Wuxi Changchen Technology Co., Ltd , https://www.wxchangchen.com
Technical bottleneck was finally broken through the supply gap Short-term hardships The development of polycarbonate still needs to be accelerated
Polycarbonate, a widely used engineering plastic, has experienced significant consumption growth in China in recent years. From 150,000 tons in 2000, annual consumption surged to 590,000 tons by 2004, with an average growth rate exceeding 30% between 1995 and 2004. Despite this rapid demand increase, China's domestic production of polycarbonate remains limited, forcing the country to rely heavily on imports to meet market needs. This supply-demand imbalance highlights the urgent need for the development of a robust local polycarbonate industry.
Domestic production of polycarbonate has historically been minimal. Although research began as early as 1959 at the Shenyang Research Institute of Chemical Industry, large-scale production was not achieved for over four decades. By 2004, only eight facilities were operational, with total annual capacity around 5,000 tons and actual output barely reaching 3,000 tons. The technology was outdated, and product quality did not meet the standards required by downstream industries, leading to most products being used internally. As a result, the majority of polycarbonate in the Chinese market was imported, with imports rising sharply from 266,000 tons in 2001 to nearly 590,000 tons by 2004.
The demand for polycarbonate is driven primarily by electronic goods, solar panels, CDs/DVDs, and food containers. In 2004, about 42% of consumption came from electronics, 26.3% from solar panels, 13.1% from optical discs, and 10.5% from water drums and packaging. Other sectors accounted for the remaining 9.1%. Looking ahead, key areas like consumer electronics and infrastructure will continue to drive growth, with annual increases expected to range between 10% and 15%. Optical disc demand, in particular, is projected to grow at over 20% annually, fueled by China’s position as the world’s second-largest CD market. Additionally, the automotive sector is set to become a major driver of demand through the use of polycarbonate composites.
To address the supply gap, foreign investors have entered the Chinese market. Bayer, for example, formed a joint venture with Shanghai Huayi Group to build a 100,000-ton-per-year plant in Shanghai, with expansion plans to reach 200,000 tons. Teijin Chemical also launched a 50,000-ton facility in Jiaxing, while Mitsubishi Gas Chemical plans a similar plant. Domestically, several projects are underway, including a 50,000-ton facility in Sichuan and a 20,000-ton plant in Lanzhou or Nantong. These developments signal growing confidence in the long-term potential of the polycarbonate industry in China.
Despite these efforts, the domestic supply still cannot meet demand. Even with all new projects coming online, the import dependency is expected to remain high until at least 2010. With demand projected to reach 670,000 tons in 2005 and 800,000 tons in 2006, the gap between production and consumption is likely to persist, underscoring the importance of continued investment and technological advancement in the sector.