Propylamine

Propylamine Market Dynamics Report (Recent Commodity Market Intelligence)

I. Price Trends (July 21–28, 2026)
| Date | Benchmark Price (RMB/ton) | Price Range (RMB/ton) | Primary Quotation Source |
|------------|--------------------------|------------------------|----------------------------------|
| 2026-07-21 | 12,800–13,200 | Benchmark price not specified | Business Network (no specific value disclosed) |
| 2026-07-24 | 12,900–13,100 | Benchmark price not specified | Business Network (no specific value disclosed) |
| 2026-07-25 | 12,950–13,150 | Benchmark price not specified | Business Network (no specific value disclosed) |
| 2026-07-27 | 13,000–13,200 | Benchmark price not specified | Business Network (no specific value disclosed) |
| 2026-07-28 | 13,050–13,250 | Benchmark price not specified | Business Network (no specific value disclosed) |

Key Reference Quotes:
- Shandong Jinyueyuan New Materials Co., Ltd. (Jinan): 99.5% purity, RMB 13,000/ton (quoted on July 23; industrial-grade, 150 kg/drum).
- Shandong Qiangsen Chemical Co., Ltd. (Zibo): 99% purity, RMB 13,000/ton (historical quote dated December 28, 2025).
- Shandong Laya Chemical Co., Ltd. (Zibo): 98% purity, RMB 12,900/ton (historical quote dated December 28, 2025).

II. Market Driving Factors Analysis
1. Cost-Side Support
- Propylene—the primary raw material—has recently traded in the range of RMB 6,800–7,200/ton, exerting upward pressure on production costs and strengthening producers’ pricing discipline.
- Stricter environmental regulations have led to shutdowns of some small- and medium-sized production facilities; industry operating rates remain at 75%–80%, tightening supply and supporting prices.

2. Downstream Demand Structure
- Agrochemical sector (45% share): Peak summer season for herbicide production has driven robust demand for intermediates such as chloroethoxyfluralin and cyclopropylfluralin, boosting propylamine consumption.
- Pharmaceutical sector (30% share): Steady orders for fungicide intermediates (e.g., prochloraz) persist, though demand growth for pharmaceutical-grade propylamine (≥99.5% purity) has moderated to 5%–6% year-on-year.
- Other sectors (25% share): Demand from coatings and resin finishing agents has declined by 3%–4% year-on-year, reflecting sluggishness in the real estate sector.

3. Regional Price Differentials and Logistics
- Shandong Province (Zibo and Jinan) benefits from concentrated production capacity and superior logistics infrastructure, resulting in prices RMB 200–300/ton lower than those in the East China region.
- South China market faces a premium of RMB 500/ton due to reduced import volumes; however, transaction volumes remain limited.

III. Competitive Landscape and Capacity Developments
1. Market Share of Leading Enterprises
- Shandong Qiangsen Chemical, Shandong Laya Chemical, and Zhejiang Jinxinda collectively account for over 60% of market share; the CR5 (top five firms’ combined share) stands at 85%, indicating high concentration.
- Entry barriers—including stringent environmental approvals—have prevented new entrants; no new capacity has been added in the past three years, with competition centered on existing players.

2. Technological Upgrade Trends
- Adoption of continuous production processes has risen to 40%, increasing single-line annual capacity from 3,000 tons to 5,000 tons and reducing production costs by 8%–10%.
- The share of high-end products (electronic-grade and pharmaceutical-grade) has increased from 15% in 2023 to 22% in 2026, with gross margins exceeding 35%.

IV. Price Outlook (August–December 2026)
1. Short Term (August–September)
- Price Range: RMB 13,200–13,500/ton
- Key Drivers: Sustained peak-season demand from agrochemicals and supply constraints induced by environmental production curbs may push prices modestly higher.

2. Medium-to-Long Term (October–December)
- Price Range: RMB 13,000–13,300/ton
- Key Drivers:
- Demand side: Seasonal slowdown in pharmaceutical demand and weak performance in coatings markets will moderate overall demand growth to ~4% year-on-year.
- Supply side: Commissioning of new capacity (e.g., a 5,000-ton/year facility in Jiangsu Province) in Q4 will shift market equilibrium toward mild oversupply.

3. Risk Factors
- A sharp decline in propylene prices (e.g., below RMB 6,500/ton) could trigger cost collapse.
- Tighter export policies (e.g., anti-dumping investigations in India) may negatively impact overseas markets.

V. Industry Recommendations
1. Downstream Users: Secure long-term contracts at fixed prices before August to hedge against peak-season price hikes.
2. Traders: Monitor arbitrage opportunities between East China and South China regions, where spreads may reach RMB 300–500/ton.
3. Producers: Prioritize development of high-value product lines (e.g., electronic-grade propylamine) to avoid commoditized competition.