On June 5, 2025, Hongsun Co., Ltd. issued a product price adjustment notice, stating that due to restricted supply of upstream raw materials and tight supply driving up prices, the cost of chlorantraniliprole has risen sharply. As a result, the company has decided to adjust the price of its 97% chlorantraniliprole product to 300,000 RMB/ton, with limited supply.
At around 11:57 a.m. on May 27, an explosion occurred in a workshop at Shandong Gaomi Youdao Chemical Co., Ltd. The A-share market reacted swiftly, with the stock prices of companies involved in chlorantraniliprole production—such as Hongsun, Lier Chemical, and Huilong Co.—hitting their daily limit, and the pesticide sector surging 5.79% against the trend.
Youdao Chemical, established in August 2019, is a subsidiary of Haomai Group and is located in the Renhe Chemical Park in Gaomi, Weifang, Shandong Province. The company focuses on efficient, low-toxicity pesticides and their intermediates, with major products including chlorantraniliprole technical and intermediates. It currently has a chlorantraniliprole production capacity of 11,000 tons/year, making it the world's largest and most integrated producer of chlorantraniliprole technical.
Chlorantraniliprole is a highly effective, broad-spectrum, and low-toxicity insecticide widely used on rice, soybeans, cotton, fruits, and vegetables. Since its market launch in 2008, it has become the best-selling insecticide globally.
In China, the actual production is primarily held by companies such as Hebei Chengxin, Youdao Chemical, Hongsun, Lier Chemical, FMC China, and Inner Mongolia Zhonggao. While other manufacturers are building projects, many have not yet begun production.
According to incomplete statistics, the total national capacity for chlorantraniliprole technical is about 200,000 tons/year (including operating, under construction, and approved projects), while the actual output last year was less than 6,000 tons (excluding FMC China’s production). Global demand for chlorantraniliprole technical is about 10,000 tons/year. In the long term, global capacity far exceeds demand.
Since the start of this year, driven by strong seasonal demand, prices have rebounded from 210,000 RMB/ton to 230,000 RMB/ton. Following the recent incident, on May 28, the price rose to 250,000 RMB/ton—a 10% increase. As of June 5, Hongsun announced a further adjustment to 300,000 RMB/ton for its 97% product, with limited supply.
Hongsun currently has an annual chlorantraniliprole technical capacity of 2,000 tons, with an additional 1,000-ton/year capacity scheduled for completion in September this year. Huilong Co. disclosed in its latest annual report that it also has a 2,000-ton/year capacity, though its facility only began operation at the end of last year and is still ramping up.
Hailir stated that although they have plans for chlorantraniliprole production, they have not yet begun, and there is no clear timeline for project completion. Therefore, the incident has limited impact on them. Changqing Co. mentioned that its 1,000-ton/year project in Hubei has not yet started construction.
On May 28, Lier Chemical expressed strong optimism about the chlorantraniliprole market and noted that it is rapidly building a 5,000-ton/year production facility.
According to Q1 2025 pesticide registration data, chlorantraniliprole had the highest number of registered products. Liming Co. stated on the Shenzhen Stock Exchange’s interactive platform that their products cover a variety of insecticides, with abamectin and emamectin being highly effective, low-toxicity, and broad-spectrum agents that share a similar insecticidal spectrum with chlorantraniliprole. If supply tightens, it may increase demand for these alternatives.
Yang Yijun, General Manager of Anhui Zhongnong Zongheng Agrochemical Consulting Co., Ltd., said that chlorantraniliprole production heavily depends on intermediates K-acid and K-amine. Youdao Chemical is one of the few companies with the core technology to produce 2-nitro-3-methylbenzoic acid, a key intermediate. Its production halt may tighten upstream supply and disrupt raw material procurement for downstream formulation companies, ultimately driving up prices.
"Currently, domestic formulation companies have completed over 70% of their technical product procurement, so the short-term impact on the end market is limited. However, the September to November winter storage period will be the next peak season for stockpiling. If capacity isn't secured, prices may rise even further," said a manager from a Shandong pesticide formulation company.
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