Production and Market of Bromine and Bromides in China-2010

Page 1

Proposal

Production and Market of

Bromine and Bromides in China

October 2010

Br

Copyright Š Guangzhou CCM Information Science & Technology Co., Ltd.


CCM Data & Primary Intelligence Description: As a resource-oriented product, bromine is widely used in the production of brominated flame retardants (BFRs), pharmaceuticals, pesticide, dyestuff and oilfield chemicals, etc. Driven by great demand from increasing domestic consumption and overseas markets, China’s bromine industry developed fast in the past 10 years. China’s production of bromine mainly based on the underground brine in Shandong currently and the output in Shandong generally accounts for more than 80% of China’s total. However, China’s bromine output has decreased continuously in recent three years. What happened and how to deal with this situation for all market players? The development of China’s bromine industry has been completely driven by strong demand for various bromides in recent years, especially by the BFRs. Meanwhile, the medicine intermediates are becoming the new driver for the growth of bromine consumption. What is the consumption situation of bromine now and what will happen to it in the next years? The detailed answers of the above focuses will be given in this report, and it will also provide you an insightful analysis on other following aspects: - Position of Chinese bromine industry in the world - Production of bromine in the past few years in China - Introduction to technology roadmaps of various organic bromides - Multi-year price situation of bromine - Production and market share of 25 kinds of bromine derivatives by field - Key factors influencing China’s bromine and bromides market in the past few years - Development of foreign enterprises or joint ventures in China - Future forecast on Chinese bromine supply and bromides market in the next 5 year

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CCM Data & Primary Intelligence Main content: No.

Content

Page

Code

Main content

0

Executive summary

1

Introduction & methodology

3

I

Overview of bromine and bromides industry in China

6

II

Status of bromine element supplier in China (2007-E2010)

8

II-1

Bromine

8

II-1-1

Industry distribution

8

II-1-2

Production

10

Technology

10

Capacity and output

12

Producer

13

II-1-3

Price trend

15

II-2

Hydrogen bromine

16

III

Introduction to production technology for main organic bromides

18

III-1

Substitution reaction in benzene ring

18

III-2

Substitution of oxhydryl group

19

III-3

Addition reaction in double bond linkage

20

III-4

Others

21

IV

Downstream industry of bromine and main bromides in China by field

23

IV-1

Flame retardant

23

IV-1-1

Development of flame retardant industry

23

IV-1-2

Overview of bromides in flame retardant industry

24

IV-1-3

Main applications in flame retardant

25

Tetrabromobisphenol A

25

Derivatives of TBBPA

27

Decabromodiphenyl oxide and 1, 2-bis(pentabromophenyl) ethane

29

Hexabromocyclododecane

32

Brominated polystyrene

33

IV-2

Pharmaceutical

35

IV-2-1

Development of pharmaceutical industry

35

IV-2-2

Overview of bromides in pharmaceutical industry

36

IV-2-3

Main applications in pharmaceutical

37

Dibromo aldehyde

37

Chloramphenicol

38

Amantadine hydrochloride

40

Bromoethane

41

Dibromantine

42

IV-3

Pesticide

44

IV-3-1

Development of pesticide industry

44

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CCM Data & Primary Intelligence IV-3-2

Overview of bromides in pesticide industry

45

IV-3-3

Main applications in pesticide industry

46

Methyl bromide

46

Deltamethrin

48

Naled

49

Bromoxynil octanoate

50

IV-4

Dyestuff

52

IV-4-1

Development of dyestuff industry

52

IV-4-2

Overview of bromides in dyestuff industry

53

IV-4-3

Main applications in dyestuff industry

54

2-Bromo-4,6-dinitroaniline

54

Bromamine acid

56

IV-5

Oilfield chemicals

57

IV-5-1

Development of oilfield chemicals

57

IV-5-2

Overview of bromides in oilfield chemicals

58

IV-5-3

Main applications in oilfield chemicals

58

Calcium bromide

58

Sodium bromide

60

Zinc bromide

61

Potassium bromide

62

Others

63

N-Propyl bromide

63

BCDMH

64

Lithium bromide

65

V

Import & export analysis (2009)

67

VI

Analysis on key foreign-owned enterprises and joint venture enterprises in China

73

VI-1

ICL-IP

73

ICL-IP enterprises in China

74

Strength for ICL-IP enterprises in China

74

Weakness of ICL-IP enterprises in China

75

Market strategy of ICL-IP in China

75

Albemarle

75

Albemarle enterprises in China

76

Strength for Albemarle in China

77

Weakness for Albemarle in China

78

Market strategy for Albemarle in China

78

Chemtura

78

Chemtura enterprise in China

78

Strength for Chemtura in China

79

Weakness of Chentura in China

79

Market strategy of Chentura in China

79

Influencing factors of China’s bromine and bromides industry

81

Demand for bromides

81

IV-6

VI-2

VI-3

VII

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CCM Data & Primary Intelligence Policy

