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In 2006, the sales volume of China's engineering plastics market was approximately US$5.5 billion, and the output was about 1.5 million tons, which was a substantial increase of approximately 32.7% from the output of 1.13 million tons in 2004, and sales increased by approximately 63%. By 2013, production will reach about 2.9 million tons, and sales are expected to be about 11.5 billion US dollars. Engineering plastics are widely used due to their superior mechanical properties, weathering resistance, chemical resistance, etc., and more and more substituted metals are used as structural materials.
At present, electrical appliances are the largest downstream application of domestic engineering plastics, accounting for 29.4% of total market consumption, followed by industrial machinery, and the automotive industry is gradually becoming another major downstream industry for engineering plastics. With its excellent mechanical properties and friction resistance, engineering plastics are being adopted by more and more automakers, with demand accounting for approximately 10.2% of the total market, but this ratio is still at a relatively low level compared with developed countries. Market has great potential. In addition, engineering plastics are also widely used in packaging, construction, textile and other industries. As far as engineering plastics are concerned, the situation in different markets is also different.
Polyamide (PA) is mostly chemical grade in China, and only a small part is engineering plastics. At present, the main specifications of PA are PA6 and PA66, accounting for about 90% of the total consumption of PA in China. PA plastics are widely used in automobile manufacturing and electrical and electronic fields. The amount of PA plastic used in each car is about 3.6-4.0 kg. In 2007, PA plastic accounted for approximately 18.2% of the total consumption of the five general engineering plastics. With the increasing demand for PA plastics in China, it is expected that the proportion of PA plastics in general plastics will continue to increase. Domestic PA plastics are still unable to meet market demand. Every year, a large number of PA plastics, especially high-value and high-performance PA engineering plastics, are imported into the Chinese market.
Polycarbonate (PC) is the largest of the five general engineering plastics. In 2007, domestic consumption accounted for 54.8% of the total five general engineering plastics consumption. It is expected that PC will continue to be the most important type of general engineering plastic in China for a long period of time. However, with the rapid development of other engineering plastics, the proportion of PC will slowly decline. At present, due to insufficient capacity and quality of PC plastics produced by domestic domestic companies cannot fully meet the needs of downstream manufacturers, multinational companies have shown a strong interest in the Chinese PC market, and several sets of production equipment have been or will be completed and put into production. It is expected that by 2009, Further expansion to about 100,000 tons.
Polyoxymethylene (POM) has strength and hardness comparable to some metals, and is often used in areas with high precision requirements. It is widely used in electronics, automotive and machinery industries. The production capacity of domestic POM manufacturers is far from meeting the needs of domestic downstream manufacturers. Each year, a considerable amount of POM is imported from abroad, which also stimulates the enthusiasm of foreign companies investing in domestic POM devices. The domestic POM market is basically dominated by foreign companies.
Polyester (represented by PBT) exhibits superior performance in terms of strength, heat resistance, dimensional stability, and corrosion resistance, and is used in many fields such as electronics, automobiles, communication equipment, and precision instruments. At present, domestic PBT self-sufficiency rate is about 50%.
Modified Polyphenylene Oxide (MPPO) has outstanding physical and mechanical properties, heat resistance and dimensional stability. It has been widely used in automotive, electronics, office supplies, machinery, aerospace and military applications. At present, GE is the world's largest manufacturer of MPPO and holds the most advanced production technology of MPPO. Its global market share is as high as 80%. The gap between domestic MPPO production technology and foreign advanced countries is very obvious. Only some manufacturers rely on imported polyphenylene oxide (PPO) to produce MPPO. However, the shortage of supply of PPO raw materials and production technical barriers are still serious problems in China.
According to Frost & Sullivan Consulting, the Chinese engineering plastics market will continue to develop, but the overall expansion rate will slow down. This is mainly due to the combined effects of domestic market promotion factors and limiting factors. On the one hand, the domestic market demand is still strong, especially the rapid expansion of the automotive industry has driven the demand for engineering plastics has also increased significantly. In addition, with the continuous improvement of the performance of engineering plastics, the application field will also be continuously broadened. The vast demand of China's engineering plastics market and a good investment environment will continue to attract domestic and foreign companies' continued investment. On the other hand, the continuous increase in the prices of crude oil and raw materials has caused the profit margins of engineering plastics manufacturers to continue to be squeezed. Moreover, due to the lack of advanced production technologies, the domestic engineering plastics industry mainly focuses on low-end products and is not competitive in the market. The low price is undoubtedly a major test for the sustained, stable and healthy development of China's engineering plastics industry.
Frost & Sullivan, a well-known US market consulting company, recently released the report of “China Engineering Plastics Market†and believes that after years of rapid development, with the increase of macroeconomic control and international crude oil prices, With the multiple impacts of soaring and slowing world economic growth, the growth rate of China's engineering plastics market is also expected to slow down, but the development potential is still huge.