Core Viewpoint - The explosion at Shandong Gaomi Youdao Chemical Co., Ltd. has raised concerns about the potential impact on the global supply of chlorantraniliprole, a key pesticide, leading to a surge in related stocks in the A-share market [3][4]. Group 1: Incident Overview - An explosion occurred at a workshop of Shandong Gaomi Youdao Chemical Co., Ltd. on May 27, resulting in 5 fatalities, 6 missing persons, and 19 injuries [1][2]. - Rescue and medical efforts are currently underway [2]. Group 2: Market Reaction - Following the incident, multiple pesticide stocks in the A-share market experienced a rapid increase, attributed to Youdao Chemical being the largest global producer of chlorantraniliprole [3]. Group 3: Supply Chain Analysis - Chlorantraniliprole is the leading insecticide globally, with a projected market size of $2.332 billion by 2027, growing at a compound annual growth rate (CAGR) of 4.4% from 2021 to 2027 [12]. - Youdao Chemical has an annual production capacity of 11,000 tons, making it the largest producer globally, while China is the largest exporter, expected to account for 58% of global exports in 2024 [12][14]. Group 4: Supply and Demand Dynamics - The global demand for chlorantraniliprole is approximately 10,000 tons per year, with total production capacity around 50,000 tons, indicating an oversupply situation [14]. - If Youdao Chemical's production is affected, there may be short-term market impacts, but other domestic and international manufacturers can fill the gap in the long term [15][16]. Group 5: Competitive Landscape - Domestic competitors such as Lier Chemical (5,000 tons), Hongtaiyang (2,000 tons), and others can meet market demand [16]. - Alternative insecticides like flubendiamide and chlorfenapyr are also available, with significant production capacities [17][19]. Group 6: Price Trends - The price of chlorantraniliprole has drastically decreased from a peak of 2.4 million yuan per ton to 230,000 yuan per ton, reflecting a decline of over 90% due to oversupply and intensified competition [24][26].