Benzyl chloride prices in the Asia-Pacific region slightly increased after mid-February 2025, supported by improved downstream demand, moderate procurement activities, and gradual production adjustments. While feedstock toluene prices remained relatively stable but weak, cost support for benzyl chloride producers was limited but sufficient to maintain steady operating rates. The overall market sentiment for benzyl chloride improved as downstream sectors resumed operations post-Lunar New Year, with participants adopting a more active approach toward restocking inventories.

In China, demand from the downstream agrochemical sector was a key driver of the price increase, with benzyl chloride serving as a crucial intermediate in herbicide and pesticide production. The spring wheat sowing season began in February, progressing from southern to northern regions, which intensified the need for agrochemical inputs. Large-scale sowing campaigns in Tianjin and surrounding areas highlighted robust herbicide demand. This seasonal surge in agrochemical procurement partially offset weaker demand from other sectors, particularly pharmaceuticals and certain specialty chemical applications. Agrochemical producers accelerated purchases to secure supplies amid the busy planting season, ensuring adequate coverage for rising herbicide requirements.

The pharmaceutical sector's demand for benzyl chloride remained muted, weighed down by ongoing economic uncertainties and regulatory challenges that prompted cautious procurement among pharmaceutical manufacturers. Major companies such as Merck & Co. and AstraZeneca reported declining sales, reflecting the broader market slowdown and stricter compliance requirements, which in turn curbed the use of benzyl chloride in pharmaceutical intermediate production. This restrained purchasing behavior led to a mixed sentiment in downstream markets, with pharmaceuticals lagging behind stronger segments like agrochemicals.

On the supply side, domestic production of benzyl chloride gradually reduced after producers responded to prolonged low prices earlier. Although most manufacturers resumed operations after the Lunar New Year break, some facilities opted to limit production runs to prevent oversupply and maintain price stability. Overseas procurement demand returned to normal as inventory levels declined, with Southeast Asian buyers resuming purchases to replenish stocks depleted during the holiday period. Improved logistics post-holiday ensured timely shipments, further stabilizing the regional supply chain.

In India, benzyl chloride consumption strengthened ahead of the pre-Kharif season (March–May), as demand for herbicides used in wheat and cereal crop cultivation rose. Agrochemical producers increased procurement activity to meet this seasonal surge, while moderate demand from the dyes, coatings, and specialty chemical sectors provided steady baseline support. Industrial consumers focused on securing supplies amid expectations of stable-to-firm pricing trends in the coming weeks.

Looking ahead, benzyl chloride demand is projected to remain firm over the next few weeks, with sustained agricultural activity in China and India continuing to drive consumption. The ongoing wheat sowing season and strong agrochemical demand are expected to bolster market sentiment.