China’s Ethanolamine Family Structure Needs to Be Adjusted

By Ding Guorong and Jiang Xiaodong (Research Institute of PetroChina Jilin Petrochemical Co., Ltd)

1. Domestic Short Supply
China has more than 20 ethanolamine manufacturers, which produced 210 000 tons of ethanolamine in 2011, when domestic capacity was 650 000 tons.

Table 1    China’s Major Ethanolamine Producers in 2012    (tons)
Company    Capacity    Remarks
Jiaxing Jinyan Chemical Co., Ltd    100 000    producing MEA, DEA and TEA
Akzo Nobel Vinylamine (Ningbo) Co., Ltd    97 000    put into production at the beginning of 2011; products for personal use
BASF-YPC Co., Ltd    76 000    put into production at the end of 2011
Changzhou Taihua Chemicals Co., Ltd    5 000    producing MEA, DEA and TEA
Fushun Beifang Chemical Co., Ltd    30 000    producing MEA, DEA and TEA
Liaoning North Chemical Industry Co., Ltd    50 000    put into production in 2011
Hubei Xianlin Chemical Industry Co., Ltd    40 000    put into production in 2010
Fushun Jiahua Chemical Co., Ltd    20 000    producing TEA
Shanghai Fujia Fine Chemical Co., Ltd    50 000    producing TEA
Jiangsu Lingfei Chemical Co., Ltd    3 000    producing TEA
Jiangsu Yinyan Specialty Chemicals Co., Ltd    20 000    producing MEA, DEA and TEA
Jilin Zhongxin Chemical Group Co., Ltd    20 000    put into production in 2009; producing TEA
Maoming Petro-chemical Shihua Co., Ltd    6 000    producing MEA, DEA and TEA
Eastern Petrochemical (Yangzhou) Co., Ltd    40 000    put into production in 2011
Jilin Jihua North Lianteng Chemical Co., Ltd    5 000    producing MEA, DEA and TEA
Shandong Yuhuang Chemical (Group) Co., Ltd    75 000    put into production in 2011
Sinopec Qingjiang Petrochemical Co., Ltd    2 000    producing MEA, DEA and TEA
Sinopec Shanghai Gaoqiao Company    4 000    producing TEA
Wenzhou Qingming Chemical Co., Ltd    5 000    producing TEA
Hebei Xingtai Auxiliary Factory    2 000    producing TEA

   As domestic demand for ethanolamine exceeds supply, China has to import large quantities, and many enterprises are constructing new ethanolamine production lines or expanding existing facilities. China’s ethanolamine capacity is forecast to reach 598 000 tons in 2017. Outdated small-scale equipment will be abandoned gradually until that year.
   
2. Double-digit Growth of Domestic Demand
Ethanolamine is mainly used in producing surfactants and pharmaceuticals, cleaning metals and purifying gas. As a major consumer, the surfactant industry used around 36% of ethanolamine in 2011, and domestic total consumption that year was 321 000 tons.

Table 2        Domestic Ethanolamine Consumption in Recent Years  (ton)
Year    Surfactant    Pharmaceutical    Metal Cleaning    Gas Purification    Others    Total
1997    12 400    5 700    3 100    3 600    7 200    32 000
2001    22 500    12 500    7 500    4 800    16 600    63 900
2005    37 500    23 000    16 100    8 400    31 500    116 500
2007    65 000    35 000    21 000    10 000    40 000    171 000
2009    86 000    50 000    27 000    12 000    51 000    226 000
2011    117 000    67 000    38 000    16 000    83 000    321 000

With an annual growth rate of 8% from 2012 to 2017, the surfactant industry’s demand for ethanolamine is expected to reach 185 000 tons in 2017; total demand (growing 11% annually), 598 000 tons.
　Due to rapid development of China’s economy and ethanolamine-consuming enterprises, ethanolamine demand is greatly promoted, with consumption growing year by year since 2005. In 2011, 35% of the demand was satisfied by import mainly from Malaysia, Taiwan, Germany, Japan and the U.S.

Table 3        Supply and Demand of China’s Ethanolamine from 2005 to 2011  (ton)
Year    Output    Import    Export    Consumption
2005    30 000    86 800    300    116 500
2006    45 000    93 800    200    138 600
2007    57 000    114 300    200    171 100
2008    65 000    125 700    400    190 300
2009    75 000    152 100    900    226 200
2010    95 000    161 300    300    256 000
2011    210 000    111 000    300    320 700

It is predicted that China’s demand for ethanolamine will increase steadily. Therefore, import will still be necessary.