Industry News
Overall downstream demand is steadily increasing
Deng Huichang, Deputy Secretary General of the Chemical New Materials Special Committee of the China Petroleum and Chemical Industry Federation and Secretary General of the National 1,4-Butanediol and Derivatives Work Department, predicts that the demand for BDO will reach 2.595 million tons by the end of 2024.
From the specific downstream of BDO, it is expected that the newly added production capacity of polytetrafluoroethylene (PTMEG) in 2024 will be about 392000 tons (annual production capacity, the same below); Polybutylene terephthalate (PBT) will have an additional production capacity of 520000 tons, mainly from the conversion of polybutylene adipate (PBAT) and the construction of BDO projects; GBL will usher in a new peak of production, with an additional production capacity of 915000 tons within the year; There is still 640000 tons of newly added production capacity for polybutylene succinate (PBS); The TPU/PU pulp market is relatively stable. Overall, the demand for BDO in various fields has maintained steady growth.
Yang Yitao, co chief analyst of the chemical industry at Guosheng Securities Research Institute, pointed out that the demand for BDO from traditional fields such as textiles, pharmaceuticals, automobiles, plastics, and elastomers will stabilize, while the demand from emerging fields such as new energy vehicles and biodegradable plastics will continue to grow rapidly.
The rebound of spandex prosperity is expected
Yang Yitao pointed out that the price of PTEMG, the largest downstream area of BDO, may hit bottom in the future, and the recovery of spandex, an important downstream of PTMEG, is expected.
According to Li Zengjun, Executive Vice President of the Spandex Branch of the China Chemical Fiber Association, in the first half of 2024, the spandex industry will see a significant increase in production capacity, with an operating rate of 84%, which is in the middle of recent years, and a price drop of 6% to 8%. Although the industry's profitability and cash flow are poor, the use of spandex in the clothing industry is increasing, and the consumption of spandex fiber has significantly increased, with an average annual compound growth rate of over 10%, which has a significant driving effect on upstream BDO. He suggested that the spandex industry gradually slow down its production capacity growth rate and continue to explore new application markets.
Li Zengjun holds an optimistic attitude towards the future of the spandex industry. He stated that the demand for comfort in clothing and other daily necessities is irreversible, and the demand for home wear and high ammonia fabrics will increase. With the continuous expansion of spandex manufacturers, it is expected that the domestic spandex production capacity will exceed 1.5 million tons by 2025, which is a potential market for BDO consumption.
The rapid development of biodegradable plastics
In the downstream field of BDO, due to the increasing demand for home appliances and automobiles, PBT is expected to have capacity growth, and the implementation of plastic restrictions will also lead to a significant increase in PBAT production in the future. Ji Junhui, a researcher of the Institute of Physics and Chemistry of the Chinese Academy of Sciences and director of the National Engineering Research Center for Engineering Plastics, pointed out that "the substitution of degradable plastics is an important way to reduce the source of plastic pollution, and the constantly introduced policies have led to the rapid development of China's degradable plastics industry. At present, there is still much room for development and improvement of degradable plastics, including increasing market consumption, reducing costs, enhancing scene adaptability, and promoting the implementation of policies."
Yang Yitao also stated that in the long run, the development prospects of biodegradable plastics are promising, and the market growth potential is huge. Currently, the domestic PBAT/PBS production capacity is 1.8 million tons, and the long-term planned production capacity exceeds 10 million tons, which provides broad space for BDO applications.
TPU opens up more application scenarios
TPU is an emerging application field for BDO. With the gradual popularization of new energy vehicles, the amount of TPU used as charging pile cable protective covers in new energy vehicles will significantly increase, thereby driving BDO demand. Meanwhile, TPU has also demonstrated strong functionality in both home and outdoor applications. Compared to traditional products, products made from TPU are more waterproof, breathable, resistant to bacteria, easy to clean, and have lower odors. Customer positioning is also more precise and effective. Zhuang Wei, Director of BASF's Thermoplastic Polyurethane Business Unit, stated that the company's TPU has been applied in various fields such as shoe materials, fibers, and cable sheaths for new energy charging stations. The TPU material used by the company can achieve whole shoe recycling, and with the introduction of various environmental policies in the future, it is expected that TPU will have significant growth potential.
Zhuang Wei pointed out that in the future, with the further reduction of raw material costs, TPU will enter more application fields, and the application of bio based products will further expand; The market potential of PTMEG grade TPU is enormous; The laws and regulations in Europe and America will further promote the application of environmentally friendly materials such as TPU.
Carbon nanotubes become a new force in conductivity
Yin Hang, Senior Engineer at Zunyi Juyuan New Material Technology Co., Ltd., pointed out that carbon nanotubes, as one of the downstream application areas of BDO, have broad development prospects. Compared with conductive carbon black, carbon nanotubes exhibit significantly lower reaction temperatures and better performance in fields such as coatings, conductive materials, and batteries.
However, at present, the development of carbon nanotubes in the field of batteries is still subject to many constraints. If research breakthroughs are made, it will greatly promote the promotion and application of carbon nanotubes, and drive the demand for BDO. Yin Hang pointed out that firstly, carbon nanotubes have a wide range of applications, but the high production cost of carbon nanotubes currently restricts their promotion and application. Secondly, the high-purity post-treatment of carbon nanotubes needs to be strengthened. The production of carbon nanotubes requires catalysts containing iron, cobalt, and nickel, while carbon nanotubes used in lithium batteries require a metal ion content of less than 50ppm for iron, cobalt, nickel, and other metals. Thirdly, the large-scale dispersion technology of carbon nanotubes requires continuous innovation.
JIN DUN CHEMICAL has built a special (meth) acrylic monomer manufacturing base in ZHEJIANG province. This makes sure the stable supply of HEMA, HPMA, HEA, HPA, GMA with high level quality. Our special acrylate monomers are widely used for thermosetting acrylic resins, crosslinkable emulsion polymers, acrylate anaerobic adhesive, two-component acrylate adhesive, solvent acrylate adhesive, emulsion acrylate adhesive, paper finishing agent and painting acrylic resins in adhesive.We have also developed the new and special (meth) acrylic monomers and derivatives. Such as the fluorinated acrylate monomers, It can be widely used in coating leveling agent, paints, inks, photosensitive resins, optical materials, fiber treatment, modifier for plastic or rubber field. We are aiming to be the top supplier in the field of special acrylate monomers, to share our rich experience with better quality products and professional service.
