Chloroacetic Acid Market Review 2025: Prices Fluctuated, Industry Profitability Improved

In 2025, the Chinese chloroacetic acid (CAA) market experienced a clear trend of rising prices followed by a gradual decline. Despite the overall price decrease compared with the previous year, industry profitability improved significantly due to lower production costs and better margin control.

As of December 22, 2025, the annual average price of chloroacetic acid in China stood at RMB 3,073.1 per metric ton, down RMB 198.38 per ton (-6.06%) year on year from RMB 3,271.48 per ton in 2024.

Market Overview

From January to early March, the chloroacetic acid market remained relatively stable, with producers adjusting prices flexibly based on shipment conditions. In mid-March, several manufacturers reduced operating rates or shut down units for maintenance, leading to a noticeable contraction in spot supply. At the same time, downstream agrochemical demand entered its seasonal peak, accelerating procurement and pushing prices upward.

By April 16, the market reached its annual high of RMB 3,450 per ton. However, as profitability improved, producers ramped up operating rates, increasing market supply. With prices remaining at elevated levels for an extended period, downstream acceptance weakened, transaction activity slowed, and inventory pressure continued to rise. As a result, market sentiment turned cautious and prices trended downward.

By mid-June, prices approached cost levels, prompting producers to resist further declines. Planned maintenance by multiple facilities provided temporary market support, stabilizing prices. During July and August, traditionally the off-season for demand, downstream operating rates declined, leading producers to lower prices to stimulate shipments.

Entering September, cooler weather, improved downstream production, and pre-holiday stocking ahead of China’s National Day supported a rebound in demand. In mid-October, reduced operating rates and maintenance shutdowns on the supply side further tightened availability, pushing prices higher again. Subsequently, fluctuations in upstream acetic acid prices—first declining and then rebounding—combined with stable demand, caused chloroacetic acid prices to follow a similar pattern.

By mid-December, with new production capacity coming online in Jiangsu Province, market participants adopted a wait-and-see approach, and prices stabilized.

Cost and Profitability Analysis

In 2025, the average monthly profit of chloroacetic acid reached RMB 266.57 per ton, showing a noticeable improvement compared with the previous year. From early 2025 to mid-October, liquid chlorine prices remained subsidized before returning to positive levels. Meanwhile, acetic acid prices were relatively moderate, leading to an overall decline in production costs.

Although chloroacetic acid prices were lower year on year, reduced raw material costs allowed producers to maintain healthier profit margins. Overall, industry profitability remained at a satisfactory level throughout the year.

Outlook for 2026

Looking ahead, new production capacity in Jiangsu and Hebei is expected to significantly increase supply pressure in 2026. Meanwhile, downstream demand is projected to remain relatively stable without major growth drivers. Under a supply-expansion and demand-softening scenario, producers may adopt price-for-volume strategies to relieve inventory pressure.

As a result, the chloroacetic acid market is expected to operate under pressure, with prices likely fluctuating within the range of RMB 2,800–3,400 per ton throughout 2026.

As a long-term participant in the chloroacetic acid industry, Wuxi High Mountain Hi-tech Development Co.,Ltd. will continue to closely monitor market dynamics, optimize production and supply strategies, and provide stable, reliable solutions for global customers across agrochemicals, pharmaceuticals, and fine chemical sectors.