Policy & Regulation

In December, the palm oil market in China experienced a weak and fluctuating decline, with an overall price decrease of nearly 2%. The average market price fell from 8,690 CNY/ton to 8,530 CNY/ton. Positive factors included a reduction in Malaysian palm oil production and tighter supply; negative factors were high inventories in China and moderate demand. Analysts expect the market to rise in January.

• Palm oil market conditions: prices decline
• supply-demand relationship
• increased demand during holidays

Since mid-December, PTA prices have continuously risen by 916%, reaching 5045 CNY/ton With relatively low supply and demand pressure, low processing fees have prompted factories to reduce production and undergo maintenance, with the operating rate dropping to around 72% The rebound in crude oil prices has supported costs, but losses in the downstream polyester sector and a decrease in orders have limited the momentum for further price increases

• PTA price
• supply-and-demand pressure
• crude oil price
• textile off-season

Since mid-December, prices of polyester staple fiber have risen significantly. As of the end of December, the average price stood at 6,503 CNY per ton, representing a price increase of 3.77%. This rise is supported by favorable cost factors, including higher crude oil and PTA prices. However, due to weak downstream demand and the impact of the off-season for textiles, it is expected that the pace of price increases for polyester staple fiber will narrow in the short term.

• cost support
• polyester staple fiber prices
• PTA supply and demand
• textile off-season

In 2025, the Chinese cyclohexanone market experienced a downward trend, with prices falling from 8,800 CNY/ton at the beginning of the year to 6,350 CNY/ton by the end of the year The main reasons were supply-demand contradictions and weak cost factors In 2026, capacity growth is expected to slow down, demand recovery will be gradual, and exports will increase slightly, while import volume will rise Prices are expected to fluctuate within the range of 6,000-7,500 CNY/ton

• Cyclohexanone market
• supply and demand dynamics
• price forecast
• industry upgrade

In 2025, China's aniline prices started high but then declined, with an average annual price of 9,375 CNY per ton and a year-end average price of 7,945 CNY per ton—a decrease of 1525% The main driving factors included the release of new production capacity, falling benzene prices, and weak demand for MDI For 2026, prices are expected to fluctuate between 8,000 and 10,000 CNY per ton, with an average price increasing slightly by 5% to 8%

• Aniline price trends
• supply and demand changes
• cost factors
• market forecasts

In December, the Chinese urea market experienced a fluctuating increase, with the reference average price rising from 1702 CNY/ton to 1732 CNY/ton, a price increase of 176% In the first half of the month, prices slightly increased and then stabilized In the second half of the month, prices rapidly increased due to the influence of Indian tenders, but dropped at the end of the month Quotations in Shandong, Hebei, Henan, and Liaoning regions were around 1660-1750 CNY/ton

• Urea market
• Price trend
• Supply and demand situation
• Future market forecast

In December, the demand for cyclohexane in the Chinese market was weak, with no significant increase in the operating rates of downstream industries and limited export orders. The market supply and demand were balanced, but inventories were high, leading to a downward trend in prices. In the short term, it is expected that the cyclohexane market in China will maintain a stable but slightly weak operation, lacking strong support from the demand side.

• Cyclohexane market: Demand is weak
• inventories remain high
• prices are declining.

In December 2025, the coking coal market operated weakly, with an average price of 1,442 CNY per ton. Demand remained weak, steel mills increased maintenance activities, and pig iron production declined. Although supply was ample, sales were sluggish, and prices underwent three rounds of reductions, with a cumulative price decrease of 150 to 165 CNY per ton. In the short term, both costs and demand remain weak, leaving coking coal prices under continued downward pressure.

• Coke market
• prices decline
• demand weakens
• supply is ample

As of December 26, the price of hydrofluoric acid was 12,733.33 CNY/ton, an increase of 1.6% from the end of last month. The high prices of raw materials, sulfuric acid and fluorspar, support the cost, but the demand side is weak. The stable export market has alleviated some of the pressure. It is expected that the market price of anhydrous hydrogen fluoride will rise by about 350 CNY/ton in the later period.

