In July 2016, China's market price of chlorothalonil plunged after reaching its peak, mainly affected by the recovery
in market supply and the coming of slack season. According to CCM's price
monitoring, the ex-works price of chlorothalonil 98% TC averaged USD4,949/t in
early July, down 11.92% over USD5,539/t in May.
Source: Baidu
In fact, chlorothalonil was in serious
shortage in H1 2016, with almost no products available in the market. During
that time, most manufacturers focused on fulfilling previous orders and have
shown no room for new orders, and therefore few new transactions were made.
This pushed up the market price of chlorothalonil. For instance, the ex-works
price of chlorothalonil 98% TC in May 2016 went up by 17.28% over USD4,723/t in
Jan. and up 24.53% over USD4,448/t in May 2015, according to CCM's price
monitoring.
Prior to this, in H2 2015, as the inventory
could not meet the market demand, the domestic chlorothalonil market didn't run
well, with continuous slump in its price. Most manufacturers, holding a
pessimistic attitude towards the market, lowered their operating rates and
mainly sold their products in stocks. As a result, the quantity of
chlorothalonil available for sales was relatively small.
However, in 2016, many overseas
chlorothalonil suppliers cut down their output. Therefore, more foreign
purchasers turned to the Chinese market and boosted orders for chlorothalonil.
In the short run, this hot export market and the small quantity of
chlorothalonil in the market led to the severe short supply.
An industry insider disclosed to CCM:
"In H1 2016, the rapid increase of orders made most manufacturers at home
run busy schedule and produce at full capacity. They may not capable of
receiving new orders in a short time."
Leading domestic chlorothalonil
producers, such as CAC Shanghai Chemical Co., Ltd. and Jiangsu Weunite Fine
Chemical Co., Ltd share this view, saying that new orders have to queue up for
production. In this context, most producers suspend offering quotations and set
transaction prices for new orders based on the market conditions.
Nevertheless, this shortage has been eased
by the end of June, as chlorothalonil producers gradually increased their
operating rates to enrich market supply and overseas enterprises are finishing
their purchase. Consequently, the market price of chlorothalonil began to fall
and is less likely to rebound in the near future.
Ex-works price of
chlorothalonil 98% TC in China, June 2015-July 2016
Source: CCM
This article comes from Fungicides China News 1607, CCM
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Tag: chlorothalonil fungicides