A L A N D

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

Flanders Investment & Trade Guangzhou

 Content

1. General Introduction .. 3

2. Petrochemical Industry . 6

3. Chemical Energy .. 11

4. New Chemical Materials 16

5. Chemical Industrial Parks . 23

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:

oil refining at 10 million tons / year

production of ethylene from catalysis and heavy oil cracking at 500000 tons / year cpp
liquid phase hydrogenation of diesel at 2.6 million tons / year
production of ethylene at 1 million tons / year
production of pta fully with own know-how at 1 million tons / year
production of coal-base methanol at 500000-600000 tons / year
production of coal-to-olefin at 600000 tons / year
production of coal-to-propylene at 500000 tons / year
production of acrylic acid and acrylic ester, isobutylene isoprene rubber, with own know-how

In the coming years, China mainly needs the following projects in the chemical industry:

production of coal-to-natural gas at 4 billion m3 / year

production of ethylene glycol at 200000 tons / year
production of indirect coal-to-oil at 1.8 million tons / year
refining at 15-20 million tons / year
production of methyl alcohol (or synthetic ammonia) at 1 million tons / year
big production of potash fertilizer
big desulfurization and denitrification

Capacity utilization of Chinas production of traditional chemicals in 2014

Description Capacity utilization rate

process of crude oil 66%
sodium hydroxide 81%
sodium carbonate 81.4%
Urea 81.5%
ammonium dihydrogen phosphate 71.9%
diammonium hydrogen phosphate 81.3%
calcium carbide 62.2%
Pat 61.1%
Methanol 64%
acetic acid 70.2%
silicone methyl monomer 58%
hydrochloric acid 45%
polymerized styrene butadiene rubber 64%
cis-polybutadiene 48%
Polypropylene 74.1%
polyvinyl chloride 68%

Chinas Petrochemical and Chemical Industry 3

 Polyformaldehyde 44%

Estimated average increasing rate of China's demands for chemicals in 2014-2020

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

Polyamide resin plastics

Chinas annual output capacity and self-efficiency of its key in-shortage chemicals (10000 tons)

4000 62% 80% 3000 69% 80% 1500 80%

60%
3000 47% 60% 47% 60% 60%
2000 1000 31%
2000 40% 40% 40%
3200 1000 2200 500 1200
1000 1792 20% 20% 20%
1097 526
0 0% 0 0% 0 0%
2013 2020 2013 2020 2013 2020

Ethylene % PX % Ethanediol %

800 59% 60% 600 76% 80% 600 80% 100%

58% 46% 63%
600 60%
54% 56% 400 400
400 540 40% 560 50%
620 54% 200 200
200 486 280 20% 320
52%
0 50% 0 0% 0 0%
2013 2020 2013 2020 2013 2020

Potassic fertilizer % Engineering plastics % Spe. synthetic rubber %

Chinas output of key chemical products in first half of 2015

Description Volume Increasing rate

chemical fertilizer (net) 37.06 million tons 6.5%
sodium hydroxide 15.203 million tons - 1.9%

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:

Description Diversification (% of output volume of non-petroleum-based products)

2013 2020
gasoline 5% 7.2%
diesel 2% 7%
ethylene 4% 29%
propylene 9% 48%
ethanediol 5% 57%

On the chemical industry, Chinas 13th Five-year (2016-2020) Plan focuses on 4 fields:

1. Petrochemistry focusing on refining, the production of olefin, aromatic hydrocarbon and

organic chemicals
2. New chemical energy focusing on the production of synthetic natural gas, coal-to-liquids,
coal-to-alcohol ether fuel (methanol fuel, ethanol fuel, methyl ether, polyoxymethylene
dimethyl ethers), biomass new energy (biobase ethanol fuel, biodiesel) and coals grading
conversion
3. New chemical materials focusing on the production of engineering plastics, high-end
polyolefins plastics, high-performance rubber materials, polyurethane, fluorine silicon
materials, high-performance fiber, high water absorption materials, functional membrane
materials and electronic chemicals.
4. Upgrade of the traditionals focusing on chemical fertilizer, pesticide, chlor alkali, sodium
carbonate, tyre and inorganic salt.

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:

reduction of the energy consumption by 15%

reduction of COD and NOx by 10%
reduction of the emission of ammonia nitrogen by 12%
reduction of the emission of CO2 by 8%

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.

