Trichloroethylene: Recent Commodity Market Intelligence, Analysis, and Forecast

I. Market Intelligence
1. Price Trends
- East China Market: On May 25, 2026, the mainstream reference price for trichloroethylene in the East China market stood at RMB 6,900 per metric ton. Factories are fulfilling orders steadily, and downstream purchasing enthusiasm remains moderate.
- Regional Price Disparities: Quotations for trichloroethylene vary across regions, brands, and purity grades. For example, Qingdao Shengze Chemical Co., Ltd. offers trichloroethylene (99.99% purity) produced by Shandong Binhua and Inner Mongolia Dakang at RMB 4,700 per metric ton in Shandong Province; Nanjing Baitu Chemical Co., Ltd. quotes RMB 7,000 per metric ton for Inner Mongolia Dakang’s trichloroethylene (≥99.99% purity) in Nanjing, Jiangsu Province.
- Recent Volatility: According to Shengyisi data, the benchmark price of trichloroethylene fluctuated between RMB 6,560 and RMB 6,860 per metric ton during March 2026, with a benchmark price of RMB 6,600.00 per metric ton recorded on March 26.

2. Supply-Demand Conditions
- Supply Side: China’s trichloroethylene production capacity is expected to remain stable, with some enterprises enhancing plant operational efficiency through technological upgrades. For instance, a company completed a trichloroethylene process retrofit in 2024, reducing labor intensity and improving operational efficiency—achieving cumulative output of 85,200 metric tons of trichloroethylene.
- Demand Side: Trichloroethylene is primarily used as a chemical raw material, dry-cleaning solvent for textiles, extraction solvent, and degreasing agent for metal and electronic components. As a key chemical intermediate for producing third-generation refrigerant R134a, it constitutes the dominant domestic downstream application. Moreover, demand for trichloroethylene in lithium-ion battery electrolytes has been rising annually, driven by rapid growth in the new-energy vehicle industry.

3. Industry Developments
- Policy Impact: Stricter environmental regulations impose higher compliance requirements on trichloroethylene producers. In 2025, over 50% of domestic trichloroethylene manufacturers underwent rectification or temporary shutdowns due to non-compliance with environmental standards.
- Competitive Landscape: The domestic trichloroethylene industry comprises numerous producers; however, only a few operate single-site capacities reaching 60,000 metric tons per year. With steady downstream demand, competition remains intense, and smaller-scale, technologically outdated enterprises are gradually being phased out.

II. Analysis and Assessment
1. Drivers of Price Volatility
- Raw Material Costs: Key feedstocks—including acetylene, ethylene, and chlorine—directly influence production costs and, consequently, market prices for trichloroethylene.
- Supply-Demand Dynamics: This remains a primary determinant of trichloroethylene pricing: tight supply or surging demand typically pushes prices upward, while oversupply or weak demand exerts downward pressure.
- Regulatory Factors: Tighter environmental policies compel producers to upgrade facilities or suspend operations for compliance improvements, thereby constraining short-term supply and contributing to price increases.

2. Market Trends
- Short-Term Outlook: In the near term, trichloroethylene prices may fluctuate under the combined influence of supply-demand dynamics, raw material cost changes, and regulatory developments. However, given current stable order-based production and moderate downstream procurement activity, prices are expected to remain relatively stable.
- Long-Term Outlook: Looking ahead, expanding applications in strategic emerging industries—including new-energy vehicles, electronics & information technology, and new energy—will broaden trichloroethylene’s end-use scope and drive overall market growth. Concurrently, tightening environmental regulation will incentivize increased investment in pollution control and technological innovation, fostering product quality improvement and cost optimization, thereby supporting healthy, sustainable industry development.

III. Forecast
1. Price Forecast
- Trichloroethylene prices are projected to remain relatively stable over the near-to-medium term, although subject to fluctuations influenced by raw material costs, supply-demand balance, and policy developments. Investors are advised to closely monitor real-time market dynamics and regulatory updates to formulate sound investment strategies.

2. Supply-Demand Forecast
- Supply Side: Capacity utilization and output are expected to improve as enterprises implement technology upgrades and enhance environmental compliance investments. However, stricter environmental enforcement and the phase-out of small- and medium-sized enterprises may constrain the pace of overall supply growth.
- Demand Side: Demand for trichloroethylene is anticipated to grow continuously, propelled by robust expansion of downstream sectors and penetration into emerging application areas—particularly within new-energy vehicles, electronics & information technology, and new energy sectors, which will emerge as key growth drivers.