Market Intelligence Report on Biocides and Algaecides – Recent Commodity Market Dynamics

I. Market Price Dynamics
1. Oxidizing Biocides and Algaecides
- Henan Huiyihai Environmental Protection Technology Co., Ltd.: RMB 2,500/ton (as of 2026-05-22)
- Henan Senti Environmental Protection Technology Co., Ltd.: RMB 2,600/ton (as of 2026-05-22)
- Henan Shunzhibang Environmental Protection Technology Co., Ltd.: RMB 1,500/ton (as of 2026-05-22)
- Henan Zhengyuan Water Purification Materials Co., Ltd.: Pale yellow transparent liquid at RMB 2,200/ton (as of 2026-05-22)

2. Non-Oxidizing Biocides and Algaecides
- Henan Huiyihai Environmental Protection Technology Co., Ltd.: RMB 3,000/ton (as of 2026-05-22)
- Henan Senti Environmental Protection Technology Co., Ltd.: RMB 4,400/ton (as of 2026-05-22)
- Henan Shunzhibang Environmental Protection Technology Co., Ltd.: RMB 3,800/ton (as of 2026-05-22)

3. KS-370 Blue-Green Transparent Liquid (pH 2.0–4.0)
- Henan Kaijie Water Treatment Co., Ltd.: RMB 4,300/ton (as of 2026-05-21)
- Henan Senti Environmental Protection Technology Co., Ltd.: RMB 4,900/ton (as of 2026-05-21)
- Henan Shunzhibang Environmental Protection Technology Co., Ltd.: RMB 3,700/ton (as of 2026-05-21)

4. Pale Green Liquid (pH 6–8)
- Henan Senti Environmental Protection Technology Co., Ltd.: RMB 4,500/ton (as of 2026-05-21)
- Henan Shunzhibang Environmental Protection Technology Co., Ltd.: RMB 4,000/ton (as of 2026-05-21)

5. 99% Active Content Transparent Liquid (pH 2.0–4.0)
- Henan Shunzhibang Environmental Protection Technology Co., Ltd.: RMB 3,000/ton (as of 2026-05-21)

II. Market Drivers Analysis
1. Policy-Driven Factors
- Enhanced Environmental Standards: The Ministry of Ecology and Environment’s “Guidelines for Microbial Risk Assessment in Circulating Water Systems for Key Industries (Trial)” includes Legionella and Pseudomonas aeruginosa in routine monitoring, stimulating demand from emerging application sectors such as pharmaceutical manufacturing, hospitals, and data centers—projected to generate an incremental market size of approximately RMB 130 million.
- Industrial Water Conservation Requirements: The “14th Five-Year Plan for Water Conservation” mandates raising the industrial water reuse rate to over 93% by the end of 2025, compelling more frequent biocide and algaecide applications in circulating water systems—estimated to yield an annual incremental market of ~RMB 310 million in the existing market.
- New Pollutant Regulation: The “List of Key-Controlled New Pollutants (Second Batch)” restricts the use of long-chain alkyl quaternary ammonium salts, prompting 37 dyeing and papermaking enterprises in East China to shift toward strong chlorine-based alternatives; projected additional procurement volume for 2026 is 18,000 tons.

2. Industry Demand Growth
- New Energy Sector: Leading firms including CATL and BYD plan to build 12 new hydrometallurgical battery recycling facilities, creating new demand (~RMB 380 million) for high-temperature-resistant, biofilm-inhibiting composite biocides in cooling water systems.
- Market Penetration into County-Level Areas: A joint county-level technical service station network established by Sinochem Group and Jiangsu Bluesail Andisoo covers 1,248 counties nationwide; the county-level market is expected to contribute RMB 1.24 billion in incremental revenue in 2026—accounting for 71.6% of total annual growth.
- Reclaimed Water Utilization: The national target for reclaimed water utilization rate in prefecture-level and above cities has been raised to 25%; strong chlorine-based agents—owing to their dual functionality in algae control and disinfection—are becoming standard equipment in newly built reclaimed water plants across water-scarce regions in North and Northwest China.

3. Technological Upgrades
- Composite Formulation Substitution: The 2025 market size for composite biocides and algaecides reached RMB 15 billion, representing a 35% year-on-year growth, with 42% of this growth attributable to replacement of traditional single-component agents (e.g., sodium hypochlorite, isothiazolinones).
- Penetration of Controlled-Release Products: Novel controlled-release strong chlorine formulations (e.g., microencapsulated trichloroisocyanuric acid composites) have achieved a 29.4% penetration rate among premium industrial customers, increasing per-unit product value-added by 14.6%.

III. Market Trend Forecast
1. Price Trends
- Short-Term Volatility: Driven by rising upstream liquid chlorine prices (average price in 2025: RMB 1,840/ton, +4.1% YoY) and increased compliance-related environmental costs, ex-factory prices for strong chlorine-based biocides and algaecides rose by 2.3% YoY; however, potential short-term price competition may emerge in H2 2026 due to new capacity releases (registered capacity: 126,000 tons/year).
- Long-Term Divergence: Composite formulations maintain high gross margins (42.6%–48.3%) thanks to technological barriers—including proprietary formulation patents and customized services—while single-component products face downward pricing pressure from homogenized competition.

2. Shifts in Demand Structure
- Emergence of New Application Scenarios: Demand from new sectors—including data center liquid-cooling systems and photovoltaic cooling towers—is projected to rise from 8.7% of total demand in 2025 to 12.3% in 2026.
- Explosion of County-Level Market Demand: Procurement decision cycles at county-level water utilities have shortened by 62%; the county-level market is forecast to grow at 35% in 2026—outpacing the industry average.

3. Evolution of Competitive Landscape
- Rising Market Concentration: The CR5 (top five firms’ combined market share) increased from 53.2% in 2025 to 57.8% in 2026. Industry leaders—including Shandong Taihe Technology and Jiangsu Fumiao Technology—have consolidated advantages via technological upgrades (e.g., microcrystalline coating technology for calcium hypochlorite).
- Accelerated Import Substitution: Domestic substitution continues to deepen, reducing imported products’ market share from 31% in 2025 to 26.5% in 2026—freeing up ~RMB 790 million worth of local production capacity to be absorbed domestically.

IV. Investment Recommendations
1. Technology Upgrade Priorities
- Invest in calcium hypochlorite microcrystalline coating technology (enhancing uniformity of available chlorine release by >35%).
- Enter integrated on-site electrolytic chlorine generation system services (average contract value per project exceeds RMB 8 million; gross margin: 52%).
- Secure strategic positioning in the aquaculture-specific controlled-release granular agent segment (2025 growth rate: 28.4%, significantly outpacing industry average).

2. Regional Market Focus
- Prioritize expansion into reclaimed water plant markets in North and Northwest China (where strong chlorine-based agents are mandatory specifications).
- Deepen the county-level technical service station network (covering all 1,248 counties nationwide), further shortening procurement decision cycles.

3. Risk Mitigation
- Exercise caution regarding overcapacity risks in chlorine gas-based production routes (actual operating rates remain below 45% due to restrictions under the “Law on Safety Production of Hazardous Chemicals”).
- Monitor regulatory risks associated with restrictions on traditional products such as long-chain alkyl quaternary ammonium salts.