2025 Epoxy Chloropropane Market Review and 2026 Outlook in China

January 30 news

I. Review of the Epoxy Chloropropane Market Trend in 2025:

In 2025, the epichlorohydrin market in China showed an overall trend of fluctuating and rising. In the first half of the year, the epichlorohydrin market in China was driven up by cost and demand. In the second half of the year, with the release of new production capacity and the restart of shutdown facilities, the market shifted from a supply shortage to an oversupply, leading to a rapid decline in prices.

According to monitoring data, the price of epichlorohydrin at the beginning of the year was 9,050 CNY/ton, and at the end of the year it was 11,600 CNY/ton, with a full-year price increase of 28.18%. As shown by the price trend chart, the highest point of the year appeared in mid-September, with a market average price of 13,000 CNY/ton. The lowest point of the year appeared in late March, with a market average price of 8,850 CNY/ton. The maximum fluctuation range for the whole year was 46.89%.

From the raw material end:

Glycerin: In 2025, the high market price of glycerin put pressure on costs. The price of raw material glycerin in China experienced four stages of significant fluctuations throughout the year. The price of industrial-grade refined glycerin in the East China region started at 6,250 CNY/ton at the beginning of the year. In September, due to the core event of Indonesia imposing additional export tariffs on crude glycerin, the price soared to a yearly high of 9,600 CNY/ton, providing strong support for epichlorohydrin and causing its price to rise. By the end of the year, the price of glycerin fluctuated and fell back to around 8,525 CNY/ton, weakening the support for epichlorohydrin.

Propylene: In 2025, the Chinese propylene market experienced a downward trend. Under the dual pressure of capacity inertia release and weak demand growth, the price center significantly declined. According to the commodity market analysis system, by the end of the year, the mainstream transaction price in the Shandong market fell to around 6,000 CNY/ton, a significant drop from the high at the beginning of the year. It is expected that in 2026, the propylene price will maintain a "weak and volatile" trend. The specific trend will still need to be closely monitored with market dynamics and policy support.

II. Forecast of Epoxy Chloropropane Supply in 2026: In 2025, the capacity for epoxy chloropropane expanded rapidly, reaching a total capacity of approximately 2.385 million tons, with output around 1.37 million tons. That year, four new units were added, contributing a total additional capacity of about 295,000 tons per year and driving a significant increase in overall capacity. Among the newly added capacity, green and environmentally friendly processes such as the glycerol-based method have become the primary focus. For example, the project planned by Nanshan Aluminum Industry to be invested and constructed in Indonesia, as well as the newly approved project by Jiaomei Group, both adopt the glycerol-based process.

From the chart, it can be seen that the production capacity of epichlorohydrin in China maintained a growth trend in 2023, 2024, and 2025. The new capacity added in 2024 was around 140,000 tons, and in 2025, it was around 170,000 tons. The output in 2025 also saw a slight increase compared to 2024. It is expected that the supply of epichlorohydrin in China may still show an increasing trend in 2026.

III. Forecast of Epoxy Chloropropane Demand in 2026:

In 2025, overall demand for epichlorohydrin—the largest downstream product of epoxy resins—will remain weak. The end-use sectors for epoxy resins—such as construction, coatings, and automotive—have not shown strong growth, prompting downstream users to maintain rigid demand and adopt a cautious “buying on rises but not on falls” mindset. As we enter the second half of the year, with the release of new production capacity, market supply and demand will shift toward a looser balance, putting downward pressure on prices and profits. By year-end, during the traditionally slow season, demand’s support for prices will become even weaker. Overall, although demand in 2025 is expected to increase slightly, its growth rate will fall far short of the pace of capacity expansion, leaving the market under prolonged pressure from oversupply. It is anticipated that this supply-driven, loose market condition will persist into 2026. Further attention should be paid to how the operational status of the epoxy resin industry impacts the epichlorohydrin market.

In terms of imports and exports According to customs data, China's total imports of epichlorohydrin in 2025 were 621.1 tons, a decrease of 4.0% year-on-year. The total exports were 71,100 tons, a decrease of 15.6% year-on-year. The export data indicates a weakening of international demand, with the role of exports in absorbing China's excess capacity declining. The main pressure comes from new facilities overseas (such as Arkema in Thailand) coming online, enhancing regional self-sufficiency, thus reducing dependence on Chinese sources. In summary, it is expected that China's epichlorohydrin export volume in 2026 may show a downward or stable trend.

IV. 2026 Epoxy Chloropropane Market Outlook:

In summary, the market in 2026 is likely to experience wide-ranging fluctuations and will find it difficult to see a sustained, unidirectional upward trend. Changes in costs, facility utilization rates, and the pace of downstream inventory replenishment will be the key variables influencing short-term volatility, while the long-term outlook will continue to be constrained by the structural contradiction between overcapacity and slowing demand growth.