Académique Documents
Professionnel Documents
Culture Documents
C H E M I C Y
O
PETR ICAL INDUS T R
CHEM
C H I N A
IN
FLANDERS INVESTMENT & TRADE MARKET SURVEY
Chinas Petrochemical
And Chemical Industry
1. General Introduction .. 3
2. Petrochemical Industry . 6
3. Chemical Energy .. 11
6. Additional Information .. 25
2
1. General Introduction
Since 2000, the scale of Chinas chemical industry has been the worlds no.1; its main business revenue
is estimated to reach CNY 9.5 trillion in 2015 (increased by 86.6% from that of 2000) and CNY 19.5
trillion in 2020. In the first half of 2015, Chinas petroleum and chemical industrys imports were worth
USD 175.6 billion, with a decreasing rate of 28.5%. The industrys top 5 provinces are the eastern
coastal Shandong, Jiangsu, Guangdong, Zhejiang and Liaoning, each of them outputs over CNY 500
billion and their subtotal exceeds 50% of the countrys gross amount.
In the recent years, Chinas achievements are mainly represented by the following projects:
In the coming years, China mainly needs the following projects in the chemical industry:
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
MDI
ABS
SBR
Polystyrene
R125
Butadiene
Urea
Kerosene
Gasoline
Polypropylene
Pesticides
Silicone rubber
Polytetrafluoroethylene
PMMA
TDI
Tyre
Silicone monomer
Epoxypropane
Acrylic acid
AceticAcid
Diesel
Isoprene
R32
PPS
Carbon fibre
Polyphenylene ether
Aramid fiber
Special polyester
Spandex
Silicone resin
Para-xylene
Ethylene glycol
Benzene
PPG
Sodium carbonate
Potash fertilizer
Ethenyl acetate
Polyvinyl chloride
Silicone oil
Methylbenzene
Synthetic ammonia
Super absorbent resin
Methyl alcohol
Polycarbonate
P-phthalic acid
Polyformaldehyd
Polyethylene
Epoxyethane
Cis-polybutadiene
Nitrile butadiene rubber
Sodium hydroxide
Phosphate fertilizer
Isobutylene isoprene rubber
Chinas annual output capacity and self-efficiency of its key in-shortage chemicals (10000 tons)
Ethylene % PX % Ethanediol %
4
ethylene 8.45 million tons 2.3%
tyre 455 billion pcs - 3.9%
synthetic materials 59.74 million tons 9.0%
To more utilize the strengths of its resources, China plans to increase the diversification of raw
chemicals as below:
On the chemical industry, Chinas 13th Five-year (2016-2020) Plan focuses on 4 fields:
The aims of Chinas 11th Five-year (2006-2010) Plan on energy-saving and emission-reduction in the
chemical industry were not achieved, the following of the 12th Five-year (2011-2015) Plan will possibly
not be achieved either:
These difficult duties will have to be shifted to the next 5 years again, mainly on the treatment of
phosphogypsum slag, calcium carbide slag, yellow phosphorus slag, alkali slag, waste gas, waste water
with pesticide, dye or organic intermediate and emission of CO2.
www.sinopec.com
www.cnpc.com.cn
www.cnooc.com.cn
www.chemchina.com.cn
www.sxycpc.com
www.norincogroup.com.cn
www.sinochem.com
6
Gulei, Fujian Province
Ethylene
In 2014, for ethylene in China, the output capacity was 20.79 million tons (estimated to be 32.3 million
tons in 2020), the output volume was 18.503 million tons (estimated to be 29.7 million tons in 2020),
the import volume was 1.497 million tons, the import volume converted from downstream derivatives
was 17.4 million tons.
