China's Fungicide Industry Faces Significant Export Pressure, Driving Localized Production Capacity Layout 05-07-2025

Summary：

China's fungicide industry faces export pressure from US tariffs on formulations, though technical-grade exports remain resilient. Shifting to Southeast Asia/South America, firms localize intermediates/capacity. Premium formulations and tech upgrades drive growth amid risks.



I. Import-Export Landscape: Formulated Products Face Export Pressure, while Technical Grade Chemicals Show Resilience

Export Amount Up, Prices Down

In the first three quarters of 2024, cumulative fungicide exports reached 174,000 metric tons (7.97% of total pesticide exports), with a value of RMB 5.595 billion (12.44% of total pesticide export value).

January 2025 data showed that the average export price of pesticides fell 18% year-on-year, with technical grade fungicide prices dropping to levels last seen a decade ago. For example, glyphosate technical grade was priced at RMB 28,000 per ton—45% below its 2023 peak.

U.S. Tariff Impact

U.S. tariffs on Chinese pesticide formulations surged to 79%-145%, effectively halting formulation exports. However, technical grade chemicals like glyphosate and glufosinate remained untaxed, becoming "safe havens" for exports.

China’s 34% tariff on imported U.S. pesticides (e.g., urea, potassium chloride) may raise costs for high-end fungicide raw materials domestically.

Market Structure Shift

Exports to the U.S. account for less than 6% of total fungicide exports, with Southeast Asia (33%) and South America (20%) emerging as key growth markets. Exports to ASEAN rose 22.1% in Q1 2025.



II. Sales and Pricing: Technical Grade Demand Revives, High-End Formulations Command Premiums

Divergent Corporate Performance

  • Yangnong Chemical: Sold 99,900 metric tons of technical grade fungicides in 2024 (+3.5% YoY), but revenue fell 13.07% due to price declines. By March 2025, prices of products like cypermethrin and lambda-cyhalothrin rebounded from lows, signaling a market uptick.
  • Sinochem Group: Launched new fungicide brands "Huiyi" and "Fumanfeng," focusing on disease control for cash crops to strengthen high-end market positioning.

Price Dynamics

  • Technical Grade: As of April 27, 2025, azoxystrobin technical grade was priced at RMB 140,000 per ton, pyraclostrobin technical grade at RMB 158,000 per ton (pushed by rising raw material costs), and triazole products (e.g., tebuconazole) stabilized at RMB 51,500 per ton.
  • Formulations: Huinong.com data showed azoxystrobin formulations priced at RMB 8-138 per bottle, pyraclostrobin formulations at RMB 6-12.5 per 100ml. Nano-pesticides and sustained-release formulations (e.g., microcapsule suspensions) commanded a 30% premium, with gross margins exceeding 40%.



III. Supply Chain: Accelerated Localization of Intermediates, Adjustment of Production Capacity

Key Intermediate Breakthroughs

  • Chongqing Ziguang Chemical: Achieved breakthroughs in hydrogen cyanide production from natural gas, leading global capacity for 4,6-dihydroxypyrimidine (DHP) and trimethyl orthoformate (TMOF)—critical intermediates for azoxystrobin—reducing costs by 15% compared to imports.
  • Sinochem Lantian: Produced electronic-grade hydrofluoric acid with 99.999% purity, breaking DuPont’s monopoly and advancing localization of semiconductor-grade fluorinated materials.

Capacity Expansion and Relocation

  • Yangnong Chemical: The first phase of its Liaoning Youchuang project began production, localizing lambda-cyhalothrin and other products to avoid U.S. tariff risks.
  • Lier Chemical: Completed registration of glufosinate-p in eight ASEAN countries, aiming to cover 50% of the market within three years and reduce dependence on Europe and the U.S.



IV. Policies and Risks: Tariff Volatility and Technical Barriers Coexist

Policy Uncertainty

  • The U.S. may include pyrethroid technical grade chemicals in its tariff list; a 34% tariff could impact Yangnong Chemical’s U.S. revenue by 1.5%-2.4%.
  • China’s 34% tariff on imported U.S. pesticides may disrupt supplies of high-end fungicide raw materials (e.g., azoxystrobin intermediates).

Technical Bottlenecks

  • Semiconductor-grade fluorinated materials (e.g., photoresist solvents) remain reliant on imports, requiring breakthroughs in "ultra-clean and high-purity" processes for localization.
  • Imported raw materials account for over 40% of biological pesticides, with domestic substitution rates below 20%.



V. Future Trends: Emerging Markets and Technological Upgrades Drive Growth

Market Diversification

Southeast Asia, Africa, and the Middle East are key growth poles, with ASEAN exports rising 22.1% in Q1 2025. Demand from Brazil and Argentina is also increasing rapidly.

Technological Innovation

  • Biological pesticides account for over 10% of the market, with R&D investment in nano-pesticides and sustained-release formulations rising to 5.8% of total spending. The market is projected to reach RMB 33 billion by 2027.
  • Companies like Chongqing Ziguang and Sinochem Lantian are driving intermediate localization, lowering production costs and enhancing global· competitiveness.

 

Data Sources: China Customs, AgroPages, CCM



More information can be found at CCM Fungicides China Monthly Report.


About CCM:

CCM is the leading market intelligence provider for China’s agriculture, chemicals, food & feed and life science markets. Founded in 2001, CCM offers a range of content solutions, from price and trade analysis to industry newsletters and customized market research reports. CCM is a brand of Kcomber Inc.

For more information about CCM, please visit www.cnchemicals.com or get in touch with us directly by emailing econtact@cnchemicals.com or calling +86-20-37616606.



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