Chinas Petrochemical and Chemical Industry | November, 2015 5

2. Petrochemical Industry
Chinas petroleum refining made an output of 715 million tons in 2014, which was the No.2 in the
world after the U.S.A. and 15% of the global figure; its annual average increasing rate in the past decade
was 7.7%; it has already witnessed over-capacity. Chinas processed oil is basically self-sufficient.
There are 196 petroleum refineries in the country with an average capacity of 3.65 million tons / year
for one refinery, which is only 50% of the worlds average. The ration between Chinas demand for
diesel and gasoline is estimated to decrease to 1.4 in the coming years. The imported petroleum in
China will be used more for production upgrade and more open for smaller and private refineries. The
country is in great demand of technologies on refining sulfur and acid-bearing heavy and inferior crude
oil, and pushing new quality standard on gasoline and diesel which sets the maximum sulfur content
as 10 ppm. In the country, the production of clean gasoline basically means desulfuration of catalytic
cracking gasoline and reduction of olefin.

Chinas leading petroleum refiners are:

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

Chinas top 7 petrochemical bases are:

Caojing, Shanghai City

Ningbo, Zhejiang Province

Huizhou, Guangdong Province

6
 Gulei, Fujian Province

Xizhong Island, Liaoning Province

Caofeidian, Hebei Province

Lianyungang, Jiangsu 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.

The break-down of Chinas import of ethylene in 2013

Origin Ethylene monomer Polyethylene Ethylene glycol Styrene

Middle East 0.7% 50.5% 57.9% 26.5%
Asia Pacific * 99.3% 37.5% 31.9% 65.9%
North America 0% 5.0% 9.3% 5.9%
Europe 0% 4.3%
0.9% 1.7%
Others 0% 2.7%
* Mainly from South Korea and Japan, a little from Taiwan Island.

Chinas Petrochemical and Chemical Industry | November, 2015 7

 Raw material diversification of China's ethylene production (10000 tons)
3500

3000

2500

2000

1500

1000

500

0
2014 2020

Others Methanol to olefin Coal to olefin Steam cracking

Origins of ethylene equivalent consumed in China in 2014 (10000 tons)

70

830

1850
140

850

China Middle East North American Asia Pacific Others

Leading producers of ethylene in China are:

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.

Leading producers of propylene in China are:

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.

The present producers are:

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);

Leading producers in China are:

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

Chinas Petrochemical and Chemical Industry | November, 2015 9

tons of high-end mPP per year which is all imported, 10000 tons of it can be produced in China in 2020
according to estimation.

Leading producers in China are:

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)

Description 2014 2020 (estimated)

Output Output Import Export Consumption Output Output Consumption
capacity capacity
direct liquefaction 108 90 441 406
coal-to-oil
indirect liquefaction 60 31 912 866
coal-to-oil
methyl alcohol- 70 50 285 171
to-gasoline
coal-to-natural gas 27 6 372 298

methyl alcohol 6860 4250 433 75 4608 9000 7650 8450

methyl ether 1350 500 0 0 500 1500 800 800

synthetic ammonia (net) 7705 5699 20 1 5718 8000 6400 6400

urea (net) 3872 3218 3 626 2595 4450 3700 3000

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

Non anthracite coal

Anthracite coal
Natural gas
Coke oven gas

Chinas Petrochemical and Chemical Industry | November, 2015 11

 China's downstream products consuming methyl alcohol in 2014

Traditionals like formaldehyde and aceticacid

Alcohol ether fuel
Methyl alcohol to gasoline
Methyl alcohol to olefin
Others

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.

Clean and high-efficiency conversion of coal

Chinas top 5 coal production regions

Region/Province Output volume in 2013 (100 million tons)

Inner Mongolia 9.9
Shanxi 9.6
Shaanxi 4.9
Guizhou 1.9
Xinjiang (estimated) 1.6
At the end of 2012, China had 1.42 trillion tons of identified coal reserves.

Chinas top 4 coal chemical bases are:

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

Chinas Petrochemical and Chemical Industry | November, 2015 13

2014. The gross annual output capacity will reach 70.2 billion m3 in years. The leading companies
running coal-to-natural gas projects in China are:
xj.chinakingho.com
www.huinenggroup.com
www.china-cdt.com (the projects are at the area of Hexigten Banner and Fuxin City)

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.

The following are the key relative technologies China needs:

Comprehensive utilization of coals chemical constituents
Joint production and its peak shaving of liquid fuel, chemicals, electric power and thermal
energy
Optimization of the utilization of coal and petroleum by means of coal-to-hydrogen, joint
refinery of petroleum and coal, etc
Efficiency raise of coal process
Joint gasification of coal and biomass, integration of windpower-to-hydrogen and coal
chemistry, conversion of CO2 by chlorophyte (mainly for the Northwest regions), oil and gas
driving by CO2 (may be first realized at Ordos Basin, Ningdong Town at Ningxia Region, and
Yiminhe Town at Inner Mongolia Region)

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

Value added fertilizers

These fertilizers include modified, slow released, compound and soluable fertilizers. In 2013, Chinas
output volume of compound fertilizer was around 34.5 million tons. In 2014, Chinas output volume
of soluable fertilizer was over 3 million tons. In the country, 16% of nitrogen fertilizer, 85% of
phosphatic fertilizer, 25% of potash fertilizer are processed into complex fertilizer; the share of
complex fertilizer in chemical fertilizer is 32%. China is also developing liquid fertilizer like UAN and
direct fertilizing with liquid ammonia. The value added fertilizers are not sufficiently promoted in the
market, they are now more used for high-end cash crops, less for field crops. China is controlling the
overall consumption of chemical fertilizers, and plans to realize zero increase of the consumption by
2020. E-commerce may be a breakthrough for the sales.

