The sudden significant reduction in production in oil producing countries has led to a corresponding increase in crude oil prices, which will take some time to spread to the pesticide industry. With the gradual rise of domestic temperatures and the arrival of the agricultural production season, due to the fact that most raw material product prices have dropped to historical lows, end customers of formulations have started stocking up, and market trading enthusiasm has slightly increased compared to before. With the launch of the South American market, foreign trade inquiries are also gradually increasing this week. With the continuous decline of the market, some raw material product prices have begun to show an inverted situation, and raw material manufacturers have taken measures to park, reduce prices, and store out of the warehouse. Downstream customers need to closely monitor the inventory of upstream and downstream products and promptly replenish them to quickly respond to the peak sales season.

    On April 9, 2023, the Zhongnong Lihua raw material price index was at 103.07 points, a significant decrease of 36.4% year-on-year and 9.75% month on month. The market conditions for herbicides, insecticides, and fungicides continue to decline. Among the hundreds of products, 91% of them fell compared to last year; Compared to the previous month, there was no increase in varieties, while 65% of products fell.

    On the supply side, the willingness of original drug manufacturers to ship is strong, and competition among manufacturers is very fierce. On the demand side, as the temperature in most regions of China gradually increases, the terminal stocking sentiment is more positive than before, and downstream procurement is gradually carried out.

    In the short term, the market for raw materials will continue to operate in a volatile manner, with an accelerated pace of industry adjustment and ongoing upstream and downstream gaming. It is recommended to purchase and replenish products in a timely manner based on one's own needs and upstream and downstream inventory. At present, both manufacturers and channel merchants mainly rely on inventory. In the short term, inventory determines the price trend of the product, while in the long run, the cost-effectiveness of the product determines its vitality.