China’s Demand for Fumed Silica to Grow Fast

By Zhong Weike

Fumed silica is utilized as rubber reinforcing agent, plastic filling agent, ink thickener, metal soft polishing agent, electrical and heat insulation filler, de-coloring agent, delustering agent, filler of high grade cosmetics, spraying and coating material, and in the fields such as pharmaceuticals and environmental-protection.
Based on the number of surface hydroxy groups, fumed silica can be divided into two kinds: hydrophilic and hydrophobic. China mainly produces hydrophilic fumed silica, and fewer companies are developing the hydrophobic products. There are two kinds of raw materials alternative for production of fumed silica, silicon tetrachloride (STC) and methyl trichloride silane (MTCS). Some companies can flexibly conduct raw material shifting.  

Production

China’s fumed silica capacity has rocketed up in the past two years. The capacity was only 1.1 kt/a in 2000, increased to 40 kt/a in 2009 and then jumped to 104.9 kt/a in 2013. In 2014, China has 25 fumed silica makers with a total capacity of 110.4 kt/a, accounting for 29.5% of global capacity. Meanwhile China’s output was around 58.7 kt, accounting for 24.2% of global total.
China’s fumed silica market was dominated by foreign companies, such as Evonik, Cabot, Wacker and Tokuyama. Wacker, Cabot and Tokuyama have established large production sites in China. Wacker has a joint venture with Dow Corning to produce 16 kt/a fumed silica at Zhangjiagang. Cabot and Bluestar has a joint venture site with a fumed silica capacity of 15 kt/a. And Tokuyama has a fumed silica capacity of 10 kt/a. Evonik plans to construct a 20 kt/a fumed silica and STC project jointly with GCL-Poly.
In addition, Chinese companies with large capacities include Guangzhou GBS High-Tech & Industry Co., Ltd., Wynca Group, Dongyue Group, Tangshan OCI Sunfar Chemical Co., Ltd. and Zhejiang Fushite Silicon Materials Co., Ltd.

Table 1    China’s fumed silica supply and demand in 2010-2014

Item    2010    2011    2012    2013    2014
Capacity (kt/a)    60.0    71.0    86.4    104.9    110.4
Output (kt)    34.0    43.0    47.7    55.0    58.7
Operating rate (%)    56.4    60.6    55.2    52.4    53.2
Imports (kt)    9.0    4.0    9.0    9.0    9.0
Exports (kt)    6.0    7.0    14.0    15.0    14.0
Apparent consumption (kt)    37.0    40.0    42.7    49.0    53.7

Data sources: Strategic Alliance of Green Silicon Industry Nationwide (SAGSI)


Table 2   Chinese main fumed silica producers in 2014


Company    Capacity (t/a)    Raw material    Location
Wacker Chemie (Zhangjiagang Site)    16 000    STC/ MTCS    Eastern China
Cabot Bluestar Chemical (Jiangxi) Co., Ltd.    15 000    MTCS    Eastern China
Tokuyama Chemicals (Zhejiang) Co., Ltd.    10 000    STC    Eastern China
Guangzhou GBS High-Tech & Industry Co., Ltd.    8 000    STC/ MTCS    Southwest China
Zhejiang Wynca Group Co., Ltd.    7 000    STC/ MTCS    Eastern China
Chifeng Shengsen Silicon Technology Development Co., Ltd.    7 000    STC    Northern China
Shandong Dongyue Group Silicone Material Co., Ltd.    6 000    MTCS    Eastern China
Zhejiang Fushite Silicon Material Co., Ltd.    6 500    STC    Eastern China
Tangshan OCI Sunfar Chemical Co., Ltd.    6 000    STC/ MTCS    Northern China
Yichang CSG Polysilicon Co., Ltd.    3 400    STC    Central China
Zhejiang Hoshine Silicon Industry Co., Ltd.    3 000    MTCS    Eastern China
Inner Mongolia Sucon Silicone Co., Ltd.    2 500    MTCS    Northern China
SINOSICO    2 400    STC    Central China
Jiangxi Blackcat Carbon Black Co., Ltd.    2 000    STC/ MTCS    Eastern China
Jingdezhen HungPai Chemical Co., Ltd.    2 000    STC    Eastern China
Emeishan Changqing Chemical New Materials Co., Ltd.    2 000    STC    Southwest China
Hejing Technique Co., Ltd. of Jiaozuo Coal Group    2 000    STC    Central China
TBEA Xinjiang Sunoasis Co., Ltd.    2 000    STC    Northwest China
Xuzhou Tiancheng Chlor-Alkali Co., Ltd.    2 000    STC    Eastern China
Yichang Huifu Silicon Material Co., Ltd.    2 000    MTCS    Central China
Shenyang Chemical Industry Co., Ltd.    1 500    STC    Northern China
Zhaori Silicon Material Co., Ltd.    1 000    STC/MTCS    Eastern China
Xuzhou Zhongxing Chemical Co., Ltd.    1 000    STC    Eastern China
Shanghai Chlor-Alkali Chemical Co., Ltd.    100    STC    Eastern China
Total    110 400        

Data sources: Strategic Alliance of Green Silicon Industry Nationwide (SAGSI)


China’s fumed silica capacity grew 22.5% year on year over 2009-2014. But the total capacity increased by 5.2% in 2014 from the previous year. The growth rate in 2014 was far lower than that of 2013 due to unduly expanded capacities in 2013.
New-startup projects in 2014 included: the 6 kt/a project of Tangshan OCI Sunfar Chemical Co., Ltd. started up in January 2014; the 4 kt/a new project of Chifeng Shengsen Silicon put on line in August 2014 but has not operated continuously due to market and raw material restriction; the 2 kt/a line of Huifu Silicon Material Co., Ltd. inaugurated production in November 2014; one of the six lines in Zhejiang Fushite Silicon was expanded from 1 kt/a to 1.5 kt/a, and restarted production in August 2014.
The relatively stable supply of raw material is required for production of fumed silica. But the supply both STC and MTCS remains tight in China 2014. As a result, some planned fumed silica projects were cancelled or postponed.
China’s total fumed silica capacity is expected to reach 162 kt/a in 2019. The estimated average growth of capacity is 8.0% year on year from 2014 to 2019, while output is expected to increase 10.8% annually in the same period. The output of fumed silica is expected to be 98.0 kt in 2019.

