By Sun Nan, CNCIC Consulting

Production

The total capacity of UHMWPE (ultrahigh molecular weight polyethylene) in China already reached around 100 kt/a in 2017. Major producers include Sinopec Yanshan Petrochemical Co., Ltd., Jiujiang Zhongke Xinxing New Materials Co., Ltd., Shanghai Lianle Chemical Industry Science and Technology Co., Ltd., Anhui Tejiajin Fine Chemical Co., Ltd., Wuxi Fukun Chemical Co., Ltd. and Sinopec Qilu Petrochemical Co., Ltd. See Table 1 for detail. By the end of 2017 there were 7 UHMWPE projects already disclosed to be under construction or planned for construction in China (see Table 2 for detail) and the total new capacity is 140 kt/a. It is expected that next few years will be a period for the further rapid development of UHMWPE in China.

Table 1    Major UHMWPE producers in China, 2017

Table 2    UHMWPE projects being constructed or planned for construction in China

Import and export

   In 2012 the shutdown of the UHMWPE unit in Sinopec Yanshan Petrochemical Co., Ltd. due to problems in environmental protection led to a reduction of the domestic market supply by 20 kt, resulting in the import of UHMWPE in great quantities. Owing to the production restoration of the UHMWPE unit in Yanshan Petrochemical Co., Ltd. and the increase of other UHMWPE capacities afterwards, the import amount made a gradual drop. With the encouragement offered by the state to the UHMWPE fiber sector, the import amount of UHMWPE once again presented a rising trend after 2014. In terms of export, the shutdown of the UHMWPE unit in Yanshan Petrochemical Co., Ltd. in 2012 caused a drastic reduction of the export amount. With the gradual restoration of UHMWPE capacities afterwards, export restarted but the export amount was quite small.

Demand

   The apparent consumption of UHMWPE in China was around 70 kt in 2017. The biggest consumption sector is the production of plates, profiles and pipes. The rapid development of downstream sectors such as UHMWPE ropes, cables, fabrics and new energy batteries will also promote the demand of UHMWPE. It is expected that the demand of UHMWPE will make a rapid increase in next few years. In terms of consumption structure, the consumption proportion is around 42% for plates, rods and profiles, around 17% for industrial pipes, around 21% for fibers, around 15% for filter materials and around 5% for others.

Future development orientation

   Seen from the production side, on strength of their own scale effect PetroChina Liaoyang Petrochemical Co., Ltd. (technology jointly developed by Liaoyang Petrochemical Co., Ltd. Research Institute and Lanzhou Petrochemical Co., Ltd. Research Institute), Jiujiang Zhongke Xinxing New Materials Co., Ltd. (technology from CAS Shanghai Institute of Organic Chemistry) and Henan Wosen Ultrahigh Chemical Technology Co., Ltd. (technology from Shanghai Research Institute of Chemical Industry) have squeezed into the UHMWPE market in past two years. After the full completion of the UHMWPE project on schedule in Jiujiang Zhongke Xinxing New Materials Co., Ltd., the capacity will reach 60 kt/a and the company will become the biggest UHMWPE supplier in China. Sinopec will relocate Dongfang Petrochemical Co., Ltd. to Yanshan Petrochemical Co., Ltd. and possibly have further relocation plans. The capacity of UHMWPE in Sinopec will therefore be seriously affected. PetroChina Liaoyang Petrochemical Co., Ltd. has made the successful trial production of UHMWPE and will likely further expand the production. Regarding foreign companies, Celanese plans to expand its Nanjing-based UHMWPE plant. DSM has started to hold shares in Shandong Aidi Polymer Material Co., Ltd. and is exerting force in the UHMWPE fiber market in China. Competition between domestic and foreign enterprises will become fiercer in future.
   Seen from the consumption side, UHMWPE fiber, carbon fiber and aramid fiber are called 3 high-performance fibers in the world. UHMWPE fiber is also one of high-performance fibers with the most extensive large-scale application and the most rapid development. The annual output of UHMWPE fiber in China has reached over 9 kt in past two years and the operating rate has been kept at over 70%. The consumption in various application sectors has made an increase by different degrees.
   In future China will highlight the development of UHMWPE applications in fiber composites, lithium cell diaphragms, track/marine communication, aviation/spaceflight and municipal construction. The UHMWPE sector will form a trend of developing towards high-performance and specialized varieties.