Diphenyl ether

Diphenyl Ether Market Intelligence Report (June 17–24, 2026)

I. Recent Price Trends
1. Benchmark Price Volatility
According to ChemNet data, the diphenyl ether benchmark price (transaction guidance price) exhibited narrow-range oscillation from June 17 to June 23, 2026:
- June 17: Benchmark price showed no clear volatility but remained at the prior week’s level;
- June 18–23: Price stabilized within the range of RMB 12,800–13,200 per metric ton, with a week-on-week fluctuation of less than 1%.

2. Regional Price Differentials and Brand Premiums
- Industrial-grade diphenyl ether quotations in the East China region were RMB 200–300/ton higher than those in North China, primarily attributable to logistics costs and regional supply-demand imbalances;
- Imported brands (e.g., BASF Germany) command an 8–10% premium due to superior purity (≥99.9%), whereas domestic high-purity products (≥99.5%) have narrowed the price gap to within 5%.

II. Market Drivers Analysis
1. Upstream Cost Support
- Phenol Prices: As the core raw material for diphenyl ether, phenol prices remained stable in June at RMB 8,200–8,500/ton, unchanged month-on-month, with limited sensitivity to crude oil fluctuations;
- Hydrogen Costs: Increased adoption of coal-based hydrogen production has reduced hydrogen costs in North China by 12% year-on-year, alleviating production cost pressure on diphenyl ether.

2. Downstream Demand Structure
- Heat Transfer Fluid Segment: Accounts for 61.8% of total demand; robust demand from lithium battery cathode material sintering furnaces drove a 5% month-on-month increase in diphenyl ether consumption following new capacity commissioning in June;
- Fragrance Industry: The rise of domestic premium cosmetics brands has boosted customized high-end fragrance demand; diphenyl ether—used as a fixative—recorded an 8% year-on-year usage growth;
- Electronic Chemicals: With semiconductor industry localization rising to 30%, annual demand for electronic-grade diphenyl ether (≥99.9%) exceeded 4,200 metric tons, though current supply remains heavily reliant on imports.

3. Policy and Trade Environment
- Domestic Policy: Stricter environmental inspections under China’s “Dual Carbon” goals have prompted production suspensions and rectifications among small- and medium-sized producers, raising industry concentration to 65%;
- International Regulations: The updated EU REACH Regulation, effective June 2026, imposes stricter limits on impurity content in diphenyl ether, increasing compliance costs for exporters by approximately 3–5%;
- RCEP Benefits: Import tariffs in ASEAN markets have been reduced to 2%; Chinese exports to Vietnam and Thailand rose 15% month-on-month in June.

III. Competitive Landscape and Corporate Updates
1. Production Capacity Distribution
- The top five domestic producers—Jiangsu Yangnong, Zhejiang Longsheng, Shandong Binhua, Tianjin Zhongtai, and Wuhan Yuqing—collectively account for 58% of national capacity; Jiangsu Yangnong leads with an annual capacity of 12,000 metric tons;
- Regarding new capacity: Shandong Ouya New Materials commissioned its 4,4'-diaminodiphenyl ether crystallization unit in June, expected to boost combined biphenyl–diphenyl ether heat transfer fluid capacity by 20%.

2. Technological Breakthroughs
- Adoption rate of continuous crystallization technology has risen to 40%, improving single-line production efficiency by 30% and reducing energy consumption per unit by 18%;
- Breakthroughs in electronic-grade purification technology have enabled domestic high-purity products to achieve impurity levels below 0.005%, facilitating progressive import substitution.

IV. Outlook (July–December 2026)
1. Price Trend Forecast
- Short-Term (July–August): Peak summer demand in the heat transfer fluid segment may push prices modestly upward to RMB 13,500–14,000/ton;
- Long-Term (September–December): Price pressure is anticipated from new capacity releases and increased imported supply, potentially driving prices down to RMB 12,500–13,000/ton.

2. Demand Structure Evolution
- Demand share from the electronic chemicals segment is projected to rise from 5.7% to 8%, becoming the fastest-growing submarket;
- Customized fragrance demand will elevate reagent-grade product share to 18%.

3. Key Industry Risks
- Rising EU REACH compliance costs may compress profit margins for small- and medium-sized export-oriented enterprises;
- Phenol prices remain vulnerable to crude oil volatility; should Brent crude exceed USD 85/barrel in Q3, diphenyl ether production costs could rise passively by 5–8%.