Hexamethylene Diamine: Shortage in the Short Term and Surplus for the Long Run
Year:2007 ISSUE:33
COLUMN:MARKET REPORT
Click:333    DateTime:Nov.27,2007
Hexamethylene Diamine:  Shortage in the Short Term and Surplus for the Long Run   

Hexamethylene diamine is mainly used for the production of nylon 6,6 and nylon 6,10 respectively by a neutralization reaction with adipic acid and a reaction with decanedioic acid. Afterwards, nylon 6,6 and nylon 6,10 can be made into various kinds of nylon resins, nylon fiber and engineering plastics.

A.
The present production situation of domestic and foreign hexamethylene diamine manufacturers

Major hexamethylene diamine manufacturers worldwide include some multinational companies, such as Invista and Solutia of the United States, Rhodia of France and BASF of Germany. The world's output of hexamethylene diamine reached about 1.57 million tons in 2005 and is expected to reach 2.216 million tons in 2010 with an increase of 8.2% annually.
   Major domestic hexamethylene diamine manufacturers include China Shenma Group and CNPC Liaoyang Petrochemical Co., Ltd. The capacity of hexamethylene diamine in China Shenma Group has reached 100 thousand t/a, and the company's actual output in 2006 was 70 thousand tons. The company is now expanding its capacity to 150 thousand t/a. The capacity of hexamethylene diamine in CNPC Liaoyang Petrochemical Co., Ltd. is 22 thousand t/a but the operation rate is low. Presently, the domestic hexamethylene diamine capacity is only 126 thousand t/a, accounting for 8% of the world total. Users have to import it because of low domestic output. The majority of local production is for self use, leaving only a small amount on the open market. China imported 978 tons and 929 tons of hexamethylene diamine from abroad in 2005 and 2006 respectively. The imported amount in 2010 is expected to be around 20 000 tons.

Production of Hexamethylene Diamine in China in 2006
Manufacturer                 Capacity (t/a)            Note
China Shenma Group Co.            100 000     5 000 tons for sale
CNPC Liaoyang Petrochemical Co.    22 000      self use
Liaoyang Tiancheng Chemical Co.     1 500    for sale
Ningbo Minte Nylon Industrial Co.    2 000    for sale
Others                          500            for sale
Source: CNCIC

B. The present market situation

Hexamethylene diamine is mainly used as an intermediate of synthetic materials. Therefore, most of the hexamethylene diamine made is for the producer's own use with only small amount put onto the market. From the worldwide perspective, the amount traded is only around 20% of the total output. The whole-year trade amount is around 300 thousand tons. From the domestic perspective, the market trade amount is still relatively small and is focused on the production of nylon 6,6, nylon 6,10 and auxiliaries. In 2006, the market trade amount of hexamethylene diamine was totally around 6 550 tons in China - only around 5.2% of the domestic output, and the rest is all for internal use.


C.
The development trend of hexamethylene diamine

    1. The application fields are continuously broadening.
Hexamethylene diamine is not only used in traditional ways such as the production of nylon 66 and nylon 610, but also in the production of transparent nylon resin, synthesis of polyimine thiocarboxylate foamed plastics, hexamethylene isocyanate, coatings, adhesives, rubber auxiliaries, stabilizer for textiles and paper-making industries, bleaching agents, etc. In particular, the substantial increase of consumption in the production of high performance polyurethane will bring about breakthrough development for hexamethylene diamine.

    2. Demand is skyrocketing.
In recent years, hexamethylene diamine has been developed as the main raw material for the production of hexamethylene diisocyanate (HDI). After ten years of research, Gansu Yinguang Chemical Industrial Co., Ltd. is able to manufacture HDI with high purity. The company has built a 60 t/a HDI pilot unit and is planning to build a 1 thousand t/a HDI production line in 2007. If the two units' production goes on well after the completion of the 1 thousand t/a HDI production line, the company is scheduled to reach a capacity of 20 thousand-30 thousand t/a HDI in two or three years with hexamethylene diamine consumption reaching around 20 thousand tons. Besides, Bayer AG of Germany has launched construction of a 50 thousand t/a HDI production unit in Shanghai. The first-phase 30 thousand t/a project is scheduled to consume over 20 thousand t/a of hexamethylene diamine, and after completion of the whole project around 40 thousand tons of hexamethylene diamine will be consumed per year. Therefore, the amount of hexamethylene diamine consumed only by HDI can increase the market trade amount of hexamethylene diamine several times.
    In the traditional fields, DuPont Xingda Filaments Co., Ltd. has expanded the production capacity of nylon 6,10 so that the annual demand for hexamethylene diamine in the company is above 4 000 tons. In Yangzhou and Huaian regions, the expansion of production capacity for nylon 610 is expected to bring it above 3 000 t/a with the consumption of hexamethylene diamine reaching over 1 000 t/a. In 2010, the total domestic demand for hexamethylene diamine is expected to reach 227 500 tons, of which 152 000 tons will be for internal use and the remaining 75 500 tons for trade. Then the market trade amount will be ten times that of today, an increase of 70% annually. The demand for hexamethylene diamine in the domestic market is launching into a skyrocketing period.

    3. The growth trend of output will exceed the market demand.
China Shenma Group is the largest hexamethylene diamine manufacturer in China. The company is expanding its hexamethylene diamine production capacity to 150 thousand t/a from only 10 thousand t/a. Besides CNPC Liaoyang Petrochemical Co., Ltd., other small manufacturers also decide to expand further. In addition, Rhodia has announced plans to build a 60 000 t/a hexamethylene diamine unit in China, which will be operational in 2009. (CCR2006, No.28) Invista signed with Shanghai Chemical Industry Development Co., Ltd. to invest and construct a 300 thousand t/a adiponitrile (ADN) and 200 thousand t/a hexamethylene diamine project to serve the demand for nylon 6,6 intermediates and polymer in Asia. (CCR2007, No.16) The relevant design work of the ADN and hexamethylene diamine project has been carried out today and the commercial production is expected to start in early 2010. Therefore, a capacity of 310 thousand t/a hexamethylene diamine can even be increased only by China Shenma Group, Rhodia and Invista so that the total domestic supply of hexamethylene diamine will reach 435 500 tons in 2010, a total increase of 247%- 49.4% annually. Then, if the products manufactured by Rhodia and Invista are all supplied to the domestic market, the domestic capacity of hexamethylene diamine will be in surplus.

    4. The technological bottleneck in some domestic manufacturers is becoming more and more prominent.
Currently there is no domestic manufacturer in China that has been able to produce ADN. But some companies can produce hexamethylene diamine by importing ADN. As a raw material in the production of hexamethylene diamine, user