Supply Deficit of m-Aminophenol
Year:2007 ISSUE:10
COLUMN:MARKET REPORT
Click:196    DateTime:Apr.05,2007
Supply Deficit of m-Aminophenol

By Wang Zaijun

Supply deficit in the domestic market

China's capacity to produce m-aminophenol was 2.3 thousand t/a
and the actual output was around 1.8 thousand tons in 2006. Most
producers use the nitrobenzene sulfonation alkali-fusion
process developed by Shenyang Research Institute of Chemical
Industry. The technology causes serious environmental pollution
and a great deal of wastewater is generated in the production.
As the production is intermittent, operating conditions are
extremely severe. Product quality cannot fully meet the
requirements of downstream products.
   There are three major producers in China today. Sichuan
Hongguang Chemical Co., Ltd. is the largest producer. Henan
Huifeng Group Co., Ltd. used to be the largest producer in the
past but has suspended production due to environmental
protection problems. Jiangsu Yixing Biochemical Plant also
suspended production in mid-2005.

Sustained growth of downstream demand

Owing to brisk demand both at home and abroad, the price of
m-aminophenol has remained around RMB60 000 per ton in recent
years. Major consumption markets are East China and North China,
especially Shandong province, Jiangsu province, Hebei province,
Zhejiang province and Shanghai.
   m-Aminophenol in China is mainly used in the production of
dyestuffs, functional dyes in particular. Due to various factors
such as synthesis technology, China seldom produced such dyes
before 2000 and the domestic demand was satisfied mainly by
imports. With the restructuring of the dyestuff sector and the
upgrading of new product development abilities, China can use
m-aminophenol to replace bromoalkanes to produce color pressure
free/thermal sensitive functional dyes. The consumption of
m-aminophenol in such dyes reached 1 thousand tons in 2004. It
is expected that the average annual growth of the m-aminophenol
demand in this sector will be around 15% in the next few years
and consumption will reach around 1.75 thousand tons in 2008.
   The demand for m-aminophenol in making traditional dyes is
relatively stable. The consumption of m-aminophenol for
traditional dyes was around 200 tons in 2004. It is expected that
the average annual growth of the demand will be around 5% in the
next few years and consumption will reach 250 tons in 2008.
   Another major application of m-aminophenol is the use in the
synthesis of antituberculotics. The consumption of
m-aminophenol in this sector was around 200 tons in 2004. It is
expected that the average annual growth of the demand will be
5% in the next few years and the consumption will reach 250 tons
in 2008.
   The pesticide sector is also an important consumer of
m-aminophenol. Some fluorine-containing insecticides and
fungicides use m-aminophenol as raw material. As there are few
varieties of such pesticides, the output is relatively small.
The consumption of m-aminophenol in this sector is around 80 tons
today and is expected to reach around 110 tons in 2008.
   Production of the important intermediate
hydroxy-N,N-diethylaniline is also a potential consumption
sector for m-aminophenol. The intermediate is produced from
sodium m-nitrobenzenesulfonate. The process is outdated and a
serious polluter. The production process using m-aminophenol as
raw material, however, features a simple process flow and good
product quality. If m-aminophenol has a competitive price and
abundant supply, the consumption in this sector alone will be
around 1.5 thousand tons a year.
   The total demand of m-aminophenol in China will therefore be
around 2.6 thousand tons in 2008. When the potential demand for
making hydroxy-N,N-diethylaniline is added, the demand of
m-aminophenol in China will hopefully reach 4.1 thousand tons
in 2008.
   The supply and demand of m-aminophenol in China are basically
balanced today. With stringent requirements for environmental
protection, some production units will be phased out. The scope
of downstream applications will also expand constantly. The
market gap will therefore become bigger and bigger. It is
therefore imperative to accelerate technical renovation and
commercialize the resorcinol ammonolysis process for the
m-aminophenol production as soon as possible. As resorcinol has
low production and high price in China today, the cost of
m-aminophenol using the new process is currently high and the
application of the resorcinol ammonolysis process is
constrained. With constant capacity expansion for resorcinol
production, the resorcinol ammonolysis process will have
excellent economic benefits and bright market prospects in
China.

Major m-Aminophenol Producers in China in 2006
Producer              Capacity (t/a)   Output (tons)
Sichuan Hongguang Chemical Co.    800     700
Hebei Cangzhou Dyestuff Chemical Plant    500     350
Shenyang Application Technology Experiment Factory    300
    250
Source: CNCIC