Accelerated Domestic Substitution of Organic Raw Materials, Organic Chemical Industry Sees Cyclical Reversal in 2026

China’s organic raw material industry has reached a key inflection point in 2026. Benefiting from breakthroughs in domestic core technology, deepened supply-side reform and recovering downstream demand, the industry’s supply-demand pattern has been comprehensively improved with strong profitability resilience. Data shows that the revenue of the organic raw material segment increased by more than 15% year-on-year in the first half of the year, and many core products have shifted from import dependence to export revenue growth, greatly enhancing the industry’s comprehensive competitiveness.

Restricted by technical barriers in the past, high-end organic raw materials relied heavily on imports. However, the comprehensive breakthrough of domestic production technology for key raw materials such as adiponitrile in 2026 has driven the orderly release of production capacity for PA66, high-end polyolefins and other organic raw materials, completely breaking overseas technical monopolies. For general-grade organic raw materials, bulk products including methanol, ethanol and benzene-series raw materials have achieved steady demand growth driven by the recovery of downstream industries such as chemical engineering, textiles and automobile manufacturing. Coupled with shrinking industrial capital expenditure and limited new production capacity, the market supply and demand have tended to balance with stable and positive price trends.

Looking ahead to the second half of the year, the recovery of global manufacturing and domestic consumer market will continuously drive the demand for organic raw materials, while the industry is eliminating backward inefficient capacity to avoid homogeneous competition. High-end development, domestic substitution and refinement will serve as the core development theme of the organic raw material industry. High-purity and high-stability special organic raw materials will be widely applied in emerging fields including electronics, automobile lightweight and high-end manufacturing, boasting broad market prospects.