Import Volumes of BPA Stay High
Year:2007 ISSUE:32
COLUMN:MARKET REPORT
Click:321    DateTime:Nov.14,2007
Import Volumes of BPA Stay High  

Bisphenol A production enters a stage of rapid development   

Bisphenol A (BPA) as an important organic chemical raw material is mainly used in the production of epoxy resins and polycarbonates. It is also used to produce flame retardants, unsaturated polyester resins, polyacrylates, polyether imides and polysulfones.
   The rapid development of epoxy resins and the completion of polycarbonate producing facilities in recent years have led to a rapid demand growth of BPA in China. Due to the high cost, most domestic producers are operating at a loss and have a low operating rate. There were mainly two producers in China before 2005. The 200 thousand t/a BPA unit in Shanghai Bayer Polymer Co., Ltd. started production at Caojing of Shanghai in October 2006 and a matched 100 thousand t/a polycarbonate unit was also constructed. The BPA produced is mainly captive with small amounts for sale in the general market. Due to the low operating rate of its polycarbonate unit today, however, amounts for sale in the market are higher than what was planned.
   The large market potential has aroused the attention of many BPA and downstream users. Construction was begun on the 90 thousand t/a BPA unit of China BlueStar New Materials Co., Ltd. in September 2006. (CCR2006, No. 29) The 120 thousand t/a BPA project in Sinopec Mitsui Chemical Co., Ltd. was also launched in July 2006 and is expected to start production in 2008. (CCR2006, No. 23) Dalian Qihua Chemical Co., Ltd. intends to construct an 80 thousand t/a BPA project. Tangshan Nanpu Development Zone Economic Development Bureau announced in 2005 that it would construct a 200 thousand t/a BPA project, but no progress has been made so far.

Domestic demand has
grown rapidly

Judging from BPA consumption in the domestic market, the rapid growth of demand for epoxy resins and polycarbonates is the major driving force. Epoxy resin producers in China are mainly distributed in Jiangsu, Anhui, Guangdong, Liaoning and Shandong provinces. The demand for BPA to be used in polycarbonate production has also become one of the main growth points for the future demand of BPA. Some polycarbonate units of considerable scale such as two 50 thousand t/a units built by Teijin of Japan in Jiaxing of Zhejiang province and the 100 thousand t/a unit constructed by Shanghai Bayer Polymer Co., Ltd. have started production. Besides, Teijin of Japan also plans to construct a third 60 thousand t/a polycarbonate production line in China. Mitsubishi Gas Corporation also intends to construct a 100 thousand t/a polycarbonate unit in China. PetroChina Jilin Petrochemical Company Ltd. plans to construct a 200 thousand t/a polycarbonate unit in 2007. Lanzhou Refining & Chemical Co., Ltd. plans to make an investment of RMB1.538 billion and construct a 100 thousand t/a polycarbonate unit. Nanjing Chemical Industry Zone also plans to construct a 100 thousand t/a polycarbonate unit and the project is at the stage of investment promotion today.
   The capacity to make BPA in China was 26 thousand t/a in 2001, output was 12 thousand tons and apparent consumption was 106 thousand tons. The capacity reached around 251 thousand t/a at the end of 2006, the output was 48 thousand tons and the apparent consumption was 404 thousand tons. The average annual growth of apparent consumption of BPA in China was 30.7% from 2001 to 2006. The demand for BPA in China is expected to reach around 700 thousand tons in 2010.

Import volume increases
constantly

Capacity of epoxy resin units and polycarbonate units in China has expanded rapidly in recent years. The capacity for making BPA has not kept pace however. Hence the rapid demand growth drives an urgent need for imports, and the imported amount has grown rapidly in recent years. It was 279 thousand tons in 2005 and leapt to 360 thousand tons in 2006, an increase of 29.0%. Due to the unstable operation of domestic BPA units, the condition of high import volumes is certain to last for a considerable period of time.


Table 1  Major BPA Producers in China in 2006
      (thousand t/a)
Producer                            Capacity
Shanghai Bayer Polymer Co., Ltd.                    200
Wuxi Resin Plant of BlueStar New Material Co., Ltd.    41
Tianjin Shuangfu Fine Chemical Co., Ltd.             10
Source: CNCIC

Table 2  Supply and Demand of BPA in China in Recent Years
(thousand tons)
Year        2001    2002    2003    2004    2005    2006
Output       12         10      20      50      50      48
Net import amount    94    127    176     171     269     356
Consumption    106     137     196     221     319     404
Source: CNCIC