In June 2026, the PTFE (polytetrafluoroethylene) market is bracing for a fresh wave of across-the-board price increases. Several prominent fluorochemical companies have uniformly hiked the ex-factory prices of all fluoropolymer products, including PTFE, PVDF, FEP, and fluororubber, effective June 1. Among these, all grades of PTFE suspension resin, dispersed resin, and concentrate will witness a 5% uptick from their current rates.

PTFE, widely recognized as the 'Plastic King,' is undergoing a renaissance propelled by the convergence of the AI computing revolution, semiconductor localization efforts, and burgeoning new energy demands.

01. The Metamorphosis of the 'Plastic King'

PTFE is celebrated for its exceptional chemical stability, corrosion resistance, resilience across a broad temperature spectrum (-190°C to 260°C), low friction coefficient, and outstanding electrical insulation properties. These attributes have cemented PTFE's status as a ubiquitous presence across diverse industrial sectors, encompassing chemicals, petroleum, textiles, food processing, papermaking, medicine, electronics, and machinery.

In the chemical industry, PTFE's robust corrosion resistance makes it a staple in pipelines transporting corrosive gases, distillation columns, heat exchangers, and valve linings. Within the machinery sector, its low friction coefficient renders it ideal for bearings, seals, and wear-resistant components. In civilian applications, PTFE raw material tape is virtually ubiquitous in household plumbing installations.

In the realm of 5G and telecommunications, PTFE's extremely low dielectric constant and dissipation factor (Df) position it as the material of choice for crafting high-frequency copper-clad laminates, suitable for high-frequency communication fields like 5G base stations, aerospace, and military applications. It is estimated that the domestic market size for PTFE used in 5G base stations will surge to RMB 7.6 billion from 2020 to 2025. As 5G communication networks expand, PTFE finds extensive use in antenna array connections and filter components within 5G base stations.

In the semiconductor industry, PTFE's modified variant, PFA (perfluoroalkoxy), is integral to pipelines, etching tanks, and cleaning tanks during semiconductor etching and cleaning processes. With China's semiconductor localization rate on the rise, the demand for PTFE films in corrosion-resistant coatings and cleanroom filtration materials for wafer processing equipment is skyrocketing, with a projected 30% increase in demand in this sector by 2025.

In the new energy sector, the demand for PTFE seals in new energy vehicles and PTFE-coated lithium battery separator materials is growing at an annual rate exceeding 15%. Scenarios such as thermal pressing of photovoltaic silicon wafers and insulation of lithium battery electrodes are also witnessing sustained growth.

Simultaneously, PTFE's remarkable thermal stability, chemical resistance, and dielectric properties are propelling its ascent in high-frequency and high-speed transmission fields, which constitute the core driving force behind the current PTFE market upswing.

02. Supply Constraints, Demand Surge

Over the past few years, PTFE prices have endured a precipitous decline. From 2023 to 2025, the price of suspension medium particles plummeted from RMB 50,000 per ton to a nadir of RMB 36,000 per ton, marking a 39% drop. A surge in capital inflows led to a rapid expansion of production capacity, compelling companies into a ruthless price war to sustain cash flow.

However, since 2026, prices have commenced a rebound from their lows. As of June 5, the price of PTFE stands at RMB 52,000 per ton, reflecting a monthly increase of 1.96%, a quarterly increase of 11.83%, and an annual increase of 23.81%.

The current price surge in PTFE is not a fleeting market fluctuation but rather the outcome of concurrent structural shifts on both the supply and demand fronts.

From the supply perspective, expansion in the PTFE industry has largely stalled since 2022, with domestic production capacity stabilizing at 199,100 tons. In 2025, China's total PTFE production capacity is approximately 230,000 tons annually. Production capacity is concentrated among leading firms, with Dongyue Group, Haohua Technology/Zhonghao Chenguang, and Juhua shares accounting for roughly 57% of the national total. For instance, by the end of 2025, Juhua shares had established a PTFE production capacity of 28,000 tons annually, with an additional 37,000 tons under construction.