3000
2500
2000
1500
1000
500
0
2014 2020
830
1850
140
850
www.sinopec.com
www.cnpc.com.cn
www.cnooc.com.cn
www.norincogroup.com.cn
www.chemchina.com.cn
www.shenhuachina.com
www.fundenergy.com.cn
www.wison.com
www.sxycpc.com
www.chinacoal.com
8
www.baofengenergy.com
www.shccig.com
www.legendholdings.com.cn
Propylene
In 2014, for propylene in China, the output volume was 18.75 million tons, the equivalent consumption
volume was 27.8 million tons, import is in need.
www.chinadhe.com
China Soft Packaging Group Holdings Ltd.
www.haiweigroup.net
www.sypcc.com
www.ytpu.com
EVA copolymer
Presently China has output capacity of 600000 tons / year for EVA copolymer, around 65% of the
demand is met by import, more output capacity of 1.4 million tons / year is under construction or
planning.
www.basf-ypc.com.cn
bypc.sinopec.com
www.levima.cn/index.php?a=view&m=company&id=2
www.dfpc.com.cn
Polyethylene
In 2014, for polyethylene in China, the output capacity was 14.8 million tons (estimated to be 22 million
tons in 2020), the output volume was 12.85 million tons (estimated to be 20.9 million tons in 2020)
composed by 29 companies and 66 sets of equipments, the import volume was 9.108 million tons. For
high-end polyethylene, China annually produces around 1.6 million tons and imports around 1.75
million tons.
In 2014, for ultra-high molecular weight polyethylene in China, the output capacity was 39000 tons
(estimated to be 80000 tons in 2020), the output volume was 30000 tons (estimated to be 60000 tons
in 2020), the import volume was 24000 tons (estimated to be 30000 tons in 2020);
www.cnpc.com.cn/cnpc/lhqy/201404/9a5202be4c7749059f29525fc4c1013a.shtml
www.csclc.com.cn
www.cnpc.com.cn/cnpc/lhqy/201404/e4b9ecdc154846038fec903b8f2620ec.shtml
www.huajinchem.com
www.spc.com.cn
Polypropylene
In 2014, for polypropylene in China, the output capacity was 19.31 million tons (estimated to be 29
million tons in 2020), the output volume was 13.81 million tons (estimated to be 24.65 million tons in
2020) made by over 100 companies, the import volume was 5.028 million tons. China needs 65000
bypc.sinopec.com
www.spc.com.cn
www.mpcc.com.cn
english.sinopec.com/about_sinopec/subsidiaries/refineries_petrochemicals/20080326/3042.shtml
www.lypcc.com.cn
10
3. Chemical Energy
Statistics on Chinas major energy chemicals (10000 t/a)
phosphatic fertilizer (net) 2350 1685 30 405 1310 2400 1750 1550
potash fertilizer (net) 600 557 503 21 1039 700 650 1150
Methyl alcohol
Raw materials of China's production of methyl alcohol in 2014
In 2014, Chinas consumption volume of methyl alcohol was 46.86 million tons, with an annual
increasing rate of 27% in the recent years. For big methyl alcohol production company at annual
output capacity over 300000 tons, there are nearly 70 in the country. China requires that any of its
new coal-to-methyl alcohol project should have output capacity of at least 1 million tons / year, that
for new coke oven gas-to-methyl alcohol project should be at least 0.1 million tons / year. The country
prohibits new production of methyl alcohol and its downstream products with natural gas.
Methyl ether
China has over 80 methyl ether production companies at gross annual output capacity of 13.5 million
tons and gross output volume (same as the actual consumption volume) of 5 million tons in 2014, the
main production process of methyl ether is dewatering of methyl alcohol. In China, 97% of methyl
ether is used as fuel and it will be promoted as household fuel for remote areas to replace coal and
LPG, methyl ether for automobiles has not been commercialized but will be developed more. Pipe
transport of methyl ether and methyl ether as petrochemical raw material will be developed.
12
http://www.ningdong.gov.cn
http://www.dlmhg.gov.cn
http://www.ysia.gov.cn
http://www.kalamaili.com
For coal-to-oil, China has 8 production companies (1 for direct liquefaction, 2 for indirect liquefaction
and 5 for methyl alcohol-to-gasoline) at gross annual output capacity of 2.28 million tons (1.08 million
tons for direct liquefaction, 0.5 million tons for indirect liquefaction and 0.7 million tons for methyl
alcohol-to-gasoline) and gross output volume of 1.72 million tons in 2014. The turnover for 1 ton of
direct liquefaction coal-to-oil is CNY 4963.00, that for 1 ton of indirect liquefaction coal-to-oil is CNY
7625.00, that for 1 ton of methyl alcohol-to-gasoline is CNY 9300.00.
