Export of ADC Blowing Agents Increases Rapidly

Gradual capacity expansion and fierce market competition

ADC blowing agents (azo-dicarbonamide) are mainly used in
packaging materials, construction materials (mainly
heat-insulation materials, high-grade wallpaper and UPVC
(unplasticized polyvinyl chloride) pipes), EVA (ethylene-vinyl
acetate copolymer) shoe soles and PVC (polyvinyl chloride)
artificial leather.
   The capacity of ADC blowing agents in China was around 180
thousand t/a in 2006, the output was 130 thousand-140 thousand
tons and the consumption was 80 thousand-90 thousand tons. China
imported 7 thousand tons of ADC blowing agents in 2006, most of
them were modified products and the average import price was US$2
356.39 per ton. China exported 56 thousand tons of ADC blowing
agent powder in 2006 and the average export price was US$1 898.94
per ton. The export of ADC blowing agents in China has grown
rapidly in recent years. The main reason is that due to factors
in environmental protection and production cost, advanced
countries have shut down some production units. Major ADC
blowing agent producers in China include Jiangsu Sopo Chemical
Co., Ltd., Jiangxi Electrochemical (Group) Co., Ltd., Ningxia
Risheng Industrial Corporation, Fuzhou No.1 Chemical Plant and
Fujian Longyan Longhua Group Corporation.
   ADC blowing agents produced in China are mainly in powder form.
There is a surplus supply in the market and producers have staged
a fierce price competition. The selling price has reduced
constantly and is already down to around RMB13 000 per ton today.

Bottleneck in environmental protection

ADC blowing agents in China are mainly produced from hydrazine
hydrate synthesized through the urea process. The process has
high material consumption. Byproducts mainly include ammonium
sulfate, sodium carbonate and salts. If all these byproducts are
recovered, their value can account for one fifth of the total
production cost. Due to the lack of effective recovery measures,
however, the cost is high and the pollution is serious. Foreign
countries mainly use the ketazine process and the hydrazine
hydrate synthesis process. The material consumption and the
pollution are relatively low, but production units are still
shut down one after another due to problems in environmental
protection.
   If the problem of wastewater treatment can not be thoroughly
solved, the development of the ADC blowing agent sector will
surely be affected.

Urgent development of modified products

The consumption of modified ADC blowing agents has increased
rapidly in the international market. The added value of modified
products is also relatively high. ADC blowing agents produced
in China are mostly general-purpose products.
    A few producers in China have conducted the research and
development of modified ADC blowing agents, but there are only
3-5 product varieties. Japan and Korea have several dozen
varieties of modified ADC blowing agents. There are nearly 20
special varieties of modified ADC blowing agents for PVC alone
in Japan.
   China is advocating the use of plastic products and
encouraging the construction sector to replace timber and steel
with plastics. The development of the PVC sector is therefore
promoted. New challenges have also been placed before ADC
blowing agent producers. They should therefore keep abreast with
the development of the PVC sector and develop diversified,
specialized and serialized modified ADC blowing agents as soon
as possible. The research and development of modified ADC
blowing agents has become an urgent matter in the development
of the ADC blowing agent sector in China.

Major ADC Blowing Agent Producers in China in 2006   (thousand
t/a)
Producer                         Capacity
Jiangsu Sopo Chemical Co.            35
Jiangxi Electrochemcial (Group) Co.    30
Ningxia Risheng Industrial Corp.    25
Fuzhou No.1 Chemical Plant            16
Fujiang Longyan Longhua Group Corp.    15
Weifang Weipeng Chemical Co.        12
Yibin Tianyuan Co.                    10
Shandong Zibo Haiming Chemical Co.    10
Source: CNCIC