What is the investment outlook for trichloroethylene in China?

What is the investment outlook for trichloroethylene in China?
China's trichloroethylene market is structurally oversupplied. 2024 capacity stood at 390,000 tonnes against output of only 233,800 tonnes, implying an operating rate near 60%. Demand growth is capped by the quota system on downstream refrigerant R134a, which took effect in 2024. Producers are concentrated, with few single-site lines above 60,000 tonnes; smaller, outdated units face elimination under tightening environmental rules. Leading players such as Befar Group and Juhua dominate. The value chain suggests the real profit pool sits downstream in refrigerants and specialty solvents, not in trichloroethylene production itself. New capacity is unlikely to be profitable, and the market is expected to remain stable with intense competition and thin margins.