Sulfolane Market Dynamics Report – Recent Commodity Market Intelligence

I. Price Dynamics
1. National Quotation Range
- Shandong Region: Premium-grade product (99.7% purity, 200 kg/drum) quoted between RMB 16,000–17,500 per metric ton. Specifically, Shandong Zhihengda Import & Export Co., Ltd. quoted RMB 16,000/ton, while Shandong Aite Chemical Co., Ltd. quoted RMB 17,500/ton.
- 99.9% Purity Product: Shandong Qiangsen Chemical Co., Ltd. quoted RMB 16,500/ton; Jinan Qichuang New Materials Co., Ltd. quoted RMB 16,400/ton.
- Significant Regional Price Differentials: Aite (Zhejiang) Supply Chain Management Co., Ltd. (Zhejiang) quoted RMB 17,000/ton; Suzhou Senfeida Chemical Co., Ltd. (Jiangsu) quoted as high as RMB 19,000/ton.

2. Recent Price Trend
- From May 1 to May 16, 2026, the reference price for sulfolane remained stable at RMB 17,250/ton, with no fluctuation observed.
- In late May (May 20–25), mainstream quotations held steady within RMB 16,000–17,500/ton. Some enterprises adjusted quotes due to regional or specification differences; however, the overall price center remained unchanged.

3. Historical Price Comparison
- Three-Month Average Price: RMB 17,032/ton (low: RMB 16,767/ton; high: RMB 17,250/ton).
- Current pricing is at a one-year high but has not significantly surpassed the historical peak recorded in 2024.

II. Market Supply-Demand Analysis
1. Supply Side
- Production Capacity Distribution: Shandong, Jiangsu, and Zhejiang are the primary production bases; Shandong features intense price competition and relatively high capacity concentration.
- Enterprise Updates:
- Shandong Zhihengda Import & Export Co., Ltd. and Shandong Aite Chemical Co., Ltd. continue active quoting, indicating stable supply.
- Shandong Jinyueyuan New Materials Co., Ltd. announced low-price spot inventory (99.5% purity) at RMB 10,000/ton on May 17, 2026 — likely aimed at inventory clearance or market testing, though this grade differs from mainstream premium products.

2. Demand Side
- Traditional Applications: Steady demand persists in natural gas purification and refinery desulfurization; however, growth has moderated under global energy transition trends.
- Emerging Applications:
- Demand for electronic-grade low-water sulfolane is growing rapidly. The global semiconductor wet electronic chemicals market exceeded USD 30 billion in 2025; low-water sulfolane — a key component in photoresist stripping solutions — posted an annual growth rate of 6.8%.
- Environmental regulations are driving substitution of hydrated sulfolane with low-water variants. In Europe, the penetration rate reached 41% in 2024; China is expected to follow suit.

III. Regional Market Disparities
1. Shandong Market
- Quotation Range: RMB 16,000–17,500/ton; intense competition among producers, with inter-company price spreads reaching RMB 1,500/ton.
- Logistics Advantage: As a major chemical province, Shandong benefits from lower logistics costs, attracting procurement from surrounding provinces.

2. Jiangsu Market
- Suzhou Senfeida Chemical Co., Ltd. quoted RMB 19,000/ton — markedly higher than other regions — possibly reflecting superior purity or targeting high-end electronic-grade customers.

3. Zhejiang Market
- Aite (Zhejiang) Supply Chain Management Co., Ltd. quoted RMB 17,000–18,000/ton, positioned between Shandong and Jiangsu levels, reflecting balanced regional supply-demand dynamics.

IV. Analysis, Outlook & Forecast
1. Short-Term Outlook (First Half of 2026)
- Price Trend: Expected to remain stable, with fluctuations confined to RMB 16,000–17,500/ton.
- Supporting Factors: Stable raw material costs and balanced supply-demand conditions.
- Risk Factors: The RMB 10,000/ton low-price spot offering from Shandong may trigger short-term downward pressure; however, absence of follow-up by mainstream producers limits its impact.

2. Medium-Term Outlook (Second Half of 2026 through 2027)
- Demand Drivers:
- Surging demand for electronic-grade low-water sulfolane — projected to double — will drive premium product price increases.
- Refinery expansion projects across Southeast Asia will create incremental demand, supporting a modest recovery in traditional applications.
- Supply Risks: Ongoing domestic capacity expansion warrants caution regarding potential overcapacity and ensuing price wars.

3. Long-Term Trends (2028 and Beyond)
- Market Size: The global sulfolane market is projected to grow at a compound annual growth rate (CAGR) of 1.6%, reaching USD 922 million by 2028; the low-water sulfolane segment will expand faster (CAGR 3.4%), reaching USD 113 million by 2031.
- Structural Upgrading: The share of high-value segments — including electronic-grade and pharmaceutical-intermediate-grade products — is expected to increase significantly. Enterprises must overcome purification technology bottlenecks to capture market opportunities.