CCM Data & Primary Intelligence
Survey of Flame Retardants Industry in China
The First Edition
Dec. 2009
Researched & Prepared by:
Guangzhou CCM Information Science and Technology Co., Ltd Guangzhou, P. R. China
Copyright by Guangzhou CCM Information Science and Technology Co., Ltd (P. R. China) Any publication, distribution or copying of the content in this report is prohibited. Website: http://www.cnchemicals.com Tel: +86-20-3761 6606 Fax: +86-20-3761 6968 Email: econtact@cnchemicals.com
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CCM Data & Primary Intelligence Description: Flame retardants are important for lives safety as it can delay combustion process of inflammable materials for precious escape time. Now many familiar products contains flame retardants such as electrical & electronics, wire & cable, motor vehicles etc. With living standards improving, it is envisioned that China’s flame retardants demand will increase greatly. China currently has become a key player of flame retardants both in production and consumption. It can produce most common flame retardants with output of almost 500,000 tonnes in 2009, and has witnessed domestic consumption above 250,000 tonnes in 2009. However, unlike developed countries, the domestic production concentrates on common products and lacks upscale products, mainly attributed to the still immature technologies. The domestic consumption is also focused on such traditional products as BFRs and ATO. Meanwhile, many flame retardants and their downstream products are exported annually, suggesting high dependence on exports of Chinese market. Coupled with domestic expanding capacity and output, various commercial opportunities will be created for this industry in China. In order to figure out the opportunities: CCM focuses on domestic production for different flame retardant types to discover their present situation and future prospects. CCM pays great attention to the major products and their producers in China. CCM analyzes domestic consumption by application field. CCM provides insights into key factors influencing flame retardant development and forecasts future demand and output for each flame retardant type to 2014. Through the above penetrations in this report, the latest dynamics and development trends of Chinese flame retardant industry will be clearly presented, which is valuable for investors, traders (both exporters and importers), technology providers, overseas competitors, etc. Main content: No.
I II II-1 II-2 II-2-1 II-2-2 II-2-3 II-2-4 II-2-5 II-2-6
Content Executive summary Methodology and source Development history of flame retardants in China Chinese flame retardants nowadays Overview of flame retardants in China Introduction to major flame retardants Brominated Compounds Chlorinated Compounds Phosphorus Compounds Antimony Compounds Alumina Trihydrate and Magnesium Hydroxide Other Compounds
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Page 1 3 7 8 8 11 11 32 35 51 54 57
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CCM Data & Primary Intelligence III III-1 III-1-1 III-1-2 III-2 III-2-1 IV-2-2 III-2-3 III-2-4 III-2-5 III-2-6 IV V V-1 V-2 V-3 VI VII VIII -1 VII-1.1 ‌ VII-2.5
End-use market of flame retardants Overview Market growth (by volume & value) Market analysis by application area Introduction to major end-use market segments Electrical & Electronics Motor Vehicle Textile Construction (wood, plastic) Wire & Cable Others Technology innovation in flame retardants in China Forecast the future of flame retardants industry in China (2010~2014) Business environment Key factors influencing the development of flame retardants industry Qualitative and quantitative analysis of the prospect of flame retardants Conclusions and recommendations Appendix Profiles of key producers Heilongjiang Harbin Harmillion Chemical Co., Ltd. ‌ Beijing ARS Flame Retardant Decoration Materials Co., Ltd.
