Summary:
March 2026 has brought a series of pivotal changes to China’s insecticide industry, driven by global supply chain tensions, strong export performance, new regulatory policies, and major industrial capacity expansions. Escalating geopolitical conflicts in the Middle East disrupted shipping through the Strait of Hormuz and caused a sharp increase in most key raw material prices.
Meanwhile, official customs data for January–February 2026 showed a clear recovery in external demand. Two important regulatory documents were released or implemented, standardizing pesticide residue limits and laying out registration rules for innovative RNA pesticides. In addition, a leading domestic insecticide producer completed environmental acceptance for a large-scale intermediate and technical project, further consolidating China’s industrial chain advantages. This report integrates key industry data and insights to support enterprises in procurement planning, market layout, regulatory compliance, and operational decision-making.
1. Raw Material Market: Geopolitical Disruptions Trigger Broad Price Increases
In March, global geopolitical tensions in the Middle East significantly disrupted shipping through the Strait of Hormuz, resulting in widespread and substantial price increases across major raw materials for insecticides. Only sodium trichloropyridinol remained flat month-on-month, reflecting growing cost pressure and rising supply chain risks for the entire industry.
Bromine surged 51.28% month-on-month due to import disruptions from shipping bottlenecks, combined with declining brine resources and environmental production restrictions in major production areas in Shandong.
Ethylenediamine rose 46.74% as supply was affected by force majeure at Saudi facilities and strong overseas buying interest, leaving low-cost cargoes scarce in the market.
Methanol climbed 45.57% because nearly one-third of global seaborne methanol trade passes through the Strait of Hormuz, and production halts at Qatari refineries led to falling import volumes and declining port inventories.
Other raw materials including phenol, phenoxybenzaldehyde, liquid ammonia, caustic soda, ethyl chloride, and 2-chloro-5-chloromethylpyridine also recorded varying degrees of price increases, supported by rising upstream costs, improved export demand, and tight global supply.
The stable price of sodium trichloropyridinol was mainly due to balanced supply and demand and a time lag in cost transmission, as producers focused on fulfilling existing orders. This round of raw material inflation highlights the need for manufacturers to strengthen cost control, optimize procurement strategies, and diversify supply chains to mitigate volatility risks.
Ex-works price of main insecticides in March 2026
2. Export Performance: Strong Volume Growth in January–February 2026
According to export statistics from the General Administration of Customs of China, China’s insecticide formulation exports achieved notable growth in the first two months of 2026.
Total export volume reached 93,903.68 tonnes, representing a year-on-year increase of 29.90%, while export value amounted to US$344.93 million, up 12.51% from the same period in 2025. The average export unit price, however, decreased by 13.39% year-on-year.
The dual growth in export volume and value confirms a sustained recovery in global demand for Chinese insecticide products, supported by improved purchasing activity in both traditional and emerging overseas markets.
The decline in average unit price reflects ongoing adjustments in product structure and intensified international competition. For Chinese enterprises, maintaining global competitiveness will increasingly rely on product upgrading, differentiated development, and the expansion of high-value-added formulations to improve profitability.
3. Regulatory Updates: New Policies Boost Compliance and Innovative Development
March 2026 saw the release and implementation of two critical regulatory documents that will guide the long-term development of China’s insecticide industry toward higher standards of safety, compliance, and technological innovation.
On March 1, the National Food Safety Standard – Maximum Residue Limits for Pesticides in Food (GB 2763-2026) officially came into force, jointly issued by the National Health Commission, the Ministry of Agriculture and Rural Affairs, and the State Administration for Market Regulation.
This updated standard replaces the previous GB 2763-2021 and GB 2763.1-2022, establishing 10,749 maximum residue limits for 585 pesticides that fully cover registered pesticide products and major plant-derived agricultural products in China. It provides stronger technical support for scientific pesticide application, food safety, and international agricultural trade.
On March 23, the Ministry of Agriculture and Rural Affairs issued a draft consultation on registration data requirements for RNA-based pesticides, which defines such products as those using RNA interference mechanisms to control pests or regulate plant growth. The document sets clear data requirements for technical and formulated products, establishing a formal regulatory framework for the research, development, and registration of this new type of green biopesticide and encouraging industry innovation.
4. Corporate News: Major Capacity Expansion Project Completed by Leading Producer
On February 25, 2026, Shandong Lianhe Pesticide Industry Co., Ltd., a wholly-owned subsidiary of Shandong Sinochem United Biotechnology Co., Ltd. (003042.SZ), published the environmental protection acceptance report for its 10,000 t/a dichloro-5-(chloromethyl)pyridine and 5,000 t/a acetamiprid technical project, with a public notice period from February 25 to March 20.
The reconstruction and expansion project is located in Tai’an, Shandong, with a total investment of CNY 401.18 million, of which CNY 66.50 million was dedicated to environmental protection, accounting for 16.58% of the total investment. The project includes production facilities for 10,000 t/a dichloro-5-(chloromethyl)pyridine, 5,000 t/a acetamiprid, and 3,000 t/a ethyl cyanoacetate, supported by advanced environmental protection equipment such as RTO and direct-fired furnaces.
Established in 1995, Shandong Lianhe Pesticide Industry Co., Ltd. operates multiple production bases and R&D centers, specializing in insecticides, fungicides, and herbicides. The completion of this project will enhance domestic supply capacity for key neonicotinoid intermediates and technical materials, strengthen the integrated industrial chain layout of leading enterprises, and further improve the global competitiveness of China’s insecticide industry while setting an example for environmentally friendly and compliant production.
5. Summary and Outlook
March 2026 has been a critical month for China’s insecticide industry, with profound changes observed in raw material costs, export markets, regulatory policies, and industrial capacity. Geopolitical risks have intensified raw material price volatility and posed new challenges for cost management; strong export growth has expanded market space for Chinese enterprises; updated regulatory standards have promoted higher compliance and accelerated the development of green and innovative pesticides; and large-scale capacity expansions have consolidated China’s position in the global industrial supply chain.
In the future, the industry will continue to focus on supply chain security, green compliance, and technological innovation. Enterprises are advised to closely follow policy changes and market trends, optimize their strategic layouts, and actively respond to external changes to achieve stable and high-quality development.
Source from Insecticides China Monthly Report
This is a snapshot of key trends in China’s insecticides industry for March 2026. Our full monthly report includes weekly price trends for complete overseas trade data, detailed corporate project updates, supply-demand balance sheets and in-depth chain analysis—empowering you to spot market turning points and optimize procurement & investment decisions. Subscribe now to access full core data and exclusive insights for smarter business moves!
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