Hydroiodic Acid Market Intelligence Report (May 27, 2026)

I. Price Trends
1. Stable Benchmark Price
– According to Echemi Network data, the benchmark price of hydroiodic acid remained unchanged at RMB 370.00 per ton from May 20 to May 26, 2026 — consistent with the beginning-of-month level and within the annual high range (annual high: RMB 375.00/ton; annual low: RMB 326.67/ton).
– On May 25, Shandong Hongyang Chemical Co., Ltd. quoted RMB 380 per kilogram for 99% purity hydroiodic acid, indicating a premium for high-purity products relative to the benchmark price; note the unit discrepancy (benchmark price is quoted per ton, whereas this quotation is per kilogram).

2. Short-Term Volatility
– A single-day surge of 21.31% occurred on May 8, followed by a swift correction and stabilization, suggesting that short-term supply-demand fluctuations did not establish a sustained trend.

II. Supply-Demand Analysis
1. Supply Side
– Concentrated Production Capacity: Leading global producers include Iofina Chemical, Ajay-SQM Group, and ISE Chemicals Corporation, collectively accounting for approximately 50% of global market share. The Asia-Pacific region—particularly China—is the largest market, representing ~45% of global demand.
– Domestic Capacity in China: Major production bases are located in Hubei, Shandong, and Jiangsu provinces. Suppliers encompass both high-tech enterprises and traditional chemical manufacturers, offering product purity ranging from 45% to 99%.

2. Demand Side
– Downstream Applications: Key end-use sectors include pharmaceuticals, electronics, and general chemical industries. Notably, pharmaceutical demand has grown significantly, driving continued market expansion.
– Market Drivers: The global hydroiodic acid market reached USD 0.74 billion in 2023 and is projected to grow to USD 0.97 billion by 2030, representing a compound annual growth rate (CAGR) of 4.0%.

III. Market Characteristics
1. Elevated Price Levels
– Current pricing approaches the annual peak, with the median price at RMB 350.84/ton and only a RMB 5/ton gap below the peak — indicating relatively tight supply or strong cost support.

2. Regional Price Differentials
– Quotations from Shandong-based suppliers (e.g., Hongyang Chemical’s RMB 380/kg) exceed the national benchmark, likely attributable to factors such as higher purity specifications, packaging, or regional supply-demand imbalances.

3. Short-Term Volatility vs. Long-Term Trend
– The sharp price spike on May 8 followed by rapid stabilization reflects market sensitivity to sudden supply-demand shifts. However, robust long-term demand growth expectations (CAGR 4.0%) underpin an upward shift in the structural price level.

IV. Analytical Assessment
1. Short Term (1–3 months)
– Price Stability: The benchmark price has held steady for multiple consecutive days, signaling balanced supply and demand and low risk of significant near-term volatility.
– Premium for High Purity: Products with 99% purity command prices above the benchmark, reflecting downstream preference for high-quality raw materials.

2. Medium Term (6–12 months)
– Demand-Driven Upside: Expansion in pharmaceutical and electronics sectors will bolster demand; absent large-scale capacity additions on the supply side, prices may rise moderately.
– Regional Divergence: Given the Asia-Pacific region’s high demand share (~45%), Chinese domestic capacity may further consolidate, resulting in regional pricing leading global benchmarks.

3. Long Term (1–3 years)
– Market Expansion: Global market size is expected to exceed USD 0.97 billion, with China’s market share potentially increasing further, positioning it as the primary growth engine.
– Intensifying Competition: Although industry concentration remains high, emerging players may capture market share through technological innovation or cost optimization.

V. Outlook & Forecast
1. Price Trend
– Short Term: Benchmark price expected to remain stable near RMB 370/ton; high-purity (99%) product prices likely to fluctuate between RMB 380–400/kg.
– Medium Term: Supported by rising demand, the benchmark price may gradually rise to RMB 380–390/ton.
– Long Term: Should global capacity expansion lag behind demand growth, the structural price level may rise above RMB 400/ton.

2. Supply-Demand Landscape
– Supply Side: Utilization rates among leading producers are expected to increase; Southeast Asia may emerge as a new hub for incremental capacity deployment.
– Demand Side: The pharmaceutical sector’s share of total demand is projected to expand; electronics applications will drive particularly strong growth in demand for ultra-high-purity hydroiodic acid.

3. Risk Factors
– Fluctuations in raw material costs (e.g., iodine, hydrogen gas) may be passed through to hydroiodic acid pricing.
– Stricter environmental regulations could constrain production capacity at certain facilities, exacerbating supply tightness.