Long-chain Dicarboxylic Acids Market Outlook Is Not Favorable   

Technical breakthroughs promote the development of long-chain dicarboxylic acids

Dicarboxylic acids are organic compounds that are substituted with two carboxylic acid functional groups. Long-chain dicarboxylic acids are dicarboxylic acids with carbon chains containing more than 10 carbon atoms. Long-chain dicarboxylic acids are important organic intermediates with extensive applications.

1. Biochemical technology shows bright prospect

There are three processes for producing long-chain dicarboxylic acids according to the different raw materials, namely vegetable oils cracking, organic synthesis, and biological fermentation. Due to the limitation of raw materials, long-chain dicarboxylic acid producers can only produce DC13 and DC15 by vegetable oils cracking process and the product purity is low. The large-scale industrial production of long chain dicarboxylic acids by organic synthesis process is affected because of the limitations of the complex production process. The biological fermentation process can produce a series of long-chain dicarboxylic acids with 11 to 18 carbon atoms (DC11-DC18). It carried out under normal temperature and pressure and can realize large-scale industrial production. So the biological fermentation process is best route for the production of long-chain dicarboxylic acids.

2. Production in China

Since the 1980s, China has used the fermentation process to produce long-chain dicarboxylic acids on a small scale. In the 1990s, Chinese producers mainly produced DC13. China had a total DC13 capacity of around 300 t/a, of which Shanghai INDA Electromechanics Co., Ltd. had 200 t/a, and Fushun Petrochemical Research Institute had 100 t/a. At present, these two DC13 producers have suspended production. The Institute of Microbiology, Chinese Academy of Sciences developed a fermentation technology to produce long-chain dicarboxylic acids and successfully realized the industrial production of long-chain dicarboxylic acids with this technology in 2005. Up to the fourth quarter of 2010, the total capacity to make long-chain dicarboxylic acids in major domestic long-chain dicarboxylic acids producers reached 53 500 t/a.  
    In the next few years, China’s production capacity of long-chain dicarboxylic acid will be further expanded. The 60 000 t/a long-chain dicarboxylic acids and its downstream product project of Shandong Hilead Biotechnology Co., Ltd. with a total investment of RMB3.0 billion is well underway. The first phase 10 000 t/a long-chain dicarboxylic acid project went on stream in September 2009, the construction of the second phase 20 000 t/a long-chain dicarboxylic acid production line was basically completed in 2010 and the company plans to put its third phase 30 000 t/a unit on stream in 2014. In addition, the first phase 5 000 t/a downstream engineering plastic project is in the stage of engineering design. Qingdao Dooy Bioengineering & Technology Co., Ltd. plans to construct 30 000 t/a long-chain dicarboxylic acids and 5 000 t/a high-grade nylon project in Wenzhou of Zhejiang province. If all projects are completed, the industrial concentration degree will be further enhanced.

3. Production in foreign countries

Nippon Mining of Japan first produced DC13 with the fermentation process in 1987, the capacity of the production unit was 200 t/a, and the products were used to produce musk-T perfume. Since 2001, the production unit has stopped production. Now, DuPont and Invista of the United States, Germany's Evonik and UBE from Japan use the chemical synthesis method to produce long-chain dicarboxylic acids. In 2009, the output of long-chain dicarboxylic acids in the four companies was around 14 000 tons, and all product is DC12 mainly used in manufacturing nylon engineering plastics.

4. Supply in China

DC12 and DC13 hold a majority proportion in long-chain dicarboxylic acids produced by biological fermentation process.  All kinds of varieties are in good sale, and domestic products are mainly exported to the international market. China's total output of long-chain dicarboxylic acids was around 10 000 tons in 2006, and with the startup of some production units, the output reached around 17 000 tons in 2009.The demand for long-chain dicarboxylic acids in the sectors such as engineering plastic, perfume and high-grade hot melt adhesive has increased constantly in recent years. The rapid development of downstream sectors at home and abroad will promote rapid development of long-chain dicarboxylic acid sector. China's output of long-chain dicarboxylic acids was expected to be 19 000 tons in 2010, and will increase to 50 000 tons in 2015.

Development of downstream products needs to be accelerated

1. Nylon engineering plastics

Nylon engineering plastic is the largest downstream application sector of long-chain dicarboxylic acids. Foreign companies mainly use long-chain dicarboxylic acids as raw materials to produce nylon 11 and nylon 12. However, no Chinese producers can produce nylon 11 and nylon 12, and domestic demand is satisfied by imports. The major nylon 11 producers in the world include Evonik and Hoechst from Germany, DuPont of the United States, France's Atofina and EMS from Switzerland. Atofina, DuPont, Evonik, EMS and Japan's UBE are major global nylon 12 producers. China imports around 10 000-20 000 tons of nylon 11 and nylon 12 each year and the imported price is around RMB100 thousand per ton. The imported price of nylon 12 is slightly higher, being RMB110 thousand-120 thousand per ton.
   At the end of 20th century, Zhengzhou University and the Institute of Microbiology, Chinese Academy of Sciences developed a new biological fermentation process to produce long-chain nylon and realized the industrial production of long-chain nylon 1212 in Zibo of Shandong province in 1998. Nylon 1212 resin has low water absorption ratio, excellent resistance to acid, alkali and solvent, and good dimensional stability. Its comprehensive property is superior to that of nylon 11 and nylon 12. Similar to nylon 11 and nylon 12, Nylon 1212 can be molded with injection molding and extrusion molding technologies and has broad application prospects in automobiles, electric appliance, communications, mechanics and other industries. In addition, Zhengzhou University has successfully developed a series of new nylon engineering plastics including PA (nylon) 1313, PA 1111, PA 12T, PA 13T, and applied for patents for these products.
   Shandong Hilead Biotechnology Co., Ltd. associated with Zhengzhou University to establish Special Engineering Material Research and Development Center in August 2009. Both sides planned to fund and construct 3 000 t/a nylon 1212 and 2 000 t/a semi-aromatic nylon 12T project, which was the first phase downstream product project in Shandong Hilead Biotechnology Co., Ltd. The production capacity of the downstream product project is expected to be more than 10 000 t/a. By the end of 2010, the project was under the stage of engineering design. In addition, other domestic long-chain nylon resin producers include Zibo Guangtong Chemical Co., Ltd. and Shandong Dongchen Engineering Plastic Co., Ltd. If domestic nylon engineering plastic products can be substituted for imported nylon 11 and nylon 12, the demand for long-chain dicarboxylic acids will increase considerably.

2. Polyamide hot melt adhesives

Polyamide (nylon) resin can be used for the synthesis of high-grade polyamide hot melt adhesives with high bonding strength, good flexibility and heat resistant. Polyamide hot melt adhesives has good adhesion performance on wood, metal, ceramics, piece goods, phenolic resin, polyester resin, polyethylene and so on. When they are used in the garment sector, high-grad