Pesticide Daily Review, June 18: Cautious Sentiment Persists

The pesticide market remained generally subdued, with prices moving in a volatile and divergent pattern. Downstream demand was mainly need-based, while the cost-push logic may slow as geopolitical tensions ease. Some products still found support from temporary supply-demand mismatches, but high prices continued to trigger downstream negative feedback due to weak transmission along the value chain. The market is still waiting to see whether end-user demand can provide further support.

In the international market, expectations remain for stronger trade flows toward China. However, actual external demand will depend more on overseas seasonal cycles and the stockpiling willingness of international traders. Overall, this still provides medium- to long-term support for market sentiment.

In the short term, tensions in the Middle East have shown signs of easing. The U.S. and Iran have preliminarily signed a memorandum of understanding, significantly reducing the geopolitical risk premium. However, the market is still watching whether navigation through the Strait of Hormuz can be materially restored. Supply disruptions in the petrochemical chain remain difficult to reverse in the short term. Cost-driven momentum may slow, but bottom support is likely to remain.

Overall, cautious sentiment persists. Price increases in some upstream products continue to face transmission resistance downstream, upward drivers have weakened, and the market remains in a wait-and-see mode. Going forward, attention should be paid to geopolitical developments, export strength and seasonal demand.

Market Analysis

Herbicides

The herbicide market continued to weaken. Earlier inventory buildup among traders has led to some low-price selling. Although cost pressure from geopolitical risks still exists, expectations have eased after the broader peace outlook became clearer, while insufficient demand acceptance has failed to provide new upward momentum.

In the U.S., elemental phosphorus and glyphosate herbicides have been designated as defense-critical materials under the Defense Production Act, requiring priority protection of domestic supply. This measure continues to provide some support to the Chinese market.

Overall, downstream buyers are mainly purchasing on a need-only basis. After seasonal demand support weakened in the short term, market sentiment continued to soften. Further attention should be paid to whether exports improve and how geopolitical sentiment evolves.

Yellow Phosphorus

The yellow phosphorus market remains in a high-level tug-of-war, while trading sentiment has weakened. Upstream producers are under limited inventory pressure and still show some willingness to hold firm on prices.

However, downstream products remain limited in their ability to follow price increases, and the transmission of rising cost pressure remains constrained. As Middle East geopolitical tensions ease, the decline in sulfur prices has reduced the substitution premium for thermal-process phosphoric acid to some extent. The market is currently cautious and watchful. Some midstream participants have taken the lead in cutting prices, and as trading sentiment weakens, the market has entered another correction phase.

Pesticide Market Price List

Herbicides

95% glyphosate fell by RMB 1,000 to RMB 29,000/mt.

98% 2,4-D fell by RMB 1,000 to RMB 17,000/mt.

40% diquat mother liquor fell by RMB 2,000 to RMB 18,000/mt.

95% pretilachlor fell by RMB 1,000 to RMB 31,000/mt.

97% haloxyfop-P-methyl fell by RMB 2,000 to RMB 123,000/mt.

Insecticides

97% imidacloprid fell by RMB 2,000 to RMB 73,000/mt.

97% chlorfenapyr fell by RMB 5,000 to RMB 120,000/mt.

96% pyridaben fell by RMB 3,000 to RMB 120,000/mt.

98% monosultap fell by RMB 5,000 to RMB 85,000/mt.

95% indoxacarb (9:1) fell by RMB 20,000 to RMB 480,000/mt.

99% metaldehyde fell by RMB 2,000 to RMB 35,000/mt.

96% chlorantraniliprole fell by RMB 5,000 to RMB 225,000/mt.

Fungicides

96% difenoconazole fell by RMB 2,000 to RMB 80,000/mt.

95% cyproconazole fell by RMB 4,000 to RMB 158,000/mt.

96% hexaconazole fell by RMB 5,000 to RMB 90,000/mt.

98% azoxystrobin fell by RMB 4,000 to RMB 130,000/mt.

97% pyraclostrobin fell by RMB 5,000 to RMB 130,000/mt.

96% thifluzamide fell by RMB 10,000 to RMB 240,000/mt.

97% hymexazol fell by RMB 5,000 to RMB 80,000/mt.

97% trifloxystrobin fell by RMB 10,000 to RMB 175,000/mt.