Market Intelligence Report on White Oil Paste – Recent Commodity Market Dynamics

I. Price Dynamics
- Recent Quotations: Between April 16 and April 20, 2026, white oil paste prices exhibited volatility. For instance, Wuhan Hengjiu Chemical Co., Ltd. quoted RMB 4,600–4,950 per ton for white oil paste (rubber softener) around April 15, 2026, with price variations attributable to differences in distillation range. Meanwhile, Alibaba’s platform indicated quotations from certain Shandong-based suppliers ranging from RMB 3.33 to RMB 140 per kilogram—reflecting substantial discrepancies arising from product specifications, packaging formats, and supplier pricing strategies.
- Regional Price Disparities: As a major production base for white oil paste, Shandong Province exhibits relatively concentrated and representative pricing. For example, Jinan Xinhou Trading Co., Ltd. quoted RMB 5,000 per ton for white oil paste (rubber softener), contrasting with Wuhan Hengjiu’s quotation and highlighting inter-regional differences in transportation costs and supply-demand balance.

II. Supply-Demand Landscape
- Supply Side: Domestic white oil paste production capacity is geographically dispersed; however, leading enterprises are gradually increasing their market share through technological upgrades and capacity expansion. Notably, Jiangsu Runyuan New Materials and Zhejiang Royal Medchem have achieved breakthroughs in high-purity refining facilities and plant-based composite white oil alternatives, enhancing the competitiveness of China’s domestic supply chain.
- Demand Side: As a core raw material for rubber softeners, cosmetic bases, and industrial lubricants, demand for white oil paste is strongly driven by downstream industries. In 2026, rising demand for high-purity, low-irritancy ingredients in the cosmetics sector—and the upgrading of food-contact materials driving demand for food-grade white oil—continues to optimize the demand structure for white oil paste.

III. Industry Developments
- Policy Impact: Regulatory initiatives—including the National Medical Products Administration (NMPA) and Ministry of Industry and Information Technology (MIIT)’s “Guiding Principles for Changes to Marketed Chemical Drugs” and the “Green Upgrade Special Action Plan for Food Contact Materials”—are stimulating demand for pharmaceutical- and food-grade white oil, thereby indirectly accelerating the high-end transformation of the white oil paste market.
- Technological Advancement: Widespread adoption of hydrofining and isomerization technologies has enhanced product quality. For example, Sinopec Baling Petrochemical’s newly commissioned 50,000-ton-per-year hydrofining white oil facility has increased the supply security rate of high-value-added products to 74.2%, providing stable raw material support for the white oil paste market.

Analysis & Assessment

I. Price Outlook
- Short-Term Volatility: White oil paste prices are expected to remain subject to minor fluctuations in the near term, influenced by crude oil price volatility, regional supply-demand imbalances, and logistics costs. For example, the sharp decline in international oil prices in April 2026 may transmit downward pressure to white oil paste cost structures; however, robust demand for premium-grade products will partially offset such downward price pressure.
- Long-Term Trend: Amid tightening environmental regulations and growing downstream demand for high-quality raw materials, average white oil paste prices are projected to trend steadily upward. The industry’s forecasted average price for 2026 stands at RMB 8,150 per ton; however, price increases for high-end grades (e.g., pharmaceutical- and cosmetic-grade) are likely to be more pronounced.

II. Market Structure Evolution
- Rising Share of High-End Products: Growing demand for pharmaceutical- and food-grade white oil will propel the white oil paste market toward higher purity and lower impurity levels. For instance, pharmaceutical-grade white oil procurement demand is projected to increase by 18,000 tons in 2026, while the substitution potential for food-grade white oil represents an estimated RMB 230 million opportunity—thereby boosting demand for associated white oil paste products.
- Accelerated Domestic Substitution: Through technological innovation and capacity expansion, leading domestic enterprises are progressively replacing imported products. In 2025, the self-sufficiency rate of domestically produced cosmetic-grade white oil reached 89.3%; this figure is expected to further expand in 2026, reducing reliance on imports.

Forecast

I. Demand Forecast
- Overall Growth: China’s total white oil demand in 2026 is projected to increase by 6% year-on-year, reaching 2.133 million tons. As a key downstream derivative, white oil paste demand will grow correspondingly—especially in rubber, cosmetics, and food applications.
- Structural Divergence: Demand for high-viscosity white oil paste (e.g., used in physical UV-blocking systems in sunscreens) is forecast to grow at 9.4%, whereas growth for traditional medium-viscosity grades is expected to slow to 4.1%, reflecting downstream formulation functionalization and heightened performance requirements for raw materials.

II. Price Forecast
- Upward Average Pricing Trend: Supported by cost factors and strong demand for premium products, the average market price for white oil paste in 2026 is expected to remain above RMB 8,000 per ton, with select high-end grades potentially exceeding RMB 10,000 per ton.
- Narrowing Regional Price Gaps: With improvements in logistics efficiency and optimized regional capacity deployment, price differentials between major producing provinces (e.g., Shandong and Jiangsu) and inland regions are expected to gradually narrow—though regional premiums for high-end products will likely persist.

III. Industry Trends
- Technology-Driven Competition: Over the next two years, advancements in analytical testing capabilities (e.g., full coverage of GC-MS instruments) and low-carbon process upgrades (e.g., hydrodearomatization replacing conventional acid-alkali refining) will become focal points of competitive differentiation. Enterprises possessing technological advantages are poised to capture excess profits.
- Deepening ESG Compliance: Policies such as environmental protection tax incentives and carbon footprint accounting will drive enterprises to intensify investments in green production. Consequently, ESG compliance standards across the white oil paste industry are expected to improve significantly—shaping long-term market dynamics.