Phenolic Resin Sector Enters New Stage    

By Pu Zeshuang

Rapid output increase

With the importation of new production technologies and the boom of large timber processing, insulation refractory material, composite material and foam plastics sectors in recent years, the phenolic resin production in China has developed rapidly. The average annual growth of the phenolic resin output reached 33.7% from 2001 to 2006. The production capacity of phenolic resin in China was around 370 thousand t/a in 2006, the output was 355 thousand tons and the number of producers reached more than 100. There are 11 producers with a production capacity of over 10 thousand t/a including Jinan Shengquan Hepworth Chemical Co., Ltd., Fujian Shaxian Hongguang Chemical Co., Ltd., Zhejiang Jiamin Plastic Co., Ltd., Changshu South-East Plastic Co., Ltd., Shanghai European-Asian Synthetic Material Co., Ltd. and Shanghai Twin-Tree Plastics Factory.

Stable demand growth

The demand of phenolic resin in various downstream sectors is increasing constantly.
     (1) Molding materials: Since the shift to the extensive use of phenolic resin in foundry sand adhesives, both the casting process and the quality of cast pieces have improved remarkably. The consumption of phenolic resin in the foundry sector is increasing at an average annual rate of 15%.
     (2) Phenolic plastics: Phenolic plastics is a traditional consumption sector for phenolic resin and the consumption of phenolic resin in this sector accounts for more than 30% of the total, much higher than the average level in foreign countries. The development of phenolic plastics in China already tends to slow down in recent years. The market demand is not brisk and the sales of low-grade products, in particular, are slack. Owing to the progress in injection-molding process, phenolic injection-molded plastics have a bright development prospect and the market demand presents a rising trend. High-grade heat-resistant reinforced phenolic plastics also display considerable market potential.
     (3) Insulation refractory materials: In the insulation material sector phenolic resin will remain to be the preferred adhesive for heat-insulation and sound-proof materials. Besides, phenolic foam plastics are also used as new heat-insulation and sound-proof materials. The consumption of phenolic resin in this sector will therefore have a considerable growth. The application of phenolic composite materials in aviation, spaceflight, ships, transportation, construction and mining will arouse great interest. In addition, coated molds have developed drastically in recent years and the output has increased year-on-year. The demand for phenolic resin adhesives in this sector will be quite large.
     Both phenolic resin and phenolic plastics have achieved new advances in recent years in the improvement of product property and quality, the development of new technologies and new varieties, the production process and equipment, the research of basic theory and testing means. Many different brands of phenolic resin can be produced and composite materials can be manufactured with different processes in China. The traditional phenolic resin sector in China will therefore enter a new development stage.

Supply and Consumption of Phenolic
Resin in China from 2001 to 2006  (thousand tons)
Year    Output    Import    Export    Consumption
2001    111        80        20        171
2002    120       94        28       186
2003    135       104       32        207
2004    180      120        44        256
2005    220       102       58        264
2006    355      102       57        400
Source: CNCIC