By: Keith Perl, President
Chlorothalonil, the organic compound primarily used as a broad spectrum, nonsystemic fungicide, has experienced a number of market pressures for a few years now Unfortunately, these pressures don’t seem to be easing off anytime soon.
So why are the Chlorothalonil prices going up?
- A major production facility in China that burned down a couple years ago has yet to come back online.
- Tightening environmental regulations in China are causing other production facilities to relocate or close their operations completely.
- Hurricane Harvey heavily damaged a US production facility in Houston, TX this past August (2017).
- Heavy succinate dehydrogenase inhibitors (SDHI) resistance in Brazil and Europe has placed tremendous pressure on supply.
So, it’s the age-old principle of supply and demand in action! Chlorothalonil has had a number of factors reducing supply world wide, while demand remains high. This imbalance is felt at each step in the supply chain thereafter, and ultimately taking a hit on your budget.