Surfactant Sector Needs Urgent Readjustment
Year:2007 ISSUE:2
COLUMN:MARKET REPORT
Click:216    DateTime:Jan.22,2007
Surfactant Sector Needs Urgent Readjustment

By Huang Hongzhou


Surfactant industrial system has been basically established

After 50 years' development, China has already established a
surfactant industrial system with a relatively complete product
portfolio and can produce 4 714 varieties of surfactants in
cationic, anionic, nonionic and amphoteric categories. They are
extensively used in various sectors of the national economy
including industry, agriculture and daily life. The output of
surfactants in China reached 3.018 million tons in 2005, holding
the second place in the world. The proportion of industrial
surfactants in the total surfactant output increased from 47.55%
in 2000 to 72.26% in 2005.

Product portfolio is still not rational

    1. Insufficient high-end products
The product portfolio in the surfactant sector of China is still
not rational. The output of new-generation varieties is small.
The output of first-generation traditional varieties accounts
for around 75% of the total. Water-reducing agent is the largest
surfactant in China and the output reached 1.27 million tons in
2005, accounting for 42.1% of the total. The output of
first-generation naphthalene varieties, however, accounted for
80% of the total water-reducing agent output whereas the output
of third-generation carboxylate varieties only accounted for 5%.
Conventional surfactants produced in China can basically meet
the market demand, but high-end surfactants still need to be
imported in great quantities. For example, high-grade
conditioning agents for detergents and cosmetics,
high-temperature resistant smoothening agents for chemical
fiber oiling agents and leveling agents for flexible PU
(polyurethane) foams mainly depend on imported goods.
   There are many research achievements but few commercialized
products in the surfactant sector. It is therefore imperative
to promote the integrated development of research, development
and production and increase the output proportion of high-end
varieties. Modified starch has an extensive market in
papermaking, textile, food, pharmaceutical and water treatment
sectors and should be regarded as a focus for future development
and application.

    2. Small production scale
In 4 714 varieties of surfactants produced in China in 2005, only
12 varieties had an output of over 100 thousand tons and 27
varieties had an output of 10 thousand-100 thousand tons. Small
production scale, high cost and weak competitive edge have
become major bottlenecks for the development of the surfactant
sector in China.
   The number of surfactant producers in China already reached
3 321 in 2005, an increase of 128% over that in 2000. There is
yet no surfactant multinational in China. Most companies focus
on compounding products and have weak competitive edge.