SCS(SH:601555) 智通财经网·2026-01-20 01:53Core Viewpoint - The cancellation of certain pesticide raw material export tax rebates starting April 2026 is expected to lead to short-term price increases and long-term elimination of outdated production capacity in China's pesticide industry [1][3]. Group 1: Policy Changes - The Ministry of Finance and the State Taxation Administration announced that from April 1, 2026, certain pesticide products, including herbicides, insecticides, fungicides, and plant growth regulators, will no longer qualify for VAT export tax rebates [2]. - Previously, China implemented export tax rebate policies for most pesticide raw materials, with rebate rates generally between 9% and 13% [3]. Group 2: Market Implications - In the short term, the adjustment of export tax rebates may trigger a rush to export as overseas clients anticipate increased costs post-policy implementation, potentially supporting price increases [3]. - In the long term, the profit margins for low-end products will be further compressed, pushing companies to shift from price competition to quality competition, leading to the exit of high-pollution and high-energy-consuming outdated production capacity [3]. Group 3: Industry Outlook - The pesticide industry in China is experiencing a recovery phase, with many pesticide varieties operating at low capacity utilization rates of 30%-60% [5]. - The global pesticide supply chain is in a restocking phase, and domestic spring farming is expected to support demand for pesticides [5]. - The peak production season for domestic spring farming occurs from February to May, leading to early demand for raw materials [5]. Group 4: Key Companies - Relevant companies in the industry include: - Yangnong Chemical, a leading company with a complete range of agricultural chemical products [5] - Runfeng Co., which has a comprehensive overseas marketing network and numerous overseas registration certificates [5] - Lier Chemical, a leader in the production of specific herbicides [5] - Jiangshan Chemical, a leader in glyphosate and other insecticides [5] - Guoguang Co., a leader in plant growth regulators [5]