Impact Factors
Energy Impact
Iran is a major OPEC oil producer. The Strait of Hormuz carries approximately 20% of the world's consumed oil. Its blockage has driven up international crude oil prices, directly increasing the cost of inputs for pesticide manufacturing.
Raw Material Disruption
Iran is a key exporter of methanol — China imports between 40% and 45% of its methanol from Iran — and the Persian Gulf region accounts for about 50% of global maritime sulfur trade. This affects the production of intermediates and active ingredients.
Logistics Obstacles
Transit through the Strait of Hormuz is blocked. War-risk maritime insurance premiums have increased by up to 50%, raising total freight costs and causing delivery delays globally.
Affected Agrochemical Products
| Product | Category | Status | Detail |
|---|---|---|---|
Chlorantraniliprole Insecticide | Critical | ▲ +30% — No offer | No factory is issuing quotes this week due to the explosion in the region. |
Clomazone EC Herbicide | High solvent | ▲ Rising — No offer | High use of petroleum-derived solvents. Factories suspended quotes. |
Clethodim EC Herbicide | High solvent | ▲ Rising — No offer | Affected by rising petroleum-derived solvent costs. |
Chlorpyrifos EC Insecticide | High solvent | ▲ Rising — No offer | Affected by rising petroleum-derived solvent costs. |
Triclopyr EC Herbicide | High solvent | ▲ Rising — No offer | Affected by rising petroleum-derived solvent costs. |
Glyphosate Herbicide | Phosphate-based | ▲ Price increased | Upward pressure from rising phosphate raw material costs. |
Glufosinate Herbicide | Phosphate-based | ▲ Price increased | Upward pressure from rising phosphate raw material costs. |
Flumioxazin Herbicide | Phosphate-based | ▲ Price increased | Affected by phosphate supply chain. |
2,4-D Herbicide | Phenol-based | ▶ Stopped falling | Phenol, its main raw material, is directly linked to crude oil prices. |
No factory is issuing quotes this week due to the explosion in the region.
High use of petroleum-derived solvents. Factories suspended quotes.
Affected by rising petroleum-derived solvent costs.
Affected by rising petroleum-derived solvent costs.
Affected by rising petroleum-derived solvent costs.
Upward pressure from rising phosphate raw material costs.
Upward pressure from rising phosphate raw material costs.
Affected by phosphate supply chain.
Phenol, its main raw material, is directly linked to crude oil prices.
Conclusion and Recommendation
The current geopolitical situation represents a significant risk factor for the global agrochemical supply chain. Rising oil prices, higher logistics costs, and the disruption of key raw material supplies are exerting sustained upward pressure on pesticide prices.
Recommendation: It is advisable to anticipate purchases of the most affected products — especially Chlorantraniliprole, EC formulations, and phosphate-based herbicides — and closely monitor the evolution of the conflict and crude oil prices in the coming days.
Want to receive real-time market information?
Register to receive updated alerts on prices, availability, and agrochemical market news directly from Shandong Limuda Co. Ltd.