1. Industry Summary
In June 2025, China's chloroacetic acid market extended its downward trajectory amid sluggish demand and mounting supply-side pressure. By the end of the month, the average market price had dropped to 3,077.78 RMB/ton, reflecting a decline of nearly 9.5% compared to May.
The month began with muted buying interest from key downstream sectors, many of which entered seasonal production lulls. In contrast, operating rates at upstream facilities remained elevated, contributing to a clear oversupply in the market. Raw material costs offered little relief—acetic acid prices dipped early in the month before recovering marginally, while liquid chlorine values fluctuated without providing meaningful support.
Increased production capacity in Shandong, coupled with plant restarts in Henan, pushed supply levels even higher. The pesticide sector—typically a major consumer—showed minimal buying enthusiasm, exacerbating the imbalance. As inventories grew and transactions lagged, suppliers responded with aggressive discounting to secure limited orders.
Mid-month, some producers announced planned maintenance, helping stabilize sentiment. Later in June, plant shutdowns in Shandong prompted a moderate round of restocking among downstream buyers, especially as some suppliers offered competitively low prices. While spot trading improved marginally and prices showed signs of rebounding, overall momentum remained constrained by weak end-user demand.
2. Regional Price Overview
Indicative June offers for flake chloroacetic acid were:
Shandong: 3,100–3,200 RMB/ton
Henan: 2,900–3,150 RMB/ton
Shanxi: 2,950–3,100 RMB/ton
Hubei: 3,300–3,350 RMB/ton
3. Market Outlook
Looking ahead to July, the market outlook remains cautious. Acetic acid supply is expected to stay abundant, with downstream producers facing ongoing margin pressure. Buyers are likely to maintain conservative purchasing strategies, limiting market liquidity.
On the chlorine side, scheduled restarts in eastern China could increase supply, and some producers are reportedly reducing external procurement. These factors may place additional pressure on prices.
Although some capacity adjustments are expected—particularly maintenance in Jiangsu and Shanxi—overall supply is unlikely to shift significantly. Without stronger demand from downstream industries, sustained price recovery remains uncertain.
In conclusion, the chloroacetic acid market is expected to face continued headwinds in the coming weeks. Any price support will depend on downstream restocking behavior, changes in upstream cost structures, and broader improvements in industrial activity.
