As the year turns, the global chemical industry faces a new round of strategic reshuffling. BASF has initiated a strategic review of its subsidiaries, Mitsubishi Chemical and others have jointly shut down ethylene plants, and titanium dioxide leader Tronox has permanently closed its Jiangxi factory in China. This wave of “decluttering” by international chemical giants is not merely business contraction but a proactive move to focus on core competencies and optimize assets. These adjustments point directly to profound transformations within the agricultural supplies sector, propelling the industry to fully abandon the era of extensive development driven by scale expansion. It is now entering a new phase of high-quality development characterized by quality enhancement, green upgrading, and resource optimization. The core logic of the industry is undergoing a fundamental shift from “scale-oriented” to “value-oriented,” officially ushering in a new cycle of value reconstruction for the agricultural supplies sector.

The strategic retrenchment by international chemical giants is not a sign of industry decline but an inevitable outcome of global industrial iteration and the reshaping of competitive landscapes. Its core logic is “focusing on core competencies and divesting non-core assets” to achieve dual enhancements in asset value and industrial competitiveness. BASF's intensive divestment of non-core businesses over the past year and its evaluation of the agricultural-related Spectra-Chem subsidiary do not signify withdrawal from agriculture. Instead, it reflects a strategic shift to concentrate resources on high-value-added sectors. The company's 23% year-on-year net profit growth in 2025 precisely validates the growth logic behind this “subtraction” approach. The joint consolidation of ethylene capacity and shutdown of outdated facilities by Mitsubishi Chemical and Mitsui Chemicals addresses both overcapacity and dual carbon goals. As a vital plant growth regulator in agriculture, ethylene's low-carbon restructuring will drive downstream agricultural inputs toward green and efficient upgrades, creating value synergy across the industrial chain.

Titan's permanent shutdown of its Jiangxi titanium dioxide plant in China exemplifies the global restructuring of supply and demand in agricultural raw materials. Ferrous sulfate, a byproduct of titanium dioxide production, serves as a vital iron fertilizer that improves saline-alkali soils and supplements crop iron needs, making it intrinsically linked to agriculture. The shutdown of this 50,000-ton-per-year facility stems from domestic titanium dioxide overcapacity (projected to reach 6.3 million tons annually by 2025) and persistently high raw material costs like sulfur, resulting in a 6% annual industry loss. Tronox's exit represents a rational market choice, compelling domestic enterprises to accelerate technological upgrades, focus on high-end products, and prioritize resource utilization of agricultural byproducts—shifting the industry from scale competition to quality competition.

The concentrated asset optimization moves by international giants also point to a shared industry trend for agricultural input development: the sector has entered a new phase of “value reconstruction.” The competition for core competitiveness is shifting from production scale to a comprehensive contest of technological innovation, cost control, and green development capabilities. Over the past decades, the industry's core focus was on “addressing shortcomings and expanding scale,” fundamentally aimed at meeting the rigid demands of global agricultural production. Today, as global agriculture transitions toward green and precision farming, demand for high-efficiency fertilizers and eco-friendly pesticides is surging, compelling supply chain adjustments. Chemical giants are deepening their footprint in high-end agricultural inputs by divesting non-core businesses, consolidating green production capacity, and intensifying R&D in core technologies. This restructuring trend charts a new course for the global industry—only by aligning with agricultural green transformation can players seize the initiative in this industrial realignment.

This industry restructuring presents both challenges and opportunities, with its long-term value lying in driving high-quality development within the agricultural supplies sector and supporting global food security and agricultural modernization. For domestic agricultural enterprises, the asset adjustments and business refocusing by international giants bring new competitive pressures while also creating fresh opportunities for technological collaboration, market expansion, and deepening expertise in specific segments. Domestic enterprises can leverage the vast demand of the local agricultural market to proactively undertake the transfer of international high-end agricultural technology. By focusing on core areas such as fertilizers, pesticides, and agricultural raw materials for technological R&D, deepening expertise in niche segments to achieve product upgrades, and engaging in “differentiated competition,” they can form a “complementary advantage” with international giants.

Simultaneously, the global reshuffling of the agricultural supplies industry will continue to increase sector concentration, address long-standing industry pain points like homogenized competition and insufficient technological innovation, and drive coordinated efforts across the supply chain. This will optimize the entire value chain—from R&D and production to application—of agricultural supplies. This process will not only effectively reduce agricultural input costs but also drive the transformation of agricultural products toward greener, lower-consumption, and higher-efficiency models. It will minimize agricultural non-point source pollution, aligning deeply with the development concepts of green and ecological agriculture, thereby injecting industrial momentum into high-quality agricultural development.

The agricultural input industry is the “lifeline” of agriculture, and its high-quality development is crucial to food security and agricultural modernization. The short-term strategic retrenchment and asset optimization by international chemical giants represent an inevitable path toward high-quality development for the agricultural supplies sector. This temporary “sacrifice” is made for the industry's long-term “gain.” Moving forward, driven by technological innovation and green empowerment, the global agricultural supplies industry will undergo comprehensive value transformation. While providing superior, efficient, and eco-friendly products and services for global agricultural production, it will also carve out broader development opportunities for itself—embodying the core long-term value of this industrial restructuring.

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