Herbicides China Monthly Report(Herbicides China Monthly Report 202601)

The herbicide raw material market exhibited divergent trends in January 2026. Overall, the domestic market operated steadily, though individual product categories showed varied performance. Minor price fluctuations occurred for some products due to supply-demand realignments and seasonal factors, reflecting a broader structural adjustment within the sector.

The clethodim market experienced significant volatility in 2025, largely driven by production fluctuations at key manufacturers like Ningxia Yifan. A genuine supply shortfall, coupled with expanding global soybean cultivation, propelled prices from an annual low at the start of the year to a mid-year peak. Subsequent market recovery and demand softening at high price levels led to a rational year-end correction. Nonetheless, the market successfully established a new, substantially higher price platform compared to the beginning of the year.

Company dynamics

• On 30 December, 2025, Nantong Jiangshan announced plans to raise up to USD171 million (RMB1.2 billion). The funds are primarily allocated to two projects—a largely completed benzpyrimoxan technical and formulations project (500 t/a capacity, USD100 million investment), and a technical upgrade project for S-metolachlor and related raw materials, whose first phase is also largely completed (USD54 million investment).
• On 6 January, 2026, KingAgroot globally launched its novel patent non-selective herbicide Yixuke® (flufenoximacil) in Qianjiang, Hubei Province.

Policy

On 8 January, 2026, the Ministry of Finance and the State Taxation Administration issued an announcement to cancel the VAT export tax rebate for several products, including photovoltaics and specific herbicides like glufosinate, effective 1 April, 2026.

Registration
On 29 December, the list of the 14th–15th batches of pesticide products proposed for registration was publicized, including 192 herbicide products proposed for registration. Glufosinate-P had the highest number with applications for 2 TCs and 23 mixed formulations.

Trade
From January to December 2025, China's cumulative export volume of herbicide formulations increased by 12.41% YoY, and the total export value rose by 10.40% YoY. Specifically, December exports saw a 10.98% YoY decrease in volume and a 1.98% YoY decrease in value.

In this monthly report, the USD/CNY exchange rate is USD1.00=RMB7.0230 (Source: The People's Bank of China, 5 January, 2026). Unless otherwise stated, all prices involved in this report include VAT. Export goods are valued at FOB prices. Paraquat is subject to a 9% VAT, while diquat, glufosinate, and glyphosate are subject to a 13% VAT.