Chinese CASE Polyol Overview

PUdaily, Shanghai– CASE polyols are mainly used in waterproof coatings, adhesives, sealants, elastomers and prepolymers, tennis courts, etc. What is the growth trend of production and consumption of CASE polyols for the past decade? This article will give you an answer.

In the past ten years, the output of CASE polyols has increased from about 60,000 tons in 2005 to about 320,000 tons in 2016,an average annual output of about 150,000 tons.

With an annual average growth rate of around 16% for the past decade, the output will continue to increase in the coming years.

Before 2008, no CASE polyol is exported or imported. Then in 2009, the imports and exports of CASE polyols began. But both annual imports and exports were below 30,000 tons, having little impact on domestic consumption.

Domestic demand for CASE polyols has been increasing in the past 10 years. Consumption in China has grown from about 60,000 tons in 2005 to about 320,000 tons in 2016, averaging a compound annual growth rate of 15.8%. The growth trend of consumption for the last decade is shown as follows:

Overall, the growth rate of consumption has been increasing, with an annual growth rate of 16%.

In terms of the downstream application sectors, the production of adhesives and sealants has been increasing over the past 10 years. But the growth rate shows a general downward trend, decreasing from about 14% in 2006 to about 7% in 2016. About half of the new capacity in the future is expected to focus on environmental-friendly aqueous adhesives.China’s coating market also shows an upward trend. During the 12th Five-year Plan period, the annual output of coatings increased from 10.7951 million tons to 17.176 million tons, with an average annual growth of 14.78%. During the five years, the annual profit of coatings increased by 1.68 fold, and the proportion of middle- and high-end coating products increased. However, with the decelerated growth of market demand and introduction of environmental policies and taxes in recent years, China’s coating manufacturers are put under great pressure in 2017. This year’s production growth is expected to remain below 5%.

Indeed, both production and consumption of case polyols see a growth of over 10%.But as the growth in production of downstream products decelerates and downstream manufacturers shift to environmental-friendly products, CASE polyol manufacturers face both opportunities and challenges. How to position themselves in the market, and how to improve product quality and R&D to expand the market have become a matter of concern for those manufacturers.

For more information about CASE polyols, please read our 2017 China Polyether Polyols Yearly Report .

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