Trichloroethylene

Recent Market Intelligence Report on Trichloroethylene

I. Price Dynamics
1. **Quotation Range**: Recent market quotations for trichloroethylene show significant variation, with mainstream prices ranging from RMB 3,300 to 9,500 per ton. In Shandong Province, quotations are predominantly concentrated between RMB 4,500–5,700 per ton; some enterprises quote as low as RMB 3,400 per ton, while high-purity products command prices exceeding RMB 9,000 per ton.
2. **Regional Disparities**: Prices in the East China and South China regions are generally higher than those in North and Central China, primarily due to differences in logistics costs and regional supply-demand dynamics. For instance, a company in Suzhou City, Jiangsu Province, quotes RMB 9,500 per ton, whereas certain enterprises in Liaocheng City, Shandong Province, quote as low as RMB 3,400 per ton.
3. **Enterprise Quotations**: Companies such as Shandong Zhuoyu Chemical Co., Ltd. and Qingdao Shengze Chemical Co., Ltd. commonly quote around RMB 4,700 per ton; by contrast, quotations from Shandong Hanyue Chemical Co., Ltd. and Shandong Qiancheng New Materials Co., Ltd. vary more widely—from RMB 4,900 to 5,700 per ton.

II. Market Supply and Demand
1. **Supply Side**: Overall supply is ample, with multiple enterprises ramping up production capacity. However, supply of high-purity trichloroethylene remains relatively tight. Some manufacturers have adjusted production plans to prioritize output of high-purity grades.
2. **Demand Side**: Downstream demand is divergent: demand from sectors such as chemical feedstocks and metal parts degreasing remains stable, whereas demand from dry cleaning of textiles and extraction solvents exhibits notable seasonality and volatility.
3. **Inventory Status**: Enterprise inventory levels are generally low; many adopt a “sell-to-order” production strategy to avoid overstocking.

III. Correlated Product Price Linkages
1. **Upstream Raw Materials**: Fluorspar wet powder prices remain stable at RMB 3,100–3,400 per ton; hydrofluoric acid (HF) prices hold steady at RMB 14,350–14,600 per ton—providing strong cost support for trichloroethylene.
2. **Downstream Products**: Refrigerant prices remain at elevated levels, with stable pricing for R134a and R22, thereby offering modest demand support for trichloroethylene.

IV. Market Developments
1. **Trading Activity**: Market trading activity is moderate; downstream purchasers mainly procure on a just-in-time (JIT), necessity-driven basis, with limited speculative demand.
2. **Enterprise Activities**: Several companies have adjusted their pricing strategies to capture greater market share. For example, Shandong Yihuo Fine Chemical Co., Ltd. quoted as low as RMB 3,400 per ton—drawing market attention.
3. **Industry Policy**: Environmental regulations continue tightening, imposing stricter compliance requirements on trichloroethylene producers; some enterprises face pressures to undertake rectification measures.

Analysis & Assessment
1. **Price Trend Outlook**: In the short term, trichloroethylene prices are under firm cost support from upstream raw materials, limiting downward price movement. However, price volatility may intensify due to evolving supply-demand dynamics.
2. **Market Competition**: As overall supply increases, inter-enterprise competition is intensifying, raising the risk of price wars. Some firms may resort to aggressive pricing to gain market share; however, in the long run, product quality and service capabilities will become key competitive differentiators.
3. **Downstream Demand**: Stable demand from chemical feedstocks and metal degreasing provides baseline price support. In contrast, volatile demand from textile dry cleaning and solvent extraction may exert short-term pressure on pricing.

Forecast
1. **Price Forecast**: Over the coming week, trichloroethylene prices are expected to trade in a sideways, range-bound pattern, with the mainstream price range anticipated at RMB 4,500–5,500 per ton. Prices for high-purity grades may rise modestly due to constrained supply.
2. **Supply-Demand Forecast**: As downstream demand gradually recovers, market supply-demand balance is expected to improve. Nevertheless, environmental regulatory constraints may curtail production capacity at certain facilities, introducing ongoing uncertainty on the supply side.
3. **Market Trend Outlook**: In the long term, the trichloroethylene market is projected to trend toward “balanced supply-demand and stable pricing.” Enterprises must enhance technological innovation and cost control, while simultaneously improving product quality and service standards, to effectively navigate intensified competition and industry transformation.