Consumption

Fumed silica is mainly used as the reinforcing agent of silicone elastomers (rubber) in China. The fumed silica consumption in the silicone rubber field accounts for 63% of its total consumption, while a small part is also utilized in other silicone products. The coatings and ink industry is now the second largest consumer of fumed silica in China, and the application volume accounts for 11% of its total consumption. Fumed silica application in unsaturated polyester resin (UPR) products, adhesive and chemical-mechanical polishing (CMP) industry keeps increasing significantly. Moreover, it is also widely applied in medical, plastic, food, agricultural, storage battery, cosmetics, daily chemical, paper-making and lubricating oil fields.
China’s total fumed silica consumption was 53.7 kt in 2014, an increase of 9.6% on yearly basis. Fumed silica price remained steady, downstream demand increased stably and the growth rate slowed down.

A  Silicone rubber

During the process of silicone rubber synthesis, fumed silica can improve the performance of silicone rubber far more than its inherent properties. For example, fumed silica can improve the heat resistance and chemical resistance of silicone rubber, which can make it apply in wider areas.
Silicone rubber can be divided into various categories: room temperature vulcanization (RTV), high temperature vulcanization (HTV) and liquid silicone rubber (LSR), etc. The addition ratio of fumed silica in RTV and HTV is generally between 5%-40%. Fumed silica can be used to fill silicone resin, especially those applied in the electronic field and silicone rubber mixing. China’s silicone industry consumed about 34.1 kt fumed silica in 2014, an increase of 10% over 2013.

B  Coatings and ink

Fumed silica is mainly used as the rheological additive, anti-settling agent and dispersing agent in paint, coatings and ink fields. In high-performance coatings without internal loss, such as marine coatings and high-grade refinishing paint, fumed silica can be used as flatting agent and thixotropic agent. In high solid content green paint, fumed silica can be used as a thixotropic agent and dispersing agent. It can control the flowing property of industrial (printing) ink and the flowing property of powdered ink in copying and laser printing as a dispersing agent.
Fumed silica’s addition ratio in coatings and ink is as small as 0.5%-2%. According to statistics of China’s National Bureau of Statistics, China’s total coatings output reached 16 480 kt in 2014, an increase of 7.87% on yearly basis. According to incomplete statistics, China’s total demand for fumed silica in ink and high-grade coating fields was around 5.9 kt in 2014, an increase of 7.3% on yearly basis.

C  UPR

Adding fumed silica can help UPR enhance strength, toughness, abrasive resistance, fire resistance and ageing resistance of materials, and improve the appearance and processing performance.
UPR is one of the fastest developed, widely applied products with the largest output among China’s three thermosetting resins (also including epoxy resin and phenolic resin). According to Chinese UPR Industry Association, China’s total output exceeded 1.85 million tons, an increase of 4-5% on yearly basis. The UPR industry consumed 3.7 kt fumed silica in 2014, an increase of 4.5% on yearly basis.

D  Adhesive

When uniformly dispersed in adhesive and sealant, fumed silica can form a silica aggregation network, which can generate hydrogen bonds with polymer molecule by the superficial Si-OH. The mobility of the system is restricted, the viscosity increased and the system is thus thickened.
China’s adhesive industry has developed rapidly. The domestic adhesive output increased to 6.62 million tons in 2014, growing 8.3% year on year. Fumed silica consumed in adhesive fields was about 3.8 kt in 2014, an increase of 8.6% on yearly basis.

E  CMP

CMP is a technology applied in semiconductor devices production and used to realize planarization on silicon wafer and other substrate materials under processing. China’s semiconductor industry is quite promising. On one hand, the global semiconductor industry is transferring to China; on the other hand, the government is intensifying the importance of semiconductor industry, with favorable policies to support its development.
In 2014, fumed silica consumed in CMP industry was about 1.7 kt, an increase of 21.4% from a year earlier.

F  Other fields

In cosmetics field, fumed silica can effectively reflect ultraviolet ray and match with other components easily. With its excellent stability, fumed silica does not resolve or discolor.
With non-qualitative framework, fumed silica is equipped with excellent chemical stability and does not gather in the body, which makes it suitable for medical applications. The hydrophilia can help remove the edema and reduce secreta in wound inflammation, help diarrhea patients fix and bound water and be used as a drying agent in dermatology.
In the defoaming agent industry, fumed silica can damage foams due to strong adsorption rate of the unique three-dimensional network structure and is one of the most important additives in high-efficient defoaming agent.
Fumed silica can be applied in milk, fruit juice, beer, oatmeal and meat to retain freshness, prevent rotting and improve taste. Together with organic flocculant, fumed silica is used to process sewage and flocculate toxic substances.
Demand for fumed silica in these fields is wide and scattered. The application is estimated to be 4.45 kt in 2014, a year-on-year growth of 8.5%.
To sum up, China’s fumed silica consumption was about 53.7 kt in 2014, a yearly growth of 9.6%.