1. Polyvinyl Alcohol (PVA) Industry Chain
- Calcium Carbide—PVA—PVA Fiber
- PVA for Membranes—PVA Optical Film
- PVA—PVB—PVB Film
- Waste Molasses—Alcohol—Ethylene—Vinyl Acetate—VAE/PVA
- VAE—Redispersible Latex Powder
(1) Polyvinyl Alcohol (PVA) Products and Uses
Polyvinyl alcohol (PVA) is a high molecular weight polymer, produced by the polymerization and alcoholysis of vinyl acetate (VAC). It possesses good adhesion, film-forming properties, oil resistance, and colloidal protection. It also exhibits rare non-polluting and biodegradable characteristics among polymer materials. Compared with other chemical products, PVA and its derivatives have a very broad development space, and new applications and varieties are constantly being developed. In traditional applications, PVA products, besides being used as raw materials for synthetic vinylon fibers, are mainly used in adhesives, textile sizing agents, and papermaking. With the continuous application and exploration of new technologies, processes, and uses, it also has broad application prospects in industries such as films, soil conditioners, food packaging, building materials, pharmaceuticals, leather tanning, papermaking, electronics, and environmental protection.
In my country, polyvinyl alcohol is mainly used in the production of polymerization auxiliaries, textile sizing agents, vinylon fibers, and adhesives. With my country's economic development, the domestic demand and exports of high-count, high-density, and high-grade textiles have increased. The high-grade papermaking industry and oil extraction industry are developing rapidly, and the automotive industry is booming, leading to a rapid increase in demand for safety glass for automobiles and buildings. These industries provide ample room for the development of new polyvinyl alcohol products. At the same time, the large-scale infrastructure construction in China provides development opportunities for the adhesive market, and the steady development of the electronics, papermaking, pharmaceutical, and fine chemical industries further promotes the rise in polyvinyl alcohol demand.
(2) High-strength, high-modulus PVA fiber
High-strength, high-modulus PVA fiber is a high-performance fiber product with good mechanical properties, biocompatibility, and non-toxicity. Due to its good affinity for water and excellent dispersibility in alkaline cement slurry, and especially its unique surface structure which gives it excellent mechanical bonding properties, its strength can reach more than 2.5 times that of asbestos-reinforced cement. Therefore, it can be used to reinforce cement and ceramic building materials. Simultaneously, its excellent corrosion resistance also makes it suitable for ropes and cables, and in the aquatic industry. Furthermore, due to its low elongation and good adhesion to rubber, plastics, and other polymer materials, it can be used for bonding rubber products, coatings, and braided hoses. It also has applications in artificial intestines and medical sutures. From the perspective of fiber length, high-strength, high-modulus PVA fibers are unlikely to enter the human respiratory system, making them harmless to the human body as an asbestos substitute, and are hailed as a "green and environmentally friendly product." With its high modulus, high strength, acid and alkali resistance, aging resistance, and pollution-free properties, it has wide applications in building materials, construction, leather making, rubber, and medical devices.
Currently, major global manufacturers of high-strength, high-modulus PVA fibers include Kuraray (Japan), Unichka (Japan), JTC (Malaysia), Anhui Weixin High-Tech, Sichuan Weixin, Inner Mongolia Shuangxin, and Ningxia Dadi, with a total production capacity of approximately 120,000 tons. In 2021, the global demand for high-strength, high-modulus PVA fibers was approximately 80,000 tons, of which approximately 70,000 tons were used in the building materials sector, primarily as a substitute for asbestos, with a small amount used in the concrete industry. It is projected that by 2025, the global demand for high-strength, high-modulus PVA fibers will reach 100,000 tons per year, with a compound annual growth rate of approximately 5%.
(3) PVB Resin
PVB resin is mainly used in the automotive and construction industries to manufacture laminated safety glass. This involves first pressing PVB resin into a thin film, which is then embedded between glass sheets to create laminated glass. The interlayer material in safety glass can absorb a certain amount of impact energy, and this material also has good sound insulation and UV resistance.
From a downstream consumption perspective, approximately 89% of PVB resin is used in the production of safety glass for the construction and automotive industries, 14% in photovoltaic materials, and the remaining 7% in paints, adhesives, dyes, and other materials. Globally, four companies—Sonolulu (USA), Sekisui Chemicals (Japan), DuPont (USA), and Kuraray (Japan)—hold 80% of the PVB resin market share.
Sonolulu's products are primarily used in the automotive and construction industries. Sekisui's products are mainly used in the automotive industry, while Kuraray and DuPont hold significant positions in emerging photovoltaic material applications. Due to the technological complexity of PVB resin production, these four companies monopolize the demand for PVB resin in automotive and architectural safety glass films, as well as in high-end products such as aerospace and electronics. The high price allows these multinational corporations to reap extremely high profits; in the Chinese market, the price of PVB resin reaches over 80,000 yuan per ton.
Currently, my country's PVB resin production enterprises are relatively small-scale. The dozen or so companies nationwide produce approximately 72,000 tons of PVB resin annually, with generally lower quality, primarily used in the construction sector. According to industry estimates, China needs more than 100,000 tons of PVB resin annually for safety glass. With the development of the high-rise building industry, the demand for PVB resin for curtain wall glass will show a significant growth trend. The use of PVB resin in other industries is also increasing, and the application fields are constantly expanding. It is estimated that the total demand for PVB resin in my country will reach 150,000 tons in 2022, corresponding to a market size of about 2.2 billion yuan. Among them, the demand for PVB resin for film will exceed 130,000 tons, and the demand for PVB resin in other industries will reach 20,000 tons.
