Ethyl Acetate Market Analysis

By Li Fangming

Ethyl acetate is a commonly used solvent with extensive applications. It is mainly used to make industrial varnishes and enamels, photographic films and adhesives. In the production of medicine and food, ethyl acetate is used as an extracting solvent. It is also a mordant solvent for herbicides and a raw material for artificial fruit flavors and for spices used in whiskey and milk. Varieties being sold in the market today mainly include the 85-88% grade, the 99% grade and the 99.5% (polyurethane) grade. The grade used most often is 99%.
Production methods for ethyl acetate mainly include the acetic acid esterification process, the acetaldehyde condensation process, the ethanol dehydrogenation process and the acetic acid/ethylene addition process. The acetic acid esterification process and the ethanol dehydrogenation process are the major production methods. China mainly uses the acetic acid esterification process, accounting for over 90% of all output.


Table 1   Major ethyl acetate producers in China, 2014 (kt/a)

Producer    Capacity    Producer    Capacity
Jiangsu Sopo (Group) Co., Ltd.     500    Shandong Yusheng Biotechnology Co., Ltd. (Linyi)    80
Anhui Huayi Chemical Co., Ltd.     300    Guangxi Xintiande Energy Co., Ltd. (Qinzhou)    80
Jiangsu Nantong Lianhai Biotechnology Co., Ltd.     300    Jiangxi Nanchang Ganjiang Solvent Plant    80
Guangdong Jiangmen Handsome Chemical Development Co., Ltd.     220    Tianjin Yitai Hongfeng Alcohol Co., Ltd.     60
Shanghai Huayi Chemical Co., Ltd.     200    Jiangsu Xinyi Huating Biotechnology Co., Ltd.     60
Yancon Cathay Acetyls Co., Ltd.     200    Jilin Fuel Alcohol Co., Ltd.     50
Shandong Jinyimeng Biotechnology Co., Ltd.     180    Tianjin Taisen Chemical Group Co., Ltd.     50
Wuxi Baichuan Chemical Industrial Co., Ltd.     150    Guangdong Shunde Group Co., Ltd.     45
Taixing Jinjiang Chemical Industrial Co., Ltd.     120    Jiaozuo Jinyulong Industrial Co., Ltd.     40
Rizhao Jiahong Biotechnology Co., Ltd.     120    Tianjin Guanda Group Co., Ltd.     35
Guangdong Jiande Shunguan Group Gas Solvent Co., Ltd.     100    Guangxi Yulin Lieran Chemical Co., Ltd.     30
Chongqing Yangtze River Acetyls Co., Ltd.     100    Henan Mengzhou Huaxing Industrial Co., Ltd.     30
Shandong Haihua Group Co., Ltd.     100    Zhujiang Chemical Group Guangzhou Solvent Plant    30
Guangxi Jinyuan Biochemical Industrial Co., Ltd.     100    Shijiazhuang Xinyu Sanyang Industrial Co., Ltd.     15
Hebei Tangshan Jidong Solvent Co., Ltd.     100    Liaoning Taian County Chemical Co., Ltd.     15



Table 2  Production/sales balance of ethyl acetate in China in recent years (kt, US$/t)


Year    Output    Import    Export    Apparent
consumption
        Volume    Price    Volume    Price    
2007    710    7.6    968.6    137.0    841.1    580.6
2008    950    1.1    1563.7    183.9    905.7    767.2
2009    1 029    0.6    1731.5    229.5    721.1    800.1
2010    1 100    0.7    2382.4    283.7    828.3    817.0
2011    1 200    1.0    1891.4    373.5    1011.3    877.5
2012    1 370    3.1    3342.7    414.1    920.4    959.0
2013    1 450    0.4    1328.8    421.9    866.1    1 028.5
2014
(Jan-Sept)    1 250 (E)    0.3    4499.8    342.9    899.3    907.4


1. Production and supply/demand, worldwide

The world’s capacity to make ethyl acetate in 2008 was only 3 million t/a. Quite a few new or expansion units have been completed and put on stream in recent years, so the capacity has developed considerably. All the new units are located in Mainland China, except for the Jubail-based 100 kt/a unit in Sipchem of Saudi Arabia, completed in 2013. By 2013 the total capacity of ethyl acetate in the world reached 5.80 million t/a and the average annual growth was 14.1% during 2008-2013. China is the world’s biggest producer, with 3.53 million t/a capacity in 2013, 60.9% of the world total. India comes next, with 530 kt/a capacity in 2013, 9.1% of the world total.
Global consumption of ethyl acetate in 2013 was around 2.60 million tons, concentrated in Western Europe, the United States and Asia. Consumption in Asia is mainly in Japan, Mainland China and Southeast Asia. Consumption structures of ethyl acetate in major countries and regions of the world are somewhat different. In the United States and Europe the most important application of ethyl acetate is coatings. The consumption of ethyl acetate in making coatings accounts for 60% of the total in the United States and for around 50% of the total in Europe. In Japan, ethyl acetate is mainly used in coatings and inks, accounting respectively for 40% and 30% of the total. In China, ethyl acetate is mainly used in coatings, adhesives and medicines. It is expected that global demand for ethyl acetate world will reach 3.40-3.50 million tons in 2018.


