July 31 Pesticide Daily Review: Limited Demand Absorption

The pesticide market remained generally weak in sentiment. Downstream buyers continued to purchase mainly for essential needs, while the market lacked sufficient drivers. The cost-push narrative eased somewhat as geopolitical tensions cooled. Although higher costs continued to support some products, poor transmission along the industrial chain persisted, and elevated prices continued to trigger negative feedback from downstream users. The market is temporarily waiting to see whether end demand can absorb additional supply. In international markets, geopolitical conditions in the Middle East remained volatile. The United States and Iran continued to follow a pattern of fighting while negotiating, but higher shipping costs and damage to the petrochemical supply chain are unlikely to be reversed in the short term, leaving underlying support in place. Overall, cautious sentiment persisted. The transmission of upstream price increases to downstream markets remained constrained, upward momentum slowed, and wait-and-see sentiment continued. Attention should remain on geopolitical developments, export activity, and seasonal demand.

Market Analysis

Herbicides: The herbicide market remained generally weak, with limited demand follow-through. Although cost pressure caused by geopolitical risks persisted, insufficient downstream absorption failed to provide upward momentum. The United States invoked the Defense Production Act to designate elemental phosphorus and glyphosate herbicides as critical defense materials and required domestic supply to be prioritized. This continued to lend some support to the Chinese market. Bayer's withdrawal of its request for an anti-dumping and countervailing-duty investigation into Chinese glyphosate also eased sentiment pressure, although actual demand still requires further observation. Overall, downstream buyers continued to purchase only for essential needs. Short-term demand support remained weak and market sentiment continued to soften. Attention should remain on any improvement in exports and changes in geopolitical sentiment.

Yellow Phosphorus: Market momentum stabilized after slowing today. Most downstream buyers had already stocked up earlier, leaving relatively limited follow-through on actual orders and insufficient momentum for further price increases. However, upstream producers generally held limited inventories and maintained firm offers while waiting for changes in trading activity. Tight supply continued to support positive market sentiment in the short term, but transactions slowed after sustained price increases. The market may remain stable for the time being, although a new correction could occur if demand weakens further.

Pesticide Market Price Overview

Herbicides:

96% pendimethalin fell by RMB 1,000 to RMB 41,500/tonne.

Insecticides:

97% clothianidin fell by RMB 1,000 to RMB 65,000/tonne; 95% fipronil fell by RMB 20,000 to RMB 330,000/tonne; 94% profenofos fell by RMB 2,000 to RMB 48,000/tonne; and 95% (9:1) indoxacarb fell by RMB 20,000 to RMB 410,000/tonne.

Fungicides:

95% tricyclazole fell by RMB 2,000 to RMB 64,000/tonne; 98% azoxystrobin fell by RMB 2,000 to RMB 128,000/tonne; 98% dimethomorph fell by RMB 1,000 to RMB 60,000/tonne; and 97% trifloxystrobin fell by RMB 5,000 to RMB 170,000/tonne.