Tetrachloroethylene

Tetrachloroethylene Market Dynamics Intelligence Report (Recent Update)\
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I. Market Price Dynamics\
- Benchmark Price Movement: As of July 21, 2026, the Business Network (Shengyishe) benchmark price for tetrachloroethylene stood at RMB 3,490.00 per ton, down 12.75% from the beginning-of-month level of RMB 4,000.00 per ton, with a daily decline of 6.56%, placing it at a mid-to-lower level for the year.\
- Regional Price Disparities:\
- Shandong Market: Mainstream quotations ranged between RMB 3,300–3,500 per ton. Notably, Shandong Shuojia Chemical and Shandong Yushuo Chemical quoted RMB 3,300 per ton, while Jinan Zesheng Chemical quoted RMB 3,400 per ton.\
- Jiangsu Market: Nanjing Runsheng Petrochemical quoted RMB 4,800 per ton—significantly higher than Shandong prices—primarily attributable to brand premium and logistics cost differentials.\
- Shanghai Market: Shanghai Shijian Industry quoted RMB 7,000 per ton—the highest nationwide—reflecting pricing for high-end demand or specialty-grade products.\
- Other Regions: Hubei Province quoted RMB 4,000 per ton; Guangdong Province (Zhejiang Juhua brand) quoted RMB 4,400 per ton—both above the Shandong benchmark price.\
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- Extreme Quotation Cases:\
- Langcheng Chemical (Shandong) offered an unusually low price of RMB 2,700 per ton—potentially reflecting clearance sales or non-standard product offerings.\
- Suzhou Senfeida Chemical quoted RMB 17,000 per ton (for 300 kg/drum in galvanized steel drums), representing pricing for specialized packaging or ultra-high-purity grades.\
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II. Market Driving Factor Analysis\
- Supply Side:\
- Overcapacity Pressure: China’s total tetrachloroethylene production capacity stands at 511,000 tons/year, with another 79,000 tons/year under construction or planned—sustaining a supply-abundant market structure.\
- Intense Regional Competition: As the primary production hub, Shandong sees frequent price wars among local producers, resulting in regional average prices below national levels.\
- Declining Import Dependency: Imports declined by 5.02% year-on-year in 2024; further import reduction is anticipated, raising domestic self-sufficiency rates.\
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- Demand Side:\
- Stable Traditional Demand: Consumption in chemical raw materials and intermediate synthesis accounts for ~75% of total demand; cleaning/degreasing (~10%) and dry-cleaning (~5%) segments remain stable.\
- Underwhelming Emerging Demand: Though high-precision cleaning and complex process applications hold potential, growth has lagged expectations due to tightening environmental regulations and technological substitution.\
- Downstream Cost Pass-through: PVC futures prices have remained volatile without generating notable upward pressure on tetrachloroethylene demand.\
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- Cost Side:\
- Raw Material Volatility: Carbon tetrachloride—the primary feedstock—is subject to supply constraints under the Montreal Protocol; however, cost pass-through to downstream tetrachloroethylene remains limited.\
- Energy Price Impact: Prices of fluorinated refrigerant R125 remain resilient at elevated levels; yet as a co-product, tetrachloroethylene pricing is constrained by profit-allocation mechanisms tied to its main-product output.\
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III. Market Risk Alerts\
- Downward Price Risk: Aggressive discounting in Shandong may trigger nationwide price competition, potentially pushing the benchmark price below the RMB 3,300/ton support level.\
- Regional Supply-Demand Imbalance: Robust demand in East and South China—coupled with insufficient local supply—may intensify cross-regional arbitrage activities.\
- Tightening Environmental Regulation: Restrictions on tetrachloroethylene use in dry-cleaning may lead to permanent loss of part of this demand segment.\
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IV. Forward Outlook\
- Short Term (1–3 months):\
- Price Trend: Benchmark price expected to fluctuate within RMB 3,300–3,500 per ton; downward pressure from Shandong may spread nationally.\
- Supply-Demand Balance: Persistent overcapacity will likely persist, increasing enterprise inventory pressure and prompting more frequent promotional activity.\
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- Medium Term (6–12 months):\
- Capacity Rationalization: Phasing out of outdated capacity may accelerate, further consolidating industry concentration—with CR6 (top six firms’ combined market share) potentially exceeding 65%.\
- Demand Structure Shift: Share of demand from chemical raw material applications may rise to 80%, while cleaning/degreasing and dry-cleaning segments continue shrinking.\
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- Long Term (1–3 years):\
- Technological Substitution: Green solvents (e.g., hydrocarbon-based cleaners) will increasingly displace tetrachloroethylene, slowing overall demand growth to <2% annually.\
- Export Opportunity: With expanding domestic capacity, annual tetrachloroethylene exports may surpass 30,000 tons, emerging as a new demand growth driver.