Chloropropylene Market Intelligence, Analysis, and Forecast

I. Recent Market Intelligence

Price Trends
- On May 18, 2026, the closing price of chloropropylene in Shandong Province stood at RMB 9,400–9,500 per ton, with some enterprises offering discounted sales, dragging down actual transaction prices further.
- On March 12, 2026, the mainstream average price in Shandong Province was RMB 12,500 per ton—up by RMB 3,600 per ton (a 40.45% increase) from March 6, 2026.
- On January 15, 2026, the mainstream average price in Shandong Province was RMB 8,000 per ton—down by RMB 450 per ton (a 5.32% decrease) from January 8, 2026.
- During mid-to-early May 2026, domestic chloropropylene supply and demand remained relatively balanced, resulting in narrow price fluctuations within a range of RMB 15,200–16,500 per ton.

Supply-Demand Situation
- Supply: Currently, there are approximately 12 large-scale chloropropylene producers in China, with a total annual capacity of 700,000 tons. Previously idled production facilities have resumed operations, maintaining ample market supply.
- Demand: Downstream demand remains modest, prompting some enterprises to sell at discounted prices. However, rising epichlorohydrin output, coupled with expanding applications and deeper penetration of chloropropylene into downstream sectors, has steadily increased consumption. From 2021 to 2025, chloropropylene consumption grew at a compound annual growth rate (CAGR) of approximately 4.1%, reaching 466,900 tons in 2025.

Industry Developments
- Policy: The National Development and Reform Commission’s “Stabilization and Growth Program for the Petrochemical and Chemical Industry (2025–2027)” explicitly supports green process upgrades for epichlorohydrin production, projecting an incremental chloropropylene demand of ~82,000 tons annually in 2026. Meanwhile, the Ministry of Agriculture and Rural Affairs approved 23% more novel chlorinated pesticide formulations in 2025 versus 2024; among these, thiazole- and imidazole-based insecticides—whose synthesis starts from chloropropylene—accounted for 67%, generating structural incremental demand.
- Corporate Strategy: Wanhua Chemical, Sinochem International, and Yangnong Chemical announced epichlorohydrin expansion projects at the end of 2025, all scheduled to commence operations progressively starting Q2 2026. Collectively, these projects will add an annual chloropropylene consumption of 126,000 tons. As of now, the CR5 (Wanhua Chemical, Sinochem International, Yangnong Chemical, Anhui Dongzhi Guangxin Chemical, and Jiangsu Xiangfei Chemical) accounts for 68.3% of market share—up 2.1 percentage points from 2024. Leading firms have vertically integrated the chlorine-alkali → propylene → chloropropylene → epichlorohydrin value chain, achieving a comprehensive energy consumption of ≤0.82 tons of standard coal per ton of product—significantly below the industry average of 1.15 tons of standard coal.

II. Analysis and Judgment

Causes of Price Volatility
- Short-term: Recent price fluctuations have been primarily driven by supply-demand dynamics. Resumption of previously halted production units has boosted supply availability, while downstream demand remains tepid and some producers resort to discounting—exerting downward pressure on prices. Conversely, in March, robust upstream cost pressures and relatively tight supply-demand conditions triggered a broad-based price surge.
- Long-term: Looking ahead, policy support and growing downstream demand constitute key drivers for chloropropylene market development. Government backing for green epichlorohydrin process upgrades and the expanding use of novel chlorinated pesticide formulations will sustainably bolster chloropropylene demand, providing underlying support for price appreciation.

Industry Development Trends
- Rising Concentration: Leading enterprises are enhancing production efficiency and lowering energy consumption via vertical integration across the entire value chain, thereby continuously expanding their market share and elevating industry concentration. This trend strengthens overall sector competitiveness but simultaneously raises entry barriers for new players.
- Green Transformation: In alignment with China’s “Dual Carbon” (carbon peak & carbon neutrality) strategy and tightening environmental regulations, the chloropropylene industry is accelerating its transition toward green development. Companies are upgrading production equipment, optimizing processes, reducing emissions at source, and improving resource recovery systems for co-products—thus enhancing overall operational efficiency and sustainability.

III. Forecast

Price Outlook
- In the short term, abundant supply and modest downstream demand may keep chloropropylene prices under pressure and confined to a low-volatility range. However, demand is expected to gradually recover in H2 2026—driven notably by the commissioning of new epichlorohydrin capacity and heightened uptake of novel chlorinated pesticide formulations—potentially catalyzing a price rebound.
- Over the longer term, technological advancement and green manufacturing initiatives may lower production costs, yet stricter environmental compliance requirements could elevate regulatory expenditures. Balancing supply-demand fundamentals and cost factors, chloropropylene prices are projected to fluctuate within a rational band, exhibiting an overall trend of stability with moderate upward momentum.

Supply-Demand Outlook
- Supply: Domestic chloropropylene capacity will continue expanding steadily over the near term. However, increasingly stringent environmental standards may compel substandard smaller-scale producers to exit the market, resulting in greater supply concentration among industry leaders.
- Demand: Growth in epichlorohydrin output and novel chlorinated pesticide formulation demand will serve as the primary catalysts for chloropropylene consumption. The market size is expected to expand further in 2026, with sustained demand growth anticipated.

Industry Development Outlook
- The chloropropylene industry is entering a stable growth phase. Industry leaders—leveraging advantages in technology, scale, and vertical integration—will dominate market competition. Concurrently, green transformation and intelligent manufacturing will become central strategic priorities, driving industrial upgrading and sustainable development. For new capital entrants, standalone chloropropylene monomer plants no longer represent economically viable investments; instead, integrated investments anchored on downstream terminals—such as epichlorohydrin or high-end pesticide intermediates—are increasingly attractive and strategically sound.