hydroxy-terminated liquid polybutadiene

Market Dynamics Intelligence on Hydroxyl-Terminated Polybutadiene (HTPB)

I. Market Price Dynamics
1. Recent Quotations:
- From July 21 to July 24, 2026, the Business1 benchmark price indicates that the market price for Hydroxyl-Terminated Polybutadiene (HTPB) remains relatively stable. Specific prices vary due to factors such as brand, region, and logistics costs.
- On May 6, 2026, Hubei Qibajiuhua Chemical Co., Ltd. quoted the price for domestically produced HTPB (molecular weight 2900) at 70 RMB/kg, which serves as a recent price reference.

2. Factors Influencing Prices:
- **Raw Material Costs:** Fluctuations in the prices of raw materials such as butadiene directly affect the production costs of HTPB, thereby influencing market prices.
- **Supply and Demand:** The sustained demand from the military and aerospace sectors, along with the expansion of applications in the civilian sector, jointly impact the market supply-demand balance.
- **Policy Environment:** National support policies for the new materials industry and increasingly stringent environmental regulations have profound impacts on the HTPB industry.

II. Market Supply and Demand Analysis
1. Supply Situation:
- **Capacity Distribution:** China's HTPB production capacity is mainly concentrated in East China, North China, and South China, forming an industrial cluster centered on Shandong, Jiangsu, and Zhejiang provinces. Leading enterprises include Shandong Qixiang Tengda Chemical Co., Ltd. and Jiangsu Yangnong Chemical Group Co., Ltd.
- **Production Volume and Capacity Utilization:** In 2024, China's total HTPB capacity was 28,000 tons, with actual production at 21,000 tons, resulting in a capacity utilization rate of 75.0%. The capacity is projected to increase to 30,000 tons in 2025, with production expected to reach 23,000 tons, raising the capacity utilization rate to 76.7%.

2. Demand Situation:
- **Military and Aerospace Sector:** As the largest application field for HTPB, demand from the military and aerospace sectors continues to grow, particularly in the field of solid rocket propellants.
- **Civilian Sector:** With the rapid rise of emerging application areas such as new energy vehicles and electronic packaging, HTPB applications in the civilian sector are expanding, including in high-performance adhesives and sealing materials.

III. Market Competitive Landscape
1. Leading Enterprises:
- Companies such as Lanxin New Materials, Sinochem International, and Wanhua Chemical dominate the HTPB market, with a combined market share exceeding 70%.
- Leading enterprises consolidate their market positions through technological innovation and capacity expansion while actively expanding into international markets.

2. Small and Medium-sized Enterprises (SMEs):
- SMEs hold a certain share of the HTPB market but face challenges related to technology and capital.
- Some SMEs establish their foothold in the market through specialized division of labor and differentiated competition.

IV. Market Trend Forecast
1. Price Trends:
- Affected by rising raw material costs and increasingly stringent environmental policies, HTPB prices are expected to show a moderate upward trend.
- The average ex-factory price of HTPB in 2025 is projected to be 25,300 RMB/ton, representing a year-on-year increase of 2.0%.

2. Market Size:
- With the continued development of the military, aerospace, and civilian sectors, the HTPB market size will continue to expand.
- China's HTPB market size is expected to grow to 550 million RMB in 2025, a year-on-year increase of 5.8%.
- In terms of the global market size, it is projected to reach 217 million USD in 2026 and exceed 292 million USD by 2032, with a Compound Annual Growth Rate (CAGR) of 5.1%.

3. Expansion of Application Areas:
- The military and aerospace sectors will continue to be the largest application field for HTPB, while applications in the civilian sector will continue to expand.
- Particularly in high-performance adhesives, sealing materials, and electronic packaging materials, the application prospects for HTPB are broad.

4. Import and Export Situation:
- China still exhibits a certain degree of import dependence for HTPB, especially for high-end special-grade models.
- With the technological upgrades and capacity expansion of domestic enterprises, imports are expected to gradually decrease, while exports are expected to gradually increase.