81

Import of beomine

83

Technology and process

83

Climate

84

VIII

Forecast (2011-2015)

85

VIII-1

Bromine supply and price trend in China

85

VIII-1-1

Bromine supply

85

VIII-1-2

Price trend

86

VIII-2

Bromides market in China

87

VIII-2-1

Organic bromides

87

BFRs

87

Organic intermediates

88

Agrochemicals

89

Others

90

VIII-2-2

Inorganic bromides

90

IX

Conclusion and commercial opportunities

92

X

Appendix: Profiles of major producers

94

X-1

Shandong Haihua Group Co., Ltd.

94

X-2

Laizhou Chengyuan Salt Chemical Co., Ltd.

95

X-27

Yabang Chemical Group Co., Ltd.

0 133

Executive summary: Driven by the strong demand from production of bromides, China’s bromine industry had developed rapidly before 2007. Since 2008, China’s bromine output has decreased year by year, which makes domestic supply of bromine can not meet the demand from the downstream industries, especially from inorganic bromides industry. China’s bromine production is based on the underground brine which is mainly distributed in Weifang Area, located in the north of Shandong. The bromine produced with underground brine has generally accounted for more than XX% of China’s total. Owing to the restriction of bromine transportation, most of China’s bromides producers are also distributed in Shandong, mainly including producers of brominated flame retardants (BFRs) and inorganic bromides. From 2009 to 2010, the bromine price has increased a lot, which has largely impacted the production of bromides in China. Although China’s bromine and bromides industry has been heavily impacted by the global financial crisis, it recovers quickly and the bromine price has started to rebound since February 2009. In 2010, the bromine price maintains the growth trend, increasing from USDXX/t in January to USDXX/t in November, which has forced many bromides producers to suspend their production, especially for inorganic bromides.

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CCM Data & Primary Intelligence China’s bromine is mainly consumed in BFRs, oilfield chemicals and organic intermediates. Other application fields include agrochemicals and water treatment agents, etc. Generally, different organic-bromides are synthesized by different synthesis routes with different material and bromine supply. There are XX main technology routes including substitution reaction in benzene ring, substitution of oxhydryl group and addition reaction in double bond linkage. BFRs industry is the largest consumption field of bromine in China and the bromine consumption in BFRs production has accounted for XX% of China’s total bromine consumption in recent years. The main BFRs in China’s market include TBBPA, DEDPO, DBDPE, HBCD, BPS, TBBPA-BDBPE and BEPO. The organic intermediates is a potential downstream industry of bromine and has developed fast in recent years, with the growth rate increasing from XX% during 2005 and 2008 to XX% in 2009. This industry is also expected to increase with the growth rate of XX% in the future. At present, the main bromine-carrying intermediates include dibromo aldehyde, bromathane, a-Bromo, 4-nitrophenyl-ethanone, 1-bromoadamantane, dibromantine, 2-bromo-4 and 6- dinitroaniline, etc. Inorganic bromides belong to the products with low added value and most of them are used as oilfield chemicals. The bromine consumption in this field has accounted for XX% of China’s total bromine consumption in recent years, which excludes the bromine element supply from hydrobromic acid. The main bromine-carrying oilfield chemicals include NaBr, CaBr2, ZnBr2 and KBr. The bromine consumption in agrochemicals and water treatment agents has accounted for 3% and 3% respectively of China’s total bromine consumption in recent 5 years. The major agrochemicals include methyl bromide, deltamethrin, naled and bromoxynil octanoate. Bromochloro-5, 5-dimethylmldazolidine-2, 4-dione is a common water treatment with good results. Among the above bromides, BFRs and bromine-carrying oilfield chemicals have contributed much to China's export of bromides in recent years. In addition, analysis on the development of foreign companies in China is also provided in this report. These foreign enterprises are the top producers of bromine and bromides in the world, including ICL Industry Products, Albemarle Corporation and Chemtura Corporation who invest in China mainly through the cooperation with Chinese enterprises to build joint ventures.

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I Overview of bromine and bromides industry in China As the world’s third largest producing country, China’s capacity and output of bromine have reduced continuously in recent years, from 170,000 and 160,000 tonnes in 2007 to 150,000 and 115,000 tonnes in 2009 respectively. In 2010, the output of bromine is predicted to be about 80,000 tonnes owing to the decline in concentration of underground brine and impact from bad climates.

