Prices of Chinese fungicide technical rising sharply as tight supply to continue 06-14-2019

Currently, China’s nation-wide work safety inspection is ongoing with a strict administrative policy. As a result, there is a growing number of factories where production has been shut down or restricted. Not only does it cause a situation of tight supply, but also leads to manufacturers that are unwilling to take orders. At the moment, the Chinese pesticide market is experiencing a downturn. Prices of herbicide and insecticide underwent a drop last month. On the contrary, with a sharp rise in April, prices of Fungicide still remained high in May.

In terms of China’s pesticide market, prices started to increase by a relatively wide margin last year. However, prices start to fall this year. According to the market turnover of pesticide products, prices have been decreasing constantly from January to April this year, compared to the same period of last year. The Xiangshui Explosion strikes the market especially bad. After the explosion, factories have been moved, production has been turned down, and a nation-wide safety inspection has been expanded. All of these factors impose a detrimental impact on China’s factory capacity, which leads to a tension of market supply as well as fluctuations of market prices.

A generally decreasing tendency seen in China’s pesticide market

In general, the Chinese pesticide market fails to recover in a positive way recently. Some varieties still remain slow, but there is also growth of prices for other varieties. At present, both the herbicide market and insecticide market have a slump in prices, while those of fungicides remain high and stable.

Herbicide market:

In May, prices of glyphosate technical remained low, with a drop to RMB24, 500 per ton. Glufosinate technical continued to go down with a decreasing price within RMB140, 000 per ton. Due to a slack season, prices of atrazine technical reached around RMB22, 500 per ton, under great inventory pressure.

Insecticide market:

The trend of the insecticide market still remained slow in this month. Prices of imidacloprid technical went down to RMB155, 000 per ton and those of acetamiprid technical fell to RMB163, 000 per ton, without obvious improvement in market turnover, compared to the last period. Chlorpyrifos still remained at the price of RMB46, 000 per ton, which has been staying still for quite a long while.

Fungicide market:

In April, the fungicide price index reached 137.04, with a month-on-month increase by 0.22% and a year-on-year rise by 14.69%. Among the fungicide products, only carbendazim and mancozeb technical had decreasing prices with a month-on-month drop respectively by 4.57% and 4.63%, which dragged down the price index by 1.7%. However, prices of other fungicide technicals such as chlorothalonil, tebuconazole, thiophanate-methyl, propiconazole, and difenoconazole all experienced growth, with a month-on-month increasing rate respectively at 0.44%, 5.18%, 3.55%, 3.58% as well as 4.94%. This rise brought another growth in the price index by 2.43%.

During May, tight supply showed up in the fungicide market. Tricyclazole technical was in a comparatively greater demand, with a price of more than RMB93, 000 per ton. Carbendazim technical had a stable price, while 98% chlorothalonil prices reached RMB55, 000 per ton.

For more information about China's fungicide market, please have a look at our monthly newsletter Fungicides China News.

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