High-end PVC Paste Resin Markets to Develop

By Liu Lingmei, Shanghai Chlor-Alkali Chemical Co., Ltd.

Production developed fast

In the first half of 2013, three polyvinyl chloride (PVC) paste resin units, including Shandong Langhui Petroleum Chemical Co., Ltd.’s 60 kt/a line, Tangshan Sanyou Group’s 40 kt/a line and Inner Mongolia Yidong Dongxing Chemical Co., Ltd.’s 100 kt/a factory started up. In the second half of 2013, Yichang Shanshui Investment Co., Ltd., Qinghai Salt Lake Haina Chemical Co., Ltd. and Wuhu Ronghui Chemical Co., Ltd. each put on line new capacity of 50 kt/a, 20 kt/a and 50 kt/a, respectively. Shandong Langhui Petroleum Chemical Co., Ltd. completed construction of a 60 kt/a special PVC paste resin line in November 2013 and began wet commissioning.
Moreover in 2014, Inner Mongolia Chenhongli Chemical Co., Ltd. expanded its PVC paste resin capacity by 60 kt/a, Jiangsu Bat Plastic Group Co., Ltd. expanded its PVC paste resin capacity to 150 kt/a, and Xinjiang Tianye Group and CNSG Anhui Hong Sifang Co., Ltd. each put on stream a new 100 kt/a factory.
At present, the construction and expansion of PVC paste resin capacity in China is still hot, despite the fact that operations are not flourishing overall – most production facilities operate at loads lower than 50%. Early 2015, Shanghai Chlor-Alkali Chemical Co., Ltd. relocated its facilities, closing a 30 kt/a PVC paste resin plant using a mixing method at the Wujing chemical base and selling the equipment to Xinjiang Zhongtai Chemical Co., Ltd. But Shanghai Chlor-Alkali still operates its 70 kt/a PVC paste resin plant using an emulsion method at the Caojing chemical zone. Shenyang Chemical Co., Ltd. completed the relocation of its PVC paste resin production line and plans to construct a new chemical base to expand its PVC paste resin capacity by 70 kt/a to 200 kt/a. Formosa Ningbo Co., Ltd. is constructing a 70 kt/a PVC paste resin project, scheduled for startup at the end of 2015. China’s PVC paste resin makers and their respective capacities are listed in table 1. Table 2 shows China’s overall utilization of PVC paste resin capacity in recent years.

Consumption

In 2014 China consumed 700-800 kt of PVC paste resins, 65% of the nation’s production capacity. This implies worrisome surplus capacity. China’s consumption pattern of PVC paste resin in 2014 is shown in Table 3.
1. Large demand from makers of glove materials
PVC gloves are fast-moving consumer goods, with current target markets in the USA, Japan, Europe and other developed countries and regions. Demand for PVC gloves is robust, especially in the healthcare sector. China is the major producer of PVC gloves. China’s larger producers of PVC gloves include Blue Sail Medical Co., Ltd. (the biggest), Shijiazhuang Hongray Group, Shanghai Gold Baoshan Plastics Co., Ltd. Blue Sail mainly manufactures medical purpose PVC gloves, with more than 90% of its PVC gloves being exported.
2. Demand from leather material makers dropped significantly
In recent years, due to competition from polyurethane man-made leather, the demand for PVC paste resin in the leather materials market has dropped greatly. Manufacturers using man-made leathers are located mainly in the provinces of Zhejiang, Jiangsu, Fujian and Guangdong, where leather made of PVC paste resin is being gradually replaced by polyurethane based leather.

Table 1    China’s PVC paste resin makers, 2015

Company    Capacity (kt/a)
Tianjin Botian Chemical Co., Ltd.    170
Shenyang Chemical Co., Ltd.    130
Shanghai Chlor-Alkali Chemical Co., Ltd.    70
CNSG Anhui Hong Sifang Co., Ltd.    100
Wuhan Xianglong Power Industry Co., Ltd.    30
Yichang Shanshui Investment Co., Ltd.    50
Inner Mongolia Chenhongli Chemical Co., Ltd.    75
Wuxi Honghao Plastic Chemical Co., Ltd.    6
Inner Mongolia Yidong Dongxing Chemical Co., Ltd.    100
Shandong Zhongyin Electrochemical Co., Ltd.    40
Xinjiang Tianye Group    100
Jiangsu Bat Plastic Group Co., Ltd.    150
Formosa (Ningbo) Co., Ltd.     70
Hunan Chenzhou Chemical Group    100
Ningxia West Chlor-Alkali Chemical Co., Ltd.    40
Xi'an Xihua Themoelectrical & Chemical Co., Ltd.    12 (Emulsion method)
Mudanjiang Northeast High-new Chemical Co., Ltd.    10
Bluestar Lanzhou Chemical Co., Ltd.    5
Shandong Binzhou Port Zhenghai Biotechnology Co., Ltd.    40
Harbin Hua’er Chemical Co., Ltd.    3
Xi'an Xihua Themoelectrical & Chemical Co., Ltd.    40 (Suspension method)
Wuhu Ronghui Chemical Co., Ltd.    50
Qinghai Salt Lake Haina Chemical Co., Ltd.    20
Shandong Langhui Petroleum Chemical Co., Ltd.    120
Tangshan Sanyou Group    40
Total    1 571


Table 2   China’s overall utilization of PVC paste resin capacity

Year     2008    2009    2010    2011    2012    2013    2014
Capacity utilization rate (%)    62    73    89    85    87    71    65


Table 3   China’s consumption of PVC paste resin, 2014

Application    Consumption (kt)
Glove materials    220-240
Leather materials     140-150
Wallpaper materials     70-80
Toy materials    40-80
Tarpaulins    50-60
Conveyor belts    40-50
Carpets     30-40
Plastic flooring    30-40
Dipping solution    20-30
Others    20-30
Total    700-800


3. Growing demand from conveyor belt market
At present, the use of PVC paste resin in making conveyor belts is growing fast. Conveyors are widely used. The output of flame retardant and general-purpose conveyor materials combined accounts for around one third of the total output of conveyor belts. In making these two types, special PVC paste resin contributes great advantages in technology and cost.
4. Great potential in wallpaper market
Wallpaper sales have grown in recent years. China and North America lead the world, with year-on-year demand growth of 20% in both markets. The market for wallpaper made of PVC paste resin still has huge potential for growth. At present, China’s demand for PVC paste resin in making wallpaper is between 70 kt and 80 kt per year, and wallpapers is one of the sectors in the nation with the fastest growing consumption of PVC paste resin.

Emphasize high-end markets

In the past two years, China’s PVC paste resin companies have developed some successful special materials. For example, China-made dipping glove materials and wallpaper materials are quite popular, helping to drive the great development of PVC paste resin products and capacity, and further reducing the amount of special PVC paste resin materials imported.    
Among China-made PVC paste resins, modified products such as blended/mixed resins, vinisol resins, anti-static paste resins, high-end paste resins used in automobiles and paste resins used to functionalize wallpapers, have more recently come to be used in making paste materials and dipped articles, including automotive plastic melt rubber, PVC carpet squares and printing inks. To meet domestic demand for such finished articles, China imports 100 kt of them annually. Domestic institutes and companies must pay more attention to development and production of new types of PVC paste resins.