Policy & Regulation

This week, the acrylonitrile market in China bottomed out and stabilized. Supply increased, but demand recovery was slow. Prices in East China and Shandong rose by 100 CNY/ton compared to before the holiday. The stronger price of raw material propylene led to increased production cost pressure, exacerbating production losses. In the short term, the market is expected to see minor adjustments.

• cost pressure
• increased supply
• slow demand
• market consolidation

On February 27, the average spot price of polyester bottle chips in East China fell to 6,275 CNY/ton, with prices significantly weakening. The main reasons are the weakening of crude oil and PTA/MEG cost support, slow resumption of operations by downstream sectors, and weak demand. Although inventory at the supply end is low, it is difficult to offset the pressure from costs and demand, and it is expected that prices will remain weak and fluctuate in the short term.

• Polyester bottle flake prices: cost support is weakening
• demand remains sluggish
• supply pressure is manageable.

After the holiday, the SBR market prices in China rose and then fell. As of February 27, the price in East China was 13,141 CNY/ton, a decrease of 0.88% from February 24. The price of raw material butadiene has decreased, weakening the cost support; downstream tire production is at a low level, with weak demand. Chinese facilities are operating at high capacity, ensuring ample supply. It is expected that the SBR market will remain weak in the short term.

• Styrene-butadiene rubber market
• prices fall
• supply is ample
• demand is weak

In February 2026, the asphalt market in Shandong, China, showed a "first decline then rise" trend. Before the Spring Festival, prices were under pressure and declined due to weak supply and demand. After the festival, with the recovery of demand and increased cost support, prices stabilized and rebounded. It is expected that in March, supply will increase, demand will recover, and prices will fluctuate upward.

• Shandong Asphalt Market
• Seasonal Factors During the Spring Festival
• Shift in Supply and Demand
• Cost Support

This week, the price of caustic soda in China increased from 622 CNY/ton at the beginning of the week to 654 CNY/ton by the end of the week, a price increase of 5.14%. Prices in regions such as Shandong, Jiangxi, and Inner Mongolia fluctuated. The rise in prices was driven by increased demand following the holiday and a recovery in production rates, and it is expected that prices will remain stable in the coming period.

• Caustic soda prices
• market trends
• chemical industry index
• post-holiday demand

In February, the Chinese urea market showed a strong upward trend, with the reference average price increasing from 1782 CNY/ton to 1835 CNY/ton, a price increase of 2.95%. At the beginning of the month, the futures market weakened, leading to a slight decline in prices. However, as demand increased and Indian tender prices rose, the urea market prices gradually recovered. It is expected that urea prices will remain stable with an upward trend in the short term.

• Urea Market
• Price Increase
• Spring Plowing Demand
• Futures Impact

In February 2026, the acetone market showed a downward trend due to ample supply and weaker-than-expected demand recovery, with prices decreasing by 202% from the beginning of the month China's operating rates increased, and inventories rose, while delayed resumption of downstream operations led to weak demand Cost support was limited, and market sentiment was flat

• Acetone market: oversupply
• weak demand
• declining prices.

In February 2026, the Chinese phenol market steadily increased, with prices rising from 6,450 CNY/ton to 6,650 CNY/ton. The price increase was driven by stronger cost support, structural adjustments in supply, and the recovery of downstream demand. It is expected that the market will continue to rise in March, and for the whole year, supply and demand will tend to balance, with the price center moving upward.

• Phenol market
• price increase
• improving supply and demand
• cost support

Recent formic acid prices have been stable, with the price of 85% industrial-grade formic acid at 2,450 CNY per ton as of February 28. The market supply and demand are balanced, and inventories are under control. In March, two large enterprises in Shandong plan to conduct maintenance on their 350,000-ton facilities, which may disrupt the supply and demand balance. Combined with the expected recovery in downstream demand, this could lead to a price increase.

