Market Intelligence Report on Calcium Chloride Dihydrate (Commercial Grade), Recent Dynamics

I. Price Dynamics
1. Benchmark Price: As of May 26, 2026, the Business Network’s benchmark price for calcium chloride dihydrate stood at RMB 820.00 per metric ton, unchanged from the beginning of the month and at a yearly low.
2. Regional Quotations:
- Shandong Province: Wide quotation range, with mainstream prices between RMB 550–1,000 per metric ton. For example, Shandong Beilu Hengsheng Chemical Co., Ltd. (Weifang) quoted RMB 550/ton, while Shandong Hongyang Chemical Co., Ltd. quoted RMB 960/ton.
- Henan Province: Prices in Zhengzhou generally ranged from RMB 850–1,000/ton; e.g., Henan Zhengyuan Water Treatment Materials Co., Ltd. quoted RMB 950/ton, and Henan Huiyi Hai Environmental Protection Technology Co., Ltd. quoted RMB 1,000/ton.
- Other Regions: Shanghai quoted RMB 800/ton; Wuhan, Hubei Province, quoted RMB 750/ton; Changzhou, Jiangsu Province, reported the highest price at RMB 1,150/ton.
3. Variations by Purity and Physical Form:
- 74% Assay: Prices for flake or powdered products ranged between RMB 750–950/ton.
- 77% Assay: Slightly higher prices; e.g., Henan Kaijie Water Treatment Co., Ltd. quoted RMB 980/ton.
- Low-Purity Products: For instance, 31% assay calcium chloride dihydrate was quoted by Henan Kaijie Water Treatment Co., Ltd. at RMB 430/ton.

II. Supply-Demand Dynamics
1. Supply Side:
- Overall industry supply remains relatively ample, with inventory pressure observed in certain regions—for example, Shandong Province still faced inventory overhang as of January 16, 2026.
- Anticipated restarts of production facilities in some areas may further intensify supply pressure.
2. Demand Side:
- Purchasing remains demand-driven, with subdued trading activity across the market.
- China’s domestic industrial-grade calcium chloride dihydrate demand in 2026 is projected to exceed 8.5 million metric tons, representing an 18% year-on-year increase—mainly driven by growth in construction & building materials, de-icing agents, and industrial desiccants. However, current procurement enthusiasm remains weak, and pessimistic sentiment prevails in the market.

III. Regional Price Disparities
1. Shandong Province: As the primary producing region—with numerous manufacturers and intense competition—some enterprises have adopted aggressive low-price strategies to gain market share, resulting in comparatively lower regional pricing.
2. Henan Province and other regions: Higher quotations may reflect factors such as transportation costs and localized supply-demand imbalances.

IV. Key Influencing Factors
1. Manufacturer Strategies: Differences in production scale, cost control capabilities, and market positioning lead to significant quotation variations. Large-scale enterprises leverage economies of scale and cost advantages to offer competitive pricing, whereas some SMEs maintain relatively higher quotes to safeguard profitability.
2. Policy Factors: Stricter environmental regulations are accelerating industry consolidation. Tighter emission limits—e.g., on total nitrogen in production wastewater—are expected to phase out approximately 12% of small- and medium-sized capacity, thereby enhancing industry concentration.
3. Technological Factors: Industry capacity is shifting toward high-purity, low-carbon, and intelligent manufacturing. Enterprises with technological advantages can produce premium-quality products meeting high-end market requirements, thus securing greater profit margins.

V. Analysis and Outlook
1. Short-Term Outlook:
- The benchmark price is likely to oscillate within RMB 810–820/ton, with widening regional price divergence.
- Should supply continue expanding without notable demand improvement, prices could decline to RMB 750–800/ton.
- A short-term rebound is possible if demand-side restocking occurs, but any upward movement would be limited in magnitude.
2. Long-Term Outlook:
- Sustained global demand growth—especially from infrastructure development in emerging markets—and rising industry concentration will provide underlying support for long-term pricing, potentially elevating the price center.
- As environmental policies advance and technological upgrading progresses, prices of premium products may remain stable or rise modestly, while price competition among low-end products will intensify.
- Traditional end-use sectors—including construction & building materials, de-icing agents, and industrial drying—will sustain steady growth; meanwhile, rapidly expanding demand from high-value applications—such as food-grade and electronics-grade calcium chloride—will drive continued expansion of overall market demand.