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2021 China Water-Borne PU Market Report Sample
May 11, 2022    [Source:PUdaily]

Main contents and highlights of the report

Main contents: Major raw materials for PUDs; PUDs capacity and output in China; landscape of market competition; downstream markets; and market outlook.

Highlights: Analyzing the supply and demand to get a sense of the competition landscape; surveying major manufacturers’ capacities and output and PUDs applications; and analyzing downstream markets to assess the room for future growth.

A snapshot of the main contents and highlights of the report

PUDs capacity and output in China

China's PUDs market is growing rapidly owing to the government's increasingly strict environmental regulation. Downstream adhesives, artificial leather and coatings manufacturers move up and upstream raw materials manufacturers move down the value chain to foray into PUDs market.

In 2021, China’s PUDs capacity totaled 511,800 tons. The top five manufacturers by production capacity were Wanhua, Scisky, Huafon, Covestro and SiwoChem, with an annual capacity of 64,200 tons, 50,000 tons, 50,000 tons, 35,000 tons and 34,000 tons, respectively. The year saw no additional capacity for PUDs in China.

Most manufacturers kept their operating rates low for two reasons. The first is their immature production processes and the impact of COVID-19. The second is the limited demand versus their large design capacities resulting from their optimism about the huge growth potential for the market. In 2021, the industry operating rate in China stood at only XX %.

Table 1 Domestic PUDs manufacturers’ production capacities and operating rates in 2021 (in 10,000 tons)

Manufacturers

Location

Production capacity

Operating rate

Note

Wanhua Chemical

Ningbo, Zhejiang

1.2

-

Put into production in 2014

Zhuhai, Guangdong, Phase I project

1.72

-

Coming onstream in 2017

Meishan, Sichuan, Phase I project

1.4

-

Going into production in 2020

Zhuhai, Guangdong, Phase II project

2.1

-

Beginning production in 2020

Total

6.42

xx

 

Scisky

Hefei, Anhui and Lanzhou, Gansu

5

xx

The company owns a 100kt/a PUDs production line, and the 50kt/a line has been put into production.

Zhejiang Huafon Synthetic Resins

Rui'an, Zhejiang

5

xx

The company plans to launch an expansion 100kt/a Phase III project.

Covestro

Shanghai

3.5

xx

The company plans to build a new PUDs plant in Shanghai, which is scheduled to be completed in 2024.

SiwoChem

Leling, Shandong

3

xx

 

Shanghai

0.4

xx

Operating at full capacity

Total

3.4

xx

 

Newmat

Beijing

2

xx

 

Beijing Linshi Fine Chemical&New Material

Beijing

2

xx

 

Anqing Yueshan Chemical

Anqing, Anhui

1

xx

 

Wenzhou Hongdeli Synthetic Leather.

Taizhou, Zhejiang

1

xx

Its plant in Taizhou has been shut. And it plans to launch a 50kt/a project in Lishui, with the 20kt/a Phase I project scheduled to come online in mid-2022.

Yantai Daocheng Chemical

Yantai ,Jiangsu

0.8

xx

It has an annual capacity of 3,000 tons in Yantai and an annual capacity of 5,000 tons in Jiangsu.

Xuchuan Chemical

Taicang, Jiangsu

0.6

xx

 

Shandong Haozun Technology

Dezhou, Shandong

0.6

xx

 

Guangzhou Codif Environmental Protection Technology

Foshan, Guangdong

0.5

xx

 

Jiangsu OSiC Performance Materials

Zhangjiagang, Jiangsu

0.5

xx

 

Guangdong Sanqi Chemical Technology

Nanxiong, Guangdong

0.5

xx

 

Shandong Audmay High Molecule Material

Zibo, Shandong

0.36

xx

 

Anhui Anda Huatai New Materials

Hefei, Anhui

0.2

xx

 

Jingbo Petrochemicals

Binzhou, Shandong

0.1

xx

 

Foshan Sanhuang Rosin

Foshan, Guangdong

0.1

xx

 

Others

-

18.1

xx

As small manufacturers’ operating rates range between 20% and 30%, here we use the median 25% as the average operating rate.

Total

-

51.18

xx

 

In 2021, China’s PUDs output totaled xx million tons. The top five manufacturers by output were Wanhua Chemical, Covestro, SiwoChem, Scisky and Huafon, with an output of xx million tons, XX million tons, XX million tons and XX million tons, respectively.

