonil formulations were first registered in the US in 1966 for use on lawns. In the 1980s, China obtained the first registration for chlorothalonil formulation, a 75% WP. Yunnan Chemical Research Institute began researching and developing chlorothalonil in the early 1980s, achieving the capability to produce its technical material (96%) by the end of that decade.

The chemical structure of chlorothalonil

In the realm of plant disease control, chlorothalonil offers distinct advantages: it not only provides preventive protection before diseases occur, but its multi-site action mechanism also significantly reduces the likelihood of pathogens developing resistance, making it a vital tool in resistance management.

However, in recent years, chlorothalonil has encountered bans due to its potential risks to fish and aquatic organisms, as well as concerns regarding the impact of its degradation products on groundwater. Several countries and regions have implemented restrictions or bans, including the EU (comprising 27 countries), New Zealand, Switzerland, Türkiye, the United Kingdom, and Costa Rica. The key timeline of these restrictions and bans is as follows:

In 2017, New Zealand imposed strict regulations on pesticides containing chlorothalonil. The local environmental protection agency revoked the approval of four fungicides used in residential properties and gardens, including Yates Bravo and Yates Greenguard, and ultimately banned their sale throughout the country. The year 2019 marked a significant turning point for the industry, as the EU rejected the re-evaluation application for chlorothalonil, signaling its withdrawal from the EU market. The United Kingdom soon followed suit with its ban. Additionally, in the same year, Switzerland also revoked sales licenses for the product.

In 2020, Türkiye added chlorothalonil to its list of banned pesticides for use, production, and importation. By 2023, the global regulatory landscape tightened even further, with Costa Rica implementing a ban on the use of chlorothalonil.

Despite these regulatory pressures, the chlorothalonil market continues to demonstrate strong growth. According to third-party data, global sales of chlorothalonil reached US$380 million in 2021 and are projected to rise to $540 million by 2023, indicating a sustained increase in market demand.

Global Market Landscape

Due to fluctuations in the prices of key raw materials for chlorothalonil and significant shifts in the market environment, its price has increased considerably. According to data from BAIINFO (as shown in Figure 1), as of January 16, 2025, the market price of chlorothalonil has reached RMB27,500 per ton, marking a substantial rise of 66.67% from the annual low of RMB16,500 per ton recorded on May 10, 2024.

Figure 1. Price Trend of Chlorothalonil (Source: BAIINFO)

The specific factors contributing to the price increase of chlorothalonil are as follows:

① Following the second quarter of 2024, inventories of chlorothalonil declined, resulting in a market recovery driven by strong demand.

② The supply-side market structure is well-defined, with no new production capacity being introduced. As the manufacturing process of chlorothalonil produces cyanide waste, which is highly toxic, the approval for new projects faces certain restrictions. Aside from the expansion of existing facilities, it is relatively complex for new entrants to obtain approvals. Currently, chlorothalonil is included in the National Development and Reform Commission’s ″high pollution, high environmental risk″ product catalog, which prohibits the addition of new production capacity and expansions. This is expected to sustain the current structure of the chlorothalonil industry.

③ In terms of raw materials, the price of m-xylene has increased and stabilized, while the price of synthetic ammonia has experienced fluctuations. Overall, the cost of chlorothalonil followed an initial increase before stabilizing.

In summary, the supply-demand imbalance for chlorothalonil is likely to become more pronounced, potentially allowing for further price increases. Historically, chlorothalonil has demonstrated significant price elasticity, peaking at RMB55,000 per ton in 2019.

Demand side: Characterized by Regional and Seasonal Variations, Along With an Expanding Range of Applications

The market demand for chlorothalonil shows notable regional and seasonal variations.

Geographically, the demand for chlorothalonil is mainly concentrated in South America, especially Brazil. According to Phillip's data (as shown in Figure 2), global sales of chlorothalonil reached 61,000 tons in 2023, with Brazil representing 61% of that total. China and the US account for 17.6% and 6.22% of the market share, respectively. The product is primarily used in soybean, vegetable, and fruit crops. In total, the current global demand for chlorothalonil is around 70,000 tons.

Figure 2. Global Sales of Chlorothalonil in 2023

From 2021 to 2024, global imports of chlorothalonil have demonstrated a fluctuating upward trend, as illustrated in Figure 3. While Brazil’s share of imports has decreased from around 80% in 2021 to 50% in 2024, its market dominance remains strong. Concurrently, demand from other regions, such as the US, has been increasing steadily, contributing to the overall growth of global imports. It is noteworthy that the decline in Brazil’s import volume in 2023 is mainly attributed to the industry’s destocking cycle rather than a decrease in actual demand. With the end of the destocking cycle, Brazilian market demand rebounded in 2024, leading the industry into a restocking phase.

Figure 3 Global Imports of Chlorothalonil (Technical + Formulations) from 2021 to 2024

In the Brazilian market, chlorothalonil is almost irreplaceable in the control of soybean rust due to local climatic conditions and crop structures. There are two peak application periods each year in this region: from December to February and from July to August. In 2024, Brazil experienced prolonged rainy and humid weather, leading to a large-scale outbreak of soybean rust. Coupled with tight inventory levels, the market demand for chlorothalonil surged. Furthermore, the application range of chlorothalonil in Brazil has expanded from solely controlling soybean rust to managing disease resistance in cotton and corn, further driving the growth of its demand and becoming one of the key factors behind the current increase in market demand.

