Sinolink: 2-nitro-3-methylbenzoic acid is included in the list of hazardous chemicals. The industry chain may face accelerated reshuffling.

Sinolink released a research report stating that 2-nitro-3-methylbenzoic acid has been included in the list of hazardous chemicals. On one hand, illegal production capacity is expected to be accelerated in clearing, on the other hand, safety equipment investment, personnel training, hazardous chemicals storage and transportation costs may increase overall. In the future, the industry structure of 2-nitro-3-methylbenzoic acid and downstream chlorpyrifos aniline is expected to improve, with related product prices and market conditions expected to rise. It is recommended to focus on targets with relevant product production capacity layout. Sinolink's main points are as follows: Event: On April 16, 2026, the Ministry of Emergency Management of the People's Republic of China and 10 other departments announced (No. 3 of 2026): Including 3-chloropropyne and 5 other chemicals in the "List of Hazardous Chemicals (2015 Edition)": In accordance with the relevant provisions of the "Regulations on the Safety Management of Hazardous Chemicals", the Ministry of Emergency Management, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Ecology and Environment, the Ministry of Transport, the Ministry of Agriculture and Rural Affairs, the National Health Commission, the State Administration for Market Regulation, the National Railway Administration, and the Civil Aviation Administration of China have decided to include 3-chloropropyne, 2-iodobenzoyl acid, 2-nitrobenzyl ester of 2-diazomethane acetic acid, methanesulfonyl, 2-nitro-3-methylbenzoic acid and 5 other chemicals in the "List of Hazardous Chemicals (2015 Edition)". 2-nitro-3-methylbenzoic acid is an important upstream raw material for chlorpyrifos aniline, and the production process involves high-risk processes. According to relevant reports from Cailianshe, the key intermediates for the synthesis of chlorpyrifos aniline are K acid and K amine. K acid and K amine react to produce chlorpyrifos aniline under the action of condensing agents such as methanesulfonyl chloride/triazine. Among them, 2-nitro-3-methylbenzoic acid (2-nitro body) is the starting material for the synthesis of K amine. This material is a bottleneck in the industry chain due to the high-risk processes such as nitration and oxidation involved in the reaction process. Enterprises generally purchase a large amount of 3-methyl-2-nitrobenzoic acid externally. At the same time, some companies illegally produce 2-nitro-3-methylbenzoic acid and cause accidents. For example, on February 7, 2026, Jia Peng Biological Technology Co., Ltd. in Shuozhou City, Shanxi Province, exploded. The factory used feed production as a cover to illegally produce 2-nitro-3-methylbenzoic acid, causing 8 deaths. The China Crop Protection Industry Association clearly pointed out in the "Initiative on Standardizing the Production and Operation of Chlorpyrifos Aniline" released in February of this year that "Currently, there are prominent problems such as illegal production of chlorpyrifos aniline, upstream raw materials 2-nitro-3-methylbenzoic acid, and irregular operation behaviors in the chlorpyrifos aniline industry, which not only brings significant safety hazards, disrupts the fair competition of the market environment, and damages the overall interests of the industry but also poses potential risks to the healthy and sustainable development of the chlorpyrifos aniline industry." The inclusion of 2-nitro-3-methylbenzoic acid in the list of hazardous chemicals will further strengthen industry regulations, which may be conducive to the consolidation of the industry structure and the recovery of downstream product market conditions. The inclusion of 2-nitro-3-methylbenzoic acid in the list of hazardous chemicals is beneficial for enhancing industry supervision, while accelerating the elimination of illegal production capacity in the industry, optimizing industry supply patterns while improving production safety. For production enterprises, future investment in safety equipment, personnel training, hazardous chemicals storage and transportation costs may rise overall, while production capacity is concentrated towards compliant leading companies. This may indirectly lead to a passive contraction of supply in the downstream chlorpyrifos aniline industry, optimizing the industry supply and demand patterns and benefiting the recovery of product prices and market conditions. According to Baichuan Yingfu, as of April 16, 2026, the latest price of chlorpyrifos aniline 97% is 295,000 yuan/ton, which has increased by 100,000 yuan/ton compared to the beginning of the year. The China Crop Protection Industry Association also mentioned in the "Initiative on Standardizing the Production and Operation of Chlorpyrifos Aniline" released in February of this year that "Through multidimensional calculations, the preliminary conclusion is that the average cost of the product is currently about 233,000 yuan/ton (excluding three expenses). Relevant chlorpyrifos aniline production enterprises should consciously refer to this calculation result, combine it with their own actual situation, consciously standardize their operations, resolutely eliminate sales behavior that is lower than the average cost through price protection, over-delivery with fewer invoices, rebates, return of goods, cashback, discounts, etc., and jointly maintain a good ecological environment for industry development." If the illegal production capacity of upstream 2-nitro-3-methylbenzoic acid accelerates clearance and the industry structure of chlorpyrifos aniline is optimized in the future, related product prices and market conditions are expected to continue to rise. Risk Warning Downstream demand falling below expectations; Clearance of production capacity falling short of expectations; Large fluctuations in raw material prices; Changes in related policies, etc.