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Price & Supply Trend: pesticide prices decline, Chinese manufacturers to maintain current prices

Date:03-15-2019

Last week, CAC was held in Shanghai. Due to the earlier drop in pesticide prices, the market appears  pessimistic. However, at CAC upstream manufacturers expressed their strong intention to maintain current prices, therefore ensuring firm prices among some  products,  while the downstream market remains stalemated. 

Herbicide 
 
Herbicide technical is the most seriously affected product variety feeling the effects of  the market's decline. This week, glyphosate technical prices remained low, which has lasted for an extended  time. The falling price of glycine has led to lower costs of production. Glufosinate technical has remained at a low level, with the terminal formulation market also  gradually moving towards low levels.
 
Transactions in the amide herbicide market are weak. Butachlor technical has dropped significantly, and there have been price-cutting competitions among mefenacet technical manufacturers. As a result of the depressed exports, buyers from terminal markets are cautious about procurement of amide herbicide for their future needs. Therefore, the number of deals closed is, in general, rather small, where factories  are seeking to maintain their price levels.  The price of phenol has remained low, while 2,4-D production rates have increased, which is running at a high load this week.
 
Production in trifluralin technical factories has been restricted due to the environmental compliance regulation of waste acid treatment. The terminal market of haloxyfop-R-methyl technical has been stable. Quizalofop-p-ethyl technical and nicosulfuron technical remain short, where prices of upstream intermediates stay high, though with limited supplies. This resulted in an  impact on the continuous production in factories, so factories are not willing to place orders. The prices are expected to  return to higher levels at a later time which, however, may not be fully accepted by buyers from the terminal market. 
 
Chemical industrial parks in North Jiangsu Province are suffering from pressure brought on by their complying with  environmental regulations. A small number of bentazone technical manufacturers are operating, and cyhalofop-butyl technical manufacturers are recovering their levels of production. Market prices remain stable. The stocks of clethodim is at a low level, while the market price has fallen back. Clomazone technical is still in short supply and atrazine technical production runs at high loads, where factories are competing against each other  to alleviate the pressure to ensure  large stocks.
 
Part of herbicide prices detailed as below:
Product（TC）
100% basis/ actual concentration
Price（000 RMB/ton）
Glyphosate
95%
25.0
Glufosinate-ammonium
95%
150.0
2,4-D
98%
24.0
Butachlor
100% basis
22.5
Mefenacet
98%
72.0
Trifluralin
97%
40.0
Quizalofop-P
100% basis
255.0
Nicosulfuron
100% basis
305.0
Bentazone
95%
118.0
Clethodim
100% basis
180.0

Insecticide 

At CAC, prices of abamectin technical series have remained strong, though supplies from upstream factories are still limited, while downstream buyers are not remaining positive  about purchases. Production of abamectin technical series remains short, attracting close attention from the market. Even if CCMP and CCMT remain high, prices of neonicotinoid technical have generally declined due to the high levels of stocks. Very few malathion technical factories are operating, which leads to short supplies and high prices.

For organophosphorus product production, the treatment of higher waste discharges will be a key factor, which will determine the future supply situation.
 
Supplies of  fipronil technical are limited, and production is not  high . There have been many orders placed for export, and the price remains high.
 
The prices of pyrethroid upstream products dimethyl-4-pentenoic acid methyl ester and m-Phenoxybenzaldehyde is also high. Production of cyclopropanecarboxylic acid is not running at a high load. The price of dimethyl-4-pentenoic acid methyl ester continues to be high. In general, the cost backup sustains the high prices of pyrethroids.
 
Chlorfenapyr technical and bifenazate technical are both confronted with the requirement of centralized production. At present, production capacity is limited, while demand is high. The market stocks are at low levels, and prices are fluctuating at high levels. The short supply of upstream intermediates is the main reason for limited production, which is expected to continue at a later time. 
 
Part of insecticide prices detailed as below:
Product（TC）
100% basis/ actual concentration
Price（000 RMB/ton）
Abamectin
100% basis
470.0
Malathion
90%
29.0
Fipronil
95%
720.0
Lambda-cyhalothrin
96%
360.0
Chlorfenapyr
98%
315.0
Bifenazate
97%
440.0
Spirodiclofen
97%
140.0
Thiamethoxam
98%
108.0
Imidacloprid
96%
167.0
Chlorpyrifos
97%
47.0

Fungicide 
 
Due to the impact of the lower price of pyraclostrobin technical, fungicide technical is declining, in general. However, at CAC it is apparent that factories would want to maintain the price levels.
 
The production load of difenoconazole technical in factories is increasing. Propiconazole technical exports are slow and prices remain low due to the impact of current stocks. Tebuconazole technical intermediate supplies are short, causing problems for continuous production in factories. The production load of epoxiconazole technical in factories is low, and the product is mostly supplied for export. There are fewer manufacturing intermediates , resulting in short supplies.
 
Pyraclostrobin technical is being supplied by prime Chinese agrochemical companies, as buyers want to wait and see. Azoxystrobin technical intermediate supplies still remain short, but sources of supply are increasing and price performance ratios are declining . When pyraclostrobin technical prices are low, it causes an impact on demand for other products.
 
Carbendazim technical and thiophanate-methyl technical manufacturers are suffering from pressure caused by  complying with environmental regulations, while stocks remain at low levels. However, the demand for exports has not been satisfied . 
 
Thifluzamide technical upstream factories are not running at high loads. Dimethomorph technical, diethofencarb technical and iprodione technical are still in short supply. After CAC, downstream demand has begun, though upstream vendors are less willing to reduce prices, but want to maintain a stable price level. Prices of parts of products have also declined to a level acceptable to downstream buyers. The market is running at this moment, based upon elimination of stocks. With the continued implementation of the environmental compliance regulatory measures, and while downstream distributors are starting to place orders, the market is expected to move towards a rational state, as driven by demand from terminal markets. In general, the high price level of most  products is expected to continue.
 
Part of fungicide prices detailed as below:
Product（TC）
100% basis/ actual concentration
Price（000 RMB/ton）
Pyraclostrobin
98%
190.0
Difenoconazole
96%
226.0
Tebuconazole
97%
135.0
Epoxiconazole
97%
750.0
Azoxystrobin
98%
365.0
Carbendazim (grey)
97%
34.0
Carbendazim (white)
97%
37.5
Thiophanate-methyl (grey)
97%
32.0
Thiophanate-methyl (white)
97%
33.0
Thifluzamide
95%
350.0


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