In the first half of the year, the economic recovery process was relatively slow, resulting in the downstream consumer market not meeting the expected level, which had a certain degree of impact on the domestic epoxy resin market, showing a weak and downward trend overall. However, as the second half of the year approaches, the situation has changed. In July, the epoxy resin market price remained at a high level and began to show a volatile trend after rapidly rising in the first half of the month. In August, the prices of raw materials such as bisphenol A and epichlorohydrin experienced some fluctuations, but the price of epoxy resin was supported by raw material costs and remained relatively high, with a slight decline near the end of the month. However, in the golden autumn of September, the price of dual raw materials increased, increasing cost pressure and leading to another increase in epoxy resin prices. In addition, in terms of projects, the growth rate of new projects has slowed down in the second half of the year, especially the proportion of special epoxy resin new projects is gradually increasing. At the same time, there are also many projects that are about to be put into operation. These projects adopt a more comprehensive device integration plan, making the supply of epoxy resin raw materials more sufficient.

After entering the second half of the year, new projects and related developments in the epoxy resin industry chain:

New projects in the industrial chain

 1.Leading biodiesel companies investing 50000 tons of epichlorohydrin project

Longyan Zhishang New Materials Co., Ltd. plans to invest 110 million yuan in the halogenated new material co production of epichlorohydrin project. This project includes a production line for bio based plasticizers, power battery electrolyte additives, epichlorohydrin, and other products, as well as an ion exchange membrane caustic soda device for comprehensive utilization of waste salt. Once completed, the project will produce 50000 tons of products such as epichlorohydrin annually. The parent company of the company, Excellence New Energy, also has a layout in the 50000 ton epoxy resin and modified epoxy resin project.

 2.Leading enterprises expanding their production capacity of 100000 tons/year of epichlorohydrin

Fujian Huanyang New Materials Co., Ltd. plans to carry out an integrated circular economy technology transformation of 240000 tons/year epoxy resin, while expanding the 100000 tons/year epoxy chloropropane plant. This demonstration project has entered the public participation stage of environmental impact assessment. The total investment of the project has reached 153.14 million yuan, and the new 100000 ton/year epichlorohydrin production unit will be constructed within the land occupied by the existing 100000 ton/year epichlorohydrin unit.

 3.100000 tons of industrial refined glycerol co production of 50000 tons of epichlorohydrin project

Shandong Sanyue Chemical Co., Ltd. plans to carry out an annual production of 100000 tons of industrial refined glycerol and 50000 tons of epichlorohydrin. The total investment of this project is expected to reach 371.776 million yuan. After the project construction, it will produce 100000 tons of industrial refined glycerol annually and produce 50000 tons of epichlorohydrin.

4.5000 tons of epoxy resin and 30000 tons of environmentally friendly solvents project publicity

The environmental solvent and epoxy resin project of Shandong Minghoude New Energy Technology Co., Ltd. has entered the stage of accepting environmental impact assessment documents. The project plans to invest 370 million yuan and, upon completion, will produce 30000 tons of environmentally friendly solvents, including 10000 tons/year of isopropyl ether, 10000 tons/year of propylene glycol methyl ether acetate (PMA), 10000 tons/year of epoxy resin diluent, and 50000 tons of epoxy resin, including 30000 tons/year of epoxy acrylate, 10000 tons/year of solvent epoxy resin, and 10000 tons/year of brominated epoxy resin.

5.Annual production of 30000 tons of electronic epoxy sealing material and epoxy curing agent project publicity

Anhui Yuhu Electronic Materials Co., Ltd. plans to carry out an annual production of 30000 tons of new electronic materials such as electronic epoxy sealing materials and epoxy curing agents. This project plans to invest 300 million yuan and will produce 24000 tons of epoxy sealing materials and 6000 tons of epoxy curing agents and other new electronic materials annually to meet the needs of the electronics industry.

6.Announcement of Dongfang Feiyuan 24000 tons/year Wind Power Epoxy Resin Curing Agent Project

Dongfang Feiyuan (Shandong) Electronic Materials Co., Ltd. plans to build a curing agent project for wind power epoxy resin with an annual output of 24000 tons. This project will produce curing agents and use raw materials D (polyether amine D230), E (isophorone diamine), and F (3,3-dimethyl-4,4-diaminodicyclohexylmethane). The investment and construction of the project will be carried out in the newly built curing agent production equipment area and supporting raw material tank area.

7.2000 tons/year electronic grade epoxy resin project publicity

The electronic new material project of Anhui Jialan New Materials Co., Ltd. plans to construct an annual production of 20000 tons of electronic grade epoxy resin. The project will invest 360 million yuan in construction to meet the needs of the domestic electronics industry.

8.Announcement of 6000 tons/year special epoxy resin project

Tilong High tech Materials (Hebei) Co., Ltd. plans to invest 102 million yuan to construct a high-performance special epoxy resin project with an annual output of 6000 tons. The products of this project include 2500 tons/year alicyclic epoxy resin series, 500 tons/year multifunctional epoxy resin series, 2000 tons/year mixed epoxy resin, 1000 tons/year mixed curing agent, and 8000 tons/year sodium acetate aqueous solution.

