Year:2018 ISSUE:12
COLUMN:POLYMERS
Click:298 DateTime:Jun.22,2018
By Gao Jian, Beijing Yanshan Petrochemical Co., Ltd. Organic Chemical Plant,
Liu Lina, China National Economic and Technical Development Centre,
Yan Hao, Beijing Yanshan Petrochemical Co., Ltd. Organic Chemical Plant
Prominent advantage in downstream applications
Properties of EVA differ widely, due to differences in VA content. EVA can be processed into various products through injection molding, extrusion molding, blow molding, foaming, thermal molding, heat sealing and coating, so it has extensive applications.
(1) EVA films
Greenhouse films made of EVA exhibit great transparency, good heat tolerance and adequate impact resistance. They are also physiologically benign and very compatible with antioxidants, anti-dripping agents and antifogging agents. Moreover, EVA can be used in making packaging films, medical films, laminating films and casting films.
(2) EVA foamed products
EVA is usually used to make foamed materials with high power and independent bubbling. Among new heat-preserving materials, EVA foamed materials have gained extensive applications internationally. They are used mainly in making train carriages, buildings and buoyant apparatuses for ships. As EVA products are tender and have good elasticity and excellent shock absorbance and chemical resistance, they are extensively used in making soles for high-grade travel shoes and mountain-climbing shoes, as well as making sound insulating boards, gym mats, sealing devices and toys.
(3) EVA for electric wires/cables
EVA is also extensively used in electric wires/cables, where it has two major advantages: it can contain high amounts of fillers without becoming brittle, and it can easily be cross-linked. Typical applications include heat-shrinkable insulators, semiconductor shielding materials and flame-retardant insulation materials.
(4) EVA for hot melt adhesives
Mixing EVA with anchoring resins and wax can produce hot melt adhesives, which have good mechanical behavior and stability. Hot melt adhesives with EVA as a major ingredient can be used with no need of solvents, avoiding a common source of environmental pollution. They cure quickly and are suitable for use in high-speed automatic production lines. They are extensively used in wireless book binding, packaging, paper box sealing, furniture edge finishing, automobile/household electric appliance assembly, shoemaking and anticorrosive coatings for metal products.
Key demands depending on import
Globally, the biggest use of EVA is film production. Seventy percent of all EVA is used to produce transparent films. Major products include packaging films, agricultural films, medical films and solar cell backplane films. Global demand for EVA will likely reach 3 650 kt in 2020, with average annual growth of 4.6% during 2015-2020.
With constant completion of new units, China’s EVA self-sufficiency has increased year after year. The apparent consumption of EVA in China in 2017 was 1 472.6 kt, and self-sufficiency rose to 34.06%, up 3.89 percentage points YoY, but the supply is still seriously short. The main consumers of EVA in China are manufacturers of functional greenhouse films, packaging films, shoe materials, hot melt adhesives, electric wires/cables, toys and solar cell backplane films.
Some key consumers still depend on import. For example, makers of functional greenhouse films have strict requirements on raw material EVA, 70% of such EVA is EF443 from Hanwha, and domestic products hold only a 1/3 share in that market. As EVA used in hot melt adhesives is not produced in China, all EVA needed in the hot melt adhesive sector is imported. The VA mass fraction in EVA used in the photovoltaic sector is required to be 30-33%, the demand is totally satisfied by import, there are considerable impacts from U.S. dollar conversion rates and the market gap keeps widening.
Burst of new capacity to be released in next few years
China’s EVA capacity and output increased respectively to 972 kt/a and 500 kt in 2017, and operating rates averaged 75%. With economic impacts from home and abroad, and high prices for crude oil and ethylene, most EVA producers also produce LDPE, affecting operating rates for EVA. Table 1 shows the major EVA producers in China in 2017.
Table 1 Major EVA producers in China, 2017
Producer | Capacity (kt/a) |
Sinopec Beijing Yanshan Petrochemical Co., Ltd. | 200 |
BASF-YPC Co., Ltd. | 200 |
Shandong Levima Group Haoda Chemical Co., Ltd. | 100 |
Beijing Huamei Polymer Co., Ltd. | 60 |
Sinopec Beijing Donfang Petrochemical Co., Ltd. | 4 |
Formosa Plastics (Ningbo) Co., Ltd. | 72 |
Jiangsu Sailboat Petrochemical Co., Ltd. | 300 |
Total | 972 |
Some enterprises in China, such as Shenzhen Funde Holding Group Co., Ltd. and Shenhua Group, plan to construct new EVA or LDPE/EVA units in the next few years. If these units are completed on schedule, China’s EVA capacity is expected to exceed 3 million t/a in 2020. Table 2 shows the EVA construction projects planned for China in the next few years.
Table 2 EVA unit construction in China planned for next few years
Company | Capacity (kt/a) | Planned start for production |
Quanzhou Petrochemical Co., Ltd. | 100 | 2020 |
Shanghai Petrochemical Co., Ltd. | 100 | 2019 |
Fujian Gulei Petrochemical Co., Ltd. | 300 | 2020 |
Shenzhen Funde Holding Group Co., Ltd. | 200 | Not yet set |
Yangzi Petrochemical Co., Ltd. | 100 | 2020 |
Shanghai Coking Co., Ltd. | 120 | Not yet set |
Formosa Plastics (Ningbo) Co., Ltd. | 128 | Second-phase, not yet set |
Zhanjiang Sinopec-Kuwait Refining and Chemical Co., Ltd. | 200 | 2020 |
Shenhua Yulin Energy & Chemical Co., Ltd. | 300 | 2019 |
Jinzhou Jingang Petrochemical Co., Ltd. | 300 | Not yet set |
Zhejiang Petrochemical Co., Ltd. | 100 | Second-phase, not yet set |
Shenhua Ningxia Coal Industry Group Co., Ltd. | 100 | Not yet set |
Jiangsu Sailboat Petrochemical Co., Ltd. | 300 | Second-phase, not yet set |
Total | 2 248 |
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Win markets with large units and high-end, differentiated products
The EVA sector in China still has some problems:
Most EVA units also produce LDPE, and there are problems of low operating rate and narrow variety. Enterprises with an abundant raw material supply can therefore consider choosing advanced technologies in constructing EVA units with considerable scale, or upgrading technology to increase the scale of units and gain a price advantage.
In terms of import/export structure, most EVA produced in China has low VA content, and high-end and specialty EVA varieties are mainly imported. EVA enterprises should introduce advanced technologies, produce high-performance and differentiated products and strengthen application development to meet the needs of different sectors.
