【Flame Retardant & Raw Materials Weekly Report】 —— Week 3 of May 2026 (May 11 – May 15)

【Flame Retardant & Raw Materials Weekly Report】 

—— Week 3 of May 2026 (May 11 – May 15)

【Key Highlights of the Week】

Aluminium operating capacity returns to an upward trend; total inventories reach 5.495 million metric tons; futures warehouse stocks exceed 500,000 metric tons, hitting a record high;  significant delivery pressure in June.

• Antimony trioxide prices stable for the week at RMB 130,000/ton; downstream sentiment strong, thin trading activity.

• Chinese companies obtained two new invention patents for halogen‑free flame retardants this week, focusing respectively on low‑acidity halogen‑free flame retardants and halogen‑free flame‑retardant polypropylene composites.

• The European Union formally proposes to include the novel brominated flame retardant TBPH in Annex A of the Stockholm Convention, which may accelerate "halogen‑free" transition in home appliances and other sectors.

• Fuhua Chemical and Clariant's joint venture high‑end phosphorus‑based halogen‑free flame retardant project breaks ground in Leshan on May 15.

【Raw Material Prices & Markets】

I. Aluminium

The Aluminium spot market continued its weak and volatile pattern this week. After the holiday, production capacity under maintenance in Guangxi gradually resumed, supply pressure re‑emerged, downstream electrolytic aluminium players were cautious in restocking, and prices returned to low levels.

• Supply side: Aluminium operating rates picked up after the holiday; previously maintained or troubled plants in Guangxi gradually restarted, new capacities from Q2 continued to come online, and domestic operating capacity returned to an  upward trajectory. Mysteel data indicates that domestic metallurgical‑grade Aluminium operating capacity is expected to rise to 87 million metric tons      in May.

• Inventory side: Social inventories continued to accumulate. As of May 14, total Aluminium inventories (ALD definition) stood at 5.495 million metric  tons, up 68,000 metric tons week‑on‑week. Port inventories were recorded at 492,000 metric tons, an increase of 56,000 metric tons from the previous week, or +12.84%. Futures warehouse stocks exceeded 500,000 metric tons, an all‑time high; 250,000 metric tons will expire in June, creating significant delivery pressure.

• Feedstock side: Guinea CIF price remained at US63/ton; ore side generally stable. Guinea mines slightly lowered their May long‑term contract offers, while the implementation of the quota policy has been postponed.

• Futures market: On May 14, the Aluminium index fell 0.3% intraday to RMB  2,760/ton, with the main contract closing around RMB 2,792/ton. Spot price in Shandong held at RMB 2,670/ton, a discount of RMB 120/ton to the main contract.

Aluminium Price Data Summary (as of May 15)

II. Other Flame Retardant Raw Materials

【Technology Developments】

• A Chinese company was granted a patent titled "Low-acidity halogen-free flame retardant, method for preparing same, flame-retardant polyamide composite material and use thereof". The patent compounds dialkylphosphinic acid aluminium salt with hindered amine light stabilisers to control the flame retardant's pH between 6.5 and 7.0, reducing corrosion to the resin matrix.

• Another patent was granted for "Halogen-free flame-retardant polypropylene composite material, preparation method and use thereof". This technology introduces quaternary ammonium salt compounds, improving the stability of intumescent flame retardants under long-term humid-hot conditions while also enhancing the material's voltage-withstand breakdown performance and mechanical properties.

• Woer Heat-shrinkable Material obtained an invention patent for "Flame-retardant nylon material and preparation method thereof". The patent introduces a modified POSS-structured flame-retardant synergist into a phosphorus-nitrogen synergistic system, forming multiple protective layers (char layer/ceramic barrier/insulating coke layer) during combustion, significantly improving anti-dripping performance.

【Industry Events】

• Major project: The high-end phosphorus-based halogen-free flame retardant project jointly built by Fuhua Chemical and Clariant officially broke ground in Leshan, Sichuan on May 15. The project is planned with an annual capacity of approximately 50,000 metric tons, targeting markets in Europe, North America and Greater China, focusing on building & construction, new energy vehicles, electronics & electrical applications. Core products are jointly owned globally through patents by both parties.

• Capacity expansion: Shandong Xuri New Material Co., Ltd.'s 41,000 metric tons/year high-efficiency environmentally friendly phosphorus-nitrogen flame retardant project continues to advance, with an investment of approximately RMB 329 million. Project information was updated on May 9, 2026.

• Regulatory developments: The European Union issued Decision (EU) 2026/878 on April 30, formally proposing to include bis(2-ethylhexyl) tetrabromophthalate (TBPH) in Annex A of the Stockholm Convention. If the proposal is adopted, global production and use of the substance will be gradually and completely prohibited, with only very few exempted uses. TBPH is widely used in wires and cables, TV casings and home appliance components.

• Market performance: Antimony trioxide briefly fell to RMB 137,500/ton early last week. Downstream flame retardant enterprises showed weak buying interest, with end-users adopting a "buy on rising prices, not on falling" wait and see attitude.

• International raw materials: On May 15, Guinea bauxite CIF price held at US$67/dmt. Shandong port price for Guinea gibbsite was flat.

【Focus for Next Week】

• Progress of new Aluminium capacity feed-in and Guangxi production resumption; implementation timing of Guinea's bauxite quota policy and its pass-through to ore prices; digestion of 250,000 metric tons of futures warehouse receipts expiring in June.

• Changes in downstream restocking sentiment for antimony trioxide; potential price disturbance from Myanmar raw material supply.

• Follow-up review progress of the EU TBPH ban proposal, and response from downstream home appliance and wire & cable industries to the new regulation.

• Subsequent construction progress of the Fuhua Chemical-Clariant phosphorus flame retardant project.