World Agrochemical Network Chinese website reports: The prices of two mainstream herbicides, acetochlor and butachlor, have risen significantly in the past year. According to the herbicide technical price index released by Zhongnong Lihua on February 06, 2022, the price of butachlor is 50,000 yuan/ton, and the actual price of butachlor is 47,000 yuan/ton. On February 10, the actual price of butachlor was 40,000 yuan Yuan/ton, down 15% from last week, but still up 80% compared with the same period last year. The price of acetochlor remained firm, at RMB 50,000/ton, a year-on-year increase of 104%. The application season for rice fields in China is approaching, which will provide a certain support for the price of acetochlor.

MEA (2-methyl-6-ethylaniline) and DEA (2,6-diethylaniline) are two important intermediates in the synthesis of acetochlor and butachlor, respectively. Huaian Shuangyang and Zhongnongfa Henan are the two core suppliers of MEA and DEA in China. The former was implicated in the production shutdown due to the fire in the park where it was located, and the latter was temporarily suspended due to the Winter Olympics. The two companies have gradually resumed supply but their output is still limited. In addition, the supply of o-nitrotoluene, the upstream raw material of MEA, was tight because the mainstream supplier Shandong Caike was affected by the Winter Olympics. The upstream and downstream supply and demand relationship of this product is relatively mature and stable, and the supply and price are affected by multiple factors. There are companies in India supplying a small amount of MEA, but the price is more expensive.

Albemarle America is a mainstream MEA supplier in the United States. It was established in 1887. It is an international leading polymer company such as catalyst flame retardants, and it was also a supplier to Monsanto. In February 2021, Albemarle signed a contract with Mineral Resources to explore the potential expansion of the joint venture, MARBL, in Australia to expand the lithium mining business.

It is reported that in the past two years, Albemarle’s subordinate factories in the United States have stopped producing MEA, which has also greatly affected Monsanto’s supply of acetochlor to the domestic market in the United States. In 2021, it is reported that Albemarle plans to sell the MEA product line.