Domestic acrylic and SAP market usher in new opportunities

Domestic acrylic production capacity after a few years after the rapid expansion of the 2016 began to fall phenomenon, then no new capacity put into operation, and Beijing Oriental (80,000 tons / year), and the Group (40,000 tons / year), Jilin Petrochemical (35,000 tons / year), Shenyang wax (80,000 tons / year) and other devices in the long-term parking idle state. According to statistics, as of the end of December 2016, the domestic acrylic (crude acrylic acid, the same below) the effective production capacity of 2.9 million tons / year or so, compared to 2015 reduced by 300,000 tons / year or so. The industry capacity utilization rate of a serious decline in 2016 operating rate remained at only about 50% level.

Acrylic demand from the point of view, the downstream three major applications in 2016 are showing a trend towards a better. (SAP) is subject to the aging of the domestic population and the impact of the second child policy, the demand for diaper stably increased; the use of water-based paint in the increasingly stringent environmental requirements, there is a gradual replacement of solvent-based paint trends; Adhesives in terms of benefits in recent years, the rapid growth of the express delivery industry brought about the demand for tape. It can be said that the demand for acrylic downstream is still steady development, but the upstream capacity expansion rate far exceeds the demand.

As the most promising downstream of the future of acrylic SAP industry, the prospects continue to improve. From the global point of view, about 51% of acrylic acid is used in the production of acrylic acid esters, 33% for high-purity acrylic acid (raw materials for SAP production), compared to 65% of domestic use for acrylic acid, high purity acrylic acid only 20% SAP’s development has the potential to be tapped. According to statistics, as of the end of 2016, the global SAP production capacity of about 3.8 million tons, the main capacity in the Japanese catalyst, BASF, Germany Evonik and Japan’s three major transnational large companies in the hands of the four total production capacity of the world The total capacity of more than 50%, capacity scale, concentration and technology have obvious advantages. In contrast, the domestic side of the plan to the sole proprietorship or joint venture company’s production capacity is only about half of the production enterprises have dozens of small industry, scattered, relatively backward technology situation at a glance.

SAP’s main downstream applications include absorbent hygiene products, agricultural and industrial use, health supplies are the main driving force of the SAP market, including baby diapers, adult incontinence, female sanitary napkins. China has about 87% of SAP for the production of absorbent hygiene products, of which baby diapers for the largest consumer areas, consuming about 67% of the SAP. The most important areas are often well-known international super absorbent resin production enterprises occupy the domestic new brands want to enter, can be described as difficult.

China’s absorption of health care products market to maintain the growth momentum, especially baby diapers and adult incontinence products. However, compared with the world level, the proportion of Chinese baby diapers and adult incontinence products is still small, in the two children policy liberalization, the aging of the population under the stimulation of the above two huge growth potential. With the population growth, people’s income level, the consumption of these products will continue to expand.

At present, China’s SAP industry is full of challenges, this is due to foreign well-known brands of high water absorbent resin supply influx, leading to the domestic market as a whole is extremely competitive. On the other hand, due to the domestic acrylic market presents a situation of excess capacity, so many acrylic production enterprises began to extend the downstream high absorbent resin industry, the domestic super absorbent resin market, the growing number of emerging brands, the market price showed a low Trend.

In 2017, SAP industry ushered in some new opportunities: First of all, China has increased the import tariffs on SAP products, and further enhance our domestic SAP brand market share; Secondly, many domestic SAP manufacturers in 2017 launched a new Products, with the improvement of product quality, more and more domestic domestic SAP brand into the well-known downstream enterprises at home and abroad. In addition, in April 2017, the China Petroleum and Chemical Industry Association Chemical New Materials Committee of Super Absorbent Resin (SAP) Working Group set up the first session of the General Assembly and the first high-absorbent resin industry development meeting held in Dalian City, the meeting And adopted the SAP Working Group regulations and organizational structure.

With the integration of acrylic and SAP industry continues to advance, the industry scale and technical level is also growing, excess capacity and market demand between the contradictions to further improve, I believe the acrylic and SAP industry will usher in a new development opportunities.