Market dynamics of chemical active pharmaceutical ingredients: price adjustments and project advancements proceed concurrently
08/02/2025 09:46:59
Recently, the chemical active pharmaceutical ingredient (API) sector has been buzzing with activities, with price fluctuations and project construction becoming focal points in the industry. These numerous changes are exerting a profound impact on the market landscape.
In terms of prices, several enterprises have adjusted the prices of active pharmaceutical ingredients (APIs). On August 1st, Red Sun (000525.SZ), once known as the "world's super-efficient insecticide production kingdom," issued a price adjustment letter, announcing that the price of 42% paraquat API has risen to 15,000 yuan/ton, with the formulation prices being adjusted simultaneously. A staff member from the securities department of Red Sun stated that the company's total production capacity of paraquat API is approximately 32,000 tons, which can produce about 100,000 tons of 42% paraquat API. The price increase this time is about 25%. The reasons for the price increase include the complex international market environment, fluctuations in raw material prices, growing market demand, and high temperatures. Previously, the Pacific Securities Weekly Report in mid-July showed that overseas orders for paraquat continued to be released, indicating a positive demand trend. As of July 13th, the average market price of paraquat was 13,000 yuan/ton, an increase of 800 yuan/ton from July 3rd, representing a 6.56% increase. Additionally, on July 25th, Evergreen Stock also issued a notice stating that due to a significant increase in the prices of key raw materials upstream of refined metolachlor, resulting in higher production costs, the price of refined metolachlor API will be adjusted upward to 25,800 yuan/ton from today.
In terms of project construction, achievements have been continuously made. Recently, the Jinzhou Ecological Environment Bureau accepted and publicized the environmental impact assessment report for the expansion project (Phase II) of Jinzhou Yijia Technology Co., Ltd.'s fine chemical products. The project plans to invest 46 million yuan to reconstruct on the basis of Phase I, and intends to build one 2000t/a amicarbazone (ACB) production line and one 3000t/a propanil (PPN) production line in the DCMT production plant area that has been shut down. The project of Huludao Tianqi Shengye Chemical Co., Ltd. with an annual output of 5000 tons of propanil technical also received acceptance and publicity on relevant websites for environmental impact assessment. To adapt to market and its own development, the construction unit invested 15 million yuan to build this project, constructing a new Class A production plant for propanil technical with a designed output of 5000t/a. Earlier, on April 21st, Shandong Youdao Chemical Co., Ltd. obtained registration approval for its chlorfenapyr technical from the US Environmental Protection Agency (EPA), becoming the first Chinese enterprise to independently register this product in the US, marking a significant breakthrough in its layout in the international pesticide market. Prior to this, on May 27th, an explosion accident occurred in a workshop of Youdao Chemical, affecting multiple stocks in the agricultural chemical sector to reach their daily limit. Youdao Chemical is the world's largest producer of chlorfenapyr technical, and although this accident affected short-term supply, in the long run, global chlorfenapyr production capacity is in surplus, and domestic enterprises such as Lier Chemical and Red Sun can play a complementary role in terms of production capacity.
In addition, the technical material of chlorimuron-ethyl, applied by Inner Mongolia Jiarui Mi, a wholly-owned subsidiary of Dalian Jiuxin, has been officially registered by the Ministry of Agriculture and Rural Affairs of China, with the registration number PD20251571 and a total effective ingredient content of 97.5%. Jiarui Mi's chlorimuron-ethyl technical material adopts internationally advanced synthesis technology, leading in purity and stability, with an annual supply capacity of up to 500 tons.
The chemical active pharmaceutical ingredient (API) market continues to develop, driven by both price and project factors. Its future trend will continue to be influenced by multiple factors such as raw material prices, market demand, policies and regulations, and project construction progress, which deserves continuous attention from the industry.
