Industry Overview - The tetrachloroethylene industry in China is experiencing a critical period of both overcapacity and demand upgrade as of 2025 [1][5] - From January to May 2025, China's tetrachloroethylene production reached 78,100 tons, an increase of 8.59% year-on-year, while consumption was 87,000 tons, up 1.02% year-on-year [1][5] - Technological upgrades, such as the replacement of thermal chlorination with oxychlorination, have improved production efficiency and reduced unit costs [1][5] Industry Chain - The upstream of the tetrachloroethylene industry includes raw materials like chlorine, ethylene, acetylene, and calcium hydroxide, as well as production equipment [3] - The midstream involves the production and manufacturing of tetrachloroethylene, while the downstream applications include dry cleaning, metal cleaning, environmental testing, and chemical raw materials [3] Current Industry Status - As of June 2025, the price of tetrachloroethylene in China was 3,691 yuan per ton, a decrease of 7.47% year-on-year, primarily due to an imbalance between supply and demand [7] - The operating rate in June 2025 was 61.73%, a decrease of 11.91 percentage points month-on-month but an increase of 8.26 percentage points year-on-year [9] - From January to May 2025, imports of tetrachloroethylene increased by 11.11% in quantity and 31.35% in value, while exports surged by 91.32% in quantity and 74.90% in value [11] Key Enterprises - The tetrachloroethylene industry in China has a stable competitive landscape, with a few large enterprises dominating the market [13] - Binhai Group leads with an annual capacity of 80,000 tons, while Luxi Chemical has a capacity of 50,000 tons and Dongyue Group integrates its refrigerant supply chain [13][17] - Luxi Chemical's actual production reached 72,000 tons in 2025, while Binhai Group's production was 77,900 tons, reflecting a growth of 0.91% [15][17] Industry Development Trends - Technological innovations are expected to drive the industry towards higher value-added applications, with a focus on reducing environmental impact and improving resource efficiency [19] - Market demand for tetrachloroethylene is anticipated to continue rising steadily, particularly in specialized fields like semiconductor manufacturing [20] - Regulatory policies are promoting environmental transformation in the industry, encouraging companies to adopt greener production processes [21]