China’s Demand for Fluorine Resins Still Booms

By Jiang Yeye, China National Chemical Information Center

Slowdown of growth in production around the world

There are more than 30 fluorine resin producers in the world today. They are distributed in over a dozen countries. After rapid development in the 1980s, the growth of the fluorine resin industry slowed down. The capacity in developing countries, mainly in China, has increased drastically. Through developments over many years, an industry led by DuPont and 3M Dyneon of the United States, Arkema of France, Solvay Solexis of Italy, Daikin, Asahi Glass and Kureha of Japan and Shandong Dongyue Group, Zhonghao Chenguang Research Institute of Chemical Industry, Jiangsu Meilan Group Co., Ltd. and Shanghai 3F New Materials Co., Ltd. of China as the lead has been emerged. The world’s fluorine resin capacity was around 390 kt/a in 2013, 50% of which was for polytetrafluoroethylene (PTFE), and the total output was around 280 kt. (See Figure 1 for details.)
In 2013, global consumption was 280 kt. Consumption in the United States, Western Europe, Japan and China accounted respectively for 27%, 21%, 11% and 36% of the total, and 56% of the total was PTFE. The consumption of polyvinylidene difluoride (PVDF) and fluoroethylene/vinyl ether copolymer (FEVE) grew quite rapidly. In terms of enterprises, the market share was 21.5% for DuPont, 14.5% for Daikin, 8% for 3M Dyneon, 10% for Shandong Dongyue Group, 7% for Solvay Solexis, 4% for Asahi Glass and 35% for others.
PTFE is the predominant variety of fluorine resins in terms of output and consumption. It is used in almost all industrial sectors. The total consumption of PTFE around the world was 160 kt in 2013 and is expected to reach 200 kt in 2018. The global market for PTFE is already well developed, and its annual average consumption growth is 4.6%.
Among thermoplastic fluorine polymers, PVDF has developed most rapidly, and its output accounts for around half of the total. It competes with PTFE in many aspects. In foreign countries PVDF is mainly used in product processing (including equipment manufacturing and electronics/electrics), coating and electric wire/cable sectors. The proportion consumed in these three sectors is respectively 60%, 30% and 10%. In manufacturing, PVDF is mainly used in pumps and valves, as well as in sheets and pipes for further processing. PVDF coatings in the United States and Europe are mainly high-temperature baking varieties and major producers include Arkema (Kynar) and Solvay Solexis (Hylar). In developed countries, PVDF is often used in the sheath of electric wires/cables. When PVDF is used in low voltage applications, no metal sheath is needed. Lithium cells and voltaic cells are new application sectors. PVDF is used in diaphragms and adhesives for lithium cells and back membranes for photovoltaic cells. Global consumption of PVDF was around 42 kt in 2013 and is expected to reach 57 kt in 2018, with an average annual growth of 6.3%.
Fluorinated ethylene propylene (FEP) is mainly used in sandwich layers and outer layers of electric wires/cables and also in the manufacture of equipment. Global consumption has grown rapidly in recent years, especially in North America. Global consumption was 25 kt in 2013, an increase of 8.7% over the previous year. The properties of melt-processible fluoropolymers, like perfluoroalkoxy (PFA) and perfluoro methyl alkoxy (MFA), are similar to those of PTFE, but its processing behavior is superior to that of PTFE. Global consumption of PFA/MFA in 2013 was 32 kt. In the United States, 80-85% of PFA is used in the semiconductor sector. In Japan, around 50% is used in the semiconductor sector. High-purity PFA has recently been used in the processing of medicines and the production of pure water. PFA is also used in large-volume storage tanks, liners and membranes. MFA is suitable for use as an insulating material for high tension lines and communication cables, as well as in transfer-molded components and extruded pipes. Due to its high price, the consumption of PFA in China is quite limited. It is mainly used in silicon wafer loaders, flasks, fluid catheters, thermal shrinkage pipes, high-temperature resistant electric wires, corrosion resistant components and duplicator roller sleeves. Polyvinyl fluoride (PVF) is mainly used as a film material and a coating material. Polytrifluorochloroethylene (PCTFE) is mainly used as a film material and a packaging material. When necessary, fluorine resins can be blended and modified with other resins to extend applicability.

