Chlorothalonil import prices from China increased 50%, Agrinvest reports

Date:11-27-2024

According to Jeferson Souza, market intelligence analyst at Agrinvest Consulting, chlorothalonil import prices from China have increased since the end of June this year. Quotations increased by over 50% in a short period, resulting from increased production costs and strengthened demand.

"It is interesting to note that chlorothalonil was the fifth most consumed active ingredient in Brazil in 2022, being the second largest in the fungicide group," the specialist emphasized. Chlorothalonil is an organic compound used primarily as a broad-spectrum non-systemic fungicide. It is also used as an acaricide and to control mold, mildew, bacteria, and algae. Syngenta and Sipcam Nichino sell products containing chlorothalonil under the trade names Bravo, Echo, and Daconil, among others.

"Meanwhile, for mancozeb – the main fungicide used in Brazil, there was also a strengthening of quotations in the Chinese market. However, in this case, China is not the main supplier. Indians hold the largest supply share," Jeferson Souza added. 

Regarding crop protection products, the consultant at Agrinvest adds that the predominant feeling is that "there is still a large open market in Brazil focused on the 'safrinha'", the Brazilian second crop. "Furthermore, we have not observed concrete movements for 2025-2026 so far. Considering this scenario, we have been having important conversations with our clients about the current decision-making moment for crop protection products," the specialist stated.

The exchange ratios of herbicide, fungicide, and insecticide packages, he points out, are at a very similar level to the average values observed before the pandemic. "For some products, it is even possible to consider that we have returned with better conditions than those of 2019-2020. However, recently, the Chinese market has been showing some changes in the scenario," he highlighted.

"Beyond these price developments, there is a critical discussion on the agenda linked to crop protection taxation. The Supreme Court is holding public hearings to discuss the topic. If there are changes in taxation policy, it won't be a secret to anyone that the bill will come to the productive sector," Jeferson Souza warned.

"As if all this wasn't enough, the dollar in Brazil continues to operate at high values. "The agenda may bring even more volatility to the U.S. currency, with the election results in the United States and the definition of interest rates both in Brazil and the United States," he said in conclusion.

(Editing by Leonardo Gottems, reporter for AgroPages)