Biphenyl has great development potential but high industry barriers and investment risks

Biphenyl is also called phenylbenzene and biphenyl. Its CAS number is 92-52-4, its chemical formula is C₁₂H₁₀, and its molecular weight is 154.21. It is composed of two A compound composed of two phenyl groups connected together. It appears as white or yellowish scaly crystals with a special fragrance. It is insoluble in water, acid and alkali, but soluble in organic solvents such as alcohol, ether and benzene. Biphenyl is an important organic raw material and is widely used in thermal oil, medicine, pesticides, dyes, liquid crystal materials and other fields. According to the national standard “YB/T 4380-2014 Biphenyl”, biphenyl can be divided into high-quality products (not less than 99.9%), first-class products (not less than 99.5%), and qualified products (not less than 99.0%).

There are three main production processes for biphenyl, namely the oil-wash fraction purification method, the toluene hydrodealkylation method, and the pure benzene high-temperature condensation method. The pure benzene high-temperature condensation method uses pure benzene as the main raw material and has the characteristics of high purity, low impurity content, With obvious advantages such as ease of industrial large-scale production, this method is commonly used in industrial production to produce biphenyl. Based on this, the upstream of the biphenyl industry chain is mainly the raw material supply industry such as pure benzene and catalysts. Biphenyl has a wide range of uses. In addition to being used to make thermal oil, it can also be used in the fields of organic synthesis, medicine, liquid crystal electronics, lithium-ion batteries, pesticides, etc. Therefore, the downstream of the biphenyl industry chain is thermal oil, organic synthesis, medicine , liquid crystal electronics, lithium-ion batteries, pesticides and other industries.

At present, my country’s biphenyl industry is still at an immature stage, and many factors affect the development of the industry. First, there are still some problems in the current preparation process of biphenyl, such as high energy consumption, environmental pollution, and slow development of green synthesis processes. Second, in recent years, driven by the growth of downstream applications, the demand for biphenyl has continued to grow, but the demand has not yet reached its peak, and there is still room for further growth in market demand. From the perspective of its downstream application fields, the characteristics of biphenyl make it an important raw material in the fields of medicine, pesticides, dyes, liquid crystal materials, etc. However, the application demand is still mainly concentrated in the fields of heat transfer oil, organic synthesis, and medicine. In liquid crystal electronics, lithium The proportion of applications in industries such as ion batteries still needs to increase. Therefore, overall, the technological maturity and market maturity of the biphenyl industry need to be improved.

At this stage, global biphenyl production capacity is mainly concentrated in the United States, Europe, China and other countries and regions. The chemical industry in the United States and Europe is developed. The biphenyl industry started early, with relatively advanced production technology, complete industrial chain, excellent product quality, and high added value. It has strong competitiveness in the global biphenyl market. Key companies include Dow Chemical and Eastman; China’s main biphenyl manufacturers include Jiangsu Zhongneng Chemical Technology Co., Ltd., Shexian Jindong Economic and Trade Co., Ltd., etc. Among them, Jiangsu Zhongneng Chemical Technology Co., Ltd. is a participant in the formulation of China’s biphenyl industry standards and is relatively leading in terms of technology. Shexian Jindong Economic and Trade Co., Ltd. independently invests in the research and development of biphenyl-led biphenyl ether and biphenyl. —Diphenyl ether, hydrogenated terphenyl and other environmentally friendly new energy products have relatively large biphenyl production capacity. Overall, the number of companies in the global biphenyl market is small, the market concentration is high, and competition is relatively relaxed. According to the “China Biphenyl Market Feasibility Research Report 2022-2026” released by the Industrial Research Center, in 2022, the global The benzene market size increased to 1.567 billion yuan.

Industrial analysts said that biphenyl is an important raw material for chemicals, medicines, plastics and dyes, and can be used as emulsifiers and fluorescent whitening production of a wide range of products including agents, fabric dyes, synthetic resins, pesticides and pharmaceuticals. In the future, with the continuous expansion of global biphenyl downstream application fields and the continued development of various fields, the global biphenyl market will continue to grow. However, the barriers to entry in the biphenyl industry are high, and investing in this industry carries certain risks. Investors who invest in this industry need to conduct multi-faceted investigations based on their own comprehensive strength, formulate detailed investment plans, and choose appropriate investment methods.