Methanol leads hike in China H1 chem output

25 July 2007 03:24  [Source: ICIS news]

SHANGHAI (ICIS news)--China’s methanol output reached 4.6m tonnes in the first half of the year, up a sharp 34.1% compared with the same period a year ago on growing demand from downstream sectors and emerging industries, the National Bureau of Statistics said late on Tuesday.

 

Formaldehyde, as the main downstream user of methanol, has seen steady growth propelled by increasing demand from thermosetting resins, methylene diphenyl diisocyanate (MDI) and polymethylene oxide (POM).

 

China was expected to add 2m tonnes/year of new formaldehyde capacity by 2010 to reach 14m tonnes/year on expected output of 10m tonnes/year in 2010, the National Formaldehyde Industry Association said.

 

Output of acetic acid, another major derivative of methanol, has also grown fast, surging by 56% to 1.4m tonnes in 2006 from a year ago, the National Acetic Acid Industry Association said.

 

Rising demand from purified terephthalic acid (PTA), acetic ether, vinyl acetate, chloroactic acid and acetic anhydride contributed to the hike.

 

In addition, huge potential from emerging sectors, such as methanol/dimethyl ether (DME) fuels and methanol-to-olefins, would also play an important role in boosting methanol demand, the China Petroleum and Chemical Industry Association (CPCIA) said.

 

On the whole, China’s methanol demand was estimated to reach 18-21m tonnes/year by 2010, while the country was expected to bring on stream 12m tonnes/year of new methanol capacity by the same year.

 

Total national capacity and output is estimated to reach 25m tonnes/year and 18m tonnes/year respectively, CPCIA said.

 

In the first half of this year, benzene output also saw significant growth of 29% to 2.2m tonnes, the bureau said.

 

First-half output of calcium carbide, polyvinyl chloride (PVC) and polypropylene (PP) increased by more than 20% to 6.9m, 4.7m and 3.5m tonnes respectively, while PP fibre output fell 6.3% year on year.

 

Products

June, 2007

1H, 2007

Output (kt)

% change*

Output (kt)

% change*

Inorganic chemicals

Sulfuric acid

4,701

16.9

25,781

11.8

Nitric acid

183

31.6

957

15.3

Hydrochloric acid

592

3.7

3,658

5.9

Caustic soda

1,461

17.1

8,398

17.3

Soda ash

1,403

11.4

8,355

10.7

Calcium carbide

1,273

12.7

6,873

24.1

Organic chemicals

Ethylene

884

18.4

5,276

18.7

Benzene

386

33.1

2,217

29.0

Methanol

767

16.4

4,595

34.1

Glacial acetic acid

123

10.9

730

1.6

Synthetic material

Synthetic resin and co-polymer

2,618

25.5

14,917

19.5

 -PVC

804

20.6

4,735

22.5

 -PE

590

27.1

3,467

19.8

 -PP

603

29.7

3,452

20.9

Polybutadiene rubber

39

0.3

220

4.0

Caprolactam

29

6.5

158

6.4

Polyester

903

19.1

5,070

14.6

Chemical fibre

2,132

18.2

11,540

17.9

 -Polyamide fibre

101

32.2

500

17.1

 -Polyester fibre

1,667

17.8

9,014

17.3

 -Acrylic fibre

75

1.4

467

13.6

 -PP fibre

22

2.8

113

-6.3

Fertiliser

5,162

5.0

28,783

12.3

Plastic product

2,998

13.2

14,718

15.0

*% changes are year on year

Source: National Bureau of Statistics


By: Becky Zhang
+65 6780 4359



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