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The cancellation of export VAT rebates for phosphorus flame retardants and DBNPA speeds up consolidation in China’s fine chemical industry. Low-cost small manufacturers are under financial strain, while large integrated suppliers gain market advantages via technological innovation. Producers are shifting R&D to high-end flame retardants for EV batteries and eco-friendly DBNPA biocides complying with EU standards. Global buyers will value stable supply and product quality over rock-bottom prices. In the long run, the policy supports ESG development and is expected to stabilize market prices within one year.

The abolition of China’s 13% export VAT rebate for phosphorus flame retardants and DBNPA pushes up procurement costs for global buyers. Combined with volatile upstream phosphorus raw material prices, suppliers keep adjusting quotations. Widely adopted in plastics, new energy, water treatment and coatings, these chemicals squeeze overseas end-users’ profits. While large manufacturers ease pressure through internal optimization, traders transfer cost increases downstream. Experts suggest long-term contracts to hedge spot price volatility.

Issued via China’s Announcement No.2 of 2026, a new policy cancels the original 13% export VAT rebate for phosphorus flame retardants and industrial biocide DBNPA starting April 1, 2026, judged by customs declaration date. Covering TCPP, ammonium polyphosphate and other mainstream chemicals, the policy aims to upgrade resource-intensive chemical industries. It brings immediate cost hikes for global importers, triggering frequent quotation adjustments and expected long-term price fluctuations across the phosphorus chemical supply chain.