THF (Tetrahydrofuran) Recent Commodity Market Intelligence Report

I. Price Trend
- Recent Prices: As of May 27, 2026, THF market prices exhibited volatility. The reference price on May 21 stood at RMB 11,540.00 per metric ton, down 1.7% from RMB 11,740.00 per metric ton on May 1. On May 23, market quotations diverged significantly: Shandong Junfeng New Materials Co., Ltd. quoted RMB 9,500/ton; Shandong Shuojia Chemical Co., Ltd. quoted a notably high RMB 13,000/ton; and Jinan Zesheng Chemical Co., Ltd. quoted RMB 9,400/ton.
- Price Range: Over the past three months, THF prices reached a peak of RMB 11,840.00/ton and a low of RMB 9,860.00/ton; current prices remain within the upper end of this range.

II. Supply-Demand Dynamics
- Supply Situation: China hosts numerous THF producers with geographically dispersed production capacity. Major enterprises such as Hengli Petrochemical have expanded output through by-product recovery and new project commissioning. Additional THF supply is expected in 2026 following the ramp-up of newly commissioned biodegradable plastic production capacity.
- Demand Situation: THF is primarily consumed in the PTMEG and spandex value chain (integrated production accounts for ~91.8% of total demand), while only ~8.2% enters the open trading market. Demand from solvent applications, pharmaceutical intermediates, and other niche sectors continues to grow, with the open-market apparent consumption volume projected to register a compound annual growth rate (CAGR) of 2.31% during 2021–2026.

III. Regional Market Analysis
- Shandong Province: As the primary production hub, Shandong exhibits pronounced quotation divergence—e.g., Shandong Junfeng New Materials Co., Ltd. (RMB 9,500/ton), Jinan Zesheng Chemical Co., Ltd. (RMB 9,400/ton), versus Shandong Shuojia Chemical Co., Ltd. (RMB 13,000/ton)—reflecting intensifying market fragmentation.
- Jiangsu Province: Nanjing Runsheng Petrochemical Co., Ltd. quoted RMB 13,500/ton, while Nantong Zhonghe Chemical New Materials Co., Ltd. quoted RMB 10,200/ton—highlighting substantial intra-provincial price variation.
- Other Regions: Qingdao Shengze Chemical Co., Ltd. quoted RMB 10,800/ton; Liaocheng Xinli New Materials Co., Ltd. quoted a range of RMB 9,300–11,000/ton—indicating broad regional price volatility.

IV. Impact of Related Products
- PTMEG Market: PTMEG prices remain stable (e.g., Suzhou Senfeida Chemical Co., Ltd. quoted RMB 17,500/ton), supporting underlying THF demand. However, the high integration ratio limits pricing flexibility in the open trading market.
- BDO Feedstock: Ongoing BDO capacity expansion—driven by demand for biodegradable plastics (PBAT) and lithium battery materials (NMP)—ensures ample raw material availability for THF production, thereby mitigating supply-side risks.

V. Industry Trends
- Technological Advancement: High-purity THF (e.g., Hengli Petrochemical’s 99.99% purity grade) is gaining traction in pharmaceutical applications, fostering quality upgrades and enhanced product value-addedness.
- Policy Impetus: Government policies promoting biodegradable plastics are accelerating PBAT capacity build-out, indirectly boosting THF demand. Yet actual timing and scale of PBAT plant commissioning may affect THF supply-demand timing alignment.
- Market Consolidation: Leading enterprises are strengthening market share via technological barriers and economies of scale, placing cost pressures on SMEs; industry concentration is likely to rise further.

Analytical Assessment
1. Price Divergence: Significant recent quotation disparities reflect evolving supply-demand structures. Integrated producers largely self-supply, whereas the open trading market is increasingly sensitive to regional supply imbalances, logistics costs, and downstream buyers’ bargaining power—amplifying price volatility.
2. Cost Support: Abundant BDO feedstock supply provides foundational cost stability; however, high-purity THF production entails elevated technical barriers. While some large players (e.g., Hengli Petrochemical) lower costs via by-product recovery, SMEs reliant on external BDO procurement face mounting cost pressure.
3. Demand Resilience: Sustained growth in the spandex sector, coupled with expanding demand from solvents and pharmaceuticals, offers long-term structural support for THF. Nevertheless, the limited open-market share (~8.2%) and dominance of integrated production constrain overall price elasticity.

Outlook & Forecast
1. Short-Term Prices: THF prices are expected to fluctuate within the RMB 9,860–11,840/ton range during May–June 2026, with regional supply-demand mismatches and feedstock cost variations remaining key drivers.
2. Medium-to-Long-Term Trend: As biodegradable plastic capacity comes online and pharmaceutical demand grows, overall THF market size is poised for expansion. However, high integration ratios and rising industry concentration will likely moderate open-market price appreciation, resulting in relatively modest gains.
3. Risk Alerts: Key risks warrant close monitoring—including BDO feedstock price volatility, pace and scale of PBAT capacity commissioning, and potential shifts in environmental regulatory policy.