Chlorinated polyethylene (CPE) is rapidly evolving from a traditional plastic modifier to a high-performance material for new energy and green construction applications. In H1 2025, China's CPE production reached 287,800 tons, up 1.25% year-on-year, driven by improved production efficiency through continuous chlorination technology.
Market Overview: Supply-Demand Imbalance
Global CPE demand is growing at 7.9% CAGR (2024-2029), with China as largest producer and consumer. However, prices fell to RMB 7100/ton in June 2025 (-12.44% YoY) due to oversupply and weak real estate sector demand.
Technology & Applications
CPE blending innovations enhance material performance:
PVC blends improve low-temperature toughness
EPDM blends combine flame resistance and elasticity
Nano-composites (e.g., graphene) enable battery applications
Over 70% of CPE in China modifies PVC, while emerging uses include:
Photovoltaic films (>40% Cl content)
5G base station sleeves
New energy battery seals
Challenges
Industry faces profitability pressure (avg. gross loss: RMB -630/ton in Shandong) and environmental regulations. Despite efficiency gains (12% lower energy use after upgrades), oversupply persists with 650k tons new capacity planned for 2025-2026.
Future Outlook
Key development areas:
Sustainability: Bio-based CPE and halogen-free solutions
High-performance: Functional grades for aerospace/new energy
Digitalization: Smart manufacturing for quality control
CPE's future will be defined by innovation rather than capacity, with Asia-Pacific's construction market (projected >$3 trillion by 2030) driving ongoing demand.
Shandong Polymer Additives Co., Ltd. - Innovating for Tomorrow's Materials
