By Zhang Tianran, Beijing Bodingcheng Engineering Design Co., Ltd., Shanghai Branch
Operating rates of domestic MMA enterprises have remained low in recent years due to many factors, like downstream demand, raw materials and environmental protection. However, high profits of the industry attracted a large number of investors. In the recently issued Industrial Restructuring Guide Catalogue (2019 Edition), MMA adopting acetone cyanohydrin process was listed in the restricted category, leading to great changes in the industry.
Increasing supply and decreasing imports
Domestic output of MMA reached 652 000 tons in 2018, and the average operating rate was 65%. Table 1 shows China’s major MMA producers in 2018.
Table 1 China’s major MMA producers in 2018
Region | Company | Capacity (kt/a) | Process |
East China | Lucite International (China) Chemical Industry Co., Ltd. | 173 | ACH |
Evonik Degussa (China) Co., Ltd. | 100 | C4 | |
Jiangsu Sailboat Petrochemical Co., Ltd. | 90 | ACH | |
Shandong Hongxu Chemical Co., Ltd. | 75 | ACH | |
Wanhua Chemical Group Co., Ltd. | 50 | C4 | |
Zibo Qixiangtengda Chemical Co., Ltd. | 100 | C4 | |
Shanghai Huayi Group/Shandong Yuhuang Chemical (Group) Co., Ltd. | 50 | C4 | |
South China | Huizhou Huiling Huacheng Co., Ltd. | 90 | C4 |
Northeast China | PetroChina Jilin Petrochemical Company | 200 | ACH |
Heilongjiang Zhongmeng Longxin Chemical Co., Ltd. | 75 | ACH | |
Total | 1 003 |
East China boasted MMA capacity of 638 000 t/a in 2018, accounting for 63.6% of the nation’s total, and northeast China contributed 27.4% or 275 000 t/a. Domestic MMA capacity is forecast to reach 1.86 million t/a in 2023 (new or expanded projects are shown in Table 2).
Table 2 China’s new or expanded MMA projects
Company | Location | Capacity (kt/a) | Process | Remarks |
Jiangsu Sailboat Petrochemical | Lianyungang, Jiangsu | 90 | ACH | Put into production in 2019 |
Zhejiang Petroleum & Chemical | Zhoushan, Zhejiang | 90 | ACH | To be put into production in 2020 |
Wanhua Chemical Group | Yantai, Shandong | 120 | C4 | To be put into production in 2020 |
CNOOC Dongfang Petrochemical | Dongfang, Hainan | 70 | ACH | Early stage of project |
Jilin Petrochemical, Jieyang Branch | Jieyang, Guangdong | 50 | ACH | Early stage of project |
Liaoning Baolai | Panjin, Liaoning | 90 | ACH | Early stage of project |
Zibo Qixiangtengda Chemical | Zibo, Shandong | 200 | C4 | Early stage of project |
Total | 710 |
Around 62% of domestic MMA is used in producing PMMA, 20% in coatings, 14% in ACR & MBS and 4% in other fields.
China imported 165 000 tons of MMA in 2018, and exported 58 000 tons in the same year.
Urgent need of making breakthroughs in domestic technologies
MMA producers mainly adopt the acetone cyanohydrin process (ACH), the isobutene process and the ethylene process.
The mature ACH process is widely used given good quality and high yield of products, low investment and low production costs, etc. Further, it makes good use of hydrocyanic acid, a kind of petrochemical by-products. However, it utilizes sulfuric acid, corroding equipment seriously, and supply of raw materials is curbed by operating rates of acrylonitrile plants. High liquid waste disposal charge is also a disadvantage.
The isobutene process has no problems in corrosion, but it is affected by prices of raw materials and has higher production costs.
The ethylene process applies to refining and chemical integration plants, with BASF process and Lucite Alpha process being industrialized.
The isobutene process has been industrialized in China. While improving this process continually to reduce production costs, industry players are wise to strengthen R&D of the ethylene process, and develop downstream products with high added-value.
Acceleration of industrial consolidation
China’s MMA industry is to develop rapidly in the next five years, and the capacity is to increase 13.2% annually, resulting in more intense competition. Downstream sectors (e.g. PMMA, ACR/MBS and surface coatings) are generally facing problems of low production concentration, low technical level and homogeneous competition among middle and low-end products. Hence, industrial consolidation is forecast to be accelerated and outdated capacities to be eliminated more quickly.
Among MMA derivatives, PMMA has the highest quality standards for MMA, but domestic MMA is mainly used in mid-and low-end sectors and the demand from high-end fields relies on imports. Domestic MMA demand is to increase with high-end PMMA products being accepted rapidly in China. In addition, lightening of vehicles becomes more urgent owing to policies to reduce energy and emissions of fuel vehicles and consumers’ need to increase endurance mileage of new energy vehicles. This requires more modified plastics, brings opportunities to the PMMA industry, and finally propels the MMA industry.
Environmental pressure and higher taxes make increasingly more oil paint producers switch to water paint, which is to stimulate domestic demand for MMA.