Chinas Petrochemical and Chemical Industry | November, 2015 15

4. New Chemical Materials

Statistics on Chinas synthetic materials in 2014 (10000 tons)

Description Output Import Export Apparent Consumption

synthetic resin 7468 2096 323 9245
synthetic fiber 3986 64 364 3687
synthetic rubber 370 160 15 516
gross of synthetic materials 11823 2321 702 13448
synthetic fiber monomer 3550 1027 63 4514

The key points of Chinas development of synthetic materials are:

development of advanced macromolecular materials
development of the relative raw materials like olefin, petrochemical aromatic hydrocarbon,
coal-to-ethylene glycol and isoprene

Synthetic resin

Statistics on Chinas synthetic resin in 2014 (10000 tons)

Description Output Import Export Apparent Consumption

general thermoplastic resin 4710 1166 192 5685
general thermosetting resin 1469 92 47 1513
high-performance resin 1289 838 83 2047
Total 7468 2096 323 9245

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

Statistics on Chinas synthetic fiber in 2014 (10000 tons)

Description Output Import Export Apparent Consumption

polyester fiber 3581 24.9 274.8 3331.1
nylon 262.1 15.7 68.7 209.1
polyacrylonitrile fiber 67.7 17 9.2 75.5
spandex 44 2.5 4.5 42
polypropylene fiber 26.8 0.7 3.1 24.4
vinylon 11.1 1.9 3.9 9.1
carbon fiber 0.3 0.87 0.05 1.12
aramid fiber 0.8 0.45 0.18 1.09
PTT fiber 3 0.2 0 3.2
Total 3985.6 64.2 364.4 3687.4

China is specially developing aramid fiber, carbon fiber, PTT fiber and Spandex.

16
 Statistics on Chinas synthetic fiber monomer in 2014 (10000 tons)

Description Output Import Export Apparent Consumption

PTA 2732 98 46 2783
ethylene glycol 390 845 0 1235
1,3-propanediol 1 1 0 2
acrylonitrile 132 52 0 184
caprolactam 164 22 0 187
adipic acid 91 2 16 77
1,6-hexanediamine 15 5 0 20
tetrahydrofuran 25 2 1 26
Total 3550 1027 63 4514

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

Statistics on Chinas rubber in 2014 (10000 tons)

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

Statistics on Chinas macromolecular materials in 2014 (10000 tons)

Description Output Net import Consumption

engineering plastics 184 209 392
high-end polyolefin plastics 324 518 841
polyurethane 711 30 741
fluorosilicon resin 29 3 32
other high-performance resin 41 - 0.6 41
petroleum-based special synthetic rubber 129 117 246
non petroleum-based special synthetic rubber 70 1 71
high-performance fiber 4 1 5
functional membrane materials 22 18 40
Total 1513 896 2409

Chinas Petrochemical and Chemical Industry 17

 Statistics on Chinas engineering plastics in 2014 (10000 tons)

Description Output Import Export Apparent Consumption

polycarbonate 30 148 22.3 155.7
pmma 45 22.5 1.2 66.3
polyamide resin engineering plastics 28.1 41.4 10.2 59.3
polyformaldehyde 32 25.4 4.7 52.6
special polyethylene terephthalate 46.2 18.2 17.5 47
polyphenylene ether 0.9 5 5.9
polyphenylene sulfide 0.6 1.6 2.2
speical engineering plastics 0.8 2.4 0.04 3.2
Total 183.6 264.5 55.94 392.2

Statistics on Chinas high-end polyolefin plastics in 2014 (10000 tons)

Description Output Import Export Apparent Consumption

hexene copolymerization pe 280 350 0 630
octene copolymerization pe 5 50 0 55
EVA resin 34 70 4.5 99.5
ultra-high molecular weight polyethylene 3 2.4 0 5.4
mPE 2 43 0 45
mPP 0 6.5 0 6.5
Total 324 521.9 4.5 841.4
China needs to develop high carbon olefin copolymerization PE and MAO catalysis polyolefin, and
also hexane-1, octane-1, etc.

Statistics on Chinas polyurethane in 2014 (10000 tons)

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.

