Epichlorohydrin (Epichlorohydrin ECH) production capacity is highly concentrated and the industry still has development potential

Epichlorohydrin (ECH), also known as epichlorohydrin, is a stabilizer and chemical intermediate for oxygen-containing substances. It is mainly used in the production of epoxy resin, glycerin, fiberglass, surfactants, chlorohydrin rubber, and glue. Adhesives, glyceryl methacrylate, etc., have a wide range of applications. Benefiting from the development of the epoxy resin industry, the demand for epichlorohydrin continues to grow, and the industry has good development prospects.

Epichlorohydrin is currently produced by three methods: high-temperature chlorination of propylene, glycerin method, and propylene acetate method. The first two are the main methods in China. Although epichlorohydrin has a wide range of applications, there is little application demand in most fields. In 2021, epoxy resin will account for 88% of the demand for epichlorohydrin.

Epoxy resin has excellent performance and is used in coatings, electronics and electrical, composite materials and other fields. Benefiting from the development of downstream industries, my country’s epoxy resin output has grown steadily. In recent years, the ordinary epoxy resin market has become saturated. In the future, the epoxy resin industry will need to develop towards high-end development. It is expected that my country’s epoxy resin market demand will reach 2.2 million tons in 2025.

According to the “2022-2026 Epichlorohydrin Industry Market In-depth Research and Investment Prospect Forecast Analysis Report” released by the Industrial Research Center , benefiting from the development of downstream industries and the optimization of domestic epichlorohydrin production processes, my country’s epichlorohydrin production continues to rise, from 600,000 tons in 2017 to 860,000 tons in 2021. In terms of demand, epichlorohydrin has a wide range of applications, and thanks to the development of the epoxy resin industry, the market demand for epichlorohydrin continues to rise, growing from 650,000 tons to 820,000 tons in 2017.

As production increases, my country’s epichlorohydrin imports continue to decrease, from 22,000 tons in 2017 to 2,000 tons in 2021. In terms of exports, it has shown fluctuating growth in the past four years, from 35,000 tons in 2018 to 47,000 tons in 2021. In 2017, my country’s export volume of epichlorohydrin was small, less than 100 tons. my country’s epichlorohydrin is mainly exported to South Korea and Thailand, of which South Korea accounts for 48%.

There are currently many epichlorohydrin manufacturers in China, including Haili Chemical, Haixing Chemical, Jinqiao Yihai, Yangnong Chemical, Binhua Group, etc. Among them, Haili Chemical’s production capacity accounts for 32%, ranking first in the country. In 2020, my country’s epichlorohydrin production capacity CR3 will reach 60%, and the production capacity is mainly concentrated in Shandong and Jiangsu.

Industrial analysts said that epichlorohydrin is mainly used in the field of epoxy resin. In recent years, the demand for epichlorohydrin in my country has Gradually slowing down, domestic demand for epichlorohydrin slowed, and excess production was used for export. There are many epichlorohydrin manufacturers in my country, but their production capacity is highly concentrated. In the context of increasingly fierce competition in the future, leading companies will benefit more. Overall, the production and demand of epichlorohydrin is relatively stable, and the industry development tends to be stable. However, as the application space continues to expand in the future, the epichlorohydrin industry still has huge development potential.