60 60 60 60 62 62 68 73 75 79 80 81 85 85 89 91 93 95 95 95 116 117
Executive summary: After rapid development in the recent 10 years, China now can produce most kinds of common flame retardants. There are more than XXX producers in China, with their total capacity and output respectively up to XXX tonnes and XXX tonnes in 2009. Chinese flame retardant market is highly export-dependent. The direct exports account for XX% of domestic total output, and the domestic direct consumption is XXX tonnes in 2009, constituting the remaining XX%, amongst which still plenty of the flame retardant-containing products are also exported. Each type of flame retardant has different production and consumption situations, as well as different future prospects with various influencing factors, notably policy, technology, cost performance, etc BFRs, the major type in the world with a long history, have been partially banned by EU, raising extensive safety dispute among producers, researchers, scientists, environmental organizations and governments over the continued consumption of the BFRs that have not been forbidden yet. Despite the ban policy, BFRs consumption is still irreplaceable in many fields and the domestic demand keeps increasing. At present, most Chinese producers continue BFRs production, among which some develop new BFRs and few turn to PFRs. With domestic improving technology, some domestic BFRs may affect competitiveness of the imported products in the near future such as BPS and BPCO. PFRs, the new star flame retardants in some sense, have developed rapidly in China in recent years. Global BFRs giants, such as Albemarle and ICL Group, prefer to invest in PFRs instead of BFRs in China. Without policy limitation, PFRs enjoys bigger development potential than BFRs. But some Website: http://www.cnchemicals.com Tel: +86-20-3761 6606
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CCM Data & Primary Intelligence PFRs’ technologies are immature and the application fields are relatively narrow compared wtih BFRs. The process that PFRs take the place of BFRs is expected to be long drawn. ATO, synergistic agent of BFRs, is expected to suffer the same fate as BFRs. Additionally, considering its toxicity, Chinese government will impose increasingly stricter measures on domestic antimony industry. ATH&MH, widely consumed in overseas markets like EU and USA, are still not popular in Chinese market, due to domestic ineffective technology, as well as public weak awareness of flame retardancy and fireproofing. Considering its environmentally-friendliness, it will have a bright future in China. At present, domestic consumption of flame retardants concentrates on electrical & electronics, wire & cable and motor vehicle, whose market share is XX%, XX% and XX% separately in 2009. Domestic direct consumption has kept growing with CAGR of XX% from 2006 to 2009, and in the next five years this trend will continue, bringing huge investment opportunities in Chinese flame retardant industry. Character of CCM' Report: The aim of this report is to provide powerful assistance to the strategy group and the management team in making correct decision as how to penetrate the ever-increasing China market and how to catch the maximum commercial opportunities. The report is formulated independently by CCM’s professional market researchers, based on the first-hand and primary data which are analyzed by scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities, and presented in a logic way. Sample pages： II
Chinese flame retardants nowadays
II-2-1 Brominated Compounds … Among the 00 major producers in China, 00 are still active in 2009 while the other 000 stopped productions in 2008. Table II-2-1-1 Major TBBPA producers in China, 2009 No.
Name
Status’
Capacity’09,
Output’09,
Export
09
t/a
tonne
ratio, %
1
Shandong Moris Chemical Co., Ltd.
Active
00,000
00,000
01
2
00000000000000000000000000000.
00000
00,000
00,000
05
3
000000000000000000000000000000
00000
00,000
0,000
00
4
000000000000000000000000000000
00000
00,000
0,000
00
5
000000000000000000000000000000
00000
00,000
0,000
03
6
0000000000000000000000000000000
00000
00,000
0,000
00
7
00000000000000000000000000
00000
00,000
0,000
00
8
0000000000000000000000000
00000
00,000
0,000
00
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CCM Data & Primary Intelligence 9
000000000000000000000000000000000000
00000
00,000
0,000
00
10
0000000000000000000000000000
00000
00,000
0,000
00
11
000000000000000000000000000000000000
00000
00,000
0,000
00
12
000000000000000000000000000000000000
00000
00
000
00
13
000000000000000000000000000000000000
00000
00
000
00
00,000
0,000
N/A
0000,000
00,000
N/A
Others Total Source: CCM International
Note: Export ratio is a self-proclaimed data from the producers, and CCM does not purchase detailed customs data to verify its accuracy. … Table II-2-1-3 Capacity and output of major derivatives of TBBPA in China. 2008 Products
Capacity, t/a
2009
Output, tonne
Output’08,
Output’08,
tonne
tonne
TBBPA-BDBPE
00,000
00,000
00,000
00,000
BEPO
00,000
00,000
00,000
00,000
BPCO
00,000
00,000
00,000
00,000
Total
00,000
00,000
00,000
00,000
Source: CCM International Table II-2-1-7 Ex-factory price of major TBBPA derivatives in China, Nov. 2009 Product
Ex-factory price, USD/t
Gross profit margin
TBBPA-BDBPE
0000000000
00000000
BEPO
0000000000
00000000
BPCO
0000000000
00000000
Source: CCM International …… Table II-2-1-9 Major BPS producers in China, 2009 No.
1
Name Shandong Shouguang LongFa Chemicals Co., Ltd.