• Formic acid price
• plant maintenance
• supply-demand balance
• controllable inventory

This week, the melamine market in China showed a steady improvement, with the benchmark price rising to 575000 CNY/ton The increase in the price of raw material urea provided cost support, but high inventory levels limited the price increase Short-term demand recovery and new production capacity entering the market led to a short-term orderly supply, but long-term pressure

• Melamine market
• cost support
• short-term demand pull
• supply pressure

The supply of cyclohexane in the Chinese market is limited, with demand being procured as needed and generally weak. It is expected that market prices will remain stable but slightly soft in the short term. The main export markets are South Korea, Vietnam, and other Southeast Asian countries.

• Cyclohexane market
• limited supply
• weak demand
• stable prices

In February, the hydrogen peroxide market in China showed a weak downward trend, with prices decreasing by over 11%, from 676 CNY/ton at the beginning of the month to 600 CNY/ton at the end of the month. During the Spring Festival and after the holiday, demand was low, and supply was ample, leading to a continuous decline in prices. It is expected that the market in March will still be under pressure, limiting any potential price increases.

• Hydrogen peroxide market
• prices falling
• weak demand
• ample supply

This week, acrylic acid prices saw a substantial increase, driven primarily by the concurrent rise in the price of propylene—the key raw material—and tightening supply conditions Companies such as Shanghai Huayi New Materials and Satellites Chemical have raised their quoted prices, and the market is now characterized by “negotiations based on actual orders” as the dominant mode of transaction

• Cost-push
• supply support
• acrylic acid price increase
• industrial chain transmission

On February 25, 2025, the coking coal market price generally remained stable with a slight downward trend, with an average price of 1,443 CNY per ton Prices for metallurgical coke and foundry coke in areas such as Handan, Tangshan, and Lüliang remained stable for now Market trading was sluggish, with enterprises purchasing only as needed; inventories remain relatively high, and there is a lack of significant upward or downward momentum in the short term

• Coke market
• stable prices
• slightly weak in a narrow range
• purchasing according to demand

On February 24, 2026, the main PTA futures contract on the Zhengzhou Commodity Exchange rose by more than 3%, reaching 5,390 CNY per ton During the holiday, crude oil prices increased strongly, providing significant support from the cost side Yisheng New Materials' 3,600,000-ton facility temporarily shut down, with the industry's production capacity operating at about 70%

• PTA market conditions
• crude oil prices
• cost support
• tightening supply and demand

The Chinese polyester staple fiber market saw a strong start, with the average price reaching 6,668 CNY/ton on February 24, an increase of 1.39%. During the Spring Festival, crude oil prices rose, providing significant support to the cost side. The PTA market price also increased to 5,324 CNY/ton, a rise of 2.76%. As the Spring Festival holiday ends and terminal enterprises gradually resume operations, it is expected that the polyester staple fiber prices will maintain a relatively strong trend.

• Polyester staple fiber
• Crude oil price
• PTA market
• Tightening supply and demand

During the Spring Festival, international crude oil prices rose significantly to a six-month high, mainly due to tensions between the U.S. and Iran and changes in fundamentals. Geopolitical premiums dominated the trend of oil prices, while a substantial decrease in U.S. crude oil inventories also supported the prices. However, uncertainties remain in the market, and attention should be paid to the OPEC meeting, U.S. inventory data, and the development of geopolitical situations.

• Geopolitical risks
• crude oil price fluctuations
• changes in supply and demand
• U.S.-Iran relations

Key ECHA regulatory updates affecting REACH, CLP, and Drinking Water compliance. Practical guidance for EU chemical operators.

• Echa
• REACH
• CLP

This week, the acrylonitrile market in China continued to decline due to increased supply and weakened demand, with the ex-tank price at East China ports falling to 7,350 CNY/ton. Despite high costs leading to increased production losses, it is expected that the market will bottom out and gradually recover around the Spring Festival, with a long-term outlook for an increase.

• Acrylonitrile market
• increased supply
• weakened demand
• high costs

Before the Spring Festival, China's PP market remained firm with narrow price fluctuations, and the benchmark price was 6,700 CNY/ton, up 3.32% year-on-year. High raw material prices provided strong support, while the operating rate of the supply side slightly decreased to 74%. Demand improved due to pre-holiday stockpiling but is expected to weaken as the holiday approaches. It is anticipated that inventory accumulation after the holiday may pose an upward resistance to the market.

• cost support
• abundant supply
• improving demand
• post-holiday resistance