China imported PUDs mainly from Covestro, DSM, Dow and BASF. And the remaining imports were from Japanese manufacturers. The quality of imported products is more stable than that of domestically-produced products. In 2020, the rampant COVID-19 pandemic affected the operation of foreign plants and transportation, which in turn impacted China’s PUDs imports.

Table 2 Domestic PUDs manufacturers’ output in 2021 (in 10,000 tons)

Manufacturers

Output

Share

Main applications

Wanhua Chemical

xx

xx%

Coatings, adhesives, synthetic leather and leather finishing agents

Covestro

xx

xx%

Adhesives and coatings

SiwoChem (Leling and Shanghai)

xx

xx%

Leather finishing agents, synthetic leather and coatings

Scisky

xx

xx%

Synthetic leather (accounting for the lion's share of the total consumption by downstream sectors), wood coatings and condoms

Zhejiang Huafon Synthetic Resins

xx

xx%

Synthetic leather (accounting for the lion's share of the total consumption by downstream sectors) and adhesives

Newmat

xx

xx%

Gloves and coatings

Yantai Daocheng Chemical

xx

xx%

Synthetic leather (accounting for the lion's share of the total consumption by downstream sectors), leather finishing agents, fabrics, wood coatings, inks and PU adhesives for footwear

Beijing Linshi Fine Chemical&New Material

xx

xx%

Gloves, leather finishing agents and wood coatings

Shandong Haozun Technology

xx

xx%

Synthetic leather, leather finishing agents and wood coatings

Xuchuan Chemical

xx

xx%

Synthetic leather (accounting for half of the total consumption by downstream sectors), adhesives and inks

Anqing Yueshan Chemical

xx

xx%

Leather finishing agents and surface treatment agents for synthetic leather

Anhui Anda Huatai New Materials

xx

xx%

Adhesives, textiles and leather coatings

Shandong Audmay High Molecule Material

xx

xx%

Coatings (accounting for the lion's share of the total consumption by downstream sectors) and adhesives

Jiangsu OSiC Performance Materials

xx

xx%

Finishing agents for real leather, textiles and adhesives

Guangzhou Codif Environmental Protection Technology

xx

xx%

Waterborne floor paint

Jingbo Petrochemicals

xx

xx%

Leather finishing agents

Sunko Resin (Foshan)

xx

xx%

Coatings and finishing agents for real leather and synthetic leather

Others

xx

xx%

-

Total

xx

xx%

-

 Landscape of market competition

Although industrial production of PUDs began in the 1970s, the industry is still in its infancy. With low technical barriers, the PUDs industry has attracted a lot of entrants in the context of increasingly strict environmental regulation. Upstream raw materials manufacturers move down and downstream adhesives, artificial leather and coatings manufacturers move up the value chain to foray into PUDs market. Presently, there are a fair number of PUDs manufacturers in China. Wanhua, Covestro, Scisky, Huafon and SiwoChem are the top five manufacturers by both capacity and output, with their combined capacity accounting for XX% of the national capacity and their combined output making up XX % of the national output in 2021. Wanhua’s PUDs products play a dominant role in xx market; Covestro’s products play a dominant role in xx market; Scisky and Huafon’s products play a dominant role in xx market; and SiwoChem’s products play a dominant role in xx market.

The top five firms’ combined output as a share of the national output was higher than their combined capacity as a share of the national capacity because large manufacturers kept their operating rates (XX%) higher than small ones’ rates (XX%).

According to our survey of 18 PUDs manufacturers, domestic PUDs producers’ capacities were mainly located in East China, followed by South and North China. Specifically, East China accounted for XX% of the surveyed firms’ total capacity. South China, North China and Sonthwest China accounted for xx%, XX% and XX%, respectively. In East China, PUDs capacities were mainly located in Zhejiang, Shanghai, Anhui and Shandong; in South China, the capacities were mainly located in Guangdong; in North China, the capacities were mainly located in Beijing; in Sonthwest China, the capacities were mainly located in Sichuan.

 Downstream markets

PUDs display environmental-friendliness, flame retardance, safety, reliability, excellent mechanical properties, good compatibility and being easy to modify. This enables them to be widely used in synthetic leather, leather finishing agents, coatings, adhesives, gloves, fabric coatings, finishing agents, papers, surface treatment agents and so on.

