China Agrochemical Production Update-March 2025

Tight supply of intermediates leads to higher prices for key products

In the first quarter of 2025, continued low prices in China's pesticide supply

market led many producers to adjust their start-up rates, thereby controlling

product inventories to save costs accounted for by inventories. The whip effect

in the supply chain has also led to some instability in the supply of upstream

intermediates. Even so, Chinese pesticide manufacturers are still actively looking

for possible incremental market demand and possibility to increase the price for

more margin.