The Chinese chlorobenzene market navigated a challenging year in 2025, characterized by a clear downward price trajectory amid weak downstream demand and softening feedstock costs. Trading activity remained muted throughout most of the year. By late December, the average market price had settled around RMB 5,049 per ton, representing a significant decline of RMB 1,494 per ton (or -22.83%) from the beginning of the year. The annual average price for 2025 stood at RMB 5,438.26 per ton.

Market Phases: From Sustained Decline to Year-End Rally

The yearly price movement unfolded in distinct phases:

• H1 2025 (Jan-Jun): Sustained Downward Pressure. The market started flat. Post-Spring Festival, downstream demand from key sectors like pesticides and dyes recovered sluggishly and remained weak, confined to essential purchases. This demand-side headwind was compounded by falling costs. Prices of key feedstocks—pure benzene and liquid chlorine—trended lower, eroding cost support for chlorobenzene. Despite some production halts for maintenance in Shandong and Jiangsu, which tightened supply, the overwhelming pressure from poor demand and lower costs drove prices steadily downward. A brief price uptick in June, fueled by a temporary pure benzene rebound and producer price support efforts, proved unsustainable due to lackluster demand.

• Mid-Year to Autumn (Jul-Oct): Stalemate with Minor Fluctuations. The market entered a period of equilibrium. Producers often operated at reduced rates, limiting supply. On the cost side, while pure benzene prices fluctuated, liquid chlorine prices saw notable increases, raising production costs and squeezing margins. However, downstream demand failed to improve meaningfully, capping any potential price increases. The market was caught between rising costs and stagnant demand, resulting in sideways movement with minor adjustments as producers focused on destocking.

• Year-End (Nov-Dec): Supply-Driven Rally. The market concluded the year with a sustained upward trend, driven by a shift in dynamics. The primary drivers became supply tightness and cost push. Major planned maintenance shutdowns in Jiangsu, coupled with a facility outage in Ningxia whose restarted output was prioritized for captive use, significantly reduced spot availability. Concurrently, liquid chlorine prices continued to climb, providing strong cost pressure. On the demand side, procurement from the printing and dyeing industry turned more active. The combination of tightening supply and firming costs improved market sentiment, leading to a steady price increase.

Profitability Analysis: Margins Squeezed, Recovered Late-Year

Profitability for chlorobenzene producers faced considerable pressure in 2025. The average profit for the year was approximately RMB 442 per ton, with gross profit margins fluctuating between 0.55% and 13.98%. Margins, which were healthier in the first quarter, were progressively compressed through the first half of the year as product prices fell faster than feedstock costs, hitting a low in mid-year. A significant recovery occurred in the final quarter, propelled by the product price rally, allowing margins to climb back above 10%.

International Trade: Surge in Imports, Contraction in Exports

Customs data for Jan-Nov 2025 reveals a dramatic shift in trade patterns. Imports of chlorobenzene and related products surged by over 900% year-on-year, indicating potential gaps in domestic supply for specific grades or periods. Conversely, exports contracted by approximately 25.39% compared to the same period last year. Despite this reduction, export volumes remained substantially higher than imports, solidifying China's position as a net exporter of chlorobenzene. Export performance appears linked to domestic market softness and evolving international demand.

2026 Outlook: Anticipating Range-Bound Volatility

Looking ahead to 2026, the chlorobenzene market is expected to trade within a defined range, lacking a clear, strong unilateral driver.

• Supply: Overall market supply is projected to be adequate, with no major new capacity surges anticipated, though planned maintenance will continue to cause temporary regional tightness.

• Demand: Demand from core downstream industries is forecast to grow steadily but modestly. Procurement will likely continue to be need-based, characterized by periodic inventory replenishment cycles.

• Costs: Feedstock prices will remain a pivotal price determinant. Pure benzene is expected to fluctuate within a band, while the liquid chlorine market may continue to operate at relatively low levels with seasonal upticks (e.g., during autumn maintenance periods).

• Synthesis: In this environment, the chlorobenzene market is predicted to experience range-bound volatility. The forecast price range for 2026 is RMB 4,800 - 6,000 per ton. Market movements will closely follow the rhythm of feedstock cost changes and be influenced by the timing of downstream stocking activities and export order flows.

Wuxi High Mountain Hi-tech Development Co.,Ltd. maintains a dedicated focus on the fine chemicals sector. We continuously monitor the chlorobenzene value chain, leveraging our market expertise and robust supply network to provide clients with precise procurement intelligence and reliable supply chain solutions. We partner with our clients to navigate market uncertainties and capitalize on emerging opportunities.