The agrochemical raw material market is showing clear divergence, entering a phase of horizontal consolidation. The latest monitoring data indicates that the Sinochem Lihua Agrochemical Price Index closed at 74.89 points, down a marginal 0.24% year-on-year and 0.48% month-on-month. Among the over 100 key products tracked, nearly 70% have seen lower prices compared to the same period last year, while over 70% remained flat month-on-month, with only 5% showing an increase.
The herbicide sector performed relatively well, with its price index closing at 85.85 points, up 2.19% year-on-year and 1.8% month-on-month. Glufosinate-ammonium technical material saw sustained negotiation between suppliers and buyers, with the mainstream transaction price stabilizing at RMB 47,000/ton. Glyphosate technical material demonstrated stable domestic demand and tight spot supply due to scheduled deliveries for overseas orders. Quotations stood at RMB 27,500/ton for 95% content and RMB 28,000/ton for 97% content. Glufosinate-ammonium (refined) technical material was primarily driven by essential procurement, quoted at RMB 58,000/ton on an acid equivalent basis. Diquat technical material saw orderly restocking in domestic and international markets, with prices maintained at RMB 16,500/ton.
The insecticide sector index registered 65.33 points, a slight increase of 1.97% year-on-year but a decrease of 1.27% month-on-month. Chlorantraniliprole technical material experienced gradually increasing operating rates, with the market focused on essential stockpiling and steady trading rhythm; the current quotation is RMB 240,000/ton. Abamectin series products have low inventory levels, and market sentiment is cautious. Abamectin refined powder is quoted at RMB 470,000/ton, while emamectin benzoate technical material is mainstream quoted at RMB 680,000/ton.
The fungicide sector performance was relatively weak, with the index closing at 69.15 points, down 6.25% year-on-year and 0.39% month-on-month. Triazole products, currently in the peak season restocking period, showed volatile price movements. Difenoconazole technical material is quoted at RMB 87,000/ton; propiconazole technical material at RMB 67,000/ton; hexaconazole technical material at RMB 86,000/ton; tebuconazole technical material at RMB 51,000/ton, with a noticeable increase in export inquiries; tricyclazole technical material is in tight supply, quoted at RMB 66,000/ton; epoxiconazole technical material is stable, quoted at RMB 260,000/ton; flusilazole technical material has stable demand, quoted at RMB 288,000/ton; prothioconazole technical material is attracting growing market attention amid intensifying competition, currently quoted at RMB 130,000/ton.
The global pesticide market is currently in a critical observation period. Although demand has shown signs of recovery in some overseas regions with a rebound in order volumes, the overall market remains cautious. Mainstream product prices are expected to continue fluctuating within a range, with limited price movements for most varieties. It is worth noting that inventories for most products are at historically low levels, manufacturing companies have a strong willingness to adjust prices, and market sentiment is tilting towards optimism. Industry participants are advised to closely monitor changes in operating rates, inventory levels, cost fluctuations, and export dynamics to formulate flexible business strategies.
Particularly noteworthy is the glyphosate market, which has staged a strong recovery this year after three years of downturn. Prices have climbed steadily from a low of RMB 22,000/ton in March to RMB 27,300/ton by the end of August, a cumulative increase of nearly 25% over three months. Entering September, the average market price has stabilized around RMB 27,000/ton, with higher-content product quotations being more resilient.
This round of price increases began in March and accelerated after May, surging by RMB 2,000/ton in August alone. Industry profitability has significantly improved, with gross margins turning positive to reach 3.82%, and gross profit per ton recovering to approximately RMB 1,000/ton. The price spread for the glycine-based process also widened from RMB 9,000/ton in March to RMB 13,600/ton by the end of August.
Three key factors are driving this price rally: First, a rapid inventory drawdown, with industry stocks plummeting from 78,900 tons in early May to a record low of 30,600 tons by early August. Second, strong seasonal demand from South America, as June-August is the traditional procurement season, with expanded soybean and corn planting in countries like Brazil and Argentina boosting demand. Finally, robust cost support, with prices of key raw materials like yellow phosphorus, glycine, and caustic soda generally rising.
Looking ahead, glyphosate prices still have room to rise. The industry anticipates that prices may challenge the RMB 30,000/ton mark in the fourth quarter. The traditional procurement season in North America is set to begin in October, and multinational agrochemical giants have seen their inventories return to normal levels. In the medium to long term, with the continuous expansion of global genetically modified crop planting area and the accelerated phase-out of traditional herbicides like paraquat due to toxicity concerns, the demand growth prospects for glyphosate remain bright.