Hot demand in China

The total capacity for fluorine resins in China was 189 kt/a in 2013, output was 90 kt and consumption was 75 kt, increases of 36.0%, 4.7% and 7.1% respectively over the previous year.
In China PTFE is mainly used to produce corrosion resistant and heat-resistant components and sealing/filling materials for the manufacture of petrochemical equipment, electric appliances and machines in general. Washers, gaskets, packing rings and sealing tapes made of PTFE are also extensively used in the sealing of corrosion resistant pipe flanges and the production of high-temperature resistant components for electric appliances such as microwave ovens and air conditioners, bearings, bearing liners, piston rings, guide rings, lather lead rails and bridge slide blocks. It can also be used in films, coatings and electronic sectors. Figure 2 shows the consumption structure of PTFE in China and that in the world in 2013.
The application of FEVE coating in China is mainly concentrated in building outer walls and corrosion resistance for steel structures, concrete surface corrosion resistance, industrial corrosion resistance and other special sectors. The use of FEVE coating in building outer walls still holds a high share in the fluorine coating market. As large steel structure projects have stringent requirements on the duration of corrosion resistance, the steel structure corrosion resistance sector will become one of primary orientations in the future. The consumption of FEVE coating in China was around 18 kt in 2013, equivalent to a consumption of around 4.8 kt of FEVE resin. China will further accelerate the construction of railways and highways in next few years. Investment in other infrastructure will also see a sustained increase. The consumption of FEVE resin and coating will therefore grow further.
In China, most PVDF is used to produce coatings. Small amounts are also used in the manufacturing of corrosion resistant devices. PVDF can mainly be classified into coating grade, extrusion grade and molding/injection grade. Seventy percent of PVDF goes into coatings. PVDF coating is mainly used in to pre-coat metal construction materials (steel sheets, galvanized steel sheets and aluminum sheets), coils and steel structures. The building of industrial capacity mainstream real estate has greatly promoted PVDF consumption. PVDF can also be blended and modified with other resins (such as ABS), and such blends are already extensively used in construction materials, automobile decoration and household electric appliance outer casings. According to statistics, the total consumption of PVDF in China was 8.7 kt in 2013. New application sectors of PVDF include water treatment equipment and lithium cells. PVDF micro-filtration/hyper-filtration hollow fiber membrane is suitable for use in membrane bioreactors or other situations with high requirements for chlorine resistance. It can also be used in industrial sewage treatment, desalination of seawater and brackish water, and reverse osmosis pretreatment. Owing to the rapid growth of markets related to water treatment in recent years, the output of micro-filtration/hyper-filtration membranes is increasing at an annual rate of 30%. Some enterprises in China (such as Beijing Grant Membrane Separation Equipment Co., Ltd. and Beijing Origin Water Technology Co., Ltd.) have already mastered key technologies and achieved commercialization. The most used PVDF green material is, however, mostly sourced from Arkema of France. When used as adhesive for electrodes of lithium cells, PVDF is required to have high purity and excellent processing behavior. This market is dominated by foreign products today. The expansion of electric vehicle use in China will be quite limited in the next 5 years, so a strong demand for lithium cells and concomitant demand for PVDF is yet to be seen. It is expected that the consumption growth of PVDF will be around 7% in future.
The total consumption of fluorine resins in China was 75 kt in 2013, and China is a net exporter of fluorine resins. Nevertheless, China is not self-sufficient with regard to high-end fluorine resins. To narrow the difference between the average import price and the average export price, enterprises still need to make great efforts to develop advanced technologies and high-end products. China is barely self-sufficient for fluorine coatings such as PTFE, PVDF, FEP and PVF, or small amounts need to be imported. Some molding materials and extrusion materials, however, have to be imported to satisfy demand. As China will surely continue to invest in infrastructure construction, the demand for fluorine resins in the coatings and electric wire/cable sectors will remain brisk. The growth of fluorine resin consumption in China will reach 6.5% during 2013-2018.