What's Happening?
Chinese agrochemical manufacturer Nanjing Red Sun Co., Ltd. has announced a significant price increase for its 42% paraquat technical concentrate (TK) formulation, raising the price to RMB 15,000 per metric ton. This adjustment follows a previous price hike in April 2025, where the company increased prices by 5% due to rising production costs and upstream pressure. The latest price change is attributed to surging demand and continued pressure on supply chains, with exceptionally high order volumes and tight delivery schedules reported since the April adjustment.
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Why It's Important?
Paraquat is a widely used herbicide, especially in developing agricultural markets in Asia, South America, and Africa. Despite its toxicity leading to bans or restrictions in several countries, it remains crucial for many farmers. The price increase by Red Sun, a major global supplier, could impact input costs for farmers and agrochemical distributors relying on paraquat-based formulations. This may lead to downstream formulation companies adjusting their prices and influence stockpiling behavior as buyers seek to secure supplies ahead of potential further hikes or shortages.
What's Next?
While Red Sun has not indicated further price increases, the ongoing delivery strain suggests pricing volatility may persist through the second half of 2025. Tighter environmental regulations, limited manufacturing capacity, and stricter control over hazardous chemicals in China may continue to influence production and pricing dynamics for paraquat and similar actives.
