Crop Protection China Monthly Report(Crop Protection China Monthly Report 202510)

From January to September 2025, although the number of pesticide industry projects under construction increased compared to the same period in the previous two years, the scale of new production capacity actually contracted. This phenomenon is primarily attributed to overall industry overcapacity, coupled with widespread declines in corporate profits over recent years, which have led companies to adopt a more cautious approach in planning and developing new capacity.

Concurrently, in response to the guidelines outlined in the Central Committee's No. 1 Document of 2025 and the requirement for "comprehensive measures to curb internal competition" set forth at the 2024 Central Economic Work Conference, the China Pesticide Industry Association officially launched the "Campaign to Rectify Conduct and Curb Internal Competition" in July 2025. This initiative, detailed in the official notification, marks the beginning of a three-year industry-wide rectification effort. Against this backdrop, new production capacity is expected to continue slowing in the coming years, signaling the pesticide industry's transition from a "destocking" phase to a more challenging stage of "capacity reduction."

Based on public information from governments' environmental impact assessment and enterprises announcement, totaling 150 pesticide projects pertaining to pesticide technical, formulations and intermediates were planned or constructed during Jan.–Sep, 2025. CCM will briefly take stock to have a closer look at China's agrochemical industry.

In this newsletter, the USD/CNY exchange rate used is USD1.00=CNY7.1102 sourced from the People's Bank of China on 9 Oct., 2025. Unless otherwise specified, all the prices mentioned in this newsletter will include the VAT.