How is China's sodium chlorate supply-demand balance evolving in 2025?

How is China's sodium chlorate supply-demand balance evolving in 2025?
As of H1 2025, China has 19 sodium chlorate producers with total capacity of 874,000 tonnes—560,000 from standalone units and 314,000 from integrated complexes. Downstream demand centers on pulp bleaching, sodium chlorite production, potassium perchlorate, and water treatment. The industry faces structural pressure: new-build sodium chlorate projects are banned under China's industrial restructuring catalog, capping future supply growth. Major player Zhongyan Chemical operates an 110,000-tonne single-train line, the country's largest, plus affiliated capacity totaling 160,000 tonnes, about 29% of domestic standalone capacity. However, the parent company's overall profitability has weakened—2025 H1 revenue fell 5.8% year-on-year, with net profit at multi-year lows. This suggests chlorate margins are squeezed despite stable demand, as energy and raw material costs remain elevated.