II Status of bromine element supplier in China (2007-E2010)

About 90% of bromine producers are distributed in Shandong. More than 80% of them extract bromine from underground brine and the rest 20% use concentrated seawater as raw material in bromine production. These 20% producers belong to salt-making enterprises that are mainly distributed in Dongying City.

0.00

180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0

-5.00 -10.00 -15.00 %

Unit: tonne

Figure II-1-2.2 Capacity and output of bromine in China, 2007~2010E

-20.00 -25.00 -30.00 -35.00 2007

2008 Capacity

Output

2009

2010E

Grow th rate of output

Source: CCM International

IV Downstream industry of bromine and main bromides in China by field IV-1 Flame retardant IV-1-1 Development of flame retardant industry

In 2009, there have been more than 200 flame retardant manufacturers with total capacity and output of 990,600t/a and 449,150 tonnes respectively in 2009. Moreover, China’s flame retardant industry is seeing strong growth momentum, driven by increasing varieties of new products developed at home, domestic climbing demand and related favorable policies, as


well as widening gap between supply and demand for overseas market.

Figure IV-1-1.3 Output structure of flame retardants in China, 2006 and 2009 2006 1.26%

4.64%

0.84%

2009 3.15% 4.01%

0.13% 39.61%

3.34%

0.56%

30.84%

4.21% 10.69%

16.86%

21.91%

10.54%

BFRs

16.70%

CFRs

PFRs

ATO

ATH

25.60%

MH

ZB

MCA

Others

Source: CCM International

IV-2 Pharmaceutical

Figure IV-2-2.1Share of bromine consumption in pharmaceutical field by product in China

Dibromantine, 8.15%

Others , 6.42%

Bromoethane, 30.79%

Chloramphenicol, 30.19% Amantadine hydrochloride, 8.15%

Source: CCM International

IV-3-3 Main applications in pesticide industry 他

Methyl bromide

Dibromo aldehyde, 16.30%

5.11%


Table IV-3-3.1 Status of methyl bromide production in China, 2007-2010 Year

Capacity, t/a

Output, tonne

Bromine consumption, tonne

2007

12,600

4,650

3,953

2008

12,600

3,880

3,300

2009

12,600

3,530

3,000

2010E

12,600

3,450

2,930

Source: CCM International

IV-4 Dyestuff Table IV-4-3.4 Main producers of bromamine acid in China, 2010 Capacity’10,

Output’09,

Quotation,

t/a

tonne

USD/t

No. Producer 1

Jiangsu Yabang Dyestuff Co., Ltd.

2

Abbreviation Jiangsu Yabang

6,000

3,300

9,278

Jiangsu Taizhou Zhengang Dystuff Chemicals Co., Ltd.

Jiangsu Zhengang

4,000

2,700

9,131

3

Zhejiang Taizhou Dongfeng Chemicals Co., Ltd.

Zhejiang Dongfeng

2,000

1,200

9,278

4

Jilin Longjin Sanbao Dajing Chemicals Co., Ltd.

Jilin Sanbao

1,200

1,000

9,427

5

Shandong Juye Linfeng Chemicals material Co., Ltd.

Shandong Juye Linfeng

1,000

300

N/A

Note: the quotations were given during 25th Oct. and 30th Oct. Shandong Juye Linfeng stops their production in 2010. Source: CCM International

IV-5 Oilfield chemicals IV-5-1 Development of oilfield chemicals Figure IV-5-2.1 Share of the bromine consumption in oilfield chemicals by product, 2009 5.45%

5.93%

NaBr CaBr2 ZnBr2 KBr

28.16%

60.46%

Note: the data of sodium bromide and potassium bromide excludes the parts in water treatment and medicine Source: CCM International


IV-6 Others Table IV-6.1 Status of N-propyl bromide production in China, 2007-2010 Year

Capacity, t/a

Output, tonne

Bromine consumption, tonne

2007

33,000

15,000

9,750

2008

33,000

12,500

8,125

2009

33,000

13,500

8,775

2010E

34,000

10,000

6,500

Source: CCM International

V Import & export analysis (2009)

Table V-1 Import situation of bromine in China, 2005-2010 Year

Volume, tonne

Value, USD

Average price, USD/kg

2005

25,308.116

36,777,137

1.45

2006

16,232.134

28,611,610

1.76

2007

13,136.114

21,830,811

1.66

2008

16,256.682

28,422,136

1.75

2009

12,491.035

17,971,904

1.44

2010, Jan. to Sept.

15,818.580

31,308,699

1.98

Source: CCM International

Figure V-5 Export volume of other bromides and oxybromides in the China, 2005-2010 40.00

Export volum, '000 tonnes

35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 2005 Source: CCM International

2006

2007

2008

2009

2010, Jan.to Sept.


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