China’s TCE Enterprises Must Develop Rationally
Year:2013 ISSUE:6
COLUMN:ORGANICS
Click:199    DateTime:Nov.05,2013
China’s TCE Enterprises Must Develop Rationally

By Zheng Jiebin

Trichloroethylene (TCE) is most widely used as metal cleaner and then chemical raw material. However, metal cleaner producers have consumed less TCE in recent years due to increasing pressure for environmental protection. In contrast, TCE consumption in making chemical materials was boosted by growing capacity and demand for the refrigerant HFC-134a. China’s TCE-consuming enterprises are mainly engaged in refrigerants, requiring TCE in large quantities.

1. Production
With rapid development, China’s TCE industry has greatly increased its capacity and output attracting more enterprises to the field. China has more than 20 TCE companies, of which 12 have been put into operation. By 2012, domestic TCE capacity totaled 570 000 tons, and it is expected to exceed 1 million tons in the next year or two. And the industry intends to construct new units, which will add more than 330 000 t/a of capacity. China produced 293 000 tons of TCE last year, and most enterprises suffered losses, so some have cut back on production.
   The first two TCE producers were Calcium Carbide Plant of Jilin Chemical Industry Corporation and Jinhua Chemical (Group) Co., Ltd. In the early stage, demand exceeded supply, making import volumes soar, but the situation has reversed in recent years because of a jump in domestic TCE output. In 2011 China imported 274 tons of TCE, plummeting 94% YOY; in 2012, none was imported.
   While the supply climbed, demand declined, and China’s TCE prices dropped to a low of less than RMB5 000/t in 2012 from a peak of more than RMB10 000/t in 2010, inflicting heavy losses on TCE enterprises, most of which terminated production.

2. Aimless expansion should be avoided.

Propelled by downstream industries, especially the refrigerant industry, both TCE output and prices increased greatly in the past few years, motivating more and more investors to construct new projects. At present, on one hand, the refrigerant industry is slowing down, and its decline is curbing the TCE industry; on the other hand, to balance the sale of chlorine and alkali, most enterprises still would like to expand TCE production with new capacity estimated to exceed 300 000 tons, leading to a more severe imbalance between supply and demand.
● Downstream TCE consumption relies on the refrigerant industry heavily. By the end of 2012, the capacity of F-134a reached 192 000 tons, and it is expected to increase to 222 000 tons in 2013. But the growth of refrigerant makers’ demand for TCE is far slower than that of TCE output.
● TCE enterprises have to invest more in R&D, expand product applications, develop high-end products, improve added value of products and strive for product differentiation.
● Prudent development should be promoted.
China has imposed five-year anti-dumping duties on TCE imported from Russia and Japan since July 2011. Domestic TCE enterprises should expand reasonably so that the sector can develop in an orderly way.

Table 1 China’s Major TCE Producers  (kt)
Company    Capacity
Shandong Befar Ruicheng Chemical Co., Ltd    80
Electrochemical Plant of Zhejiang Juhua Co., Ltd    80
Alashan Dakang Trichloroethylene & Tetrachloroethylene Co., Ltd    50
Shouguang Xinlong Electrochemical Co., Ltd    60
Yibin Haifeng Heyue Co., Ltd    30
Dongying Hebang Chemical Co., Ltd    40
Wuhu Ronghui Chemical Co., Ltd    40
Guizhou Lantian Chemical Co., Ltd    15
Ningxia Kangmei Chemical Co., Ltd    15
Inner Mongolia Sanlian Chemical Co., Ltd    20
Fangda Jinhua Chemical Technology Co., Ltd    10