Future China's Adhesive Market Analysis

The continuous optimization and upgrading of various sectors of the national economy has promoted the development of a number of emerging industries, such as environmental protection, new energy, and new materials, and has also led to the development of fine chemicals that serve the high-tech sector. While the oil and chemical industry is realizing its own structural adjustment, it is progressing from extensive to refined. It can be predicted that the development of the fine chemical industry in China will take a new stage. Table 1 shows the major demand for refined and specialty chemicals in China in 2010.

Table 1. Forecast of China's Main Refined and Specialty Chemicals Demand in 2010, 10,000 tons ----------------------------------- ---------------
Industry Demand Industry Demand Coating 400 Adhesive 480～500
Plastic additive 180～200 Water treatment agent 20～25
Paper Chemicals 100～120 Surfactants 150～170
Electronic chemicals, RMB 260 ~ 280

China is the world's largest producer and consumer of adhesives. Its output reached 3.35 million tons in 2003, as shown in Table 2.
With the development of domestic construction, wood processing, packaging, footwear, and other industries, synthetic adhesives will continue to maintain a high growth rate in the future. It is expected that the demand for synthetic adhesives in China will reach 4.8 million to 5 million tons in 2010. Development priorities are: low formaldehyde emission urea-formaldehyde rubber; expanded use of polyurethane adhesives; high-performance construction sealants; electronic industrial adhesives; automotive industry adhesives; environmentally friendly hot melt adhesives and other solvent-free adhesives; The shoes use neoprene and construction 107 glue.

Table 2. Production of main adhesive products in China in 2003, 10,000 tons --------------------------------------- -----------
Product Yield Product Yield Trialdehyde Adhesive (100% solids content) 136.00 Polyurethane Adhesive 18.00
Urea-formaldehyde adhesive 118.00 Epoxy resin 3.90
Phenolic glue 13.50 Hot melt adhesive 11.00
Melamine Formaldehyde 4.50 Silicone 7.00
Polyvinyl acetate emulsion 50.00 Polysulfide rubber type 0.60
Acrylic emulsion 68.00 Instant adhesive 0.28
VAE Emulsion 9.20 Anaerobic Adhesive 0.08
Neoprene and Reagents Neoprene 18.00 SBS Adhesive 4.00
Polyvinyl butyral (PVB) 0.50 Other 8.44
Total 335.00