Overview of CAPI Movements
Between 2020 and Q1 2025, the China Agrochemical Price Index (CAPI) experienced notable fluctuations. Initially, the CAPI showed an upward trajectory in 2020 and 2021, followed by a consistent downward trend in subsequent years. Among the three major pesticide categories—herbicides, insecticides, and fungicides—herbicides exhibited the most significant year-on-year (YoY) changes.
Year-by-Year Breakdown
2020: Initial Decline
In 2020, the overall CAPI fell by 11.11% YoY to 87.20. Insecticides recorded the steepest drop, with a 13.57% YoY decline to a CAPI of 108.06. Herbicides and fungicides also declined by 11.17% and 6.16% YoY respectively, reaching CAPI values of 68.84 and 128.35. Despite the overall downturn, herbicide prices rebounded by 5.13% in H2, driven by rising costs for glyphosate, glufosinate-ammonium, and amide herbicides.
2021: Surge Amidst Supply Concerns
The year 2021 saw a substantial rise in pesticide prices. Concerns over supply disruptions caused by the COVID-19 pandemic and China’s “Dual Control” energy policy led to a CAPI surge of 36.18% YoY to 118.75. Herbicides achieved a historic high in December 2021, with a CAPI of 179.75, marking a 140.89% YoY increase. Insecticides and fungicides also saw significant YoY rises of 44.77% and 19.22%, respectively.
2022: Market Correction
After early-year easing of energy control measures, the pesticide market witnessed a correction. CAPI levels for pesticide technical products fell, returning to pre-“Dual Control” levels by December. Despite the moderation, herbicide CAPI still rose by 42.37% YoY to 169.79, 119.09% higher than 2019. Insecticides and fungicides recorded more modest gains of 8.74% and 5.55% YoY, respectively.
2023: Steady Decline
In 2023, the downward momentum from 2022 persisted. Significant price drops were observed across most products, especially nicotinamide and pyrethroid insecticides. Additionally, newer products like prothioconazole technical, chlorantraniliprole technical, and glufosinate-p technical faced continuous price reductions due to intensified year-end sales activities.
2024: Supply Surplus and Weak Demand
Multiple factors drove CAPI further downward in 2024. Weak international demand due to inventory digestion, rapid domestic capacity expansion leading to oversupply, raw material price volatility, and transitioning market preferences towards greener, low-toxicity pesticides collectively pressured prices. Gross profit margins for many enterprises declined amid shrinking downstream demand and falling production costs.
Q1 2025: Signs of Stabilization
By Q1 2025, the downward trend persisted but showed signs of slowing. Major pesticides like glyphosate, imidacloprid, and azoxystrobin continued to decrease in price, albeit at a reduced pace. Interestingly, some products such as abamectin, emamectin-benzoate, and tebuconazole witnessed price rebounds, indicating early market adjustments.
Export Perspectives
China remains a leading exporter of glyphosate, glufosinate, and other key pesticide ingredients. Primary importers include the United States, Brazil, and India. Despite the internal price pressures, export volumes have remained robust, although values have contracted due to lower unit prices.
Conclusion
From 2020 to Q1 2025, China’s pesticide market has traversed an intense cycle of price escalation and correction. While 2021 marked a historic peak driven by external shocks, the subsequent years highlighted structural shifts in supply-demand dynamics, production strategies, and environmental regulations.
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