Capacity’09,
Output’09,
t/a
tonne
Export ratio, %
0,000
0,000
00
2
0000000000000000000000000000000000
0,500
0,000
00
3
00000000000000000000000000000000
0,000
000
05
4
0000000000000000000000000000000000000000
0,000
000
00
5
000000000000000000000000000000000000
0,000
000
00
6
0000000000000000000000000000000
0000
000
00
7
0000000000000000000000000000
0,000
000
00
0,000
000
N/A
Others
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CCM Data & Primary Intelligence Total
00,000
N/A
00,000
Source: CCM International Note: Export ratio is a self-proclaimed data from the producers, and CCM does not purchase detailed customs data to verify its accuracy. xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx. (xxxxxxxx) is the leader in Chinese BPS production. xxxxxxxxxxxxxxxxxx is good at synthesis technique and product quality. … Table II-2-1-16 SWOT analysis of BFRs in China Strengths
Weaknesses
9
000000000000000000000000
9
00000000000000000000000
9
00000000000000000000
9
000000000000000000000000000000
9
0000000000000000
9
00000000000000
9
00000000000000000
9
000000000000000000000000
9
000000000000000000000000000000
000
000 Opportunities
Threats
9
00000000000000000000000000
9
9
000000000000000000000000000000000000
9
0000000 9
000000000 000000000000000000000000000000000000 000000
000000000000000000000000000000 000000000000000000000000000000 0000
9
0000000000000000000000000
9
000000000000000000000000000000 0000
Source: CCM International II-2-3 Phosphorus Compounds … Table II-2-3-1 Comparison of halogenated phosphate flame retardant and non-halogenated PFRs Name
Non-halog enated phosphate
Halogenat ed PFRs
Advanta
Disadvanta
ge
ge
0000000
000000000
0000000
000000
Current
Major
Applicatio
product
n
00000000
000000000
000000000
000000
0000000000
0000000
000000
000000
000000
00000
Price
0
situatio
Trend
n
000
0000000
000000000
00000000
000000000
000000000
000000
0000000000
0000000
000000
0000000
000000
000000
000000
00000
0
000
Source: CCM International … Table II-2-3-9 SWOT analysis of PFRs in China
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CCM Data & Primary Intelligence Strengths
Weaknesses
9
00000000000000000000
9
00000000000000000000
9
00000000000000000000
9
0000000000
9
000000000000000000
9
00000000000000000000
9
0000000000000000000000000
9
000000000000000000
9
000000000000000000000000000
9
000000000000
9
000000000000
9
0000000000000
9
0000000000000
9
0000000000000
9
0000000000000000000000000
9
0000000000000000000000
9
00000000000000000
9
00000000000000000000000000000000
9
0000000000000
9
00000000000000000000
Opportunities
Threats
Source: CCM International Table II-2-3-6 Major BDP producers in China, 2009 No.
1 2 3 4 5 6 7 10
Name Zhejiang Wansheng Chemical Co., Ltd. Jiangsu Yoke Technology Co., Ltd. 0000000000000000000000000 00000 0000000000000000000000000 00000 0000000000000000000000000 00000 0000000000000000000000000 00000 0000000000000000000000000 00000 Others Total
Status’ 09 Active Active Active Active Active Active Stopped
Capacity ’
Ownership
09, t/a
Private-owne d Private-owne d Foreign-owne d Private-owne d Private-owne d Private-owne d Foreign-owne d
Output
Export
’09,
ratio,
tonne
%
010,000
0,000
00
010,000
0,000
00
010,000
0,000
00
010,000
0,000
00
010,000
0,000
00
010,000
0,000
00
010,000
0,000
00
N/A
N/A
010,000
0,000
00
N/A
N/A
010,000
0,000
00
Source: CCM International III End-use market of flame retardants III-1 Flame retardants consumption overview III-1-1 Market growth …
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CCM Data & Primary Intelligence Figure III-1-1-1 Consumption of flame retardants in China in recent years. 300,000
CAGR: 00.00%
200,000
CAGR: 00.00%
100,000
0 2000
2006
2009
Consumption volume, tonne
Source: CCM International ‌ IV
Technology innovation in flame retardants in China
Table IV-1 Comparison of production technologies for major flame retardants Current
Type
0000000000 BFRs
Likely outcome
Impact of
to 2014
developments
0000000000000000000000000
0000000000000
0000000000000
00000000000000000
00000000
00000000
0000000000000
0000000000000
00000000
00000000
0000000000000
0000000000000
00000000
00000000
0000000000000
0000000000000
00000000
00000000
0000000000000
0000000000000
00000000
00000000
Major innovation
situation 0000000000 0 0000000000
PFRs
0000000000
000000000000000000000
0 ATH
0000000000
and
0000000000
MH
0 0000000000
CFRs
000000000000000000000 000000000000000000000
0000000000 0 0000000000
ATO
000000000000000000000
0000000000 0
Source: CCM International
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