Hydrogenated Petroleum Resin Market Analysis

By Xu Deren, Jilin Design Institute of CNPC Northeast Refining & Chemical Engineering Co., Ltd.
and Ou Zhaoshuang, Jilin Branch of Beijing Xingyou Engineering Management Co., Ltd.

Petroleum resins are categorized according to their raw materials: C5 petroleum resins, C9 petroleum resins, C5/C9 copolymerization petroleum resins and hydrogenated petroleum resins. Petroleum resins become white or transparent through hydrogenation modification, and transparency is very important in the applications of hot melt adhesives, common adhesives and polypropylene (PP) film modifier. In addition, hydrogenation can improve adhesion, weathering and compatibility. Therefore, hydrogenated petroleum resins are widely used in sectors such as hot melt adhesives, adhesives for diapers and sanitary articles, new types of coatings, inks, and road-marking paints for expressways.

Production

In 2013, China had around 60 petroleum resin producers with a combined capacity of 849 000 t/a, within which the capacity to make C5 petroleum resins, C9 petroleum resins, and C5/C9 copolymerization petroleum resins was 376 000 t/a, 402 000 t/a and 71 000 t/a, respectively.
Petroleum resin hydrogenation started relatively late in China. So far, only Nanjing Yangzi Eastman Chemicals Ltd and PetroChina Lanzhou Petrochemical Co., Ltd in China can produce C5 hydrogenation petroleum resins, and their combined capacity is 32 000 t/a. China’s petroleum resin producers in 2013 are listed in table 1.
Driven by the demand in high-end sectors, some enterprises in China are planning to construct hydrogenated petroleum resin units. For example, several enterprises, including Panjin Heyun Industrial Group Co., Ltd, Tianjin Luhua Chemical Co., Ltd and Shandong Qilong Chemical Co., Ltd. plan to construct C9 hydrogenated petroleum resin units. Also, some enterprises are planning C5 hydrogenated petroleum resin projects. Units being planned for construction in the next few years are shown in table 2.
In the next few years, China’s newly added capacity to make hydrogenated petroleum resins will amount to about 142 000 t/a, of which C9 hydrogenated petroleum resin units will be 112 000 t/a. It is expected that China’s capacity to make hydrogenated petroleum resins will reach 174 000 t/a by 2017.

Table 1    China’s petroleum resin producers in 2013

Variety and producer    Capacity (kt/a)
C9 petroleum resins    
Zhejiang Henghe Petrochemical Co., Ltd.    60
Lanzhou Huifeng Petrochemical Co., Ltd.    60
Shandong Qilong Chemical Co., Ltd.    40
Nanjing Qidong Chemical Industry Co., Ltd.    22
Tianjin Xingyuan Chemical Co., Ltd.    20
Tianjin Luhua Chemical Co., Ltd.    20
Tangshan Kerun Chemicals Co., Ltd.    20
Qingdao Sankai Chemical Co., Ltd.    20
Guangdong Xinhuayue Petrochemical Incorporated Company     20
Others    120
Subtotal    402
C5 petroleum resins    
Anhui Tongxin Chemical Co., Ltd.    40
Lanzhou Xinlan Petrochemical Co., Ltd.    30
Zibo Luhua Hongjin New Material Co., Ltd.    30
Shanghai Jinsen Hydrocarbon Resins Co., Ltd.    25
Wuhan Luhua Yueda Chemical Industry Co., Ltd.    25
Fushun Huaxing Petrochemical Co., Ltd.    20
Guangdong Runfeng Chemical Co., Ltd.    20
Nanjing Yuangang Petrochemical Co., Ltd.    20
Ningbo Jinhai Deqi Chemical & Industry Co., Ltd.    20
Shandong Yuhuang?Chemical (Group) Co., Ltd.    20
Others    126
Subtotal    376
C5/C9 copolymerization petroleum resins    71
Total    849


Table 2  Hydrogenated petroleum resin units being planned for construction in China

Producer    Capacity (kt/a)    Remarks
Panjin Heyun Industrial Group Co., Ltd.    2    The C9 hydrogenated petroleum resin pilot unit has been put into operation.
    30    The C9 hydrogenated petroleum resin unit is expected to start up in 2016.
Tianjin Luhua Chemical Co., Ltd.    10     The C9 hydrogenated petroleum resin unit was put into operation in 2014.
Shandong Qilong Chemical Co., Ltd.    20    The C9 hydrogenated petroleum resin unit is expected to start up by the end of 2015.
Nanjing Yangzi Eastman Chemicals Ltd.    50    The C9 hydrogenated petroleum resin unit is in the stage of preliminary preparation and environmental impact assessments.
Zhejiang Henghe Petrochemical Co., Ltd.    10    The C5/C9 hydrogenated petroleum resin unit was expected to start up by the end of 2014.
Others     20    C5 hydrogenated petroleum resin units.
Total     142    


Table 3    China’s supply and demand for hydrogenated petroleum resins

Year    Capacity
(kt/a)    Output
(kt)    Import volume
(kt)    Apparent consumption
(kt)
            C5    C9    
2011    32    20    45    9    74
2012    32    25    37    11    73
2013    32    23    45    10    78


Consumption

C9 petroleum resin is the major domestic petroleum resin product. Domestic C9 petroleum resin can fully meet the demand in quantity, and it is the main export of the sector. In 2013, China exported 103 000 tons of petroleum resins and imported 79 000 tons, 55 000 tons of which was hydrogenated petroleum resins. The nation’s dependence on imported hydrogenated petroleum resins was around 70%. In 2013, China produced 23 000 tons of C5 hydrogenated petroleum resins and imported 45 000 tons, while apparent consumption reached 68 000 tons. The domestic C5 hydrogenated petroleum resins were mainly used in sectors such as adhesives, rubbers and high-end road-marking paints, and imported C5 hydrogenated petroleum resins mainly came from the United States and Germany. The import volume of C9 hydrogenated petroleum resins remained at around 10 000 tons, mainly used in hot melt adhesives and adhesives for diapers and sanitary articles. Imported C9 hydrogenated petroleum resins mainly came from South Korea, Japan and Taiwan province. China’s supply and demand for hydrogenated petroleum resins in recent years are listed in table 3.
The domestic hydrogenated petroleum resins are used mainly in products such as common adhesives, road-marking paints, printing inks, coatings and biaxially oriented polypropylene (BOPP) films. China's consumption mix of hydrogenated petroleum resins is around 65% for adhesives, 19.8% for paints, coatings, road-marking paints and inks and the like, around 6.5% for rubbers, and 8.7% for others.

Conclusion

With the development of the economy and the expansion of application fields, the demand for C9 petroleum resins will increase constantly, and competition will be increasingly fierce. The hydrogenation process of C9 petroleum resins will undoubtedly be the development focus of the petroleum resins sector. C9 petroleum resin hydrogenation projects will have considerable economic benefits and broad market prospects.