China’s PVA Apparent Consumption Grew 4.68% in 2011

By Yan Feng

Polyvinyl alcohol (PVA) is produced from ethylene or acetylene. Most foreign enterprises adopt the ethylene process, while domestic firms mainly select the other.

1. Capacity Expanded

China’s PVA capacity grew from 570 000 tons in 2005 to 871 000 tons in 2010. And after three 50 000 t/a PVA projects (one in Inner Mongolia and the other two in Guangxi) of Anhui Wanwei Updated High-tech Material Industry Co., Ltd the capacity was increased to 1.02 million tons by the end of November 2012 – 685 000 tons (67.09%) were manufactured using acetylene from a calcium carbide process; 121 000 tons (11.85%), ethylene from petroleum; 165 000 tons (16.16%), acetylene from natural gas; 50 000 tons (4.90%), biomass feedstock.
   In the next several years, the nation will activate many new projects and expand old ones. Anhui Wanwei Group Co., Ltd intends to construct a 100 000 t/a PVA project, located in Chaohu of Anhui and expected to be put into production in 2013. Relying on technologies of Anhui Wanwei Group, Inner Mongolia Mengwei Technology Co., Ltd will build a 100 000 t/a PVA production unit, with the first-stage project (50 000 t/a) put into operation in 2011; second phase (50 000 t/a), 2012. China’s PVA capacity is expected to exceed 1.5 million tons in 2016.

2. Imports Decreased

According to customs statistics, China imported 34 500 tons of PVA in 2005, hitting a record high of 41 600 tons in 2007, and then declining to 29 300 tons in 2009, conversing to gain 4.09% YOY at 35 600 tons in 2011 when exports totaled 67 200 tons, soaring 41.47% YOY.

3. Consumption Areas Expanded

In recent years, China’s demand for PVA has been stable. Domestic PVA apparent consumption was 481 600 tons in 2005; rising to 511 500 tons in 2007, up 2.90% YOY; increasing to 563 600 tons in 2011, up 4.68% YOY.
   It used to be that most PVA – more than 100 000 tons a year – was used to make vinylon fiber, but the consumption structure has changed somewhat, with PVA’s non-fiber applications expanding continuously. In 2011, 36.3% of PVA was applied in reagent and additive in polymerization; 19.8%, sizing agent for fabrics; 14.5%, architectural coatings; and only 12.0%, vinylon fiber.
   Massive infrastructure construction around the country will promote the adhesive industry; the textile industry has turned losses into gains, heating up the sizing agent market to consume more PVA; the stable development of industries like electronics, papermaking, pharmaceuticals and fine chemicals has propelled PVA demand.
   With the development of China’s economy, high-count, high-density & high-end textiles see increases in both domestic demand and exports, and industries such as high-end paper, oil and automobile grow more rapidly, all of which provides ample opportunities for the PVA industry to develop new products. It is predicted that the country’s PVA demand will be 750 000 tons in 2016, when capacity will exceed 1.5 million tons, leading to more intense competition.

4. Challenges

1) With many newly constructed or expanded units put into operation, China’s PVA capacity has surpassed demand, making competition fiercer.
2) Most domestic PVA products are conventional, with ordinary viscosity and alcoholysis degree. They are mainly used in construction adhesives and low-grade fabric sizing agents. High polymerized, low polymerized or low alcoholysis degree products are in short supply and mainly provided by import.
3) The calcium-carbide-acetylene process is the major way to produce PVA in China, whereas natural-gas-acetylene process and ethylene method should also be developed.
Table 1 China’s Main PVA Manufacturers  (kt/a)
Company    Capacity    Production Process

Anhui Wanwei Updated High-tech Material Industry Co., Ltd *    235    Calcium-carbide-acetylene Process (Biomass Capacity, 50 000 t/a)

Shanxi Sanwei Group Co., Ltd    100    Calcium-carbide-acetylene Process

Sinopec Sichuan Vinylon Works    165    Natural-gas-acetylene Process

Sinopec Shanghai Petrochemical Co., Ltd    46    Petroleum-ethylene Process

Hunan Xiangwei Co., Ltd    95    Calcium-carbide-acetylene Process
Fujian Textile & Chemical Fiber Group Co., Ltd    60    Calcium-carbide-acetylene Process

Jiangxi Jiangwei High-tech Co., Ltd of Shanghai Baowang Group    40    Calcium-carbide-acetylene Process

Guizhou Crystal Organic Chemical (Group) Co., Ltd    50    Calcium-carbide-acetylene Process

Yunnan Yunwei Co., Ltd    30    Calcium-carbide-acetylene Process

Lanzhou Xinxibu Vinylon Co., Ltd    55    Calcium-carbide-acetylene Process

Beijing Eastern Petrochemical Co., Ltd    35    Petroleum-ethylene Process

Shijiazhuang Chemical and Chemical Fibre Co., Ltd    20    Calcium-carbide-acetylene Process

Changchun Chemical (Jiangsu) Co., Ltd    40    Petroleum-ethylene Process

Inner Mongolia Mengwei Technology Co., Ltd    50    Calcium-carbide-acetylene Process
Total    1 021    

Table 2  Newly-constructed/Expanded Units  (kt/a)
Company    Capacity
Anhui Wanwei Group Co., Ltd    100
Inner Mongolia Mengwei Technology Co., Ltd    100
Guodian Younglight Energy Chemical Group Co., Ltd    100
Xinjiang Qingsong Vinylon Chemical Industry Co., Ltd    150
Xinjiang Yuexin Energy & Chemical Co., Ltd    100
Inner Mongolia Shuangxin Environmental Protection Material Co., Ltd    110
Ningxia Dadi Metallurgy Chemical Industry Co., Ltd    100
HK MSD Environmental Protection Material Limited    20
Yibin Tianyuan Group Co., Ltd    120
China Zenith Chemical Group Limited    140

Table 3 China’s PVA Supply and Demand in Recent Years   (kt)
Year    Output    Imports    Exports    Apparent Consumption
2005    484.6    34.5    37.5    481.6
2006    498.6    40.0    41.5    497.1
2007    499.9    41.6    30.0    511.5
2008    506.8    23.8    42.1    488.5
2009    502.0    29.3    29.6    501.7
2010    551.7    34.2    47.5    538.4
2011    595.2    35.6    67.2    563.6