By Yan Feng

Capacity distribution

China’s ethyl acetate capacity reached 3.95 million t/a at the end of June 2019, with 96.2% or 3.8 million t/a adopting acetic acid esterification process. 

   Table 1   China’s major ethyl acetate producers in 2019

   Domestic ethyl acetate capacity concentrated in east China (e.g. Jiangsu, Shanghai, Anhui and Shandong), reaching 2.68 million t/a and accounting for 67.85% of the nation’s total, far exceeding 5.06% (200 kt/a) of north China (e.g. Hebei). Southwest China (e.g. Chongqing and Guangxi) contributed 400 kt/a or 10.13% to the nation’s total capacity. South China (e.g. Guangdong) and central China (e.g. Henan) had little difference in ethyl acetate capacity, boasting 350 kt/a (8.86%) and 320 kt/a (8.1%), respectively. By provinces, Jiangsu boasted the largest ethyl acetate capacity of 1.36 million t/a, occupying around 34.43% of the nation’s total; Shandong, 820 kt/a, 20.76%.

Decreasing imports

   Increasing capacity and output decreased ethyl acetate imports, which reached 46 432.04 tons in 2005 and dropped to 356.42 tons, down 7.48% YoY, in 2014. China imported 1 174.74 tons of ethyl acetate in 2018, soaring 1 114.08% YoY. Export volume was just 18 800 tons in 2005, surging to 431 200 tons (up 2.2% YoY) in 2014 and 457 400 tons (down 4.07% YoY) in 2018. Combined export volume to six main destinations was up 2.57% YoY to 378 800 tons in 2018, accounting for 82.82% of the nation’s total exports – Japan, up 13.97% YoY to 119 900 tons, 26.21% of the total; Indonesia, up 10.11% YoY to 68 600 tons, 15% of the total; Taiwan of China, down 1.32% YoY to 59 900 tons, 13.1% of the total. 

   Table 2   Main export destinations of China’s ethyl acetate during 2016-2018  (kt)

Printing ink packaging consumed more than half of ethyl acetate

   Fast-growing economy made demand for coatings, printing ink and adhesives soar, propelling ethyl acetate consumption, which was up 4.04% YoY to 1.04 million tons in 2018. The average annual growth rate of apparent ethyl acetate consumption was around 1.6% during 2003-2018, and domestic demand is forecast to reach 1.15 million tons by 2023.

   The printing ink packaging (PIP) industry consumed around 53% of domestic ethyl acetate (EA) in 2018 although more stringent environmental policies and the nation’s support on water-based paints decreased EA consumption in the PIP area. As for others, the adhesives industry consumed 21%, and the fast-growing pharmaceuticals industry absorbed 15%, which is higher than before. The rest of the products were mainly consumed by paint (5%), food (2%) and electronics (2%) industries.

   By regions, most ethyl acetate were consumed by east China (35%), south China (30%) and north China (12%) as downstream industries like printing ink, adhesives and pharmaceuticals are mainly distributed in the Pearl River Delta, Yangtze River Delta and Bohai gulf area.

   China’s ethyl acetate prices have fluctuated sharply in recent years. In the first half of 2019, the highest price reached RMB6 200/t in January, and fell to RMB5 400/t in June. The prices are forecast to remain relatively low given decreasing prices of raw materials, weak demand and overcapacity.