Benzoyl chloride prices in the Asia-Pacific region increased in early February 2025 as the market reopened post-Lunar New Year, driven by renewed demand in the downstream sectors, improved procurement activity, and adjustments in production. The increase was particularly supported by the agrochemical sector, where benzoyl chloride is a critical intermediate in manufacturing herbicides used in wheat and cereal crop cultivation.

In China, the spring wheat sowing season began in February, moving progressively from south to north, which intensified the demand for agrochemical inputs. Large-scale sowing campaigns in Tianjin highlighted robust herbicide demand. The use of high-performance seeding equipment and advanced irrigation technologies has improved sowing efficiency, prompting earlier-than-usual purchases of agricultural chemicals. This seasonal surge in agrochemical consumption has partially offset weaker demand from other sectors, particularly pharmaceuticals.

While agriculture drove consumption, the pharmaceutical sector saw declining demand for benzoyl chloride. Companies like Merck & Co. and AstraZeneca reported lower sales amid economic uncertainties and regulatory hurdles, which dampened the use of benzoyl chloride in pharmaceutical intermediate production. This contrasting demand trend has resulted in mixed sentiment within downstream markets, with agriculture-driven purchases sustaining overall demand.

Manufacturing activity in the benzoyl chloride market has normalized as producers resumed full operations post-Lunar New Year. Temporary supply gaps from earlier shutdowns prompted manufacturers to increase output. Rising demand from the agrochemical sectors further supported production ramp-ups. Feedstock benzene prices, which surged marginally last month, stabilized recently, providing some cost relief for benzoyl chloride producers and encouraging steady manufacturing rates.

India’s benzoyl chloride market also experienced improved demand amid seasonal agricultural activity. As the country approaches its pre-Kharif season between March and May, the rising demand for herbicides to support wheat and cereal crop cultivation has strengthened market sentiment. Agrochemical producers have increased procurement of benzoyl chloride to cater to this seasonal demand surge, while industrial applications in dyes and coatings maintained moderate buying interest.

Export activity in the Asia-Pacific region showed gradual recovery as overseas demand stabilized. Southeast Asian markets increased procurement to replenish inventories depleted during the Lunar New Year break, and improved logistics post-holiday ensured timely shipments.

As per the ChemAnalyst, benzoyl chloride demand is anticipated to remain firm in the coming weeks, supported by sustained agricultural activity in China and India. The ongoing wheat sowing season, coupled with strong agrochemical consumption, will continue to bolster market sentiment. However, cautious procurement in non-agricultural sectors and the subdued pharmaceutical market may moderate overall market momentum in the coming weeks.