For coal-to-natural gas, China has gross annual output capacity of 5.2 billion m3 (3.1 billion m3 for coal-
to-natural gas, 2 billion m3 for coke oven gas-to-natural gas mainly using the technology of coke oven
gas-to-methane, 0.05 billion m3 for production of chemical fertilizers-to-natural gas mainly using the
technology of extraction from waste gas of synthetic ammonia) and output volume of 1.3 billion m3 in
In 2014, Chinas consumption volume of natural gas was 192.3 billion m3; it was annually raised by 10-
20 billion m3 in the past decade, mainly in the sectors of city supply and transport with LNG and CNG;
the use of NGL is also growing. In 2020, the supply of natural gas to Chinese market may reach 420
billion m3, the domestically produced volume may be 185 billion m3 of conventional natural gas, over
30 billion m3 of shale gas, and nearly 30 billion m3 of coalbed methane. Import of natural gas is
important to China, as its own output of mined natural gas (shale gas and coalbed methane) is difficult
to increase.
Coal represented 75.6% of Chinas production of primary energy in 2013, and may represent 47% of
the production and 40% of the consumption in 2050. Presently, the transport of coal in China is mainly
made by train. To utilize coal more cleanly, the country is developing more bases in the West to
convert coal to oil and natural gas locally then transport them to the East, the gross volume of gas for
this transport is planned to reach 40 billion m3 annually in the coming decade. Pipes for transport of
coal water slurry are also being developed.
Nitrogen fertilizer
For synthetic ammonia, China had gross annual output capacity of 74.17 million tons (80.70 million
tons for urea) and output volume of 60.53 million tons (45.53 million tons for nitrogen fertilizer) in
2014; the production suffers from serious seasonal overcapacity, and is being moved to coal-rich
regions like Inner Mongolia, Xinjiang, Shanxi. Chinas export of urea is strong, at 13.62 million tons in
2014. The structure of raw materials for synthetic ammonia is more optimized as 52% for anthracite,
24% for non anthracite coal and 23% for natural gas and coke oven gas. Advanced production
technologies have been widely introduced, however the domestic market demand greatly shrinks and
the business profit is very limited. The key technologies needed now are joint production of synthetic
ammonia (natural gas, methyl alcohol, clean energy, chemicals) and value-added modification of
nitrogen fertilizer.
Phosphatic fertilizer
14
For phosphatic fertilizer, China had output capacity of 23.5 million tons (net), output volume of 16.85
million tons (net) and consumption of 13.1 million tons in 2014. 71% of the production is based on the
locations of phosphorus resources. The production enjoys the worlds leading technologies, with a
phosphor gypsum general utilization rate at 27%. The problems are, over-capacity of the production,
too much relying on import of sulfur, lack of environment-friendly storage of phosphor gypsum, etc.
The key technologies needed now are those for advanced production of soluable and slow released
phosphatic fertilizer, phosphoric acid by wet method, and those for higher utilization of phosphor
gypsum.
Potash fertilizer
For potash fertilizer, China had output capacity of around 6 million tons (mainly based in Xinjiang
Region and Qinghai Province), output volume of 5.57 million tons, consumption of 10.39 million tons
(converted into K2O) in 2014, the import was therefore big in the past 5 years. China has developed
advanced technologies like solid-liquid transformation, general utilization of magnesium and lithium
resources, exploitation of insoluable potassium resources, etc. Chinese companies are construting
overseas potash fertilizer production bases in Africa, Southeast Asia, North America, Russia and
Belarus. China has 14 potash fertilizer producers, the top 3 are (each has annual production capacity
of around 1 million tons):
www.qhyhgf.com
Geermu Zangge Potash Fertilizer Co., Ltd.
www.sdiclbp.com
Synthetic resin
In China, the production cost of polyethylene and polypropylene is not competitive, the production of
polyvinyl chloride has to stop using mercury catalyst for environmental protection purpose, the
relative advanced technologies and advanced urea-formaldehyde resin, phenol-formaldehyde resin,
epoxy resin and acrylic resin etc are needed by the market.
Synthetic fiber
China is specially developing aramid fiber, carbon fiber, PTT fiber and Spandex.