Supply-side: Highly Concentrated

The supply side of chlorothalonil also exhibits a highly concentrated characteristic. Import and export data from 2021 to 2024 (as shown in Figure 4) indicate that the global import volume of chlorothalonil technical closely aligns with China’s export trends, highlighting that the worldwide supply of chlorothalonil is heavily reliant on the Chinese market.

Figure 4 Export Situation of Chlorothalonil Technical from China

According to industry research by AGROPAGES, the current global annual supply of chlorothalonil is approximately 70,000 tons, with China accounting for around 90% of this total. The primary producers of chlorothalonil in China include Jiangsu Xinhe, Suli Chemical, Shandong Dacheng, and Jiangsu Weunite, creating a market landscape dominated by a few key players. Among these, Jiangsu Xinhe stands out with a production capacity of about 30,000 tons, representing 40% of the global capacity. The company is primarily owned by Nantong CAC, which holds a 51% share, and Limin Chemical, which has a 34% share, positioning it as the leading enterprise in China’s chlorothalonil market. The specific capacity information can be found in Table 1.

Table 1: Production Capacity of Chlorothalonil in China

The production process of chlorothalonil primarily involves the ammoxidation of m-xylene to produce m-phthalodinitrile, which is subsequently converted into chlorothalonil through a chlorination reaction. The final product is obtained through a series of steps, including condensation, separation, and purification, with tail gases being either recovered or treated.

While this process is well-established within the industry, variations in technology, equipment, and management practices among different enterprises lead to notable differences in product quality and production efficiency.

Nantong CAC has been actively involved in the chlorothalonil sector for over 20 years, harnessing continuous research, development, and technological innovation to create distinct advantages. The company holds proprietary core catalysts and advanced ammoxidation technology. Its manufacturing facilities are equipped with high-standard automation and an EHS management system, ensuring efficient, safe, and environmentally friendly production. Thanks to these strengths, Nantong CAC has emerged as a key global supplier of chlorothalonil, forming long-term partnerships with several multinational corporations. The company has also contributed to the development of national standards by conducting equivalence assessments of chlorothalonil according to FAO standards, reinforcing its leadership position in the industry and consistently delivering stable, cost-effective products to its customers.

Suli Chemical has amassed 30 years of experience in chemical manufacturing within the chlorothalonil sector, establishing significant competitive advantages through its extensive research and development, production capabilities, and market layout. The commissioning of a new factory in Ningxia further improves its product quality and supply stability. Through process innovation, standardized design, careful equipment selection, and comprehensive automation control, Suli Chemical has achieved intrinsically safe production, environmentally compliant emissions, and consistent product output. By leveraging local resources and optimizing factory product planning, the company has facilitated the mutual use of raw materials and energy, maximizing resource value to maintain cost advantages. Additionally, Suli Chemical actively engages in the formulation of national standards, and its product quality has garnered widespread recognition within the industry.

Innovation Trends and Market Outlook

The following factors primarily drive the ongoing growth of the chlorothalonil market:

1. Strong demand in the Brazilian market: Chlorothalonil has emerged as the fifth most widely used active ingredient in Brazil, securing the second position in the fungicide category and indicating a strong market presence.

2. Enhanced value in resistance management: Globally, the practice of mixing or rotating chlorothalonil with SDHI fungicides is gaining traction. This resistance management strategy not only prolongs the effectiveness of pesticides but also creates new application opportunities for chlorothalonil, especially in disease control for cotton and corn crops in Brazil.

3. Accelerated product innovation: As the efficacy of specific-site active ingredients diminishes, the market share of multi-site protective fungicides has seen a substantial rise. The demand for ternary mixed products is steadily increasing, and the development of quaternary mixed products is also gaining traction. These innovative formulations streamline operational processes for producers, improve formulation stability, and significantly mitigate the risks associated with hazardous tank mixtures. The promotion of these new formulation products will further strengthen chlorothalonil’s market position.

4. Market opportunities: While certain regions have imposed restrictions or bans on chlorothalonil, its primary competitor, mancozeb, is also encountering challenges, including bans in the EU. The absence of comparable multi-site protective fungicide alternatives ensures that the demand for chlorothalonil remains robust in key global markets. Furthermore, the relatively lenient regulatory environment in regions such as Southeast Asia and Australia is anticipated to create growth opportunities for chlorothalonil.

Looking ahead, the demand for disease control is expected to rise in light of worsening global climate change. In major agricultural countries, particularly Brazil, rainy and humid weather conditions may heighten the risk of disease outbreaks, underscoring the critical role of chlorothalonil in disease management systems. With rapid advancements in product innovation, the use of chlorothalonil in resistance management and disease control is set to deepen, offering significant development potential in the development of innovative mixtures and the exploration of emerging markets.

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