Adipic Acid Market in China in 2014
Year:2016 ISSUE:2
COLUMN:ORGANICS
Click:305    DateTime:Feb.26,2016
Adipic Acid Market in China in 2014

By Chang Min, China National Chemical Economic and Technical Development Centre

1. Supply

At the end of 2014, China hosted 11 adipic acid producers with a combined capacity of 1.65 million t/a, an increase of 16% over 2013. New capacities included the 150 kt/a unit in Tangshan Zhonghao Chemical New Material Co., Ltd. and the 80 kt/a adipic acid unit in Zhejiang Shuyang Chemical Co., Ltd. The total output of adipic acid in China was 749 kt in 2014, being slightly lower than in 2013. Table 1 shows the major adipic acid producers in China.
Most adipic acid producers in China are private enterprises. Adipic acid units are located mainly in Shandong, Jiangsu and Chongqing. The capacity in Shandong is 525 kt/a, or 31.8% of the national total. The capacity in Jiangsu is 300 kt/a, or 18.2%. The capacity in Chongqing is 160 kt/a, or 9.7%. Jiangsu Haili Chemical Industry Co., Ltd. is the biggest adipic acid producer in China. An expansion of 150 kt/a, made in 2013, brought the company’s adipic acid capacity to 300 kt/a. That firm and the second most productive firm, Shandong Haili Chemical Industry Co., Ltd., both belong to Shandong Bohui Group Co., Ltd. which holds 525 kt/a adipic acid capacity, or 31.8% of the national total.
China’s adipic acid capacity has grown steadily in the last few years, from 1.273 million t/a in 2012 to 1.65 million t/a in 2014, an average annual growth of 13.8%. Output was 762 kt in 2012 and dropped slightly to 749 kt in 2014. Figure 1 shows China’s capacity and output in recent years.













It is expected that four units will be completed and put on stream in 2015: a 140 kt/a unit of Yangmei Group Taiyuan Chemical New Material Co., Ltd. (formerly Taihua Co., Ltd.), a 140 kt/a unit of Shandong Hongye Chemical Co., Ltd., a 160 kt/a unit of PetroChina Liaoyang Petrochemical Co., Ltd. and a 150 kt/a unit of China Pingmei Shenma Energy & Chemical Group Co., Ltd. If these projects all start production on schedule, China’s adipic acid capacity will reach 2.24 million t/a in 2015. Table 2 shows the new adipic acid projects.

2. Demand

China’s apparent consumption of adipic acid in 2014 was 613 kt, a little lower than in 2013. The main reason for the decline was a rapid increase of export volume.
Major manufacturing sectors consuming adipic acid in China include polyester polyols, nylon 66, and other materials such as plasticizers. With the rapid development of polyurethane shoe sole materials and polyurethane sizing materials, the hot activity in the consumption structure has gradually shifted from the production of nylon 66 salts to the production of polyester polyols, used in polyurethane materials. Some adipic acid is also used in the production of adipates such as dioctyl adipate and unsaturated polyester resin. The apparent consumption of adipic acid in China has increased in recent years. Table 3 shows the details.

Table 1    Major adipic acid producers in China, 2014

Region    Producer    Capacity
(kt/a)
Jiangsu    Jiangsu Haili Chemical Industry Co., Ltd.    300
Shandong    Shandong Haili Chemical Industry Co., Ltd.    225
Shandong    Shandong Hualu Hengsheng Chemical Co., Ltd.    160
Chongqing    Chongqing Huafon Chemical Co., Ltd.    160
Henan    China Pingmei Shenma Energy & Chemical Group Co., Ltd.    150
Hebei    Tangshan Zhonghao Chemical New Material Co., Ltd.    150
Shandong    Shandong Hongye Chemical Co., Ltd.    140
Liaoning    PetroChina Liaoyang Petrochemical Co., Ltd.    140
Zhejiang    Zhejiang Shuyang Chemical Co., Ltd.    80
Xinjiang    Xinjiang Tianli High-Tech Co., Ltd.    75
Shanxi    Shanxi Yangmei Fengxi Chemical Co., Ltd.    70
Total    1 650


Table 2   New adipic acid capacities in China

Enterprise    Capacity
(kt/a)    Planned start of production
Yangmei Group Taiyuan Chemical New Material Co., Ltd.    140    2015
Shandong Hongye Chemical Co., Ltd.    140    2015
PetroChina Liaoyang Petrochemical Co., Ltd.    160    2015
China Pingmei Shenma Energy & Chemical Group Co., Ltd.    150    2015
Total    590    -


The most prominent demand for aliphatic polyester polyols in China is among the manufacturers of polyester polyols that use adipic acid as the main raw material. The demand among makers of nylon 66 chips and nylon 66 fibers is second. The total consumption of adipic acid in other sectors has been stable, but their combined proportion is declining constantly. China’s consumption of adipic acid in 2014 was 65.5% for making polyester polyols, 24.5% for nylon 66 and around 10% in other sectors. Figure 2 shows the consumption of adipic acid by application sector in China in 2014.
In the next few years, the growth of adipic acid consumption in China will still depend mainly on the development of downstream products such as polyurethane and nylon 66. The market will grow much more slowly than the capacity. Utilization of surplus capacity will rely mainly on export.

3. Import and export

With the rapid improvement in domestic adipic acid capacity, China turned from a net importer to a net exporter in 2012, and the net export volume was 12 kt that year. The net export volume reached 136 kt in 2014. Customs statistics show that China imported 20 kt of adipic acid in 2014, a drop of 11.5% from the previous year. In the same year, 156 kt was exported, 39.3% more than in the previous year. Table 4 shows China’s import and export of adipic acid in recent years.
Most of the major destinations for adipic acid exported from China in 2014 were in Asia. Singapore was first, taking 39 kt or 25.2%. Taiwan was second, taking 35 kt or 22.4%.  


Table 3   Consumption of adipic acid in China, 2008-2014

Year    Output (kt)    Import volume (kt)    Export volume (kt)    Apparent consumption (kt)    Self-sufficiency rate (%)
2008    277    162    2    437    63.4
2009    461    83    9    535    86.2
2010    660    68    31    697    94.7
2011    689    76    38    727    94.8
2012    762    34    46    750    101.6
2013    787    23    112    698    112.8
2014    749    20    156    613    122.2


Table 4   Import and export of adipic acid in China, 2008-2014

    Import  amount (kt)     Export amount (kt)
2008    162    2
2009    83    9
2010    68    31
2011    76    38
2012    34    46
2013    23    112
2014    20    156



4. Market price

Adipic acid prices in China floated with some reduction in 2014, closely following the prices of raw material pure benzene. A rise of adipic acid prices in the second quarter was pushed by a brisk pure benzene market. The output of pure benzene started to come down at the end of March, and adipic acid prices increased accordingly. With a sustained decline of pure benzene prices in the third quarter, the adipic acid market quickly followed suit, with major producers cutting prices. Figure 3 shows the trend of adipic acid prices in East China in 2014.