Supply and demand

The diesel exhaust fluid (DEF) market has grown rapidly since 2015, mainly driven by the implementation of stringent exhaust emission standards. Moreover, China’s petroleum state-owned companies, SINOPEC and PetroChina, started operating DEF dispensers in their petrol stations in January 2016, which makes DEF refueling more convenient and relieve.

China’s DEF is supplied in three ways - sold as jerry cans, or via dispensers in petrol stations and private DEF refueling stations.

In 2020, China’s DEF consumption was 2.56 million tonnes, increased 11-fold from 2014. SGS INSPIRE estimates that 2021 consumption would reach 2.75 million tonnes, driven by the implementation of heavy-duty diesel vehicle meet China VI (a) from July 1, 2021.

Based on industry estimates, the DEF consum