Tetrahydrofuran

THF (Tetrahydrofuran) Recent Commodity Market Intelligence Report

I. Price Dynamics
- Latest Quotation: As of July 28, 2026, the benchmark market price for THF stands at RMB 11,800 per metric ton—essentially unchanged from early July but slightly down from RMB 11,875 per metric ton recorded in late June.
- Regional Price Variations:
- Shandong Province: Quotations range widely from RMB 8,400 to RMB 11,900 per metric ton; e.g., Shandong Yeyang Chemical Co., Ltd. quotes RMB 8,500/ton, while Shandong Beilu Hengsheng Chemical Co., Ltd. quotes RMB 11,900/ton.
- Jiangsu Province: Prices are generally higher; e.g., Nanjing Runsheng Petrochemical Co., Ltd. quotes RMB 12,500/ton, and Nanjing Baitu Chemical Co., Ltd. quotes RMB 13,000/ton.
- Zhejiang Province: Aite (Zhejiang) Supply Chain Management Co., Ltd. quotes RMB 10,800/ton.
- Purity Impact: High-purity (≥99.9%) products command premium pricing versus standard-grade materials. For instance, Shandong Hongyang Chemical Co., Ltd. quotes RMB 11,400/ton for its 99.9% purity THF; pricing for 99% purity grade is not explicitly stated but is expected to be lower.

II. Supply-Demand Dynamics
- Supply Side:
- Domestic production capacity continues expanding, especially via the BDO dehydration cyclization route, driving increased THF output.
- Shandong Province—home to a dense cluster of chemical enterprises—remains a major THF production hub with robust supply capability.
- Demand Side:
- Commercial (trading) market: Solvent applications remain the largest end-use segment, though growth has moderated; demand for pharmaceutical intermediates continues rising amid accelerated innovation-driven drug development.
- Non-commercial market: PTMEG (polytetramethylene ether glycol), a core raw material for spandex (elastane), benefits from strong demand in sportswear and medical protective equipment sectors; THF consumption for PTMEG now accounts for 35% of total demand.
- Emerging sectors: Lithium-ion battery electrolyte solvents represent a new growth driver—THF consumption in this application reached 225,000 metric tons in 2025, representing 15% of total demand.

III. Key Market Influencing Factors
- Policy Environment:
- China’s “14th Five-Year Plan” for Bioeconomic Development explicitly supports R&D of bio-based THF, with eligible enterprises qualifying for preferential tax policies.
- The Green Manufacturing Initiative mandates reductions in energy consumption per unit of output, prompting phased-out retirement of outdated production capacity.
- International Trade:
- Under the RCEP framework, tariffs on Chinese THF exports to Japan and South Korea have been reduced, while exports to Southeast Asian countries maintain zero tariff rates—enhancing regional trade competitiveness.
- Cost Factors:
- Fluctuations in upstream BDO prices directly affect THF production costs. Recently, BDO market prices have remained relatively stable, offering limited cost support for THF.

Analysis & Assessment

I. Price Trend Outlook
- Short-term: THF market prices are expected to remain relatively stable, with minimal likelihood of sharp volatility due to balanced supply-demand conditions and modest cost support.
- Long-term: Rising demand from emerging applications coupled with continued capacity expansion will intensify competition, potentially exerting downward pressure on prices.

II. Supply-Demand Relationship
- Supply side: Ongoing domestic capacity expansion—especially in chemical-industry clusters such as Shandong—ensures ample supply capable of meeting current and near-term demand.
- Demand side: Growth in the commercial (trading) sector has slowed, whereas demand from non-commercial segments—including PTMEG and lithium battery electrolyte solvents—is growing significantly and will serve as the primary engine for future demand expansion.

III. Market Structure
- Intense domestic competition persists, yet high-end segments remain partially dominated by international industry leaders. Local enterprises are gradually eroding this dominance through economies of scale and technological innovation, steadily increasing their market share.
- Regionally, Shandong Province maintains leadership status, leveraging its industrial agglomeration advantages and well-developed logistics infrastructure as a pivotal THF supply base.

Forecast

I. Price Forecast
- Over the next three months, THF market prices are projected to fluctuate within a range of RMB 11,000–12,000 per metric ton. Influenced by evolving supply-demand dynamics and cost factors, the price midpoint may experience slight downward adjustment.

II. Demand Forecast
- Robust growth in sportswear, medical protective equipment, and lithium battery industries will sustain strong THF demand from PTMEG and battery electrolyte solvent applications. Annual demand is anticipated to grow at double-digit rates over the coming years.

III. Market Trends
- Green manufacturing and product upgrading will define THF industry development. Enterprises must prioritize technological innovation and environmental investment to enhance product purity, consistency, and performance—meeting stringent requirements of high-end applications.
- Regionally, chemical-industry clusters like Shandong will retain their leading position; meanwhile, other regions will strengthen competitiveness through capacity expansion and technology advancement.