Concurrently, industry operating rates remain subdued, with overall capacity utilization hovering around 60%. In December 2025, the capacity utilization rate stood at 64.5%. China's PTFE capacity utilization is approximately 78%, lagging behind the global average of 85%, indicating a coexistence of structural overcapacity and insufficient high-end supply.

In stark contrast to the supply stagnation is the relentless expansion in demand. In terms of total volume, PTFE demand has sustained steady growth. From 2020 to 2025, industry demand escalated from 58,300 tons to 113,100 tons, with a compound annual growth rate of 14.15%. In 2025, China's PTFE consumption surpassed 186,000 tons, marking a 7.2% year-on-year increase. It is estimated that China's PTFE market size will reach RMB 8.5 billion in 2025, reflecting a 12% year-on-year increase, and is projected to grow to RMB 12.8 billion by 2030.

More critically, the demand structure is undergoing a qualitative transformation. Traditional markets such as coatings, textiles, and building materials are experiencing decelerating or even contracting demand growth, while three emerging sectors—AI computing power, semiconductors, and new energy—are unlocking unprecedented incremental space for PTFE. From 2020 to 2025, the demand for PTFE seals in new energy vehicles and PTFE-coated lithium battery separator materials grew at an annual rate exceeding 15%. Military applications, high-speed server cables, and high-speed boards are all anticipated to witness rapid demand growth.

03. Price Rebound Fueled by Triple Synergy

The current PTFE price surge is the culmination of the simultaneous interplay of three forces.

The most pivotal catalyst emanates from NVIDIA. As the mass production node for NVIDIA's next-generation Rubin ultra servers looms, the industry is actively deliberating the potential utilization of PTFE materials for orthogonal backplanes. CITIC Construction Investment Securities explicitly highlighted in a June 17 research report that the rapid growth in high-frequency and high-speed demand, such as computing power, is propelling the large-scale application of electronic-grade PTFE. The three major downstream demands for PTFE—military applications, high-speed server cables, and high-speed boards—are all projected to experience rapid growth.

Currently, NVIDIA has confirmed the adoption of PTFE as the core material for the Rubin Ultra orthogonal backplane. The previous M9 + Q cloth solution fell short of meeting the requisite electrical performance standards, leading to the selection of PTFE as the core material for the orthogonal backplane. Specifically, PTFE offers exceptional high-frequency transmission characteristics, lower signal loss, and can support SerDes signal transmission of 337G and above on the Rubin Ultra platform.

Traditional PTFE materials are relatively malleable and prone to burrs during drilling, posing challenges for mass production. However, newly developed silica (SiO2) filler-modified PTFE significantly enhances mechanical rigidity. This material has successfully navigated electrical performance tests and mass production feasibility verification.

Furthermore, PTFE is also poised for application in next-generation high-speed copper-clad laminate solutions, such as M10 materials. CITIC Construction Investment believes that as the demand for high-frequency and high-speed transmission, spearheaded by computing infrastructure, continues to escalate, the downstream applications of PTFE are destined for redefinition. PTFE is undergoing a 'paradigm shift' from a traditional industrial material to a core high-frequency and high-speed material for AI servers.

More notably, a price differential exists: high-end electronic-grade PTFE (utilized in M10 server PCBs) currently commands a market price of approximately RMB 150,000 per ton, while ordinary PTFE hovers around RMB 52,000 per ton. Once high-end electronic-grade PTFE achieves mass production, the industry's profit margins are poised for significant expansion.

Another pivotal driver of PTFE price increases stems from the cost front. Global geopolitical conflicts continue to disrupt the supply chain of chemical raw materials, causing prices of upstream fluorochemical basic materials such as fluorite, sulfuric acid, methanol, methane, and sodium chloride to ascend. This is compounded by escalating logistics and transportation costs and a synchronized increase in additive costs. Internal cost-reduction measures, such as process optimization and capacity efficiency enhancements, are no longer adequate to absorb the new production costs. Orient Securities' research report also underscores that with marginal improvements in supply and demand and rising hydrofluoric acid prices on the cost front, fluoropolymers are experiencing a price rebound after nearly four years of decline.

