A Bright Future for China's Engineering Plastics Industry
Click:0    DateTime:Nov.24,2020

By Wang Xiaoxue, CSRA

Generally engineering plastics refer to polyamide (PA), polyoxymethylene (POM), polycarbonate (PC), polyphenylene oxide (PPO) and polybutylene terephthalate (PBT). After nearly 20 years’ rapid development, China’s engineering plastics industry’s scale and technology have made tremendous progress. Production localization has been realized, and the products have gradually developed from low-end to mid-to-high-end, from general-purpose resin to special brands. However, there are problems like structural overcapacity and insufficient innovation. It is necessary to further adjust the structure and performance of materials through a series of technological innovations in the links of raw materials, catalysts, processes, processing applications and additives to make them able to meet the needs of rapid development of technology and society.

Polyamide

   PA6 and PA66 account for 90% of the world’s total polyamide engineering resins. In China, PA6 accounts for about 75% and PA66 20%.
   China's PA6 production technology is relatively mature, and the capacity is increasing year by year. The current output of PA6 chips has exceeded 5 million tons per year. Downstream applications have also expanded from the field of nylon fiber to engineering plastics and films. However, most of the PA6 plastics are middle and low-end products, and the import volume of high-performance nylon products is large. There is still a large room for PA6 to develop in high-end engineering plastics.
   As of the end of 2019, China's PA66 resin capacity has increased from 270 000 t/a in 2015 to 490 000 t/a, with the output reaching 350 000 tons and the demand at 520 000 tons.
   The domestic nylon industry chain environment has undergone tremendous changes. With the launch of INVISTA’s 400 000 t/a adiponitrile project in Shanghai, and Tianchen Qixiang’s and Shenma’s adiponitrile projects, the key factor restricting the development of the polyamide industry has basically been lifted. With the commissioning of the Wenzhou Huafeng and INVISTA (Shanghai) projects, the continuous expansion of Shenma Pingdingshan headquarter and its Haian plant, and the successive commissioning of projects in Shandong and other places, the total capacity of the industry is growing rapidly, and the supply and demand situation will undergo a fundamental change. The capacity of caprolactam has exceeded 4 million t/a, and PA6 polymerization capacity has exceeded 5 million t/a. Meanwhile, the disclosure of the third-generation technology of caprolactam and the research and development of the fourth-generation technology will promote revolutionary changes in the entire industry.
   The acceleration of domestic MDI, TDI and HDI has provided opportunities for the development of nylon intermediates. The National Development and Reform Commission and the Ministry of Science and Technology have listed long carbon chain nylon and high temperature resistant nylon as key support projects to promote the new technology of synthesizing long carbon chain nylon by biological fermentation and expand the use of this engineering plastic in the automotive, and electrical & electronics industries. Cathay Biotech said in October that it would invest RMB25 billion to build projects by phases, including a 500 000 t/a bio-based pentanediamine, 900 000 t/a bio-based polyamide and 80 000 t/a biological long-chain dibasic acid. Shanghai Zhongneng Group will also enter the fields of bio-nylon and special nylon.

Polyoxymethylene

   There are 8 POM manufacturers in China, namely Yuntianhua Chongqing Tianju New Materials Co., Ltd., Henan Energy Group Kaifeng Longyu Chemical Co., Ltd., National Energy Group Ningxia Coal Industry Co., Ltd., CNOOC Tianye Chemical Co., Ltd., Kailuan Group Tangshan Zhonghao Chemical Co., Ltd., Yankuang Group Lunan Chemical Co., Ltd., ChemChina Shanghai Bluestar Polyformaldehyde Co., Ltd. and Tianjin Bohua Group Bohua Yongli Chemical Co., Ltd. The total capacity is 410 000 t/a.
   On the whole, China’s POM industry is basically struggling to survive during the "13th Five-Year Plan" period. The technology is generally in a backward state, and it is difficult for products to occupy the high-end market. Entering the "14th Five-Year Plan" period, POM companies should continue to increase R&D investment, and further improve the quality of products through process optimization and the application of new technologies. It is necessary to focus on the needs of key areas, actively research and develop materials such as aerospace materials, high-end equipment materials, marine engineering and construction engineering materials (POM fibers), new generation electronic information materials, cutting-edge biomedical materials and new energy materials, and pay attention to 5G communication materials and flexible display materials, and extend the high value-added industrial chain to meet the diversified needs of the market.

