Furfuryl alcohol

Furfuryl Alcohol: Recent Market Intelligence Report

I. Price Dynamics
1. Latest Quotations:
- As of July 7, 2026, the national standard industrial-grade furfuryl alcohol price stands at RMB 10,500 per ton.
- As of July 3, 2026, quotations from different suppliers vary significantly:
Wuhan Hengjiu Chemical Co., Ltd. (delivery in Hubei): RMB 12,000/ton (230 kg/drum)
Suzhou Senfeida Chemical Co., Ltd. (delivery in Suzhou, Jiangsu): RMB 8,500/ton (bulk liquid)
Shandong Jinshengrun Chemical Co., Ltd. (delivery in Jinan, Shandong): RMB 11,500/ton (250 kg/drum)
Jiangsu Xinsu New Materials Co., Ltd. (delivery in Suzhou, Jiangsu): RMB 8,400/ton (purity 98%)

2. Regional Price Divergence:
- Prices in Hubei and Shandong remain around RMB 12,000/ton, while lower-purity products in Jiangsu have declined to RMB 8,400–8,500/ton.

3. Price Trend:
- From late May to early June 2026, the average ex-factory price (with acceptance payment) was RMB 9,093.75/ton, representing a 3.30% month-on-month increase. Prices rose notably in late June: on March 27, the market price reached RMB 10,000/ton—RMB 1,200/ton higher than on February 27.
- In June, regional price divergence intensified, with prices remaining elevated in Hubei and Shandong, while Jiangsu experienced downward pressure.

II. Supply-Demand Dynamics
1. Supply Side:
- Average operating rate in May 2026 stood at 44%, up by 17 percentage points month-on-month. Capacity release is gradually accelerating across the three major industrial clusters in Shandong, Jiangsu, and Hebei.
- Leading enterprises have enhanced supply stability through continuous production processes and development of high-purity products; however, environmental regulations continue to constrain capacity utilization among small- and medium-sized enterprises (SMEs).

2. Demand Side:
- Traditional applications: Steady demand from the foundry industry for furan resins continues to support furfuryl alcohol consumption.
- Emerging applications: Incremental demand is emerging from biofuels, biodegradable materials, and electronic encapsulation adhesives. The share of emerging applications is projected to exceed 30% in 2026.

3. Supply-Demand Balance:
- With the ramp-up of new capacity from leading enterprises, supply tightness is easing; however, growth in demand from emerging applications is expected to offset much of this incremental supply, resulting in a sustained tight-balance market condition.

III. Market Sentiment & Trading Activity
1. Market Sentiment:
- Downstream procurement remains largely need-driven; traders exhibit cautious, wait-and-see sentiment. Price volatility is expected to narrow to ±RMB 500/ton.

2. Trading Activity:
- Shandong Jinshengrun Chemical Co., Ltd. quoted RMB 11,500/ton (250 kg/drum) on July 6, 2026, valid for three days, with an available quantity of 100 tons.

IV. Key Influencing Factors
1. Raw Material Costs:
- Upstream furfural prices are affected by agricultural waste feedstock costs—including corn cobs and cottonseed hulls. Fluctuations in raw material prices were transmitted to the furfuryl alcohol market in 2026; however, leading enterprises have mitigated cost risks via vertical integration along the value chain.

2. Environmental Regulations:
- Implementation of the ‘Emission Standards for Furfural Industry’ has placed compliance pressure on SMEs, further increasing supply-side concentration.

3. Export Market:
- Enterprises such as Jiangsu Jinmaoyuan have expanded export channels into Southeast Asia. Export volume grew by 29.7% year-on-year in 2025, lending supportive underpinning to domestic pricing.

V. Analysis & Outlook
1. Price Benchmark:
- If the share of emerging applications reaches the projected 30%, the price benchmark may shift upward to RMB 11,500–12,500/ton. Should environmental policies tighten further—restricting SME capacity—the price could exceed RMB 13,000/ton.

2. Regional Pricing:
- Prices in Hubei and Shandong are likely to remain elevated (~RMB 12,000/ton), whereas low-purity product prices in Jiangsu may decline further to RMB 8,000–8,500/ton due to increased selling pressure from SMEs.

3. Market Size:
- The global furfuryl alcohol market is projected to grow from USD 1.126 billion in 2025 to USD 1.608 billion by 2032, representing a CAGR of 5.3%. China’s market—bolstered by policy support and expansion into emerging applications—is expected to grow at a pace above the global average.

4. Technological Substitution Risk:
- Breakthroughs in bio-based alternative technologies could pose competitive pressure on the furfuryl alcohol market; however, near-term substitution risk remains limited.