China Nylon Industry: Status Quo, Problems & Outlook

Transcription

1 China Nylon Industry: Status Quo, Problems & Outlook Deng Jun Secretary General of Nylon China Chemical Fiber Association (CCFA)

2 China Nylon Industry: Status Quo, Problems & Outlook December 2010 World PA Industry Overview China is the world s largest nylon fiber producer in an ongoing growth. Nylon production is declining year by year in USA, Taiwan, Germany and S. Korea etc.., and Nylon chain is transferring to China or the Asian- Pacific region. In, China s nylon fiber production accounts for 4.54% of total chemical fiber s, which is much lower than the world s average level of 10%. 1

3 Table1 World s Top Seven in PA Fiber Production unit: kt Regions China Mainland USA Chinese Taiwan Germany S. Korea Italy Japan Above seven (%) World Total Source: Japanese chemical fiber association Table 2 Shares of PA6 and PA66 in Different Areas unit: % World N. America W. Europe E. Europe Japan China Rest of Asia Taiwan & S. Korea PA PA

4 Table 3 World PA Fiber Capacity & Forecast(kt/a) Product PA6 Textile Filament Yarn Industrial Filament Yarn BCF Yarn Staple Fiber Total PA66 Textile Filament Yarn Industrial Filament Yarn BCF Yarn Staple Fiber Total Source: PCINylon Chart1 World PA Fiber Capacity in World PA66 Fiber Capacity in Staple Fiber 16% Textile Filament Yarn 24% World PA6 Fiber Capacity in BCF Yarn 18% Staple Fiber 8% Textile Filament Yarn 46% BCF Yarn 31% Industrial Filament Yarn 29% Industrial Filament Yarn 28% 3

5 Status Quo of China Nylon Industry Nylon Fiber Capacity & Production in China in Demand for Nylon Fiber in China in Current PA Product Structure in China Energy Saving and Emission Reduction in PA Fiber Industry Chart 2 Nylon Fiber Capacity & Production in China Unit: kt Capacity Production Source: CCFA 4

6 Table 4 Demand for Nylon Fiber in China Unit: kt Item Year Production Import Export Demand Demand Growth (%) Source: China Customs & National Bureau of Statistics of China Table 5 Key Economic Indicators for Chinese PA Fiber Industry Unit: million yuan Gross production value Industrial added value Total assets Total liability Gross profit Profit & tax Value added tax Source: The data for - from Annual Report of Textile Industry, and that for 2009 from Jan-Nov Monthly Report 5

7 Chart 3 PA Product Structure in China in % 19% 49% 22% Textile Filament Yarn Engineering Plastics Industrial Filament Yarn BCF & Staple Fiber Source: CCFA China s PA Fiber Production by Province in 2009 Jiangsu Fujian Zhejiang Shandong Guangdong Henan Others 6

8 1. Nylon Textile Filament Yarn Totally bring in 13 polymerization plants in -2009, with combined capacity of 700 kt/yr, accounting for 69.4% of existing textile filament yarn capacity in China. Current proportion of filament yarn products in China: 48% for POY, 14% for HOY, 31% for FDY, 7% for others. There re more than 50 textile filament yarn producers above certain scale, with total effective capacity of kt/yr and average number of 17 kt/yr. PA Textile Filament Yarn by Application in 2009 Others Coats Coats Hosiery Luggage Sportswear Underwear Luggage Underwear Sportswear Hosiery Others Source: CCFA 7

9 Downstream Consumption of Nylon Textile Filament Yarn Unit: kt Weaving Silk-blended Weaving Knitting Total Source: CCFA Warp Knitted Fabric Mainly for swimwear, leotard, webbing, lace and some decorative items. Producers are mostly located in Guangdong, Zhejiang and Jiangsu provinces. Woven Fabric Mainly for lining, umbrella, apparel fabric. With nylon/cotton inter-woven fabric selling well these years, demand for nylon yarn experiences fast growth. Coated Fabric Mainly for jacket, ski-clothes, swimwear, casual clothing, working clothes, climbing wear, sportswear, outdoor garment, tent, luggage, umbrella, waterproof-clothes, dust coat, etc. 8

