By Zhang Bei, China National Chemical Information Center

Global bisphenol A capacity was 7.02 million t/a in 2018, and consumption in the same year totalled 5.91 million tons, around 64% of which was absorbed by PC sector and 34% by epoxy resin sector. Bisphenol A could also be used to produce new synthetic resin such as polyetherimide, polysulfone resin, polyarylester and phenoxy resin.

Sharp increase in both output and import

   China’s bisphenol A capacity increased by 250 000 t/a in 2019 to 1.69 million t/a. The capacity additions were mainly from two units – Changchun Chemical (Jiangsu) Co., Ltd.’s 135 000 t/a unit phase III that was put into use in June and Lihuayi Weiyuan Chemical Co., Ltd.’s 120 000 t/a unit starting operation in September. Table 1 shows China’s major bisphenol A producers in 2019.

   Table 1  China’s major bisphenol A producers in 2019

   Domestic supply of bisphenol A was sufficient in 2019. In the first 11 months of 2019, overall operating rates hovered at 85% and the output was up 26% YoY to 1.29 million tons. In the first 10 months, import volume was up 14.8% YoY to 466 000 tons.

Soaring consumption

   In the first 10 months of 2019, domestic consumption of bisphenol A was up 22% YoY to 1.61 million tons, mainly stimulated by PC industry, which is to attract more attention from bisphenol A firms as in the coming years there will be many new PC projects, classified as China’s new material projects regarding high-tech industrialization. Two PC units were put into production in 2019, including a 100 000 t/a unit of Sichuan Zhonglan Guosu New Material Technology Co., Ltd. and a 70 000 t/a unit of Hubei Ganning New Petrochemical Material Co., Ltd. Development of epoxy resin industry is forecast to decelerate.

Low prices of bisphenol A in 2019

   In the first five months of 2019, domestic prices of bisphenol A fluctuated from RMB11 000/t to RMB12 300/t, and fell to below RMB10 000/t during June-November. The decline was mainly attributed to falling prices of raw materials (e.g. phenol prices were lower than RMB8 000/t, and acetone prices ranged from RMB3 000/t to RMB4 000/t), sufficient supply of bisphenol A (due to new capacity of 250 000 t/a), low prices of imported bisphenol A and shrinking demand (arising from PC unit maintenance in 2H 2019 and less demand from epoxy resin sector).

Prospect

   Domestic bisphenol A players plan to kick off eight new projects, boasting a combined capacity of 1.57 million t/a and auxiliary PC facilities. The bisphenol A industry is forecast to develop soundly in the next two years as many new PC projects are to increase domestic demand for bisphenol A. Raw materials supply is to remain sufficient because of capacity expansion of phenol and acetone. In addition, a group of chemical firms possessing phenol, acetone, bisphenol A, PC industry chain are to play an active role in speeding up development of the bisphenol A industry.