Coal-Based Powdered Activated Carbon: Recent Market Intelligence Report

I. Market Price Dynamics
1. Current Price Range:
- As of May 23, 2026, coal-based powdered activated carbon prices exhibit regional and specification-based differentiation. Taking Zhengzhou City, Henan Province as an example, price ranges by iodine number are as follows:
- Iodine number 300–500 mg/g: RMB 2,400–3,500 per metric ton
- Iodine number 600 mg/g: RMB 4,300 per metric ton
- Iodine number 700 mg/g: RMB 4,800 per metric ton
- Iodine number 800 mg/g: RMB 5,500 per metric ton
- Iodine number 900 mg/g: RMB 7,200–7,600 per metric ton
- Iodine number 1,000 mg/g: RMB 9,000 per metric ton
- Premium products (e.g., Shanxi Xinhua Activated Carbon, iodine number ≥1,150 mg/g): up to RMB 13,850 per metric ton.

2. Price Volatility Characteristics:
- On April 29, 2026, the Base Price Index published by Shengyishe stood at RMB 12,933.33 per metric ton—unchanged from the beginning of the month, indicating short-term price stability.
- Significant regional pricing disparities persist: e.g., Henan Huiyi Hai Environmental Technology Co., Ltd. quotes RMB 2,300 per metric ton for products with iodine numbers ranging from 300 to 950 mg/g, whereas Shanxi Xinhua’s premium-grade products exceed RMB 13,000 per metric ton.

II. Cost-Driven Factors
1. Coal Price Fluctuations:
- In 2025, the average price of high-quality lump coal from Jincheng, Shanxi Province, rose 4.7% year-on-year. In 2026, price volatility in major coal-producing regions narrowed to ±4.3%, easing cost pressures.
- Stable coal supply supports relatively low price-risk exposure for coal-based activated carbon; however, adjustments to Indonesia’s coconut shell export quota policy may indirectly affect costs for coconut-shell-based activated carbon.

2. Environmental Policy Impacts:
- Standardization of activated carbon replacement cycles in VOCs abatement facilities is projected to generate an additional annual procurement volume of 86,000 metric tons, driving demand growth.
- The share of regenerated carbon-based powdered activated carbon has increased to 15.7%, partially offsetting raw material cost pressures.

III. Supply-Demand Analysis
1. Supply Side:
- Primary production bases are located in Shanxi and Ningxia provinces, leveraging local anthracite resources and physical activation methods to manufacture powdered activated carbon.
- Production capacity is highly concentrated among leading enterprises: e.g., Shanxi Xinhua Chemical Co., Ltd. produces 52,000 metric tons annually—accounting for 25% of China’s total coal-based powdered activated carbon capacity—while Ningxia Huahui Environmental Protection Co., Ltd. produces 40,000 metric tons annually.

2. Demand Side:
- Water Treatment: Accounts for ~40% of total demand—the largest segment—driven primarily by municipal drinking water quality upgrades and advanced industrial wastewater treatment (e.g., electroplating and dye intermediate industries adding powdered activated carbon adsorption units).
- Air Purification: Accounts for 28.3% of demand, boosted by robust flue gas desulfurization and denitrification requirements following the 92.7% completion rate of the Three-Year Special Campaign on Ultra-Low Emissions Retrofit for Thermal Power Plants.
- Emerging Applications: Food & pharmaceutical-grade applications account for 19.5% of demand; notably, pharmaceutical-grade demand has grown at an average annual rate of 12.4%, supported by the increase in GMP-certified manufacturers to 37 enterprises.

IV. Policy & Macroeconomic Environment
1. Stricter Environmental Regulations:
- China’s “Dual Carbon” (carbon peak & carbon neutrality) goals have accelerated environmental standard upgrades; for instance, the revision of GB 18918–2002 directly stimulates activated carbon demand.
- The EU’s Carbon Border Adjustment Mechanism (CBAM) imposes higher carbon footprint compliance requirements on Chinese exporters, necessitating increased investment in green production technologies.

2. Global Expansion Strategy:
- Leading enterprises are establishing overseas manufacturing facilities (e.g., Guanbaolin in Southeast Asia and Africa) to circumvent trade barriers; export growth is expected to sustain at ~10.5% annually.
- Demand expansion in Southeast Asian electronics manufacturing exhaust treatment systems and Middle Eastern drinking water purification projects further drives export growth.

V. Technological Development Trends
1. Product Innovation:
- Customized product development (e.g., low-ash food-grade activated carbon; ultra-high specific surface area supercapacitor-grade activated carbon).
- Ningxia Huahui has commissioned China’s first fully automated intelligent particle-size classification production line for powdered activated carbon, achieving D90 ≤25 μm and improving adsorption efficiency by 12%.

2. Service Extension:
- Integrated lifecycle services—including activated carbon selection, loading design, saturation monitoring, and regeneration/recovery—are increasingly adopted. For example, 63% of suppliers involved in Beijing OriginWater Technology’s EPC projects are required to provide such end-to-end solutions.

3. Intelligent Manufacturing:
- Regeneration technologies extend the service life of granular activated carbon (GAC), reducing total lifecycle cost by over 30% (e.g., Qingdao Guanbaolin’s regeneration process).
- Intelligent production systems reduce batch quality variation coefficients to within 1.2%, supporting moderate price appreciation.

VI. Future Outlook
1. Short-Term (1–3 Months):
- Balanced supply-demand dynamics and stable input costs support price maintenance within the RMB 12,900–13,000 per metric ton range, although regional price differentials will persist.

2. Medium-to-Long Term (1–3 Years):
- Underpinned by tightening environmental policies, expanding demand in emerging sectors, and continuous technological upgrades, prices are expected to rise moderately—though the pace remains constrained by raw material cost fluctuations and competitive market structure.
- High-value-added segments—such as nano-activated carbon for lithium-ion battery anode materials and catalyst supports—are projected to surpass RMB 2 billion in market size by 2030.

3. Risk Factors:
- Volatility in coal prices, adjustments to Indonesia’s coconut shell export policies, and rising compliance costs associated with the EU CBAM may adversely impact market stability.