China Synthetic Resin Supply and Sale Association
Widely used in many areas like automobiles, consumer electronics, building boards and medical instruments, polycarbonate (PC) can be categorized as aliphatic PC, aliphatic-aromatic PC, aromatic PC, etc., with only one type – aromatic PC (BPA-PC in particular) – being put into industrial production and application. Mechanical properties of the other two abovementioned types still need to improve.
Soaring consumption
China’s PC consumption shot up although domestic R&D on PC technology lagged behind that in developed countries. China imported 1.42 million tons of PC in 2018, far exceeding 99 100 tons in 2000. Import volumes reached 730 800 tons in 2005 and 1.26 million tons in 2010.
Domestic demand for PC soared to more than 800 000 tons in 2007 from around 200 000 tons in 2000, up over 20% annually. The increase was attributed to growing use of PC in the fields of CD, electronic and electrical products (especially consumer electronics like laptops and feature phones), automobiles, etc. China’s PC consumption approached to two million tons in 2018.
Meanwhile, domestic PC output was up mainly due to new plants constructed by transnational corporations. In detail, Japanese Teijin’s two 50 000 t/a PC units both adopting interfacial polycondensation process were put into production in Jiaxing, Zhejiang in 2005 and 2006, respectively. Further, German Covestro’s two 100 000 t/a PC units came on line in 2006 in Caojing, Shanghai and they adopted melt polycondensation process.
Rapid capacity expansion since 2015
China’s PC capacity has expanded rapidly since 2015. Before 2015, domestic PC producers were wholly foreign-owned enterprises or Sino-foreign joint ventures, but domestic firms have entered the field since 2015. Existing projects that started operation include:
* a 100 000 t/a unit adopting the melt polycondensation process and constructed by Ningbo Zhetie Daphoon Chemical Co., Ltd. in Ningbo, Zhejiang
* a 300 000 t/a unit adopting the interfacial polycondensation process and constructed by Luxi Chemical Group in Liaocheng, Shandong
* a 70 000 t/a unit adopting the interfacial polycondensation process and constructed by Wanhua Chemical Group in Yantai, Shandong
* a 130 000 t/a unit adopting the melt polycondensation process and constructed by Lihuayi Group in Dongying, Shandong
* a 100 000 t/a unit adopting the melt polycondensation process and constructed by Zhonglan Guosu in Luzhou, Sichuan
By 2022, capacity proportion of wholly foreign-owned enterprises and Sino-foreign joint ventures are to fall to below 40%, that of state-holding enterprises are to decrease slightly to around 35%, while that of private enterprises are to exceed 25%.
By end June 2019, China’s PC capacity had reached 1.41 million t/a, and existing new or expanded projects boast a combined capacity of 1.51 million t/a. Annual capacity increase of over 20% in the past five years far surpassing growth of demand greatly alleviated heavy reliance on imports. PC self-sufficiency was higher than 45% in 2018, and is forecast to rise rapidly in the next few years.
Capacity distribution became more scattered. The largest PC producer in China, Covestro accounted for 28% of domestic capacity, and Luxi Chemical Group came next holding 21%. Shares of other firms ranged from 4% to 11%. Many domestic firms are constructing new projects, speeding up annual growth of PC capacity. Domestic PC capacity is forecast to exceed three million t/a in 2022.
Possible changes in trade pattern
China’s PC consumption approached to two million tons in 2018, and may exceed 2.2 million tons in 2022. Growth rates in the next few years are to range from 3% to 5%. Many new projects coming on stream soon are to decrease net import of PC but increase degree of self-sufficiency. A balance between supply and demand is forecast to be achieved in 2021 or 2022, helping China become a net PC exporter.
