Special chemical products manufacturing

by Jessica Jackson on Nov 23, 2020 Finance 425 Views

In China's chemical industry, the manufacturing of specialized chemical products has the largest income, the largest profit contribution, the largest number of segmented industries and the largest number of enterprises.According to the National Bureau of Statistics about the division of manufacturing standard, specialty chemicals manufacturing industry in China, including chemical and fertilizer manufacturing, special chemical products manufacture, forest chemical products manufacturing, information, chemical manufacturing, environmental pollution treatment special reagent materials, animal glue manufacture, explosive initiation and fireworks products and other specialty chemicals manufacturing eight segments.Generally speaking, specialized chemicals and fine chemicals together constitute the concept of "fine chemical industry", among which some products with high technical content and advanced technology belong to the category of "new chemical materials" and are closely related to "strategic emerging industries".

Driven by high downstream demand, import substitution and high technical barriers, China's specialty chemicals industry has developed rapidly in recent years.In 2009, specialized chemical products accounted for 25% of the total output value of the chemical industry and 31% of the total profit, surpassing the chemical raw material production industry for the first time and becoming the largest subsector of the chemical industry in terms of output value.From the perspective of products, during the 11th Five-Year Plan period, the average annual demand growth rate of engineering plastics, organic silicon monomer and polytetrafluoroethylene reached 11.7%, 14.9% and 13.4%, significantly higher than the growth rate of domestic GDP in the same period.However, China's specialized chemical production industry also has some prominent problems, such as low technical level, relatively backward development, extensive production mode and insufficient supply of high-end products.In terms of the fineness rate, China's fineness rate is only about 40%, far lower than the level of 60%-70% in advanced developed regions such as the United States, Japan and Western Europe.A considerable number of key and technically advanced specialized chemicals, such as lithium hexafluorophosphate, are still heavily dependent on imports.From the perspective of industry concentration, large enterprises in specialized chemicals industry only account for 0.4% of the total enterprises, while small enterprises account for 92.62%, with a relatively low industry concentration.But from the point of view of a particular product segment, a few enterprises can easily form the oligopoly competition situation.At the global level, The three major manufacturers -- Nippon Morita Chemical, Kanto Electrochemical and SUTERAKEMIFA -- account for 85% of the global capacity of lithium hexafluorophosphate.The synthetic camphor of Qingsong, China's largest turpentine producer, accounts for 45 percent of the country's production capacity.Jianxin, China's largest interamino producer, has a national and global market share of 40% and 28%, respectively.

There are many kinds of special chemical products, and they are widely used downstream.A considerable proportion of chemical products are still in the stage of introduction, so the overall growth of the specialized chemical industry is outstanding.In the first quarter of 2009, while the industrial sales output value of chemical raw materials and synthetic materials increased significantly, the professional chemical industry achieved a high growth rate of 15.37%.The growth rate since 2010 is still among the highest in the chemical industry.However, it is not appropriate to divide the seasonal, periodic and regional demand for specialized chemicals from the total amount.Under the same macro background, it is completely possible for specialized chemicals to face different supply and demand patterns for different subdivided products.

Specialized chemical products have a broad prospect of development.From the perspective of demand, according to the Development Plan of petrochemical and Chemical Industry during the 12th Five-Year Plan Period, the demand growth rate of engineering plastics, organic silicon monomer and polytetrafluoroethylene in new chemical materials is predicted to be 10.1%, 11.6% and 8.6% respectively, which are the fastest growing segments in the chemical industry.On the other hand, from the perspective of supply, due to the huge market demand, low factor cost and the continuous improvement of manufacturers' production technology, many domestic manufacturers began to undertake domestic production capacity transfer in the way of "customized production".This means that during the 12th Five-Year Plan period, the supply of specialized chemical products will be more abundant.According to the Development Plan of the Petrochemical and Chemical Industry during the 12th Five-Year Plan Period, China will continue to encourage the cross-regional mergers and reorganizations of powerful enterprises producing new chemical materials and special chemicals, improve the scale of enterprises, promote product development, and form a number of high-tech enterprises with leading positions in the industry.At the same time, technological innovation will be strengthened, and emphasis will be given to the development of high performance, environmentally friendly and intrinsically safe new-type specialized chemicals, such as electronic chemicals, food additives, feed additives, water treatment chemicals and environmentally friendly plastics additives, in product structure.

Article source: https://article-realm.com/article/Finance/8587-Special-chemical-products-manufacturing.html

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