9.Environmental Impact Assessment Announcement of 95000 tons/year Liquid Brominated Epoxy Resin Project

Shandong Tianchen New Materials Technology Co., Ltd. plans to build an annual production of 10000 tons of decabromodiphenylethane and 50000 tons of liquid brominated epoxy resin projects. The total investment of this project is 819 million yuan and will include a decabromodiphenylethane preparation device and a brominated epoxy resin preparation device. This project is expected to be completed in December 2024.

10.Jiangsu Xingsheng Chemical 8000 ton functional brominated epoxy resin project

Xingsheng Company plans to invest 100 million yuan in the project of producing 8000 tons of functional brominated epoxy resin annually. This project will increase production capacity, including 6000 tons of alicyclic epoxy resin per year, 2000 tons of multifunctional epoxy resin per year, 1000 tons of mixed epoxy resin per year, and 8000 tons of sodium acetate aqueous solution per year.

New developments of the project

 1.Zhejiang Hongli Launches an Annual Production of 170000 tons of Optoelectronic Special Epoxy Resin Project

On the morning of July 7th, Zhejiang Hongli Electronic Materials Co., Ltd. held a commencement ceremony for the annual production of 170000 tons of optoelectronic specialized epoxy resin and its functional materials project. The total investment of this project is 7.5 billion yuan, mainly producing epoxy resin and its functional material products, which are widely used in the national economy and national defense construction fields such as aviation, electrical appliances, electronics, petrochemical, shipbuilding, and construction industry. After the project reaches its capacity, it will produce 132000 tons of non solvent epoxy resin, 10000 tons of solid epoxy resin, 20000 tons of solvent epoxy resin, and 8000 tons of polyamide resin annually.

 2.Baling Petrochemical Successfully Launched Electronic Grade Phenolic Epoxy Resin Thousand Ton Scale Pilot Plant

At the end of July, the resin department of Baling Petrochemical Company launched a thousand ton scale pilot plant for electronic grade phenolic epoxy resin, which was successfully put into operation once. Baling Petrochemical Company has formed a one-stop production and sales layout for ortho cresol formaldehyde, phenol phenol formaldehyde, DCPD (dicyclopentadiene) phenol, phenol biphenylene epoxy resin, and other products. As the demand for phenolic epoxy resin in the electronics industry continues to increase, the company has renovated a pilot production facility for thousands of tons of phenolic epoxy resin to meet the production needs of multiple models of electronic grade phenolic epoxy resin.

 3.Fuyu Chemical’s 250000 ton phenol acetone and 180000 ton bisphenol A projects have entered the comprehensive installation phase

The total investment of Fuyu Chemical Phase I project is 2.3 billion yuan, and an annual production of 250000 tons of phenol acetone and 180000 tons of bisphenol A units and related facilities are being constructed. At present, the project has entered the comprehensive installation phase and is expected to be completed and put into operation before the end of the year. In addition, Fuyu Chemical’s Phase II project will invest 900 million yuan to extend the phenol acetone industry chain and construct high value-added new material projects such as isophorone, BDO, and dihydroxybenzene. It is expected to be put into operation in the second half of next year.

 4.Zibo Zhengda has completed the annual production of 40000 tons of polyether amine project and passed environmental protection acceptance

On August 2nd, the construction project of Zibo Zhengda New Material Technology Co., Ltd. with an annual production capacity of 40000 tons of terminal amino polyether (polyether amine) passed the environmental protection acceptance monitoring report. The total investment of this project is 358 million yuan, and the production products include polyether amine products such as ZD-123 model (annual production of 30000 tons), ZD-140 model (annual production of 5000 tons), ZT-123 model (annual production of 2000 tons), ZD-1200 model (annual production of 2000 tons), and ZT-1500 model (annual production of 1000 tons).

5.Puyang Huicheng Suspends the Implementation of Some Projects

Puyang Huicheng Company has issued a notice on delaying the implementation of some raised funds investment projects. The company plans to temporarily suspend the implementation of the “Functional Material Intermediate Project”, which includes the “3000 ton/year Hydrogenated Bisphenol A Project” and the “200 ton/year Electronic Chemicals Project”. This decision is mainly influenced by objective factors such as socio-economic and domestic and international macroeconomic uncertainties, as the demand and willingness of downstream industries for high-end alternative products are currently showing a phased decline.

6.Henan Sanmu plans to debug and produce 100000 tons of epoxy resin project in September

The installation of the 100000 ton epoxy resin production line equipment of Henan Sanmu Surface Material Industrial Park Co., Ltd. has entered the final stage and is scheduled to start debugging and production in September. The total investment of this project is 1.78 billion yuan and is divided into two phases of construction. The first phase of the project will produce 100000 tons of epoxy resin and 60000 tons of phthalic anhydride, while the second phase will produce 200000 tons of synthetic resin products annually.

