Is China's salicylic acid supply concentrated, and how does that affect buyers?

China's salicylic acid supply is highly concentrated, with one dominant producer historically controlling up to 25,000 tonnes of capacity and claiming the title of world's largest manufacturer. This consolidation followed a brutal price war in the mid-1990s when nearly 20 domestic players saturated the market, crashing prices from RMB 17,000 per tonne to under RMB 10,000. The surviving leader expanded through acquisitions and direct sales, effectively monopolizing the domestic market. For buyers, this concentration means limited alternative suppliers and potential pricing power in the hands of a few. However, it also brings supply stability and scale economies. New entrants face high barriers due to capital intensity and environmental regulations. Buyers should maintain relationships with at least two suppliers and monitor capacity utilization, as any major maintenance or shutdown at the dominant plant could tighten supply quickly.