10 2. Nylon Staple Fiber Nylon staple fiber capacity in China is 67.8 kt/yr, accounting for 4.91% of the total capacity in nylon fiber industry. PA6 staple fiber is the majority, accounting for more than 90% of all nylon staple fiber production in China. Application: high-quality nonwovens, flocking, felt for industrial application, building construction material, etc. Given high prices, many buyers turn to other substitutes such as polyester fiber, polypropylene fiber, acrylic fiber and so on. 3. Nylon Industrial Filament Yarn There re more than 10 industrial filament yarn producers in China, with combined capacity of 420 kt/yr and the average capacity of 25 kt/yr. PA, PET cord yarn and steel wire are main reinforcing materials used for auto tires. Production for PA cord yarn declines; consumption of steel wire surges; PET cord yarn increases behind it. Owing to promising outlook for air bags, PA industrial filament yarn may enjoy a pick-up in the future. 9

11 Table 6 Production & Consumption of PA Tire Cord Yarn in China in Unit: kt Year Capacity Production Demand Source: China Rubber Industry Association 年工业用锦纶长丝应用领域份额图 Industrial Filament Yarn by Application in 8% 8% 10% 11% 63% 轮胎类 Tires 绳网线类 Ropes & nets MRG 安全气囊 Air bags 其他类 Others 10

12 Textiles Consumption per Vehicle Application Carpet & interlayer Decorative fabrics Tape & hose Tire cord yarn Safety belt Air bag Fibrous composite Others (such as filter) Total Consumption (kg) Source: Polyamide News Report 4. Nylon BCF Yarn BCF production starts early in China. In mid-1980s, more than 40 BCF facilities were brought in from Italy, Switzerland and Germany successively, mainly for polypropylene BCF production, with capacity of kt/yr. In 1990s, several PA BCF units were imported, with capacity of 32 kt/yr. PA BCF gets popular in Europe and N. America. Production in the USA and Canada accounts for 53% of the world total; that in Europe accounts for 27%; that in Asia and the Middle East only accounts for 8%. With improvement of state strength & people income and the changes of living manner & philosophy in China, particularly with development of new - technologies that provide fibers with special properties such as anti-static, flame-retardant and dirt resistant, etc., PA BCF tufted carpet will become popular increasingly. 11

13 5. Nylon Engineering Plastics Mainly for electronic appliance, automobile, machinery, household product, sports & leisure industries in China. In, nylon consumption in automobile field accounts for 22% of the total sales volume of whole nylon plastics market. Currently, BOPA film sector develops rapidly, with production assessed at around 40 kt in 2010 and an increasing rate of above 8%. They are mainly applied in food, printing and medical industries. In future five years, nylon engineering plastics yield in China is expected to increase by 8-10% per year, which is higher than the world average level of 4-6%. In 2010, nylon plastics production may amount to 235 kt. China s Import & Consumption of PA Chips for Engineering Plastics Unit: kt * Import Consumption Source: Polyamide News Report 12

14 PA Engineering Plastics by Application in China in Others Packaging film Electronic appliance Machinery Automobile PA Engineering Plastics by Application in China in % 14% 3% 12% 4% PC PBT MPPO 50% PA POM Specialty 13

15 Feedstock 1. Caprolactam 2. AH Salt 3. PA Chips Table7 Capacity & Production of CPL Producers in China Unit: kt Producer Capacity Production DSM Nanjing Chemical Company Sinopec Baling Company Sinopec Shijiazhuang Chemical Fiber Juhua Group Corporation Total Source: Polyamide Developing Center 14

16 Table 8 CPL Import & Demand In China in Item Production, kt Import, kt Export, kt Demand, kt Import Dependence (%) Source: China Customs & Polyamide Developing Center Feedstock 1. Caprolactam 2. AH Salt 3. PA Chips 15

