Caprolactam’s Status and Prospects – an Analysis

By Li Yufang and Wu Xiaoming, Beijing Jiangning Chemical Technology Research Institute

Caprolactam (CPL) is an important organic chemical raw material that is used mainly to produce nylon 6 engineering plastic and fiber. Today, three processes are used for the commercial production of CPL: cyclohexanone-hydroxylamine, cyclohexane nitrosation and toluene. The cyclohexanone-hydroxylamine process is predominant. For new CPL production technologies, the development direction is towards energy conservation, reduction of material consumption, simplification of process flow, minimization of equipment corrosion and environmental pollution, and cutting down of the output of byproduct ammonium sulfate.

1. Production and sales of CPL around the world

(1) Present production status
The world’s CPL capacity has increased steadily in recent years. The total was 4.253 million t/a in 2005 and increased to 4.653 million t/a in 2009. It grew further to 5.432 million t/a in 2012, an increase of around 15.4% over the previous year. The year of 2012 saw the most rapid development, with major capacity growth coming from China. Quite a few new units and expansion projects were completed by Chinese enterprises such as Shandong Bohui Haili Chemical Industry Co., Ltd., Baling Hengyi Caprolactam Co., Ltd., Shandong Fangming Chemical Co., Ltd. and Sinopec Baling Petrochemical Co., Ltd., and put on stream in 2012, adding 625 kt/a of new capacity. In addition, the CPL capacity in CPDC of Taiwan was increased by 100 kt/a and the company’s total CPL capacity reached 400 kt/a.  
CPL production is concentrated mainly in North America, Europe and the Asia-Pacific Region. North America hosts 965 kt/a capacity, accounting for around 17.8%. Western Europe has 1.095 million t/a, or 20.2%; Central/Eastern Europe, 747 kt/a, 13.8%; Asia, 2.595 million t/a, 47.7%; Central/South America, 30 kt/a, 0.5%.
Along with continuous capacity expansion, the world’s output has increased from 3.894 million tons in 2005 to 4.113 million tons in 2012. Figure 1 shows the capacity and output of CPL around the world in recent years.
Production is rather concentrated in six companies – BASF, Sinopec, DSM, Honeywell, Ube and Taiwan CPC Corporation – with a combined capacity of 3.265 million t/a in 2012, around 60.1% of the world total. Sinopec, with the completion of a 200 kt/a joint venture unit constructed by Hengyi Group Co., Ltd. in Zhejiang and a 100 kt/a expansion project of Baling Petrochemical Co., Ltd. in Hunan, has become the second biggest producer; the firm’s capacity is 665 kt/a, accounting for around 12.2% of the world total.  
It is expected that with the completion of new units and expansion projects in Russia and Asia – particularly those in Mainland China –  the world’s total CPL capacity will reach more than 9.00 million t/a in 2017. Asia will become the center of CPL production development. The constant increase of CPL capacity in Russia, Korea, Thailand and India will decrease the import volume in these regions and increase the import volume in China and other Asian countries, making the competition in Asia’s CPL market even fiercer. Due to the slow growth of demand, there will be few new units and expansion projects in North America, Western Europe and Japan, and some units will likely be shut down because of environmental and profitability factors.
(2) Present consumption status
The total consumption of CPL in the world was 4.235 million tons in 2012, up 4.3% year-on-year, and concentrated mainly in North America, Western Europe and Asia. Consumption in North America was 778 kt, accounting for around 18.4%; Western Europe, 667 kt, 15.7%; Asia, 2.363 million t/a, 55.8%.
Consumption structures of CPL vary in different regions of the world. In Asia, about 64.4% of all CPL is used to produce nylon 6 fibers, while about 32.6% goes into making nylon 6 engineering plastics. In North America, the consumption of CPL in making nylon 6 fibers accounts for around 44.5% of the total, while making nylon 6 engineering plastics and films accounts for around 53.4%. In Western Europe, the consumption of CPL in making nylon 6 engineering plastics and films accounts for around 80.2% of the total, while making nylon 6 fibers accounts for around 15.3%.
It is estimated that the consumption of CPL in the world will increase at an average annual rate of 3.4% in the next few years and reach 5.00 million tons in 2017. The growth will mainly occur in Asian countries and regions, excluding Japan. The demand for nylon 6 fibers will see little growth in North America, Western Europe and Japan, especially in the automobile sector.
(to be continued)