New Delhi [India] July 22 (ANI): As crude oil prices have started surging again amid renewed attacks linked to the Iran conflict, a sustained rise in crude prices could feed through to higher pesticide prices in the coming months, according to a report by Capital 360 ONE.
Brent crude futures rose 50 cents, or 0.55 per cent, to USD 91.51 a barrel after markets opened on Wednesday, while US West Texas Intermediate (WTI) crude futures gained 30 cents, or 0.36 per cent, to USD 84.64 a barrel.
As per Capital 360 ONE, production across key chemical products weakened on a month-on-month basis in 1H 2026. Within this, pesticide production remained a key bright spot, rising 11 per cent YoY, while weak demand and China’s abundant generics supply continued to weigh on soda ash and agrochemical pricing.
Production for soda ash declined 3 per cent YoY and 3 per cent MoM, although first-half output remained 3 per cent higher YoY. “Demand for any material did not pick-up, and China Soda Ash prices remain range-bound,” it noted.
Likewise, caustic soda production dropped 2 per cent YoY and 3 per cent MoM. However, 1H cumulative output was up 5 per cent YoY, as per the report.
Phosphate ore output plunged 10 per cent YoY and 3 per cent MoM. The sharp decline in June dragged first-half growth down to 4 per cent YoY, compared with growth of more than 10 per cent in the past couple of years.
Meanwhile, sulfuric acid production fell sharply by 14 per cent YoY and 5 per cent MoM, pushing first-half output down 2 per cent YoY, amid sulfur shortages stemming from the West Asia conflict. “Sulfur shortage from the West Asia war impacting this key basic chemical. Remains a key input for Chemicals and Fertilizers production,” the report said.
Synthetic fibre production also declined 8 per cent YoY and 10 per cent MoM, while first-half output fell marginally by 1 per cent YoY.
In contrast, pesticide output rose 4 per cent YoY but declined 5 per cent MoM, with cumulative first-half production surging 11 per cent YoY. “Rising China generics supply keeps pricing under check, input cost inflation partially passed on,” it said.
In agrochemicals, pesticide production growth moderated on a MoM basis but remained strong YoY, with the 11 per cent growth in first-half output adding to abundant global generics supply.
The report further noted, rrices corrected in June on easing crude oil prices, however, “2QCY26 average prices still scaled higher YoY on elevated Crude.”
“Crude has started strengthening again in the past couple of weeks on renewed Iran-related attacks. Sustained Crude strength, if it persists, likely to feed through into Pesticide prices ahead,” it said.
Brent crude was trading at around USD 91.96 per barrel at the time of reporting. (ANI)
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