1,2-Propylenediamine Recent Market Dynamics Intelligence Analysis

I. Market Price Dynamics
- Latest Quotation: As of May 26, 2026, the market quotation for 1,2-propylenediamine (99% purity) stands at RMB 28,000 per ton, with delivery in Jiangsu Province and supplied by Liaocheng Jinxinda New Materials Co., Ltd.
- Price Volatility: The market price has remained relatively stable recently, with no significant fluctuations observed. Historical data indicate that the average market price in 2022 was RMB 37,000 per ton; the current price is slightly lower than this level—though differences in purity specifications and evolving supply-demand dynamics must be taken into account.

II. Supply-Demand Analysis
- Supply Side:
- Production Capacity Distribution: The Chinese 1,2-propylenediamine market is dominated by several large enterprises—including Jiangsu Sanyou Chemical Industry Co., Ltd., Shandong Luxi Chemical Group Co., Ltd., and Zhejiang Xinan Chemical Industrial Group Co., Ltd.—which collectively hold leading market shares and possess advanced technological capabilities.
- Capacity Expansion: Driven by technological advancement and growing demand, industry capacity has been gradually expanding. National production capacity is projected to reach 800,000 tons by 2025, with total output value exceeding RMB 20 billion.
- Demand Side:
- Downstream Applications: 1,2-Propylenediamine is widely used in pharmaceuticals, agrochemicals, dyes, coatings, surfactants, and other sectors. The pharmaceutical industry represents one of the largest end-use markets, accounting for 34% of total consumption in 2022, with a corresponding market size of approximately RMB 5.37 billion.
- Demand Growth: Rapid development across downstream application sectors—particularly new energy, pharmaceuticals, and agricultural chemicals—is creating substantial market opportunities. The overall market size is expected to reach RMB 7.5 billion by 2027, representing a compound annual growth rate (CAGR) of approximately 8.5%.

III. Industry Policies and Regulations
- Policy Support: The Chinese government has actively supported the development of the 1,2-propylenediamine industry through a series of preferential policies, including VAT reductions, corporate income tax incentives, R&D subsidies, and equipment upgrade grants—aimed at lowering enterprise tax burdens and encouraging greater investment in research and development to enhance technological capability.
- Environmental Regulations: Increasingly stringent environmental regulations require enterprises to intensify environmental protection investments, reduce pollutant emissions, and promote green manufacturing. This trend will reshape industry capacity structure, accelerating the phase-out of small-scale, high-pollution production facilities.

IV. Technological Development Trends
- Process Optimization: Domestic enterprises are actively optimizing catalytic hydrogenation processes to improve conversion rates and product purity while reducing energy consumption and emissions of waste water, waste gas, and solid waste. Green synthesis technologies constitute a key R&D focus, aligning with China’s “dual carbon” (carbon peak and carbon neutrality) strategy and meeting international market demands for environmentally sustainable products.
- Intelligent Manufacturing: The gradual adoption of intelligent and automated production systems is enhancing operational efficiency, as well as product quality and safety. These advancements help enterprises reduce costs and strengthen competitiveness.

V. Market Challenges and Opportunities
- Challenges:
- Environmental Pressure: Stringent environmental regulations necessitate higher environmental compliance expenditures, increasing production costs.
- Raw Material Price Volatility: Significant fluctuations in petroleum-based upstream feedstock prices pose challenges to cost control and profit stability.
- Technical Barriers: High technical thresholds for high-end products hinder smaller enterprises from achieving breakthroughs.
- Opportunities:
- Policy Dividends from Emerging Downstream Industries: Strong national policy support for strategic emerging industries—including biopharmaceuticals, new energy, and new materials—has opened up new market avenues for 1,2-propylenediamine.
- Import Substitution Potential: If domestic producers overcome key technological bottlenecks, substantial import substitution opportunities exist—especially in high-end application segments.
- Global Market Expansion: Leveraging cost advantages and continuously improving product quality, Chinese enterprises are strengthening their competitiveness in global markets, presenting considerable export potential.

VI. Forecast and Outlook
- Price Trend: In the short term, 1,2-propylenediamine prices are expected to remain relatively stable. Over the longer term, however, moderate upward pressure on prices is anticipated, driven by progressive capacity expansion and sustained growth in downstream demand.
- Supply-Demand Balance: The overall supply-demand balance is expected to remain broadly stable. Nevertheless, supply of high-end, high-purity grades remains insufficient, resulting in partial reliance on imports. As domestic enterprises further enhance their technological capabilities and scale up production capacity, import dependency is expected to gradually decline.
- Industry Trends: The industry will continue advancing toward high-end, fine chemical, and green development pathways. Enterprises must strengthen technological innovation and market expansion efforts to bolster core competitiveness and achieve sustainable growth.