August 6 Pesticide Daily Review: Volatile Tug-of-War

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: Yellow phosphorus market sentiment stabilized and recovered overall today. After some recent supply-side disruptions, market sentiment improved slightly. Upstream producers generally held relatively limited inventories, and conditions for price support remained. Tight short-term supply supported positive market sentiment. After earlier price cuts to stimulate sales, upstream shipments were relatively smooth, market sentiment was relatively stable, and downstream buyers temporarily purchased as needed while watching the strength of this round of recovery.

Pesticide Market Price Overview

Herbicides:

98% 2,4-D fell by RMB 1,000 to RMB 14,000/tonne; 40% diquat mother liquor fell by RMB 1,000 to RMB 17,000/tonne; 96% clodinafop-propargyl fell by RMB 5,000 to RMB 160,000/tonne; 96% bispyribac-sodium fell by RMB 5,000 to RMB 205,000/tonne; 97% haloxyfop-P-methyl fell by RMB 5,000 to RMB 118,000/tonne; and 95% quinclorac fell by RMB 5,000 to RMB 150,000/tonne.

Insecticides:

70% emamectin benzoate fell by RMB 10,000 to RMB 550,000/tonne; 95% (9:1) indoxacarb fell by RMB 10,000 to RMB 400,000/tonne; and 97% lufenuron fell by RMB 3,000 to RMB 115,000/tonne.

Fungicides:

96% difenoconazole fell by RMB 2,000 to RMB 78,000/tonne; 95% flusilazole fell by RMB 10,000 to RMB 290,000/tonne; 98% azoxystrobin fell by RMB 3,000 to RMB 125,000/tonne; and 97% hymexazol fell by RMB 3,000 to RMB 72,000/tonne.