Zhang Guihua, Wei Xinhe, Wang Liquan
In recent years, China has become a major phenolic resins producer, consumer and also a net exporter. Its export variety and volume will continue rising in the years to come.
Production concentrates in East China
Chinese phenol resins producers are mainly located in east China. Producers hosting larger capacities are concentrated in Shandong, Jiangsu and Henan, including Jinan Shengquan Group, Dynea (Shanghai) Co., Ltd. and Yima Ruineng Chemical etc. There are tens of thousands of phenolic resins plastics processors distributed in all kinds of electronic and electrical products of circuit board and heat resistant electrical fittings, automotive brake pads and heat resistant plastic fittings, glass fiber reinforced plastics (GFRP) products and other fields. Some overseas companies, such as SI Group of the US and Japan’s NAIS have built up plants in China to produce phenolic resins. Major Chinese phenolic resins producers are listed in Table 1 and changes in domestic output are shown in figure 1.
Figure 1 Changes in China’s domestic phenol resins output
As for plants under planning, Henan Yima Ruineng Chemical will expand its phenolic resins capacity from 100 kt/a to 200 kt/a. Ningxia Ningshun New Materials Technology plans to build formaldehyde, pentaerythritol, neopentyl glycol, methylal, paraformaldehyde, polymethoxy dimethyl ether, trimethylolpropane, amino molding compound, formic acid, calcium formate and functional resins (alkyd resin, phenolic resin and epoxy resin) project with a combined capacity of 580 kt/a in Ningdong Energy Chemical Base New Chemical Materials Park. The project will have a total investment of RMB500 million and will be constructed in four phases. Its EIA (environmental impact announcement) result was announced in February 2020.
Expanding applications
China’s apparent consumption of phenolic resins has been growing year on year, with the average annual growth rate reaching around 4% in 2015-2019, in line with increasing demand.
Phenolic resins are widely applied in phenolic moulding compounds, wood processing, laminates, grinding, friction materials, fire-resistant and insulating materials, etc. Table 2 shows China’s phenolic resins supply-demand situation in recent years.
China’s import volume of phenolic resins in primary form averaged around 100 kt in recent 10 years. China was a net importer of phenolic resins in primary form during 2012-2016, when exports were lower than imports. But since 2017, China has shifted to a net exporter of phenolic resins and its major export destinations include Thailand, South Korea and Vietnam. China will continue to see increasing phenol resins exports in the coming years.
Phenolic resins find wide applications in various areas of the national economy, including automobiles, electronics, construction and aerospace. Table 3 shows China’s phenol resins consumption structure.
China has become a major phenol resins consumer and producer, as well as a net exporter. Its export volume and variety will keep rising in the following years. Phenolic resins will mainly develop in the direction of green, environmental protection, specialty and refinement.
