Investment Rating - The industry investment rating is "Overweight" (maintained) [6] Core Viewpoints - The supply-side optimization combined with demand-side support is expected to improve the market conditions for Paraquat. Syngenta has announced it will cease global production of Paraquat by the end of June 2026, which is expected to enhance China's supply-side advantages as it is a major producer and exporter of Paraquat [1][2] - The demand for Paraquat remains robust, particularly in developing countries like India, where it maintains rigid demand due to its cost-effectiveness and low resistance from weeds. The U.S. market also shows significant demand, with imports ranging from £40 million to £156 million annually from 2017 to 2024 [3][4] - The price of Paraquat has been increasing, with an average market price of 17,000 yuan per ton as of March 4, 2026, reflecting a year-on-year increase of 55%. This price rise is attributed to strong overseas demand and tight supply conditions [4] Summary by Sections Supply Side - China is a major producer and exporter of Paraquat, with key companies like Hongyang, Jiangsu Nuon, and Shandong Greenba having capacities of 32,000, 12,000, and 10,000 tons respectively. The supply is concentrated, and with Syngenta's exit from the market, China's supply-side advantages are expected to strengthen [2][3] Demand Side - The demand for Paraquat is supported by its broad-spectrum efficacy and quick action. The U.S. has exempted tariffs on Paraquat, further boosting its demand for use against glyphosate-resistant weeds and for pre-harvest drying of crops. The global market for Paraquat is projected to grow at a CAGR of 2.7% from 2025 to 2035 [3][4] Price Trends - The price of Paraquat has been on an upward trend since the second half of 2025, driven by strong overseas demand and tightening supply. The expectation is that prices will continue to rise as supply-side exits and global planting areas increase [4]