Produk pestisida buatan dalam negeri memasuki tahap realisasi hasil, China National Agricultural Cooperative dan Xin'an Shares keduanya mencapai batas atas kenaikan harga

7 April, the pesticide concept continues to strengthen. China Nonglian (003042.SZ) and Xin’an Shares (600596.SH) both hit the daily limit, Guangkang Biochemical (300804.SZ) rose by more than 11%, and Jiangshan Shares (600389.SH), Runfeng Shares (301035.SZ), Yangnong Chemical (600486.SH), Changqing Shares (002391.SZ), ADAMA A (000553.SZ), etc. also followed the gains.

On the news front, prices of pesticide technical-grade products have been moving upward, and profitability for glyphosate and so on has improved. In recent times, the trend of rising prices for pesticide technical-grade products has been evident; with raw-material price increases on the cost side and the arrival of the spring-plowing pesticide peak season in North America and in China, it is driving the continued improvement of the pesticide sector’s business outlook.

According to iFinD data, as of 3 April, the pesticide technical-grade product price index was 78.92 points, up 11.2% from the beginning of 2026. By product category, the herbicide technical-grade product price index was 87.86 points, up 13.1% from the beginning of 2026; the insecticide technical-grade product price index was 72.80 points, up 15.6% from the beginning of 2026; and the fungicide technical-grade product price index was 73.16 points, up 4.5% from the beginning of 2026. In terms of specific products, taking glyphosate as an example: affected by the continuous rise in upstream raw-material prices such as glycine and yellow phosphorus, as of 3 April, according to iFinD data, glyphosate (95%) technical-grade product has risen to 3.18 ten-thousand yuan/ton, up 28.3% compared with the beginning of 2026. At the same time, the increase in glyphosate’s price fully covers the increase in raw-material costs, and the gross profit side has improved significantly. According to Baichuan Yingfu data, as of 3 April, the average gross profit in China’s glyphosate industry was about 2501 yuan/ton, improving significantly compared with the loss level at the beginning of March.

Against the backdrop of geopolitical disruptions, the strategic significance of global food security has become even more prominent, boosting demand for agricultural input products. In 2026, China’s “Government Work Report” clearly stated “grasping food production without letting up,” requiring strengthening the capacity to ensure supply of food, energy resources, and more. During the “15th Five-Year Plan and the 15th Five-Year Plan period” (2026–2030), the comprehensive grain production capacity will reach around 1.45 trillion jin, and emphasis was placed on stabilizing grain and edible oil production, deeply implementing the seed industry revitalization action, coordinating production, storage, and procurement, and other policies to help keep the prices of grain and other important agricultural products at a reasonable level. On the international front, on 18 February, US President Trump signed an executive order that, in accordance with the “Defense Production Act,” officially included elemental phosphorus and glyphosate-type herbicides in the list of key defense materials, tightly linking farm herbicides with the defense industry and endowing phosphorus resources with triple strategic attributes for agriculture, defense, and technology. Under the disruption of geopolitical conflicts, more attention is being paid to the security and stability of the global pesticide supply chain. As China is a major global supplier of pesticide technical-grade products, relevant companies are expected to benefit from structural growth on the demand side.

CITIC Securities said that domestic innovative agrochemicals are entering the stage of results delivery, bringing companies a substantial incremental profit. In recent years, domestic pesticide enterprises have continued to increase R&D investment in the field of innovative agrochemicals, and new products have gradually entered commercialization and volume ramp-up stages. Compared with traditional generic products, innovative agrochemicals have higher technological barriers and added value, which helps improve companies’ gross margin levels and optimize their profit structure. As some innovative products gain recognition in overseas markets, together with the competitive advantages brought by the protection of independent intellectual property rights, relevant companies are expected to release profit elasticity during the industry recovery process.