An explosion in a
Chinese industry park is shortening the supply of pesticide intermediates,
adding further pressure on the market, especially for triazole fungicides.
December 9, an explosion occurs at Lianyungang Juxin Biotechnology Co., Ltd. in
the Lianyungang Chemical Industry Park of Jiangsu Province. The accident has
caused several casualties.
to market intelligence firm CCM, this incident will have a significant impact
on China’s pesticide market, given the fact that Lianyungang Juxin is a
well-established pesticide intermediates producer. In addition, other
manufacturers in the Chemical Industry Park are likely to get influenced by the
occurrence, too, leading to production limitations and supply shortage.
Juxin was established in May 2009, having a leading position in the production
of pesticide intermediates such as m-dinitrobenzene, m-dichlorobenzene,
m-hydroxybenzoic acid and phosphorus pentasulfide, according to CCM’s research.
The company is well known in China for its production capacity of 10,000 t/a
m-dinitrobenzene and 3,000 t/a m-dichlorobenzene. Both products are regarded as
one of the highest quality chemicals of this kind in China and sales are
of the pesticides segment, that will be affected significantly by the accident,
is the triazole fungicide industry. Triazole fungicides are processed from
m-dichlorobenzene, the intermediate which production is affected by the
explosion and hence the supply will get tight soon.
the first half of December, the price of triazole fungicides remained high as a
result of high production costs when intermediates m-dichlorobenzene, triazole
and bromine recorded high prices. In this context, the operating rate was low
and stock remained low level. As the tight supply of intermediates continued,
enterprises should pay close attention to the influence of this accident,
making adjustments correctly.
the accident may also result in more frequent safety inspections nationwide,
and an increasing number of pesticide enterprises are likely to be ordered
production cut or suspension as more parks are covered. This year, the
pesticide industry has already had much pressure from stricter environmental
policies, and the explosion accident continued challenging supply side of the
industry by adding pressure on production technologies and work safety
The strained situation
for Chinese pesticides
pesticide manufacturers are facing increased pressure from governmental lead
environmental inspections, which cause many producers to limit or halt
market demand has been slow, but all upstream and downstream factories have
adopted a wait-and-see approach. Until the inventories in the market are fully
absorbed, the environmental cost and increased cost of raw materials will
surely trigger a rise in prices, which will reflect on the cost.
prices of pesticides technical in China have increased in 2017, driven by the
pressure of environmental inspections, growing raw material prices, and rising
transportation costs in the country. Especially triazole fungicides have
witnessed severe price hikes throughout the year.
to CCM’s research, the demand for fungicides is about to remain equal in 2018
to the current year. Hence, the supply shortage of intermediates is adding
pressure on the downstream market and prices may increase further meeting the
About this article
information of this article comes from CCM, China’s leading market intelligence
provider for the fields of agriculture, chemicals, and food & feed.
a detailed analysis of China’s pesticides market, please have a look
at CCM’s monthly fungicides newsletter. All reports, newsletters, and other
research products are included in CCM’s online database, making market
intelligence easier and more convenient than ever before.