16
Statistics on Chinas synthetic fiber monomer in 2014 (10000 tons)
PTA in China is basically self-sufficient, but more than half of its main raw material, PX, is imported at
high price. In 2014, Chinas apparent consumption of PX was 18.97 million tons; the government is
promoting its production and trying to ensure to the people that the production will not harm the
environment. Chinas development of coal-to-aromatic hydrocarbon is just started, it will not yet
influence the demand of PX. Coal-to-ethylene glycol has strong cost competitiveness in China and
great importance for the upgrade of coal chemistry. 1,6-Hexanediamine is another key product to
China, the production of hexanedinitrile (which China fully imports now) by means of 1,3-butadiene is
therefore important. The integration of PDO-PTT production is recommended, as China has had own
technology of PDO and PTTs cost-saving is progressing.
Synthetic rubber
Description Consumption
natural rubber 455
petroleum-based synthetic rubber 445
non petroleum-based synthetic rubber 71
Total 971
specialty elastomer among the above-mentioned 274
Macromolecular materials
Description Output
soft-foamed polyurethane 161
hard-foamed polyurethane 210
synthetic leather size 211
stoste of shoe sole 43
elastomer 79
spandex 44
coating 149
adhesive/sealant 54
Total 951
conversion into polyurethane 741
Chinas polyurethane products are basically self-sufficient, its raw materials like MDI, TDI and polyether
polyol are basically self-sufficient, but the special isocyanic acid are still mainly imported.
18
As the worlds biggest processer of fluorite and producer of basic fluorine chemicals with more than
half of the global output, China is developing mainstream fluorine chemicals, and still rely on import
for the most advanced fluorine chemicals and their relative products like fluorine-containing ion
exchange membrane. China is strong at the production of silicone monomer and silicone materials
like silicone rubber.
Description Consumption
2014 Estimation on 2020
natural rubber 455 460
petroleum-based polymerized styrene butadiene rubber 136 160
special synthetic rubber sbr (solution sbr) (18) (28)
cis-polybutadiene 101 110
br (rare earth br) (21) (29)
polyisoprene rubber 4 60
others 204 288
non petroleum-based silicone rubber 70 150
special synthetic rubber others 1 2
Total 971 1220
The key task of Chinas synthetic rubber industry is making substitution of natural rubber, 80% of which
needed by the country is imported; the production of polyisoprene rubber and synthetizing 2-methyl-
1, 3-butadiene with 2-methylpropene is therefore important.
Special chemicals
In 2014, Chinas gross output value of special chemicals was CNY 2.4 trillion with a volume of 120
million tons, coating was the main product, amounting to CNY 370 billion; the other leading products
are adhesives, concrete admixtures, etc. Generally, 10% of the special chemicals were imported,
specially the electronic chemicals, over 50% of them were imported.
Products Self-efficiency
electronic chemicals < 50%
food additives, feedstuff additives, surfactant, adhesives, plastic additives, rubber
additives, water treatment chemicals, paper-making chemicals, concrete 50-95%
admixtures, oil field chemicals, leather chemicals, etc
coatings, dyes, agricultural chemicals, chemical active pharmaceutical ingredients > 95%
and intermediates
20
plant extracts, enzyme, micro ecological preparation, organic trace element as
feedstuff additives (Chinas output volume of feedstuff additives in 2014 was over 7
million tons, taking the worlds No. 1 position. Some mineral element, vitamin and
amino acid additives have already been over-produced.)
environment-friendly adhesives (as the worlds No. 1 adhesives production and consumption
country, Chinas annual output volume of adhesives is around 17.5 million tons)
environment-friendly adhesives, specially urea formaldehyde glue which takes more
than half of all adhesives consumed in China
strategic new-generation adhesives, specially those for the aviation and space
industry, solar cell and wind power generation
optimization of the production structure, to develop silicone adhesives more,
replacing petroleum-based adhesives
high-end surfactant (China is the world No. 2 production and consumption country, after the
U.S.A.)
