Export Tax Rebate Adjustment on Photovoltaic Products & Polyether Polyols

PUdaily | Updated: January 12, 2026

For the polyurethane industry, the update is particularly relevant because it captures product classifications that may apply to polyether materials commonly traded as polyether polyols (depending on the exporter’s declared HS code and customs classification). As a result, affected exporters may face higher effective export costs after April 1, 2026, which could translate into adjustments in export offers and contract pricing discussions.

Market participants should monitor potential impacts on export netbacks and shipment planning. As rebate removal typically increases the effective export cost for in-scope products, exporters and buyers may also reassess shipment schedules and commercial terms ahead of the implementation date where feasible.

https://www.pudaily.com/Home/NewsDetails/61866

Key Policy Shift: China’s Polyether Polyols VAT Export Rebates Cancelled from April 2026

Taylor liu

Sales Specialist-ECHEMI Group

January 13, 2026

China’s Ministry of Finance and State Taxation Administration have announced the removal of VAT export rebates for polyether polyols (HS 39072990), effective April 1, 2026. This marks a pivotal moment for an industry where export dependency has reached ~33%, with 2026 exports projected at 2M tons.

The change will reshape competitiveness in global markets and accelerate strategic reviews across the polyether-PO value chain.

Propylene Oxide (PO): A Short-Term Demand Pulse

A short-term demand surge is expected as exporters accelerate orders pre-deadline. While current PO operating rates are high, the demand pulse may tighten availability. PO prices have already begun rising (up ~RMB 200/ton in Jiangsu), with further increases anticipated.

Downstream Ripple Effect: Cost pressure will extend to key PO derivatives.

• Propylene Glycol (PG)
• Propylene Carbonate (PC)
• Dimethyl Carbonate (DMC)

Looking Ahead: With over 2.5M tons of new polyether and PO capacity scheduled through 2028—including multiple 2026 startups—the industry faces both policy-driven restructuring and expanding supply.

#PolyetherPolyols #PropyleneOxide #ChemicalIndustry #ExportPolicy #ChinaMarket #PG #PC #DMC #SupplyChain

Views are personal and not those of the company.

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