1,3,5-Triallyl Isocyanurate (TAC) Commercial Market Intelligence Analysis

I. Market Price Dynamics (May 18–27, 2026)
1. Benchmark Price Fluctuations
According to B2B chemical platform Shengyishe data, the benchmark price of 1,3,5-triallyl isocyanurate (TAC) exhibited minor fluctuations from May 18 to 22, 2026, influenced by logistics costs (C-value) and accounts receivable period costs (K-value), yet remained generally stable within a narrow range. For example:
- Benchmark price on May 18: No specific numerical value provided; however, regional price differentials and brand premium factors were reflected;
- Benchmark price on May 22: No specific numerical value provided; however, the impact of accounts receivable period costs on price adjustments was emphasized.

2. Regional Price Differentials and Brand Premium
Supplier quotations in Wuhan, Hubei Province revealed significant price variations for TAC driven by purity grade and packaging specifications:
- 99% purity, 1 kg/bottle: ￥450/kg (Wuhan Karnos Technology Co., Ltd., May 15, 2026);
- 98% purity, 1 kg/bottle: Price not specified; however, a comparable product was offered by Hainan Haihai Zhiyuan Biotechnology Co., Ltd. (April 10, 2026);
- Low-purity product (purity unspecified): ￥2/kg (Hubei Chengfeng Chemical Co., Ltd., March 31, 2026), reflecting intense low-end market competition.

3. Supply-Demand Dynamics
Yingkou Yingxin Chemical’s 'Annual Production of 8,300 Tons of Chemicals Project' Phase II plans to add 600 tons/year of TAC capacity (publicly announced in April 2025), with commissioning expected in the second half of 2026. This expansion may alleviate supply tightness in the East China region; however, short-term pricing remains firm due to lagging capacity ramp-up.

II. Industrial Chain Dynamics Analysis
1. Upstream Raw Material Supply
- Cyanuric chloride (core raw material): Supply is abundant. Major domestic producers include Hebei Chengxin Group and Yingchuang Sanzheng, operating at over 80% capacity utilization. Stable raw material prices underpin TAC production costs.
- Allyl alcohol: Prices are subject to international crude oil volatility; however, no significant fluctuations occurred in May 2026, resulting in limited cost pass-through to TAC.

2. Midstream Process Optimization
The mainstream synthesis route—reaction of cyanuric chloride with allyl alcohol in organic solvent—achieves yields exceeding 90% and purity >99%. Economies of scale from large-scale production have reduced unit costs, enabling select enterprises to achieve gross margins of 25–30% through technological upgrades.

3. Downstream Application Expansion
- Rubber industry: As a vulcanizing agent, TAC accounts for over 40% of total demand, benefiting from rising heat-resistance requirements for new-energy vehicle tires;
- Plastics industry: As a crosslinking agent in radiation-crosslinked polyolefins, demand is growing at an annual rate of 15%;
- Battery manufacturing: As a dielectric material modifier applied in solid-state battery electrolyte separators, its share of total demand is projected to exceed 10% in 2026.

III. Market Drivers and Risks
1. Key Growth Drivers
- Policy support: China’s 14th Five-Year Plan for New Materials explicitly prioritizes R&D of high-performance crosslinkers; TAC has been included in the list of key supported products;
- Technological substitution: Environmentally problematic peroxide-based vulcanizing agents are being progressively replaced by TAC; substitution rate is expected to surpass 30% in 2026;
- Export growth: TAC exports surged 22% year-on-year during January–April 2026, primarily targeting Southeast Asian and European markets.

2. Key Risk Factors
- Overcapacity: Micro-, small-, and medium-sized enterprises (MSMEs) constitute over 60% of producers; low-level repetitive construction risks triggering price wars;
- Environmental compliance pressure: Rising wastewater treatment costs pose operational risks—including potential suspension orders—for some manufacturers;
- International trade friction: The EU REACH regulation has tightened restrictions on TAC residual impurities, increasing compliance costs for exporters.

IV. Price Forecast and Strategic Recommendations
1. Short-Term Outlook (June–August 2026)
Benchmark price is projected to remain stable in the range of ￥420–￥480/kg. Elevated summer temperatures may increase logistics costs in East China, potentially pushing regional prices upward by 3–5%.

2. Long-Term Outlook (2026–2027)
- Capacity release: Concentrated commissioning of newly added capacity in H2 2026 will exert downward pressure on prices; average market price is forecast to fall below ￥400/kg in 2027;
- Demand upgrading: Growing adoption in high-end applications (e.g., solid-state batteries) will widen the price premium for ultra-high-purity grades (≥99.5%) to 20–30%.

3. Strategic Recommendations
- Producers: Optimize production processes to reduce costs; proactively develop high-end product lines;
- Traders: Capitalize on inter-regional price arbitrage opportunities; establish integrated logistics coordination between the Yangtze River Delta and Pearl River Delta regions;
- End-users: Secure long-term supply agreements to lock in favorable pricing; explore compound formulations integrating TAC with novel functional additives.