In early May 2025, China’s Ministry of Commerce released its latest monitoring data on market prices for 50 key production materials across nine major sectors. Compared with late April 2025, the prices of 12 products increased, 32 declined, and 6 remained stable. The overall trend reflects ongoing economic adjustments in both chemical manufacturing and agricultural input markets amid shifting supply and demand dynamics.
Overview of Price Changes in Chemical Products
Significant Declines in Petrochemical Feedstocks
- Sulfuric Acid (98%): Price fell by 5.4% to ¥625.5 per ton, highlighting continued weakness in downstream demand for fertilizers and industrial chemicals.
- Pure Benzene (Industrial Grade): Dropped sharply by 8.4% to ¥5,581 per ton, suggesting reduced activity in the chemical synthesis and plastics industries.
- Methanol: Declined 3.2% to ¥2,317.7 per ton, reflecting lower demand in formaldehyde and fuel blending sectors.
- Styrene: Fell 2.6% to ¥7,221.9 per ton, in line with weak performance in the polystyrene and resin sectors.
Modest Increases in Synthetic Rubbers and Fibers
- Polyester Filament Yarn (POY150D/48F): Rose 2.7% to ¥6,512.5 per ton, likely supported by steady demand in the textile and apparel industry.
- Butadiene Rubber (BR9000): Increased 0.8% to ¥11,491.7 per ton, reflecting improved automotive sector output and tire manufacturing demand.
Agricultural Inputs: Fertilizers and Agrochemicals
Fertilizer Market Developments
- Urea (Small and Medium Granules): Saw a notable 3.6% price increase to ¥1,917.9 per ton. The rise is linked to heightened seasonal demand and tighter supply amid ongoing maintenance at major urea production facilities.
- Compound Fertilizer (45% NPK, Potassium Sulfate-based): Remained unchanged at ¥3,201.1 per ton, indicating a stable equilibrium between supply and regional planting needs.
Herbicide Prices Hold Steady
- Glyphosate (95% Technical Material): Held firm at ¥23,400 per ton. Despite global fluctuations in herbicide demand, domestic prices remained stable, underpinned by balanced supply and moderate export activity.
Market Implications
The data underscores a continued divergence in China’s industrial input market:
- The chemical sector faces price pressures due to oversupply and sluggish downstream demand, especially in the plastics, synthetics, and petrochemical feedstock markets.
- Conversely, certain agricultural inputs, particularly urea, have rebounded on the back of planting season demand and supply constraints.
- Stable glyphosate prices indicate a moment of equilibrium, with neither surplus pressures nor acute supply shortages disrupting the market.
With global commodity markets still experiencing volatility, these domestic price movements suggest a measured and regionally responsive approach by producers and suppliers, especially in the face of seasonal agricultural cycles and uncertain international trade conditions.