17 Table 9 Major Adipic Acid Producers in China in 2009 Unit: kt/yr Producer PetroChina Liaoyang Petrochemical Shandong Hongye Chemical Co., Ltd Shandong Bohui Paper Xinjiang Dushanzi TianLi High & New Tech Co.,Ltd Zhong Ping Energy Chemical Group Ningbo Minte Nylon Industry Co., Ltd Total Capacity Feedstock cyclohexane cyclohexane cyclohexane cyclohexane cyclohexane cyclohexane Feedstock 1. Caprolactam 2. AH Salt 3. PA Chips 16

18 Table 10 PA6 Chip Supply & Demand in China in Unit: kt Item Capacity Production Import Export Apparent Consumption Source: China Customs & CCFA Energy Saving and Emission Reduction in PA Industry Energy Saving Emission Reduction 17

19 Table 11 Energy Consumption of PA6 Fiber Industry Year Production (kt) Energy Consump. (kgce/t) Electricity (kw h/t) Steam (kgce/t) Total energy consumption (ktce) Electricity (m kw h) Steam (ktce) PA Textile Fiber * PA Industrial Fiber * Note: 1 kw h = kg standard coal Table 12 Wastewater Emission in PA6 Fiber Industry Year Production (kt) Wastewater emission (t/t) Total wastewater emission (kt) COD emission (t/t) Total COD emission (kt) PA Textile Fiber * PA Industrial Fiber *

20 Existing Problems in PA Industry Distinct contradictions appear in PA industrial structure, e.g. severe shortage of feedstock. Nonstandard behaviors exist in PA market. Import tariff for PA feedstock is higher than that for fiber. We should strengthen and improve R&D ability. It still has a long way to go for realizing product standardization and brand building. Target & Focus of Nylon Industry in 12th Five-Year Plan A. Development Target 1. Target in Terms of Total Volume We should adjust and perfect PA product structure and make best use of our edges in order to achieve the transition from a world largest producer to a strong one. Consumption of PA in China is expected to hike to 2.3 million tons by 2015, accounting for around 8% of that of chemical fiber. 19

21 Target & Focus of Nylon Industry in 12th Five-Year Plan 2. Target in Terms of Technology (1) Technical level of production units a. Polymerization b. High-speed spinning (2) Creativity (3) Product structure (4) Average scale of producers Table 13 PA Polymerization Technology in China End of 10th Five-Year Plan End of 11th Five-Year Plan Capacity Construction time Investment Production cost Unit energy consumption Localization rate of facilities Features & levels of processes 75t/d 2 years yuan/ton yuan/ton 230kgce/t 10% Small capacity, mainly regular products 160t/d 2 years yuan/ton yuan/ton 180kgce/t 60% Large capacity, automatic production based on continuous processes in polymerization, extraction & drying; a veracity of specs in products 20

22 Target & Focus of Nylon Industry in 12th Five-Year Plan B. Development Focus 1. Shortage of feedstock such as CPL and adiponitrile; 2. Value-added textile filament yarn and brand-building; 3. BCF facility localization & new products development; 4. Promote production and product system of PA engineering plastics; 5. Expand application field of industrial filament yarn; 6. Enhance R&D in high-tech and high-performance nylon fiber for military use. Major Tasks & Policy Measures A. Major Tasks 1. Facilitate unification of integrating development and coordination of the whole industry chain; 2. Encourage innovation and speed up industry structure adjustment and promotion; 3. Regulate market order and build fair-competition environment. 21

23 Major Tasks & Policy Measures B. Policy Suggestion 1. Boost development of feedstock CPL and adiponitrile; 2. Solve the problem that import tariff for PA feedstock is higher than that for fiber products. 3. Draft and perfect related technical regulations and standards, as well as a catalog for the industry encouraged items; 4. Encourage and guide domestic producers to go out. Major Tasks & Policy Measures C. Related Measures 1. Strengthen CCFA s information guidance and continue to promote early warning mechanism for industry investment; 2. Reinforce creativity and cooperation among producers, universities and research institutes; 3. Emphasize international communication and collaboration, aiming to assist enterprises in going out ; 4. Optimize product standard in order to keep up with international norms swiftly; 5. Perfect early warning mechanism for import and export so as to actively cope with trade frictions. 22

24 Thank You! Deng Jun Contact: