Wednesday, April 11, 2012

China’s Flame Retardant Market to Grow Rapidly in Next 5 Years

China's flame retardant industry has maintained rapid development for more than 10 years with large-scale production and consumption. China has witnessed domestic consumption reaching almost 400,000 tonnes in 2011, both with CAGR over 15% in the past five years.

Each type of flame retardant has different production and consumption situations, as well as different future prospects with various influencing factors, notably policy, technology, cost performance, etc.

Brominated flame retardants (BFRs) are still the major type of flame retardants in China, although their application has been questioned for safety dispute and the EU has banned some types of products. At present, BFRs are still irreplaceable in some areas. Nevertheless, both of their growth rate and market share has been reducing in the past few years. With the growing concern of environmental protection, domestic producers are positively studying on developing cleaner products such as BPS and DBDPE.

The development of phosphate flame retardants (PFRs) in China is superiorly outstanding in the past five years. Except for consumption volume, the capacity and output of PFRs have exceeded those of BFRs in China. Comparatively, PFRs are more environmentally friendly than BFRs. Even though the present PFRs products are of halogen, the non-halogen PFRs are replacing them gradually. Moreover, the technology in PFRs develops greatly.

Antimony trioxide (ATO), the most effective synergistic agent of BRFs, has enlarged its capacity a lot in the past five years, although its domestic market share hasn't changed much. Since China's ATO market depends greatly on export, the output of ATO decreases sharply in 2011 due to its high price and European debt crisis. What's more, it is facing a challenge from substitutes such as zinc borate.

Zinc borate (ZB), a substitute of ATO, is environmentally friendly and will gain strong growth momentum in the near future. While at present, it can not replace ATO completely, due to its relatively narrow applications compared with ATO, and it would lower product performance to a certain degree as well.

Aluminium hydroxide and magnesium hydroxide (ATH&MH), which are widely and largely applied in overseas downstream industries, begin to grab more market share in China's flame retardant market. Due to the environmental friendliness of ATH&MH, the future prospect of ATH&MH is considered to be very bright.

For other flame retardants, both the production and consumption are quite immature with quite narrow application fields. They are figured to develop relatively slowly.

At present, domestic consumption of flame retardants concentrates on plastics, PCB and rubber, with the market share of 48.33%, 24.87% and 19.55% respectively in 2011. The consumption of other flame retardants in domestic market has kept growing with the CAGR of over 15% from 2006 to 2011, and this trend will continue in the next five years, bringing huge investment opportunities in Chinese flame retardant industry.

According to CCM International's investigation, the flame retardant industry, on the whole, will probably witness a rapid growth in the following five years (from 2012 to 2016). Want to know China’s output and consumption of flame retardant in 2016 and other information? Please focus on CCM International’s 2nd Edition report of Survey of Flame Retardants Industry in China, published in January, 2012.

About CCM International
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