Summary: In Feb., many major raw materials of insecticides TC in China had MoM price drop. The price downtrend has a connection with sluggish demand from insecticide sector.

In Feb., on average, the ex-works price of major raw materials of insecticides TC decreased by 1.61% on a monthly basis. Of these major raw materials, more than half experienced price decrease.

The prices of sodium 3,5,6-trichloropyridin-2-olate, 2-chloro-5-(chloromethyl)pyridine (CCMP), 3-phenoxy-benzaldehyde, liquid ammonia, liquid caustic soda and methanol dropped MoM, the prices of O,O-diethylthiophosphoryl chloride, 2-nitroaminoimidazoline and bromine remained stable, while the prices of ethylenediamine and phenol increased by 5.16% and 6.08% MoM, respectively. The price downtrend has a connection with sluggish demand from insecticide sector. Insecticide TC producers could accept only limited price raise of raw materials, and thus many raw material producers had to lower the price to secure more orders. In general, raw material costs could hardly provide any support to insecticide TC price.

It is worth noting that the price of ethylenediamine went up because of relatively tight effective supply in the market. The producers quoted high prices, but deals could hardly be stricken at such high quotations. The uptrend of phenol price continued in Feb., yet trade volume was not large. It is expected that raw material costs will have weaker support to insecticide TC price in the short term.