The industry's collective endeavor to combat 'cut-throat competition' has also contributed to the price increase. Multiple companies have articulated in their price adjustment announcements that to uphold product quality standards, they eschew low-price competition by reducing raw material input or compromising product quality. Instead, they are implementing reasonable price adjustments to ensure a stable supply of goods and maintain the long-term healthy and collaborative development of the upstream and downstream industrial chain. Specifically, Dongyue Group has successfully executed several rounds of price increases for PTFE this year, with favorable acceptance from downstream customers. This indicates that the industry is emerging from the quagmire of past price wars and entering a new phase of 'quantity control, price protection, and quality priority.'

04. From 'Four-Year Winter' to 'Spring Blossoms'

After nearly four years of downturn, the PTFE industry is witnessing a comprehensive resurgence in prosperity levels (market sentiment).

At the price level, as of June 5, 2026, the average market price of suspension medium particles is RMB 51,000 per ton, dispersed resin is RMB 52,000 per ton, and PTFE concentrated emulsion is RMB 31,000 per ton. The industry has already factored in expectations of further price increases, with estimated increments of RMB 1,000 to RMB 2,000 per ton for products such as suspension medium particles and dispersed resin.

At the profit level, with the realization of the logic of increasing both volume and price, the profitability of leading companies is accelerating its recovery. Dongyue Group's silicone segment, which previously grappled with overcapacity issues, is gradually resolving them through industry-wide efforts to combat 'cut-throat competition' and steady demand growth. The recovery in product prices has directly propelled the subsidiary Dongyue Silicon's net profit attributable to shareholders to RMB 194 million in the first quarter of 2026, marking a staggering 427% year-on-year increase.

At the competitive landscape level, domestic companies are continuously achieving breakthroughs in high-end markets. Juhua shares has officially commenced mass production of ultra-pure PFA products, meeting semiconductor-grade purity requirements and stably controlling the precipitation of key metal ions at the ppt level, filling the domestic void in high-end fluoropolymer industrialization. Yonghe shares' FEP products maintain domestic leadership and approach international advanced levels in key indicators such as dielectric loss, thermal weight loss, and bending resistance. Haohua Technology has achieved breakthroughs in key technologies for polytetrafluoroethylene resin and fluororubber, transitioning from following to keeping pace with international leaders.

Meanwhile, major mainstream securities firms are gradually recalibrating their research and judgments on PTFE.

Guosen Securities is optimistic about the escalating demand for high-end fluoropolymers in the pan-semiconductor sector and suggests paying heed to the price increases of electronic-grade PTFE, ultra-pure PFA, and other fluorinated polymers. The firm recommends focusing on fluorochemical leading companies with complete industrial chains, well-appointed infrastructure, leading refrigerant quotas, and advanced process technologies.

Orient Securities released a research report stating that fluoropolymer prices have bottomed out and are poised to rise, driven by improving supply and demand conditions. The firm is bullish on the industry's recovery, which will drive company profitability enhancements. It believes that domestic companies' continuous breakthroughs in high-end fluoropolymer applications will usher in mid- to long-term growth. However, Orient Securities also cautions that slower-than-expected demand for fluoropolymers and sluggish promotion of high-end applications are the primary risks confronting the industry.

It is predicted that the global PTFE market is expected to burgeon from USD 2.81 billion in 2025 to USD 3 billion in 2026, with a compound annual growth rate of 6.6%. With the accelerated penetration of high-end applications such as AI servers, semiconductor equipment, and new energy, this growth rate is anticipated to continue its ascent.

PTFE's current market boom, on the surface, may appear to be a 'rebound after four years of decline,' but in reality, it is the ultimate pursuit of material performance in the AI era that is propelling a traditional chemical product onto the central stage of strategic materials. With the sustained growth in high-frequency and high-speed transmission demand led by computing infrastructure, the downstream applications of PTFE are destined for redefinition.

This wave of material upgrades driven by the computing revolution may have only just commenced.

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