Polycarbonate

   Polycarbonate (PC) has always been a new type of polymer engineering plastic whose development enjoys the government’s encouragement. The "13th Five-Year Plan" period is a period of rapid development of China's own PC capacity. The overall capacity has grown from 675 000 t/a in 2015 to 1.61 million t/a in 2019.
   The largest downstream application market is electrical & electronics and sheet/film, with both (excluding home appliances) accounting for more than 50% of the entire PC consumption. In addition, automobiles account for about 16% of total consumption (including lights, windows, and modified plastics for automobiles). Other small markets are optics, home appliances, packaging and medical sectors. PC is also a key material in various emerging fields and has made breakthrough progress in new energy vehicle charging piles, lightweight materials for drones, VR and smart home applications.
   The self-sufficiency of PC is only about 50%. The industry is in a period of concentrated release of capacity and will rapidly develop into an oversupply situation within 3-4 years. During the "14th Five-Year Plan" period, it is expected that the overall domestic PC capacity will exceed consumption. The development of new markets and the localization of high-end products will be the biggest challenges for domestic enterprises.

Polyphenylene oxide

   Polyphenylene oxide (PPO) is a high temperature resistant thermoplastic engineering plastic. Due to the complex synthesis technology of the key raw materials of PPO resin, the technology is difficult, and the threshold is high. During the "13th Five-Year Plan" period, China's PPO resin capacity has grown from 10 000 t/a in 2015 to 60 000 t/a. Nantong Xingchen Company, a subsidiary of China National Chemical Corporation, has a 20 000 t/a PPO resin plant in Ruicheng. The company invested in a new generation of 30 000 t/a PPO plant in Nantong, which was successfully put into production in August this year, mainly producing PPO and modified products. Hebei Xinbao's 10 000 t/a PPO resin plant was put into production in the second half of 2015, and it is reported that it has a 40 000 t/a project under construction.
   The largest downstream market of PPO resin in China is IC Tray, new energy and photovoltaic, followed by electronical & electronics and LED. In recent years, the demands from new energy and photovoltaic industries have increased sharply. PPO is one of the engineering plastics with smallest dielectric constant and dielectric loss. This performance has established a broad application prospect of PPO resin in the 5G market.
   It is expected that during the "14th Five-Year Plan" period, the domestic demand for PPO resin will grow by 7%. By 2025, the annual demand for MPPO will reach 145 000 tons, which is equivalent to 100 000 tons of PPO resin.

Polybutylene terephthalate

   China's polybutylene terephthalate (PBT) capacity is over 1 million t/a, which is already seriously surplus, and the plant operating rate is suppressed, restricting the profits. However, there is a structural shortage in the domestic market, and some special grades of PBT resin still need to be imported.
   In the domestic market, under the trend of new urbanization, PBT products will maintain a growth in infrastructure and electrical & electronics. The optical cables and modified products will still be the main support for its growth. The industry further expands application areas through PBT modified frames. PBT modification directions include toughened and reinforced modified halogen-free flame-retardant PBT composite materials, glass fiber reinforced flame-retardant PBT composite materials, polyimide long fiber reinforced PBT composite materials, nano-silica reinforced and toughened PBT composite materials, PC/PBT alloy and PET/PBT alloy, etc.
   In addition to the traditional five major engineering plastics, China's special engineering plastics have also been developing rapidly, including polyaryl ether ketone production, by companies such as Jilin Zhongyan, Changchun Jida, Zhejiang Pengfulong; polyphenylene sulfide (PPS) production by Zhejiang Xinhecheng, Chongqing Jushi and Zhongke Xingye; and polyimide (PI) (monomer, film, plastic, foam) production by Changchun Gaoqi, Jiangsu Aoshen, Jiangsu Xiannuo, and the Institute of Chemistry of the Chinese Academy of Sciences, Sichuan University, and Shanghai Institute of Synthetic Resin. Polysulfone resin (polyarylsulfone, polyethersulfone), liquid crystal resin, special epoxy resin, aramid 2, aramid 3 and some aerospace composite materials have been industrialized in China. China's engineering plastics and special materials industries are ushering in important development opportunities.