Chemical Market Weekly | 2026-10-20: Sept Industrial Output Up 5.5%, Chemical Ex-Factory Prices +12.1%, Asian Petrochemical Exports Volume Down Prices Up

Key Points This Week: September Industrial Data Released, Chemical Volume and Price Signals Diverge

September data on the national economy and the chemical industry have been released one after another: value-added of industries above designated size rose 5.5% year on year, and value-added of the chemical raw materials and chemical products manufacturing sector rose 2.4%; producer prices (PPI) rose 5.0% year on year, while ex-factory prices of chemical raw materials and chemical products rose 12.1%. Overseas, South Korea's petrochemical export value rose 5.1% year on year in September while export volume fell 19.1%, a clear volume-down-price-up pattern; the US manufacturing PMI stood at 54.5, with raw material prices rising for 24 consecutive months. Overall, China's chemical industry chain is stable in volume with higher prices, cost pressure continues to pass down the chain, and overseas chemical product price centers are moving higher.

Domestic Market: September Industrial Value-Added Up 5.5%, Chemical Materials and Products +2.4%

According to data released by the National Bureau of Statistics, value-added of industries above designated size rose 5.5% year on year in September, of which value-added of the chemical raw materials and chemical products manufacturing sector rose 2.4%; ethylene output reached 3.55 million tonnes, up 6.4% year on year, while crude oil processing volume was 57.48 million tonnes, down 8.4%. Export delivery value of industrial enterprises above designated size rose 17.0% in the month, providing continued support from external demand. Chemical production remains in expansion, but the decline in crude processing volume points to a low operating load in refining, with cost pressure continuing to squeeze processing margins.

Source: National Bureau of Statistics

Domestic Market: September PPI Chemical Raw Materials Purchase Prices Up 12.6% Year on Year

National Bureau of Statistics data show that producer prices (PPI) rose 5.0% year on year and 1.2% month on month in September; among industrial producer purchase prices, chemical raw materials prices rose 12.6% year on year and 2.4% month on month. By sector, ex-factory prices of chemical raw materials and chemical products rose 12.1% year on year, among the fastest increases. Sustained increases in upstream raw material prices mean greater procurement cost pressure for downstream fine chemicals, coatings, pharmaceuticals and other segments, and also raise the requirements for pressure, temperature and corrosion-resistant configurations of reactors, mixing tanks and other equipment.

Source: National Bureau of Statistics

Domestic Market: September Manufacturing PMI at 50.1, Raw Material Purchase Price Index 60.8

The National Bureau of Statistics Service Survey Center and the China Federation of Logistics & Purchasing released the September China Manufacturing PMI: the manufacturing PMI was 50.1, returning to the expansion zone; the main raw material purchase price index was 60.8 and the ex-factory price index was 54.0, with both indices above 60.0 for chemical raw materials and chemical products. High-running price indices confirm the pattern of simultaneously rising costs and selling prices in the chemical industry, and remind enterprises to lock in procurement and capacity plans in advance.

Source: Shanghai Securities News - China Securities Net

Energy and New Energy: Renewable Power Installation Share Rises to 60.8% in January-August

According to data disclosed by the National Energy Administration, by the end of August national renewable power installation reached about 2.496 billion kW, accounting for 60.8% of total power installation; new renewable installation in January-August was 159 million kW, accounting for 71.6% of new installation. Cumulative wind and solar installation reached about 1.992 billion kW, with solar PV installation historically surpassing coal power for the first time; new-type energy storage installation nationwide reached about 153 million kW. The rapid expansion of green power and storage drives demand for production lines for new energy materials, electrolytes and storage cells, providing sustained pull for upstream equipment such as mixing tanks and dispersers.

Source: National Energy Administration

Overseas Markets: South Korean Petrochemical Exports Volume Down, Prices Up, Average Price +30.0% Year on Year

According to data published by ICIS, South Korea's petrochemical export value in September was about USD 3.9 billion, up 5.1% year on year, with export volume of about 2.8 million tonnes, down 19.1%, and an average export price of about USD 1,416/tonne, up 30.0%. The combination of lower volume and higher prices shows that overseas petrochemical price centers have moved up significantly amid tight supply, widening chemical product spreads across Asia overall and providing price-level support for both China's chemical product exports and equipment export markets.

Source: ICIS

Overseas Markets: South Korea's Overall September Exports Continue to Grow, Semiconductors Rise Sharply

According to September export data released by the Ministry of Trade, Industry and Energy (MOTIR) of South Korea, total exports in the month reached about USD 120.9 billion, up 83.5% year on year, of which semiconductor exports were about USD 60.3 billion, up 262.8%, with a trade surplus of about USD 49.9 billion. Semiconductors and petrochemicals are the two pillars of Korean exports; strong export growth running alongside the petrochemical volume-down-price-up pattern reflects a resonance between global manufacturing activity and the technology cycle, offering a demand-side reference for Asian equipment and materials markets.

Source: Ministry of Trade, Industry and Energy, South Korea

Overseas Markets: US September Manufacturing PMI at 54.5, Raw Material Prices Up 24 Straight Months

The Institute for Supply Management (ISM) released the September Manufacturing PMI Report: the manufacturing PMI was 54.5, down 0.1 percentage point from the previous month; the prices index was 77.9, up 6.8 percentage points month on month, with raw material prices rising for 24 consecutive months; 58.6% of surveyed companies reported higher prices, and the chemical products industry explicitly reported price increases. US manufacturing activity remains at a high level but cost pressure is accumulating quickly, with the uptrend in chemical intermediates and materials prices consistent with Asian markets.

Source: PR Newswire

Overseas Markets: India's September Exports Up 23%, Chemical Exports +24.21%

According to Indian Ministry of Commerce data, India's merchandise exports in September reached about USD 44.4 billion, up 23% year on year, of which chemical exports were about USD 3.0 billion, up 24.21%, and electronics exports rose 70.44%; the monthly trade deficit narrowed to USD 30.21 billion. Double-digit growth in India's chemical exports shows that demand-side momentum in emerging markets is still being released, and procurement demand for chemical equipment and turnkey production lines in the South Asian market is expected to remain active.

Source: PSU Watch

Downstream and Outlook: What Equipment Demand Means amid Volume-Price Divergence

Taking the data together: domestic chemical production is stable in volume with higher prices, with cost pressure passing to mid- and downstream segments; overseas petrochemical and materials price centers are moving higher, and emerging market demand keeps double-digit growth. For chemical producers, the stage of rising raw material costs calls for tighter control of energy consumption and losses on the equipment side — the insulation and sealing configuration of stainless steel storage tanks, the heat transfer efficiency of mixing tanks, and the jacket and coil design of reactors all directly affect batch energy consumption and product consistency; new construction and revamp projects increasingly opt for turnkey production lines to shorten construction cycles and commissioning costs.

Further reading:

• Chemical Market Weekly | 2026-10-13: Aug Industrial Output +5.2%, Chemical Profits +51.0% in Jan-Aug, Eurozone PPI +8.2%
• Chemical Market Weekly | 2026-10-19: High Oil Prices Support Petrochemical Costs, PPI Chemical Raw Materials +12.6%, Methanol and Styrene Centers Move Higher

This article is compiled by Haolin Shengda Equipment Manufacturing Co., Ltd. (hyline.cn), with information ownership belonging to the original authors. We specialize in stainless steel reactors, mixing tanks, storage tanks, dispersers, concentrators and complete chemical line support, and support non-standard customization.