• cost support
• market demand
• price trends
• export support

In 2025, the Chinese acetone market continued to decline, with a cumulative price decrease of 3237% for the year, dropping from 5,992 CNY/ton at the beginning of the year to 4,050 CNY/ton by the end of the year The market weakness was due to factors such as supply-demand mismatch, weakened cost support, and negative feedback in the industry chain

• Acetone Market: Prices Decline
• Supply-Demand Imbalance
• Impact on the Industrial Chain

On December 23, 2025, Beijing Oriental Yuhong Waterproof Technology Co., Ltd.issued a startling announcement: its wholly owned U.S. subsidiary, OYH Construction Materials LLC, had likely fallen victim to a sophisticated telecom fraud scheme.

In 2025, China's general-purpose plastics industry saw a significant increase in production; however, due to the impact of the global trade environment and geopolitical factors, prices declined. Chinese demand continued to grow steadily, import dependency kept declining, and export markets faced challenges. It is expected that the supply-demand imbalance will persist in 2026, keeping prices at low levels.

• General plastics industry
• market demand and capacity expansion
• import and export trade
• industrial upgrading and cost pressure

In 2025, the overall price of hydrogen peroxide in China increased by 10.95%, but the supply-demand contradiction limited the upward trend. The supply side added 4,850,000 tons of new capacity, while demand was weak. It is expected that in 2026, the market will still experience wide fluctuations, with a price range of 700-1000 CNY/ton, affected by overcapacity and slowing demand growth.

• Hydrogen peroxide market conditions
• supply-demand contradiction
• overcapacity
• price fluctuations

In 2025, the price of lithium carbonate followed a V-shaped trend: in the first half of the year, it fell to the cost line due to oversupply and weak demand; in the second half, it rebounded driven by the energy storage market By 2026, supply and demand are expected to tighten and reach a balanced state China will add approximately 500,000 to 600,000 tons of new capacity, while overseas additions will be around 300,000 to 350,000 tons

• Lithium carbonate prices
• growing demand for energy storage
• tight supply-demand balance
• slowing growth in new-energy vehicle sales.

As of December 25, the price of phthalic anhydride in neighboring China was 5633.33 CNY/ton, an increase of 1.81% from December 22. Costs have stabilized, and the operating rate has increased to 75%, with ample supply. The operating load of downstream DOP enterprises has risen, increasing demand support. It is expected that the price of phthalic anhydride will continue to rebound and rise.

• Phthalic anhydride prices
• Market rebound
• Supply and demand changes
• Cost stability

Recently, the price center of polyethylene has shifted downward, with the average prices of LLDPE, LDPE, and HDPE falling by 324%, 232%, and 323%, respectively Manufacturers' willingness to ship goods has increased, but demand is in the off-season, and downstream demand is weak The supply side has seen the release of new production capacity, and the rebound in crude oil prices has provided some support to the cost side

• Polyethylene prices decline
• weak demand
• increased supply
• cost factors provide support.

In 2025, the melamine market in China first declined and then rebounded, ending the year with a 10.24% drop. At the end of the year, it rebounded to 5675.00, but weak demand and supply pressure dominated the market throughout the year. In 2026, demand will determine the market trend, which may show range-bound fluctuations. Exports will be a key variable; if exports are strong, prices are likely to rise; otherwise, they may bottom out again.

• Melamine Market
• Demand-Driven
• Price Trends
• Impact of Exports

On December 22-23, the polyester bottle flake market experienced a strong upward trend, with the average price of PET reaching 5,772 CNY per ton The primary driving force behind this rally was cost-side support, including rising prices of international crude oil and PTA Sentiment in the futures market remains bullish; however, demand remains in the off-season, with actual demand yet to improve, resulting in a market pattern characterized by "high quotes followed by lower ones

• Polyester bottle chips
• cost support
• futures market impact
• off-season demand

Recently, the dichloromethane market in China has been operating weakly, with the average price in Shandong region at 1710 CNY/ton, a weekly decline of 447% High production rates and weak domestic demand have led to a supply-demand imbalance, making exports the main channel for absorbing excess capacity The decline in liquid chlorine prices and the rise in methanol prices have compressed profit margins for enterprises

• Dichloromethane
• weak market
• supply-demand imbalance
• export dependency

On December 22, PTA prices rose sharply, with the 2605 contract closing at 5,040 CNY/ton The spot market price stood at 4,879 CNY/ton, representing a price increase of 304% International oil prices were boosted by geopolitical factors Although PX plant operations remained largely unchanged, prices were supported by these developments The operating rate in the PTA industry is around 73%, and supply increases remain limited

• PTA price
• crude oil futures
• PX price
• polyester demand