Statistics on Chinas Fluorosilicon resin in 2014 (10000 tons)

Description Output Import Export Apparent Consumption

PTFE 8.74 0.63 2.17 7.20
other fluorine resin 2.68 0.47 1.35 1.8
silicone oil 14.0 4.0 2.0 18.0
silicone resin 3.5 0.5 0.0 4.5
Total 28.92 5.6 5.52 31.5

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.

Statistics on Chinas rubber materials (10000 tons)

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.

Statistics on Chinas functional membrane materials in 2014

Usage Products Demand Market scale Self-

(million m2) (100 million CNY) sufficiency
water treatment MF, UF 55 63.8 63%
RO, NF 30 39.2 14%
separation for pervaporation, organic steam separation 6.54 32%
for industrial gas separation 8.64 13%
hemodialysis 10 16.65 18%
ion exchange for electroosmosis 1 30 75%
for electrolysis (fluorine) 0.18 10 0.30%
for fuel battery (fluorine) 0.7 5%
lithium cell separator, package 410 40.6 35%
Optics PET-based, CA-based, PVA-based 830 64.8 55%
photovoltaic EVA-based, for sealing 510 51 55%
PET-based 260 26 55%
PVF/PVDF-based, to protect backboard 390 39 10%
Others for electric conduction, dielectricity 23 42%
Total 419.93 42.9%

Statistics on Chinas high-performance fiber in 2014 (10000 tons)

Description Output Net Import Consumption

aramid fiber 0.8 0.3 1.1
carbon fiber 0.3 0.8 1.1
PTT 3.0 0.2 3.2
Total 4.1 1.3 5.4

Chinas Petrochemical and Chemical Industry 19

The import of carbon fiber is big, mainly because the cost of domestic production is too high, this needs
to be changed. China will focus on the development of high molecular weight carbon fiber, poly-p-
phenylene terephthamide, ultra-high molecular weight polysthylene fiber, polyphenylene sulfide fiber,
PTT fiber, and their raw materials.

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.

Self-efficiency of Chinas special chemicals

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

Chinas focuses are:

electronic chemicals (the market in China amounted to CNY 170 billion in 2014), fluorine
coatings
chemicals for integrated circuit
resist of 248nm and 193nm
PPT-class high-purity reagent and gas
polyimide and liquid epoxy packaging materials
chemicals for printed-wiring board
special epoxy resin, polyimide resin, BMI modified sym-triazine resin,
thermosetting PPO resin, poly-TA resin
polyimide film, special PET film, electric conduction coatings
dry film anti-corrosion reagent and photosensitivity imaging resistance
welding reagent
chemicals for flat plate display
high-class TFT liquid crystal materials, polarizers for TFT-LCD
colourful PDP light fen for big screens
chemicals for new-energy batteries
the products for high-power lithium cells, but depending on the development
of electric vehicles
PVF backboard film for solar cells
fluorine proton exchange membrane
chemicals for colourful printers
developing agent
safe food and feedstuff additives, with fermentation as the leading processing method
fermented lycopene as food additive
D-ribose as food additive
sugar alcohol as food additive

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 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

Chinas Petrochemical and Chemical Industry | November, 2015 21

 new-generation pesticide, fluorine pesticide
environment-friendly pesticide
intermediates
fluorine liquid crystal intermediates for TFT-LCD
fluorine and heterocycle intermediates
higher efficiency and cleaner process of traditional intermediates

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

Petrochemistry, in Liaoning, Jiangsu, Fujian, Shandong, Xinjiang

Natural gas chemistry, in Sichuan

Coal chemistry, in Shanxi, Inner Mongolia, Guizhou, Shannxi, Xinjiang, Shandong

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

General chemistry, in Jiangsu, Zhejiang, Guangdong

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.

Wastes emission of Chinas chemical industry in 2013

Description Volume (10000 tons)

waste water 491000
COD (estimated to be 34 by 2020) 52.98
ammonia nitrogen (estimated to be 5.1 by 2020) 8.98
SO2 (estimated to be 166 by 2020) 217.80
ordinary industrial solid wastes 31836.90
dangerous wastes 871.70

Chinas top 20 chemical industrial parks are (no particular order):

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

Chinas Petrochemical and Chemical Industry | November, 2015 23

http://www.zhapu.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

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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.

Leading Chinese importers of chemicals:

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

Leading exhibition in China on chemical industry:

http://www.icif.cn

Other useful links:

http://www.cpcia.org.cn

http://www.chinaembassy-org.be

http://www.ccpit.org (This organization has office in Brussels)

http://www.bcecc.be

http://www.flanders-china.be

http://www.bencham.org

http://www.eusmecentre.org.cn

http://www.china-iprhelpdesk.eu

Chinas Petrochemical and Chemical Industry | November, 2015 25

Notes:

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

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