(4) Redispersible latex powder
Redispersible latex powder is mainly used in the construction fields such as exterior wall insulation, tile bonding, interface treatment, bonding gypsum, plastering gypsum, interior and exterior wall putty, and decorative mortar. It has a very wide range of applications and a good market prospect. The promotion and application of redispersible latex powder has greatly improved the performance of traditional building materials, and greatly improved the bonding strength, cohesion, flexural strength, impact resistance, wear resistance, and durability of building materials. As a result, building products with excellent quality and high-tech content ensure the quality of construction projects. Currently, China's domestic production capacity of redispersible polymer (REDI) latex powder reaches 150,000 tons, while demand is approximately 100,000 tons, increasing at a rate of about 10% annually. The main suppliers are Wacker Chemie (Germany), Akzo (USA), Dalian Chemical (Taiwan), and Anhui Vinylon Company. According to statistics, China has approximately 2 billion square meters of new buildings constructed annually, and several hundred billion square meters of existing buildings requiring renovation. With the implementation of national building energy conservation laws and regulations, the vigorous promotion of pre-mixed dry mortar technology, and restrictions imposed by various provinces and cities on on-site mixing of building mortar, the application of REDI is bound to experience significant growth, with domestic demand projected to reach 200,000 tons by 2025.
(5) PVA Optical Film
PVA optical film is the core film material of polarizers, a key material for liquid crystal displays. Polarizers are composed of multiple layers of thin films, and their raw material costs account for 80% of the total production cost. The raw materials mainly consist of TAC film, optical-grade PVA film, pressure-sensitive adhesive, protective film, and release film. Among them, TAC accounts for about 50% of the cost, optical-grade PVA film accounts for 12%, adhesive accounts for 5-10%, protective film and release film account for 15%, chemical materials account for 5%, and other costs account for 10%. Due to the high technical content of PVA optical film, the global market is mainly monopolized by two Japanese companies, Kuraray and Synthetic Chemicals. Kuraray accounts for about 70-80% of the global production capacity and monopolizes the PVA raw material market for film. The remaining 20% is almost entirely controlled by Synthetic Chemicals. Domestically, only Anhui Weixin High-Tech and Taiwan Changchun have built a small number of narrow-width films to supply the low-end and mid-range markets, with a market share of less than 1%. There are no other manufacturers globally. As global LCD production capacity continues to shift to China, competition in the domestic polarizer market is becoming increasingly fierce. Major manufacturers are tightening cost control and are increasingly eager to localize upstream raw materials. In 2020, my country's actual demand for polarizers, based on production capacity, was approximately 250 million m², equivalent to approximately 150 million m² of PVA optical film. Considering cutting and normal production consumption, the corresponding demand is approximately 190 million m², corresponding to a domestic market size of approximately 4.8 billion yuan at 25 yuan/m².
(6) VAE Emulsion
VAE emulsion is milky white or slightly yellow in appearance and possesses advantages such as permanent softness, water resistance, weather resistance, low-temperature resistance, fast bonding speed, high bonding strength, and safe and non-toxic use. The product is widely used in adhesives, external wall insulation, building waterproofing, coatings, composite packaging materials, building cement mortar modification, non-woven fabric manufacturing, paper coating, and general bonding of various polar and non-polar materials. Among these, adhesives are the most widely used area for VAE emulsions and also the area with the largest market demand. Currently, the main global manufacturers of VAE emulsions include Air Products (USA), Celanese (USA), Dalian Chemical (Taiwan), Richhold (USA), Wacker Chemie (Korea), Beijing Organic Chemical Plant, Anhui Vinylon High-Tech, and Sichuan Vinylon, with a total capacity of 2.14 million tons/year. An additional 206,000 tons/year production facility is under construction, and a 155,000 tons/year production facility is planned for construction within two years. my country is a major user of VAE emulsions and also the fastest-growing market. There is a significant gap in domestic demand. With the rapid development of the domestic economy, especially the country's emphasis on energy conservation and environmental protection in buildings, the market demand for VAE emulsions will continue to grow in the future.
(7) Polarizing Films
Polarizing films are mainly used in liquid crystal display panels, accounting for about 10% of the cost of TFT-LCD (Thin Film Transistor Liquid Crystal Display) panels. Liquid crystal display imaging relies on polarized light, and LCD modules must contain two polarizing films. In a liquid crystal display (LCD) module, two polarizers are attached to opposite sides of a glass substrate. The lower polarizer converts the light beam generated by the backlight into polarized light, while the upper polarizer analyzes the polarized light modulated by the liquid crystal, creating contrast and thus displaying an image. Without either polarizer, the LCD module cannot display an image. Major global manufacturers include Nippon Denko, Sumitomo Chemical, Sanritsu, Palanotec, LG Chem, and Lite-On. Statistics show that global polarizer production capacity in 2020 was approximately 727 million m², with overall capacity expansion stabilizing and the market size exceeding US$12 billion. According to IHS forecasts, with LCD panel production lines under construction and already in operation operating at full capacity, my country would require a total of 438 million m² of polarizer area. However, my country's polarizer production capacity in 2020 was only 285.8 million m², resulting in a supply-demand gap of 152 million m²/year. Furthermore, my country's polarizer R&D technology lags behind, inconsistent with its status as a major LCD producer. Most of the domestic production capacity is occupied by Japanese and South Korean companies, indicating a huge potential for domestic substitution.
(Source: Institute of Biodegradable Materials)
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