Huan Qiu Wang·2025-06-10 02:15Core Viewpoint - ST Hongtai announced a price adjustment for its 97% chlorantraniliprole product to 300,000 yuan per ton, a more than 40% increase compared to last year's low of 210,000 yuan per ton, primarily due to limited upstream raw material supply and rising costs [1][3]. Industry Overview - Chlorantraniliprole is the world's largest insecticide, with annual global sales exceeding $2 billion. After the expiration of its compound patent in China in August 2022, market prices continued to decline, with a cumulative drop of 34.38% in 2024. However, since 2025, prices have rebounded due to low effective capacity release influenced by intermediates and operating rates, rising to 228,000 yuan per ton on May 25, an increase of 8.57% [3]. - Currently, there are over 100,000 tons per year of chlorantraniliprole production capacity under construction or planning in China, but the progress of planned capacity construction has slowed due to the impact of intermediate K amine supply and declining raw material prices [3]. Market Reaction - Following the price adjustment announcement, the pesticide sector continued to show strength on June 9, with stocks such as Changqing Co. and Guangkang Biochemical hitting historical highs, and ST Hongtai and other stocks also rising [3]. - Analysts generally believe that chlorantraniliprole prices are likely to experience a phase of upward momentum. Future project approvals and production regulations involving hazardous chemical reactions such as nitration and chlorination are expected to become stricter, benefiting leading companies in the chemical industry that can maintain stable production of existing products [3]. Company Responses - Due to changes in market supply dynamics, investor interest in companies involved in chlorantraniliprole has increased, prompting several listed companies to respond. Lianhua Technology stated that it provides advanced intermediates through a CDMO model and does not directly produce the product, indicating limited overall impact on the company. Huailong Co. is steadily advancing its chlorantraniliprole raw material and intermediate project with an annual output of 2,000 tons. Lier Chemical is orderly constructing a 5,000 tons/year production facility. Changqing Co. confirmed that its insecticides are currently in normal production. Liming Co. noted that if chlorantraniliprole supply tightens, it would boost demand for alternatives such as abamectin and methomyl [4].