Caprolactam: Capacity Soars, High-end Varieties Are Needed

By Yu Chunmei, CNPC Northeast Refining & Chemical Engineering Co., Ltd. Jilin Design Institute

Rapid development
of capacity

China’s caprolactam capacity has increased drastically in recent years, increasingly based on production technology made in China and driven by rapid consumption growth. The capacity was 495 kt/a in 2010, with output of around 490 kt. Capacity and output grew to 2 630 kt/a and 1 850 kt, respectively, in 2016. Average annual growth rates during 2010-2016 were 32.1% for capacity and 24.8% for output. Table 1 shows the producers of caprolactam in China in 2016.
Capacity added in 2016 included an 80 kt/a expansion by Fujian Tianchen Yaolong New Material Co., Ltd., a new 100 kt/a unit of China Pingmei Shenma Group and a new 100 kt/a unit of Shanxi Lanhua Sci-tech Venture Co., Ltd. Capacity will keep expanding rapidly in the next few years. Units planned to start production in 2017 include a 100 kt/a unit in Yangquan Coal Industry Group Taiyuan Chemical New Material Co., Ltd. and a first-phase 400 kt/a unit in Fujian Shenyuan New Material Co., Ltd. National capacity is expected to reach 3 630 kt/a in 2020, with 2 900 kt output. Average annual growth rates during 2016-2020 will be 8.4% for capacity and 11.9% for output. Table 2 shows the projects now under construction or planned for construction in China.

Table 1    Producers of caprolactam in China, 2016

Producer    Scale (kt/a)    Location of production unit
DSM Nanjing Chemical Co., Ltd.     400    Nanjing, Jiangsu
Sinopec Baling Petrochemical Co., Ltd.    300    Yueyang, Hunan
Sinopec Shijiazhuang Chemical Fiber Co., Ltd.    200    Shijiazhuang, Hebei
Fujian Tianchen Yaolong New Material Co., Ltd.    280    Fuqing, Fujian
Jiangsu Dafeng Bohui Group Co., Ltd.    200    Yancheng, Jiangsu
Shandong Haili Chemical Industry Co., Ltd.    200    Zibo, Shandong
Baling Hengyi Caprolactam Co., Ltd.    200    Hangzhou, Zhejiang
Shandong Fangming Chemical Co., Ltd.    200    Heze, Shandong
Shanxi Lanhua Sci-tech Venture Co., Ltd.    100    Jincheng, Shanxi
Zhejiang Juhua Group Co., Ltd.    150    Quzhou, Zhejiang
Hubei Sanning Chemical Co., Ltd.    100    Zhijiang, Hubei
Luxi Chemical Group Co., Ltd.    100    Liaocheng, Shandong
Hebei Cangzhou Risun Chemical Co., Ltd.    100    Cangzhou, Hebei
China Pingmei Shenma Group    100    Yexian, Henan
Total    2 630    

Table 2   Caprolactam projects being constructed or planned for construction in China

Company    Scale
(kt/a)    Location of production unit    Status
Yangquan Coal Industry Group Taiyuan Chemical New Material Co., Ltd.    100    Taiyuan, Shanxi    Production already started in January 2017
Fujian Shenyuan New Material Co., Ltd.    1 000    Lianjiang, Fujian    First phase to start production in 2017
Luxi Chemical Group Co., Ltd.    100    Liaocheng, Shandong    Under construction
Hebei Cangzhou Risun Chemical Co., Ltd.    100    Cangzhou, Hebei    2018
Shanxi Lanhua Sci-tech Venture Co., Ltd.    100    Jincheng, Shanxi    2018
Fujian Yongrong Science & Technology Co., Ltd.     600    Changle, Fujian    EIA publicity
Baling Hengyi Caprolactam Co., Ltd.    200    Hangzhou, Zhejiang    EIA publicity
Total    2 200        



Import/export

In 2010 China imported 631 kt of caprolactam and exported 6 kt. Over the following years, import has declined dramatically, reaching 221 kt last year. Table 3 shows the import/export of caprolactam in China during 2010-2016.
China imports caprolactam mainly from Russia, Belgium, Japan and Poland. Last year, these four sources supplied 187 kt, or 84.6% of the total. Russia supplied the most, 97 kt, or 43.9%; Belgium 35 kt, or 17.2%; Japan 30 kt, or 13.6%; and Poland 22 kt, or 10%.

Supply/demand balance influences prices

China’s apparent consumption of caprolactam last year was 2 071 kt, roughly double the 2010 figure of 1 120 kt. Annual growth of apparent consumption averaged 10.8% during 2010-2016. Last year, 67% of domestic caprolactam consumption went into making nylon 6 fiber, 25% was used to make nylon 6 engineering plastics, 4% to make BOPA film and 4% was used for other purposes. Consumption is expected to reach 2 760 kt in 2020, after annual growth averaging 7.4% during 2016-2020.
When crude oil prices are fairly stable, supply/demand is the major factor governing the domestic price of caprolactam. The supply in China has increased drastically since 2011, and competition has been fierce, so prices have slid ceaselessly, and profitability has been much lower. International crude oil prices fell in October 2014, so prices of raw material benzene also fell considerably and caprolactam prices consequently fell below RMB10 000/t, the lowest of the last seven years. The caprolactam market was beset with low prices and low profits overall in 2015. Prices will likely float in a range of RMB12 000-15 000/t for the next few years.

Table 3   Import/export of caprolactam in China, 2010-2016

    Import    Export
    Volume (kt)    Value (US$ million)    Volume (kt)    Value (US$ million)
2010    631    1 560.21    6    1.601
2011    633    2 060.69    7    2.667
2012    706    1 813.71    6    1.741
2013    452    1 076.17    1    2.832
2014    223    504.20    0.07    0.266
2015    224    362.20    2    3.843
2016    221    277.85    0.2    0.418


China has already achieved self-sufficiency for midrange and low-end caprolactam. Some high-end varieties, however, still must be imported from abroad. If capacity now under construction or planned for construction starts up as planned, China will have considerable surplus capacity for midrange and low-end caprolactam. Efforts should be made to improve the industrial structure, increase the output of high-end varieties and add mainly high-end capacity.