7.Successful trial production of Tongling Hengtai electronic grade epoxy resin

The first phase of the 50000 ton electronic grade epoxy resin production line of Tongling Hengtai Company has entered the trial production stage. The first batch of products have passed the testing and the trial production has been successful. The production line will start construction in October 2021, and it is expected to start construction on the second 50000 ton electronic grade epoxy resin production line in December 2023, with an annual production of 100000 tons of electronic grade epoxy resin products.

8.Completion acceptance of Hubei Jinghong Biological 20000 ton/year epoxy resin curing agent project

The 20000 ton/year epoxy resin curing agent project of Hubei Jinghong Biotechnology Co., Ltd. has been completed and environmental protection has been completed

Publicity of maintenance acceptance and debugging. The investment for this project is 12 million yuan, with the construction of 6 curing agent production lines and the construction of auxiliary facilities such as storage and transportation devices and waste gas treatment. The products produced by this project include epoxy floor curing agents and seam sealants.

9.The installation of equipment for the 80000 ton/year end amino polyether project of Longhua New Materials has been basically completed

Longhua New Materials stated that the company’s annual production of 80000 tons of terminal amino polyether project has completed the basic engineering of civil engineering, factory construction, and equipment installation, and is currently carrying out process pipeline piping and other work. The total investment of this project is 600 million yuan, with a construction period of 12 months. It is expected to be completed in October 2023. After all the projects are completed and put into operation, the annual operating revenue can be achieved by about 2.232 billion yuan, and the total annual profit is 412 million yuan.

10.Shandong Ruilin Launches 350000 Tons of Phenol Ketone and 240000 Tons of Bisphenol A Projects

On August 23rd, Shandong Ruilin Polymer Materials Co., Ltd. held the commencement ceremony of the green low-carbon olefin integration project. The total investment of this project is 5.1 billion yuan, using internationally leading technology to mainly produce products such as phenol, acetone, epoxy propane, etc. It has high added value and strong market competitiveness. It is expected that the project will be completed and put into operation by the end of 2024, which will drive a revenue of 7.778 billion yuan and increase profits and taxes by 2.28 billion yuan.

11.Shandong Sanyue completed the 160000 ton/year epichlorohydrin project and conducted environmental protection acceptance public announcement

At the end of August, the second phase of the 320000 ton/year epichlorohydrin project of Shandong Sanyue Chemical Co., Ltd. produced 160000 tons/year of epichlorohydrin and completed the environmental protection acceptance announcement. The total investment of this project is 800 million yuan. The second phase of the main project includes one production unit area and two production lines have been constructed, each with a production capacity of 80000 t/a and a total production capacity of 160000 t/a.

12.Kangda New Materials plans to acquire Dalian Qihua and layout key raw materials and copper clad plate fields

On August 26th, Kangda New Materials Co., Ltd. passed the proposal on changing the investment of some raised funds to acquire some equity of Dalian Qihua New Materials Co., Ltd. and increase capital. Shanghai Kangda New Materials Technology Co., Ltd., a wholly-owned subsidiary of the company, will acquire the equity of Dalian Qihua New Materials Co., Ltd. and increase its capital. This move helps the company control key raw materials, reduce comprehensive costs, and expand its strategic layout in the field of copper clad laminates based on Dalian Qihua’s low bromine epoxy resin technology.

13.Shandong Xinlong completed the completion acceptance of the 10000 ton epichlorohydrin project

The annual production of 10000 tons of epoxy helium propane and 200000 tons of hydrogen peroxide industrial chain supporting construction project of Shandong Xinlong Group Co., Ltd. has completed the completion acceptance announcement. This project is a key research and development plan (major technological innovation project) in Shandong Province, jointly developed with the Dalian Institute of Chemical Physics of the Chinese Academy of Sciences. Compared to traditional devices, it can reduce wastewater by 99% and waste residue output by 100%, making it the first choice for green processes.

14.Gulf Chemical Launches 240000 tons/year Bisphenol A Project, Planned for Trial Operation in October

On the morning of September 8th, the unveiling of Qingdao Green and Low Carbon New Materials Industrial Park (Dongjiakou Park) and the completion and production of the first batch of key projects were held at the Gulf Chemical Plant. The total investment of the bisphenol A project is 4.38 billion yuan, which is a major preparatory project in Shandong Province and a key project in Qingdao City. It is planned to undergo trial operation in October. In addition, incremental projects such as epichlorohydrin, epoxy resin, and new vinyl materials are also being promoted simultaneously, and it is expected that all projects will be completed and put into operation by 2024.

15.The main building of Baling Petrochemical’s environmentally friendly epichlorohydrin industrial demonstration project is capped

The annual production of 50000 tons of environmentally friendly epichlorohydrin industrial demonstration plant project of Baling Petrochemical has completed the capping project of the main building. This is another important progress after the cabinet room was capped on September 2nd, marking the complete completion of the main structure construction of the project. At present, the project is progressing in an orderly manner as planned, with a total investment of 500 million yuan. The annual production of 50000 tons of epichlorohydrin will be fully used for the epoxy resin production of Baling Petrochemical.