non-ion surfactant, 20% of which needed in China is imported, specially the
polyoxyethylene-type which China imports 200000 tons a year
special surfactant containing fluorine, silicone or boron (in 2014, China consumed
1200 tons of special surfactant containing fluorine, 80% of which was imported)
environment-friendly plastic additives
poisonless plasticizers, like non-PAEs and long carbon chain PAEs plasticizers
halogen free flame retardants, like inorganic retardants and organic phosphorus
retardants
lead-free thermal stabilizers, like rare earth stabilizers, organic tin stabilizers and
calcium-zinc stabilizers
rubber ingredients (Chinas output volume in 2014 was around 5.8 million tons which is around
half of the worlds output)
white carbon black to replace carbon black, to lower the rolling resistance of tyres
green production process, specially of antioxidant 4020
environment-friendly substitution, specially using naphthenes filling oil and plasticizer
DBD
environment-friendly water treatment chemicals (polyaspartic acid )
flocculant, specially cation poly acrylamide, to replace the inorganic flocculant like poly
aluminium chloride mainly used in China presently
corrosive and scale inhibiter, specially polyaspartic acid, to replace the phosphorus
products mainly used in China presently
chelating agents, specially chitosan
concrete admixtures, the annual output volume of which in China is around 10 million tons
polycarboxylate superplasticizer
coatings
exterior wall coatings like silicone acrylic (the price of organic silicone is cut), fluorine
silicone (good cost performance) and fluorine coatings
coatings for aircrafts, ships and automobiles which are still partly imported
environment-friendly coatings
dye
fluorine dye and its intermediates
new dye for PTT fiber, polylacticacid fiber, soy fiber, bamboo fiber, and new dying
process like digital ink-jet printing, micro-capsule-dye auxiliary-free non-wash dying
pesticide
22
5. Chemical Industrial Parks
China's 841 chemical industrial parks and their main locations (provinces/regions)
152
234
95
15
19
80
246
Coal-coal chemistry-electricity-building materials-metallurgy-machine
Inorganic chemistry, in Hubei, Yunnan, Shannxi, Sichuan, Hunan, Jiangsu for salt, Hubei, Yunnan for phosphorus
Fluorine and silicon chemistry, in Jiangsu, Zhejiang, Jiangxi, Fujian, Inner Mongolia
The parks average unit output value is only CNY 1319 / m2, quite some of them are still backward.
Reduction of waste emmission is the core of the improvement needed.
http://www.scip.gov.cn
http://www.dayawan.gov.cn
http://www.ncip.cn
http://www.chemzone.net
http://www.pec.qg.gov.cn
http://www.cetda.cn
http://cip.yangzhou.gov.cn
http://www.txedz.cn
http://www.zjgftz.gov.cn
http://www.dypedz.gov.cn
http://www.amip.org.cn
http://www.daxie.gov.cn
http://www.yangpu.gov.cn
http://www.mmht.gov.cn
http://www.qzshy.gov.cn
http://www.wcip.gov.cn
http://www.czcip.gov.cn
http://www.jciz.gov.cn
http://gxq.lcxw.cn
24
6. Additional Information
For Flemish exporters of chemicals to enter the Chinese market we recommend to enter the market
via Chinese traders/importers instead of searching for the big end-users. The offices in China of
Flanders Investment & Trade can arrange tailor-made B2B appointments between Flemish exporters
and their potential Chinese partners. Participation in relative exhibitions in China is also good way of
starting business. There may also be good business connection in the Chinese community in Flanders
and Chinese economic delegations to Flanders.
http://www.sinochem.com
http://www.zhechem.com
http://www.gzchem.com
http://www.dlchem.com
http://www.gtchongkong.com
http://www.highnic.com.cn
http://www.huidachem.com
http://www.icif.cn
http://www.cpcia.org.cn
http://www.chinaembassy-org.be
http://www.bcecc.be
http://www.flanders-china.be
http://www.bencham.org
http://www.eusmecentre.org.cn
http://www.china-iprhelpdesk.eu
This report only covers the Mainland of China, not including the area of Taiwan, Hongkong and Macau.
Sources of this report:
The 13th Five-Year Plan Seminar of Petroleum and Chemical Industry: Planning Guidelines and
Development Strategies, by China National Petroleum and Chemical Planning Institute
http://www.cpcip.org.cn
26