By Zhang Li, NPCPI

Industry development focus shifting to Asia

Global PA66 (chip) capacities totalled 2.82 million t/a in 2018. Plants concentrated in North America, Northeast Asia and West Europe, accounting for 39%, 32% and 20% respectively of the world total capacities. 

   There are more than 20 PA66 producers in the world. Leading producers include INVISTA, Dupont, Ascend, Solvay, BASF, AsahiKASEI and Pingdingshan Shenma. The top 10 producers have a combined capacity of 2.259 million t/a, covering 80.1% of the world total. 

   The capacity expansion of PA66 depends on the supply of feedstock adipic acid and hexamethylene diamine (HMD, which is made from adiponitrile (ADN)). Adipic acid is easy to get, but ADN supply only relies on a limited number of producers, including INVISTA, Solvay, Ascend and AsahiKASEI.

   Global PA66 consumption were around 2.29 million tons in 2018, mainly deriving from Northeast Asia, North America and West Europe, accounting for 39%, 23% and 20% respectively. China took up 28.3% of world PA66 consumption. 

   As for worldwide PA66 applications breakdown, fiber contributes to around 40% of PA66 consumption. The rest are used in the engineering sector, namely auto, electrical and electronics industries, which have become the key driving force of the rising PA66 consumption. The annual growth rate of global PA66 demand is predicted at 1-2% on average in the coming years. 

   The PA66 market is mature in Europe and the US. While since the economic growth rate in Asia has far outpaced that in Europe and the US, the nylon industry is shifting its development focus to Asia, especially to China. World leading PA66 producers, such as INVISTA and Solvay have been boosting their capacities in China, setting up research and development centres and strengthening their sales forces. A number of Chinese private-owned enterprises are also striding into the PA66 industry.  

Rapid development phase during the “14th Five-Year Plan” period

   There are nine PA66 producers in China with capacities totalling 512 kt/a by the end of 2018. China Pingmei Shenma Group is the largest domestic PA66 producer, having nearly 180 kt/a of PA66 capacities, scattered in major production bases in Pingdingshan, Henan province, Quanzhou, Fujian province and Nantong, Jiangsu province. Through continuous polymerization, Pingdingshan Shenma also uses PA66 salt solutions to produce high viscosity polymers, which will be used to make PA66 technical yarn and PET cord fabrics. Its PA66 polymer capacities are around 140 kt/a. In October 2016, INVISTA launched production of its PA66 production base in Shanghai Chemical Industrial Park (covering a 215 kt/a HMD plant and a 150 kt/a polymer plant) and became the second largest PA66 producer in China. Meanwhile, INVISTA announced that it would build a 300 kt/a ADN plant, which is planned to start up in 2023. Chinese PA66 producers depend on imported HMD, ADN or PA66 salt solutions as feedstock. Chinese PA66 (chip) producers in 2018 are listed in Table 1. 

   Table 1  China’s PA66 chip producers in 2018 

   China Pingmei Shenma Group Jiangsu New Materials Technology’s 30 kt/a PA66 plant is under construction and is expected to be completed in 2019. A number of new projects are on track or in planning phase in China. However, uncertainties remain in place due to the supply constraints of the feedstock ADN. Some domestic companies have developed ADN production technology based on different process and pilot plants have already been built. China’s ADN-HMD-PA66 industrial chain has entered into a fast development phase as technology advances. Foreign investment is also eying to accelerate occupying the Chinese market. Hence, the rapid development of the PA66 industry during the “13th Five-Year Plan” period is likely to be repeated in the “14th Five-Year Plan” period.   

   China’s PA66 consumption reached around 650 kt in 2018, while net imports stood at 195 kt, taking up 30% of the domestic consumption. Major downstream industries of PA66 include synthetic fiber and engineering plastics. Synthetic fiber mainly consists of technical yarn, civil yarn, carpet yarn, air bag yarn, tow etc. Their demand tends to be stable. Engineering plastics, accounting for over 60% of domestic PA66 consumption, is mainly applied in direct injection (of raw chip) and injection after modification. Their end-products are mouldings. PA66 engineering plastics boast high strength, high rigidity, good impact resistance, oil resistance, chemical resistance and self-lubrication and are widely used in auto parts, electric and electronic devices, railway transportation accessories. PA66 engineering plastics will remain a major growth driver of the PA66 market.  

   PA66 has excellent properties but complex production technology and high technical requirements lead to higher production costs than PA6. The two products can replace each other in some fields. In recent years, rapid increases in domestic PA6 capacities and steep gains in HMD prices have pushed up PA66 prices. PA6 has begun to substitute PA66 in some fibers. 

   China’s per capita nylon consumption remains low as compared to developed countries. In next decade, the growth rate of China’s engineering plastics demand is predicted at around 4%, higher than the world average level. Booming domestic demand for PA66 is attracting major multinational companies to invest in China in the sector. However, continuing capacity expansions will intensify the competition in the domestic PA66 market. 

Efforts to develop new products need strengthening

   China is likely to make breakthroughs in ADN production technology during the “14th Five-Year Plan”period, but wider fluctuations in feedstock ADN and HMD may impose heavy pressure on domestic companies operation.  

   Domestic enterprises constrained by feedstock supply restrictions shall make more efforts in the development of new products and downstream markets, including meeting the demand for auto and fast railway industry, accelerating the development of PA66 engineering plastics modified products, enhancing the  properties of flame retardant, antibacterial, chemical resistance and uv resistance of conventional polyamide fiber and raising the proportion of functional and differentiated fiber varieties.