Report Summary Catalogue Methodological

Clethodim is a post-emergence cyclohexenone herbicide that is highly safe for broadleaf crops. It effectively controls grass weeds and is less affected by environmental conditions. With broad application potential, it is the herbicide of choice for crops such as soybeans and cotton. 

According to LookWhole Insight, the global Clethodim market is projected to reach USD 589.62 Million in 2024. It is expected to grow to USD 1200.05 Million by 2033, registering a compound annual growth rate (CAGR) of 6.57% during the forecast period (2025–2033).

Clethodim Introduction

Clethodim is a post-emergence cyclohexenone herbicide that is highly safe for broadleaf crops. It effectively controls grass weeds and is less affected by environmental conditions. With broad application potential, it is the herbicide of choice for crops such as soybeans and cotton.

• l  Mode of Action: Clethodim inhibits acetyl-CoA carboxylase (ACCase) in weeds, blocking fatty acid synthesis and ultimately damaging cell membranes.
• l  Target Weeds: Mainly grass weeds such as barnyard grass, green foxtail, goosegrass, and reeds.
• l  Applicable Crops: Broadleaf crop fields, including soybeans, cotton, rapeseed, peanuts, sugar beet, and flax.

Major Supply Shock Event

On April 22, 2025, a major safety incident occurred during the resumption of production at Yifan Biotech’s Ningxia plant, the global leader in clethodim production. The accident caused the complete suspension of its 8,000-ton annual production capacity. The shutdown is expected to last at least three months. Combined with increasingly strict environmental regulations in Ningxia and delays in technological upgrades by smaller producers, the industry's effective capacity has suddenly dropped below 45,000 tons per year. Yifan’s capacity accounts for more than 10% of global supply. This event marks the second major supply shock after Yifan’s environmental shutdown in 2023, and the full-year effective capacity gap may expand to 30%.

In fact, clethodim supply is relatively concentrated. Following the Yifan accident, the industry lost 20–25% of supply. Additionally, as the company’s production license is set to expire and is unlikely to be renewed this year, the plant is not expected to resume production. On the demand side, soybean acreage in South America is projected to grow by 10%, and in China by 15%, resulting in a clear supply-demand mismatch. As there is currently no effective substitute for clethodim’s weed control efficacy in soybeans—and given that clethodim costs account for less than 1% of total planting costs—buyers have a strong tolerance for price increases. Experts predict prices could exceed RMB 180,000 in August and RMB 220,000 in October, setting a new historical high. Xianda Co., with a 10,000-ton capacity (the world’s largest), is expected to benefit the most from the price surge due to its 60% export share and leading market position.

Clethodim Production Landscape

Yifan Biotech had previously been a key supplier but is now projected to complete equipment upgrades, compliance procedures, and automation improvements by Q3 2025 (around October). However, due to the severity of the incident and the expiration of its production license in October, it is highly unlikely to resume production this year. The two main constraints are: (1) tightened safety and environmental regulations, which hinder restarts, and (2) the need for license renewal in October, which may be difficult to obtain due to safety record concerns.

Supply and Demand Outlook and Price Analysis

Upstream Raw Materials

Key raw materials for clethodim include propionyl chloride, ethanethiol, fluorophenol, and chlorophenol. Ethanethiol and fluorophenol are classified as hazardous chemicals with complex, flammable, and explosive synthesis processes, making licensing difficult. These materials are mostly imported due to limited domestic production. While companies generally do not outsource raw materials, large quantities of propionyl chloride must be imported, with other components available domestically.

Downstream Demand

China’s annual clethodim output is around 45,000 tons, with over 60% exported—mainly to South America (Brazil, Argentina) and the United States. The peak global demand period is from May to October. Domestically, the Northeast China market is also growing, as GMO soybean acreage is up 15% year-on-year, pushing clethodim demand up 15–20%. Globally, planted acreage is expected to grow by about 10%, significantly increasing herbicide demand.

Price Trends

Short-term: Clethodim prices rose on May 26 and June 7. As of June 9, prices reached RMB 140,000–150,000. Given the global demand surge from June to October, prices are expected to hit RMB 160,000–180,000, with August potentially exceeding RMB 180,000.

Long-term: According to LookWhole Insight, prices could surpass RMB 220,000 in October, breaking historical records. Even with some capacity coming online by Q4 or early next year, the price is expected to remain elevated due to Yifan’s continued shutdown.

Customer Price Acceptance

For soybean fields, clethodim is applied at a rate of 5–40 ml of 12% EC or 28–40 ml of 24% EC per acre. The cost per square meter is approximately USD $0.62, which is less than 1% of total planting costs. This low cost share gives customers strong tolerance for price increases.

The following is a brief introduction of the latest report released by LookWhole Insight. This report systematically compiles global data on the clethodim market, including production capacity, sales revenue, pricing, and future development trends. It provides in-depth analysis of various market segments from multiple perspectives—such as key manufacturers, product types, application areas, and regional markets. The report comprehensively examines the product characteristics, market positioning, business performance, and market shares of major players in both the global and Chinese markets. It aims to offer a thorough and objective market research resource for industry stakeholders, investors, and policy makers. Additionally, it serves as a reliable decision-making tool for market analysts, investment professionals, and government agencies.

Market Report Coverage & Segmentation

The final chapter summarizes the main takeaways from the report, presenting the core conclusions, strategic recommendations, and implications for stakeholders. It encapsulates the insights drawn from all previous chapters.