SAP Sector Develops Rapidly


By Zheng Chengwang

Stable demand growth internationally

Super absorbent polymers (SAP) feature high water absorption,
high water retention, rapid water absorption, great expanding
power, strong thickening, strong anchoring and excellent
elasticity. They have therefore found extensive applications in
sanitary products, agriculture, manufacturing and construction.
Production of SAP in the world has seen stable growth in recent
years, with capacity having reached 1.581 million t/a today, an
increase of 12.1% over the previous year. Market consumption has
also increased steadily. The average annual growth of SAP
consumption was 4.5%-5.0% from 2001 to 2005. According to the
projection made by TranTech, the average annual growth of SAP
demand in the world will reach 6% from 2006 to 2010.

Rapid capacity expansion in China

SAP is one of the important raw materials for sanitary products.
It is an indispensable raw material, in particular, for paper
diapers and super-thin napkins. China's SAP demand has been
satisfied mainly by import for many years, and domestic SAP
producers hold a relatively small market share. China moved
against dumping of acrylic esters in 2001 and 2003. Due to the
price rise of acrylic esters in the domestic market, most
domestic SAP producers suspended production, and foreign
products occupied almost the entire domestic market. With great
efforts made by domestic companies, the Ministry of Commerce
terminated its antidumping activities against the import of
acrylic esters and some SAP producers that had suspended
production restored production. China's capacity to make SAP has
reached 106 thousand t/a today. Major producers here include
Nisshoku Chemical Industry (Zhangjiagang) Co., Ltd., San-Dia
Polymer (Nantong) Co., Ltd. and Jinan Haoyue Water Absorbent
Materials Co., Ltd.
   A group of large SAP units will be completed one after another
during the Eleventh Five-year Program period (2006-2010). The
30 thousand t/a SAP unit constructed by Formosa Plastics Co.,
Ltd. in Ningbo of Zhejiang province will start production in May
2007. The company's capacity of 60 thousand t/a high-purity
acrylic acid meets raw material prerequisites for the capacity
expansion of SAP. In August 2006 BASF and Sinopec signed an
agreement on the capacity expansion of BASF-YPC Co., Ltd. Both
sides will make an investment of US$500 million in the capacity
expansion of basic petrochemical products and the construction
of new downstream units. A 60 thousand t/a SAP unit will be
constructed and the 70 thousand t/a high-purity acrylic acid
unit will provide raw material for the SAP unit.
   San-Dia Polymer (Nantong) Co., Ltd. plans to construct two
new SAP production lines in Nantong and increase its total
capacity of SAP from 20 thousand t/a today to 50 thousand t/a.
It is expected that the construction of new production lines will
be completed in March 2008. Nisshoku Chemical Industry
(Zhangjiagang) Co., Ltd. also has an expansion plan. Another 30
thousand t/a SAP production line will be constructed on the basis
of the existing 30 thousand t/a unit. China's capacity to produce
SAP will therefore be increased by 150 thousand t/a during the
Eleventh Five-year Program period.

Drastic demand increase

In advanced countries, 77.5% of the SAP consumed is used in baby
diapers, 10% is used in adult incontinence pads, 4% is used in
women's sanitary napkins, 3.8% is used in agriculture, 1% is used
in construction and 3.7% is used in other sectors. The
consumption composition in China is 55% for baby diapers (pants),
40% for women's sanitary napkins and 5% for adult incontinence
pads. It shows that the consumption proportion in adult
incontinence pads is very small in China and has great market
potential. Besides, the survey shows that the amount of SAP added
in adult incontinence pads is also very small compared with
advanced countries. (The amount of SAP added is 14g per piece
in advanced countries but only 4g per piece in China.)
   In Japan 12% of men over 65 years of age need care (6% confined
to bed, 1% dementia and 5% poor health). China had around 100
million old men at an age over 65 in 2005. Based on the same rate
(12%) as in Japan, around 1.2 million old men need care. The
demand of adult diaper pants or incontinence pads is 8.8 billion
pieces a year. If the amount of SAP added is 14g per incontinence
pad as in advanced countries, the demand of SAP is around 123
thousand tons a year.
   The number of babies in China is 3.4 times the number of old
men needing care. The demand of baby diaper pants is 6.8 times
the demand of adult diaper pants or incontinence pads. The demand
of SAP in baby paper diaper pants should at least be 840 thousand
tons a year. Most Chinese people, however, still prefer cotton
diapers. The demand growth of SAP in baby diaper pants will
therefore not be very rapid. Besides, SAP still has a huge
consumption potential in the women's sanitary napkin market. The
consumption of women's sanitary napkins in China reached 39.9
billion pieces during 2005, an increase of 3.9% over 2004.

Table 1  Consumption of SAP in China in Recent Years  (thousand
tons)
Year    2000    2001    2002    2003    2004    2005
    2006(estimated)
Consumption  
        10.2    14.1    18.0    24.0    36.0    40.0    44.8
Growth over the previous year (%)
        30.8    38.2    27.6    33.3    50.0    11.1    12.0
Source: CNCIC

Table 2  Major SAP Producers in China in 2006
  (thousand t/a)
Producer                                     Capacity
Nisshoku Chemical Industry (Zhangjiagang) Co.    30
San-Dia Polymer (Nantong) Co.               20
Jinan Haoyue Water Absorbent Materials Co.    20
Tangshan Boya S &T Industry Development Co.    15
Zhongshan Radiation New Materials Co.       10
Source: CNCIC