India blockade prolongs, pyrethroid intermediate prices continue to be high

According to the data released by the Ministry of Health in India recently, as of that day, the country has added 4,987 new confirmed cases to the previous day, the highest single-day increase since the record. The cumulative number of confirmed cases reached 90927; the cumulative deaths were 2872; the cumulative cure was 34109 .

On the afternoon of the 17th, the Indian Ministry of the Interior issued guidelines that clarified that the national blockade will be extended for another two weeks from May 18 to May 31. During this period, schools and educational institutions across India continued to close, city subways continued to shut down, and entertainment venues such as hotels, shopping centers, bars, and theaters were not permitted to operate.

India is currently the fourth largest producer of pesticides in the world, and products such as mancozeb, pyrethrin, carbamate, and pyridyl base account for a relatively high proportion, of which mancozeb accounts for about 70%; the key intermediate of pyrethrin, Benting Methyl acid ester and ether aldehyde are also partly imported from India. India is one of the major exporters of ether aldehyde, a key intermediate of kung futhrin. The national “blockade” in India has exceeded 50 days, the supply of pyrethroids is tight, and prices continue to be high. Last week, the supply of pyrethroid intermediates was tight. Methyl Bentingate rose 8.9% week-on-week to 98,000 CNY/ton, a cumulative increase of up to 25.6% in the past month.

Western Securities pointed out that India has recently implemented a "closed city shutdown" measure across the country. The reduction in Indian production capacity will benefit domestic agrochemical and pharmaceutical and pesticide intermediate production enterprises. The relevant beneficiaries include mancozeb and pyrethrin (raw ether) Aldehyde and Benzoic acid methyl ester), glufosinate and dicamba.