In late August, the pesticide technical (active-ingredient) market remains in its traditional slow demand season. Channel stockpiling for the new cycle is still being consolidated and prepared, and all segments of the industry chain — from upstream raw materials and intermediates to technical actives and formulations — are largely in a wait-and-see mode. The end-user market is mainly digesting warehouse inventories and replenishing on demand, with overall trading sentiment subdued. On the supply side, safety and environmental inspections continue in some production areas, with a concentration of scheduled maintenance and production cuts among technical and intermediate manufacturers, keeping the industry operating rate at a stage-wise low; at the same time, chemical raw-material prices have fluctuated slightly, providing only limited cost support. Trends vary clearly by category: quotations for essential-demand products remain relatively firm, while most conventional technical prices are weakening steadily, and the overall market mood is highly cautious.
As a manufacturer that has been deeply engaged in the production of pesticide technical actives via the phosgene route for many years, Jiangsu Lanfeng Bio-Chemical keeps close watch on upstream prices and the supply-demand rhythm. Drawing on publicly monitored industry data, the company summarizes the major recent movements in the technical market below, for the reference of partners in their procurement and stockpiling planning.
As of August 16, the domestic technical-product price index stood at 71.66 points, down 3.63% year-on-year and 1.25% month-on-month. Among the more than one hundred technical products tracked, about 64% declined year-on-year, about 10% remained flat, and about 26% rose; versus the previous month, about 38% fell, about 59% held steady, and about 3% rose. Overall, the price center remains on a downward track, with most products sitting at relatively low levels in recent years, and both channel and end-user sentiment is cautious.
The herbicide technical price index stood at 80.93 points, down 4.01% year-on-year and 1.15% month-on-month. Glyphosate technical saw subdued trading, quoted at 26,000 CNY/tonne for 95% purity and 26,500 CNY/tonne for 97% purity. Glufosinate-ammonium technical was on factory order backlog with tight supply, quoted at 51,000 CNY/tonne; boosted by this, Glufosinate-P technical was quoted at 60,000 CNY/tonne on a 100%-basis. In the coming period, attention should focus on the price correction of amide, sulfonylurea and selective herbicides after the end of the application season.
The insecticide technical price index stood at 64.14 points, down 2.41% year-on-year and marginally 0.80% lower month-on-month. Affected by controls on raw-material production, Chlorantraniliprole technical saw tight supply and a firming market, quoted at 230,000 CNY/tonne; Abamectin refined powder was quoted at 370,000 CNY/tonne, and Emamectin Benzoate technical at 550,000 CNY/tonne. Demand-driven varieties such as Chlorantraniliprole and Spirotetramat have been strengthening gradually, while supply has contracted in tandem. Neonicotinoid varieties such as Imidacloprid and Thiamethoxam are trading at market-driven prices.
The fungicide technical price index stood at 66.52 points, down 4.00% year-on-year and 1.83% month-on-month. Varieties such as Difenoconazole and Azoxystrobin are mainly being replenished on essential demand; Pyraclostrobin has continued to decline, quoted at 124,000 CNY/tonne; triazoles and strobilurins are consolidating within a narrow range overall. In the intermediate market, upstream products such as 2-chloro-5-chloromethylpyridine, methyl nitroguanidine and oxadiazine saw slightly fluctuating quotations amid intensifying supply-demand gamesmanship.
On the whole, the technical market currently lacks any clear positive catalyst in the short term, and quotations will most likely continue their pattern of weak consolidation. In the period ahead, key factors to monitor include: first, the pass-through of upstream intermediate and chemical raw-material price fluctuations to costs; second, the marginal impact of operating rates and restart progress on supply; and third, whether overseas autumn stockpiling and domestic end-user replenishment demand can gradually be released. With cautious market sentiment prevailing and no clear upside or downside driver, most technical prices are expected to fluctuate within a narrow range.
Note: The above price information is sourced from public market monitoring and is for reference only; actual transactions are subject to prevailing market conditions. Jiangsu Lanfeng Bio-Chemical will continue to share industry developments. Customers and partners are welcome to follow this column to stay abreast of movements in the technical-product market.
