September 22 Pesticide Daily Review: Cautious While Awaiting Changes

The pesticide market is generally operating within a low-season range. Market sentiment has improved slightly from earlier levels, but downstream buyers are still mainly making essential purchases. Some products have recently received strong support from higher-cost factors, while supply has contracted under the influence of various factors, resulting in strong short-term gains. However, because of transmission issues along the industrial chain, the possibility of negative downstream feedback caused by higher prices also exists, and the market is currently waiting to see how much further end-user demand can absorb. Although there are signs of easing in the geopolitical situation in the Middle East, the overall tense pattern continues. Navigation risks remain high at the two major chokepoints, the Strait of Hormuz and the Bab el-Mandeb, and the petrochemical sector still has cost support, but the market is gradually developing expectations that prices may have reached a top. Overall, caution continues to dominate the market. Some products have risen significantly, while other categories have shown limited follow-through. Market divergence is clear and wait-and-see sentiment remains evident. Going forward, attention should be paid to changes in geopolitical sentiment, export strength and seasonal demand.

Market Analysis

Herbicides:

The overall herbicide market currently shows some signs of stabilizing. The major products glufosinate and glyphosate have both experienced supply-side recovery because of higher raw-material prices. The cost increases caused by geopolitical risks are gradually becoming evident, but the market is still watching for further demand-driven support. Glufosinate prices recently jumped sharply, mainly because production of raw-material intermediates has become tight and their prices have risen, along with the impact of international political issues. The market is closely watching transactions after the substantial price increase. If prices continue to move higher, substitute products may also be expected to follow. Overall, downstream buyers are mostly maintaining essential purchasing, while the market is watching for the possibility that product-specific drivers may broaden into a wider market move.

Yellow Phosphorus:

Yellow phosphorus prices fell somewhat today. After transactions on the demand side weakened, the price center began to soften. In the short term, producers are mainly focused on shipment orders. Earlier sales were relatively solid, and tight spot availability still provides producers with reasonable conditions to maintain prices. However, downstream buyers are mostly purchasing only limited volumes to meet essential needs. Since pre-holiday restocking capacity is relatively limited, willingness to follow the market has declined after prices continued to rise. Many buyers are making inquiries at lower prices, and the weakening of spot transactions has slowed the price momentum.

Pesticide Market Price Overview

Herbicides:

95% glyphosate: up RMB 2,000 to RMB 28,000/tonne.

Insecticides:

96% lambda-cyhalothrin: up RMB 1,000 to RMB 106,000/tonne. 96% bifenthrin: up RMB 1,000 to RMB 126,000/tonne. 97% acetamiprid: up RMB 1,000 to RMB 58,000/tonne. 97% clothianidin: up RMB 4,000 to RMB 68,000/tonne. 97% chlorpyrifos: up RMB 1,000 to RMB 38,000/tonne. 95% monosultap: up RMB 1,000 to RMB 25,000/tonne. 97% dinotefuran: up RMB 8,000 to RMB 120,000/tonne.

Fungicides:

95% propiconazole: up RMB 1,000 to RMB 69,000/tonne. 97% tebuconazole: up RMB 1,000 to RMB 47,000/tonne.