Industry Overview - The Chinese polyether market price was 10,400 yuan/ton as of the end of March 2025, facing severe challenges of overcapacity [12] - Total polyether production capacity reached 9.5 million tons/year by February 2025, with expectations to exceed 11 million tons/year due to new capacity from several factories [12] - Despite the automotive and soft furniture industries being in a relatively busy season, overall demand remains weak, leading to increasing supply surplus issues [12] Industry Development History - The polyether industry in China has gone through four main stages, starting from the establishment of the largest polyether production facility in 1989 with an annual capacity of 20,000 tons [4] - By the end of 1996, national polyether production capacity reached 260,000 tons/year, marking a nearly 50% increase from 1994 [5] - The 2000s saw structural adjustments and technological innovations, with China becoming the second country to master PEEK technology in 2000 [5] Industry Current Status - The polyether market is currently characterized by overcapacity, with production capacity expected to exceed demand in the near future [12] - The market activity is low, and the overall demand is not keeping pace with the production capacity expansion [12] Industry Segmentation - The special polyether market, including low unsaturation polyether and bio-based polyether, saw a market size of 2.166 billion yuan in 2024, a year-on-year decrease of 6.92% [14] - Demand growth in downstream applications, particularly in new energy and high-end manufacturing, has slowed due to global economic conditions [14] Key Companies' Performance - Wanhua Chemical, a leading player in the polyether industry, reported a revenue of 46.161 billion yuan in Q1 2024, showing a 6.70% year-on-year decline [18] - Changhua Chemical achieved a revenue of 3.05 billion yuan in 2024, with a year-on-year growth of 12.47% [20] - Longhua New Materials focuses on soft foam polyether and CASE polyether, with products widely used in various sectors [20] Industry Development Trends - The polyether industry is expected to continue growing, driven by expanding downstream applications and steady demand growth [22] - Technological innovation and green production are becoming core drivers for future development, with a focus on cleaner and safer production technologies [24] - The competitive landscape is evolving, with leading companies consolidating their market positions while smaller firms seek opportunities through differentiation and industry chain integration [25]