Wood-based Activated Carbon: Recent Market Dynamics and Analysis & Forecast

I. Market Price Dynamics
1. Benchmark Price
As of May 25, 2026, the Business Society’s benchmark price for activated carbon stands at RMB 12,866.67 per ton, representing a 0.52% decline from the beginning-of-month level (RMB 12,933.33 per ton), and remains within the upper range of the past-year price band (lowest: RMB 11,733.33 per ton; highest: RMB 13,000 per ton).
2. Segment-Specific Prices
- Low-Iodine-Value Products: Ex-factory price for wood-based activated carbon with iodine values of 300–1,000 remains stable at RMB 1,800 per ton.
- High-Iodine-Value Products: Ex-factory price for 900-iodine-value wood-based granular activated carbon reaches RMB 7,500 per ton.
- Food-Grade / Pharmaceutical-Grade Products: Due to stringent certification requirements, prices are significantly higher than industrial-grade products; pharmaceutical-grade activated carbon commands RMB 22,000–28,000 per ton.
- Powdered Activated Carbon:
Domestic Yalan-12: RMB 6,200 per ton;
Hengyi Yalan-18 (iodine value: 1,300): RMB 7,800 per ton;
Senti Environmental Protection Yalan-14: RMB 9,400 per ton;
Henan Senlin (iodine value: 1,000): RMB 8,000 per ton.

II. Market Driving Factors Analysis
1. Raw Material Costs
Fluctuations in prices of wood and phosphoric acid directly impact production costs of wood-based activated carbon. Recently, timber supply has remained stable, while phosphoric acid prices have edged upward due to international market influences, thereby elevating production costs.
2. Environmental Policies
Under the 'Dual Carbon' (carbon peak & carbon neutrality) initiative, environmental regulations are tightening—raising requirements for emissions control (e.g., exhaust gas discharge standards, wastewater treatment)—thus increasing compliance costs.
Meanwhile, policies promoting resource recycling offer incentives—for example, VAT refunds of 90% on a 'collected-and-immediately-refunded' basis for enterprises producing activated carbon from forestry 'three residual materials' (logging residues, branches, and sawdust), partially offsetting rising cost pressures.
3. Evolving Demand Structure
- Traditional Sectors: Steady growth persists in water treatment and air purification applications—especially industrial exhaust gas treatment and municipal sewage treatment projects—which increasingly demand high-iodine-value, low-ash products.
- Emerging Sectors: Explosive demand is emerging from new application areas—including new-energy vehicles (battery materials), rail transit (supercapacitor carbon), and pharmaceuticals (pharmaceutical-grade carbon)—now serving as primary growth drivers.
4. Production Capacity and Export Performance
- Capacity Expansion: China’s wood-based activated carbon output rose from 486,000 tons in 2021 to 673,000 tons in 2025, achieving a compound annual growth rate (CAGR) of 8.5%. Leading enterprises have strengthened competitive advantages through vertical integration (e.g., establishing dedicated raw-material forests) and technological upgrading (e.g., over 65% adoption of phosphoric acid activation method), enhancing overall supply capability.
- Export Growth: In 2025, China exported 316,900 tons of wood-based activated carbon, up 4.86% year-on-year; export value reached USD 480 million, up 29.1% year-on-year. Under the EU REACH regulation, premium manufacturers certified with FSC forest certification and ISO 22000 food safety management systems (e.g., Yuanli Co., Ltd., Huahui Environmental Protection) have gained pricing power. Export average unit price increased from RMB 21,000 per ton in 2024 to RMB 26,000 per ton in 2025—and is projected to rise further to RMB 29,000 per ton in 2026.

III. Technological Development Trends
1. Green Transformation
Policies are driving the substitution of physical activation methods (chemical-residue-free) for chemical activation methods; the market share of physical activation is expected to exceed 30% by 2026.
Expanded use of biomass feedstocks (e.g., bamboo, straw) and reduced reliance on chemical activators contribute to lower waste-acid discharge.
2. Functionalization and Customization
The share of customized products—including nano-scale, antibacterial, and selectively adsorptive variants—is increasing to meet high-end application requirements (e.g., pharmaceuticals, food, fine chemicals).
Multi-process synergistic technologies are becoming mainstream—for instance, the 'H?PO? + CO? co-activation method', integrating advantages of both chemical and physical activation to achieve precise pore structure control while improving environmental performance.
3. Intelligent Manufacturing
Digital smart factories are gaining widespread adoption, boosting production efficiency and accelerating industry transformation from labor-intensive to technology-intensive operations.

IV. Future Price Outlook
1. Short Term (1–3 months)
Prices are likely to remain volatile at elevated levels, supported by easing supply-side pressure (e.g., broader adoption of spent activated carbon regeneration technologies) and robust demand growth from emerging sectors.
High-iodine-value and low-ash products are expected to maintain relative price stability, whereas low-iodine-value products may experience minor fluctuations amid intensifying competition.
2. Medium-to-Long Term (6–12 months)
With continued tightening of environmental regulations and accelerated demand release from emerging sectors, the Chinese wood-based activated carbon market is expected to expand further.
The domestic market size is forecast to reach RMB 2.85 billion in 2026, representing a 23.4% year-on-year growth—matching the 2025 growth rate—indicating the sector has entered a stage of high predictability and steady expansion.
Driven by enhanced premium pricing capabilities of high-quality exporters, export average unit price is projected to continue rising, though growth momentum may moderate.

V. Risks and Opportunities
1. Risks
- Volatility in raw material prices (e.g., phosphoric acid, timber) could compress profit margins.
- Stricter environmental compliance requirements may raise operational costs, placing smaller and less-efficient enterprises under significant pressure toward consolidation or exit.
2. Opportunities
- Surging demand from emerging sectors—such as new-energy vehicles and pharmaceuticals—creates substantial market potential for high-value-added products.
- Accelerated internationalization offers growth avenues, as leading enterprises expand overseas presence—particularly tapping into growing demand along Belt and Road Initiative partner countries.