Table 3  Export destinations of ethyl acetate from China (kt)

Export destination    2010    2011    2012    2013
Indonesia    3.3    9.7    25.2    26.2
Korea    42.9    64.9    80.1    60.0
Netherlands    6.4    5.7    0.1    0.1
Singapore    6.9    5.8    4.6    12.9
Taiwan    39.1    40.0    59.3    63.9
Israel    2.1    2.9    2.1    1.4
Vietnam    17.6    22.3    25.2    35.4
Belgium    6.0    20.0    7.3    4.3
Turkey    8.2    18.5    7.7    0
United Arab
Emirates    13.9    15.9    19.3    7.0
Thailand    8.2    13.6    19.3    24.8
Egypt    7.2    12.4    6.2    0.2
Malaysia    9.4    11.2    12.9    18.1
Japan    84.1    105.6    118.4    139.7
Philippines    11.2    10.9    15.3    16.3
Pakistan    2.7    2.0    0.7    0.6
Others    14.5    12.1    10.4    11.0
Total    283.7    373.5    414.1    421.9


2. Production in China

By October 2014 the total capacity of ethyl acetate in China reached 3.53 million t/a. Producers are mainly distributed in East China, North China and South China. Jiangsu Sopo (Group) Co., Ltd. and Shanghai Huayi Group Co., Ltd. (including its Shanghai-based unit and Anhui-based unit) are the biggest ethyl acetate producers in China today. Table 1 and Figure 1 show the major ethyl acetate producers in China in 2014 and the regional distribution of capacity.

3. Consumption in China

With the rapid growth of the economy in China, the demand for coatings, inks and adhesives has increased drastically in recent years, promoting stable growth of ethyl acetate consumption. The apparent consumption of ethyl acetate was 1.0285 million tons in 2013, an increase of 7.3% over the previous year. The average annual growth of apparent consumption during 2008-2013 was 6%. Table 2 shows the production/sales balance of ethyl acetate in China in recent years.
In China, ethyl acetate is mainly used to produce coatings, medicines and adhesives. The consumption structure is shown in Figure 2. With upgrading of the technical level in related sectors and the issuance of related regulations and policies, the consumption structure of ethyl acetate in China will gradually become linked to the international market. The proportion consumed in making medicines and adhesives will decline, whereas the demand in coatings will increase considerably. Moreover, with the development of the electronics and communications sectors, the demand in inks will also be higher. It is expected that the total demand for ethyl acetate in China will reach 1.10-1.15 million tons in 2018.

4. Foreign trade

The net export volume of ethyl acetate from China was 421.5 kt in 2013, an increase of 2.6% over the previous year. The import volume was 87.1% lower and the export volume was 1.9% higher. The net export volume was 342.6 kt during January-September 2014, an increase of 15.7% over the same period of last year. Table 2 shows China’s foreign trade of ethyl acetate in recent years.
Ethyl acetate is exported mainly to Japan, Indonesia, Korea, Taiwan, Vietnam and Thailand. The total amount exported to these countries and regions reached 350 kt in 2013, 83% of the national total. Exports to Japan alone accounted for 33.1%. The export proportion was 15.2% for Taiwan and 14.2% for Korea. Table 3 shows the details.
Ethyl acetate is exported mainly through Nanjing Customs and Qingdao Customs. The total amount exported through these two customs reached 406 kt in 2013, accounting for around 96.2% of the national total and an increase of 5.3% over the previous year. The principal provinces exporting ethyl acetate are Jiangsu and Shandong. The amount exported by these two provinces reached 400 kt in 2013, accounting for around 94.8% of the national total and an increase of 6.5% over the previous year.

5. Market in China

The market price of ethyl acetate in China has been low overall in the past two years. In addition to the influence of supply versus demand, the prices are also closely tied to raw material prices. Due to serious capacity surplus and limited demand, the market price is expected to stay low for a considerable period of time. No substantial price increase is in the picture. Figure 3 shows the market price trend of ethyl acetate in China in recent years.
With the completion of new or expansion units by quite a few enterprises in Mainland China, global capacity for making ethyl acetate is already in surplus and competition will be fierce. Overcapacity in China is already quite serious. China has always depended on export to balance its domestic supply. Note, however, that with the completion of the Jubail-based 100 kt/a unit in Sipchem of Saudi Arabia in 2013, the export pattern of ethyl acetate in the world will likely change. Besides meeting the local demand, some of the ethyl acetate produced in the unit will be exported. The export of ethyl acetate from China will therefore be faced with severe competition. Efforts should be made to improve product quality and reduce production costs through technical progress. Only in this way can the export volume be further increased and the capacity surplus can be mitigated to a certain extent. Furthermore, the consumption structure of ethyl acetate in China should be adjusted so as to strengthen application development, expand demand and mitigate market risks.