Although there is huge growth potential for PUDs market, the current PUDs consumption in China is not high. Presently, synthetic leather and leather finishing agents are the biggest consumers, followed by coatings and adhesives. The technological bottlenecks, high costs and immature production process all undermine PUDs products’ market competitiveness. The obstacles to increasing PUDs’ market penetration are as follows:

(1). Chinese manufacturers lag behind their foreign competitors in key additives and waterborne technologies, which are essential to ensure stable waterborne dispersion system and high solid content in synthesis, and high performance of polyurethane resins and rapid evaporation of water in applications. PUDs have drawbacks, such as poor water resistance, solvent resistance, weather resistance and cold resistance, slow curing rate, weak initial adhesion and not easy to dry. The challenge in developing PUDs is ensuring their hydrophilia to help polyurethanes disperse in the water to form uniform emulsion while improving their water resistance.

(2). With limited sources of raw materials, the costs are high (generally, 2 to 3 times the costs of oil-based polyurethane resins and increasing the costs of coatings by 50%), scaring off customers.

(3). Requirements for applications are strict. On-site applications are complex and therefore make high demand on workers’ technical skills.

In 2021, PUDs consumption in China amounted to XX million tons, of which XX million tons were consumed by synthetic leather and XX million tons by leather finishing agents. They are followed by coatings and adhesives, which consumed XX million tons and XX million tons of PUDs, respectively. In 2020, the surging demand for medical gloves as a consequence of the COVID-19 pandemic led to rapid growth in PUDs consumption by this sector. In 2021, as the pandemic was largely brought under control, PUDs consumption by gloves dropped from 2020. Other applications include fabrics, papers, inks, surfactants, fiberglass and personal care.

Table 3 PUDs consumption by different downstream sectors in China in 2021 (in 10,000 tons)

Downstream sector

Consumption

Share

Synthetic leather

xx

xx%

Leather finishing agents

xx

xx%

Coatings

xx

xx%

Adhesives

xx

xx%

Gloves

xx

xx%

Others

xx

xx%

Total

xx

xx%

 Catalogue of 2021 China PUDs Market Report

1. Profile of PUDs  

1.1Definition of PUDs     

1.2Classification of PUDs       

1.2.1Classification by particle size and appearance 

1.2.2Classification by charge properties of hydrophilic groups

1.2.3Classification by product packaging

1.2.4Classification by waterborne method       

1.2.5Classification by PU raw materials

1.2.6Classification by structure

1.3Comparison of waterborne polyurethane resins and other waterborne resins

1.4Production process     

1.5Factors influencing properties of PUDs       

1.6Policies      

2. An overview of raw materials markets     

2.1Isocyanates market     

2.1.1Pure MDI market

2.1.2 TDI market

2.1.3 HDI market    

2.2Polyols market   

2.2.1Polyether polyols market 

2.2.2Polyester polyols market 

2.3 Other raw materials  

2.4 PUDs manufacturers’ bargaining power over raw materials suppliers

3. Supply of PUDs in China  

3.1 Production capacity in China     

3.1.1 PUDs capacity in China in 2021     

3.1.2 New and expansion projects in China     

3.2 PUDs output in China

3.3Major PUDs manufacturers in China  

3.3.1 Wanhua Chemical  

3.3.2 Covestro

3.3.3 Zhejiang Huafon Synthetic Resins  

3.3.4 Scisky    

3.3.5 SiwoChem      

3.4 Landscape of market competition      

4. Downstream markets

4.1 Actual consumption of PUDs in China in 2021  

4.2PUDs consumption by synthetic leather     

4.3PUDs consumption by genuine leather

4.4PUDs consumption by coatings  

4.5PUDs consumption by adhesives

4.6PUDs consumption by gloves     

4.7 PUDs consumption by other downstream sectors

5. Market outlook for 2022-2026  

5.1 Trend in PUDs industry and research hotspots

5.2 Forecast of PUDs demand in China 2022-2026  

5.2.1Demand from leather industry 

5.2.2Demand from coatings industry       

5.2.3Demand from adhesives industry     

5.2.4Demand from gloves industry 

5.2.5Demand from other industries 

 

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