High carbon alpha olefin industry has high technical barriers and POE is the largest downstream market

α-olefin refers to a single olefin with a double bond at the end of the molecular chain. The molecular formula is R-CH=CH2, where R is an alkyl group. High-carbon α-olefins usually refer to α-olefins with more than 6 carbon atoms. High-carbon alpha olefins have the characteristics of high market value and high application performance, and have broad application prospects in surfactants, fine chemicals, lubricants and other fields. High-carbon alpha olefins can be divided into 1-octene, 1-butene, 1-decene, 1-dodecene, and 1-hexene, of which 1-octene, 1-butene, and 1-hexene are the market Mainstream products.

my country’s high-carbon alpha olefin industry started late. The core technology is monopolized by leading overseas companies. Local companies lack experience accumulation in technology and processes, resulting in insufficient production capacity and high reliance on imports for demand. The main preparation processes for high-carbon alpha olefins include high-temperature Fischer-Tropsch synthesis process, wax cracking process, alkane dehydrogenation process, homogeneous ethylene oligomerization process, etc. Our country mostly uses wax cracking process to produce high-carbon alpha olefins. This process has low working efficiency and low conversion rate of finished products. Currently, the homogeneous ethylene oligomerization process is the world’s most advanced high-carbon alpha olefin preparation process.

According to the “2022-2027 China High Carbon Alpha Olefin Industry Market In-depth Research and Development Prospects Forecast Report released by the Industrial Research Center , in terms of market segments, 1-octene, 1-butene and 1-hexene dominate the high-carbon alpha olefins market. 1-Octene has the advantages of good mechanical processing performance, heat resistance, and tensile resistance. It can be used to prepare surfactants and plasticizers, occupying 15.0% of the high-carbon alpha olefin market; 1-butene, as a basic chemical raw material, It can be used to prepare synthetic rubber, accounting for 47.0% of the high-carbon alpha olefin market; 1-hexene can be used to prepare synthetic resins, spices and dyes, accounting for 20.0% of the market.

High-carbon alpha olefins are widely used, with polyolefin elastomer (POE) as its main downstream product, and wire and cable, automobile manufacturing, photovoltaic power generation, etc. as its terminal application areas. According to statistics from the General Administration of Customs of China, my country’s POE imports will reach 640,000 tons in 2021, a year-on-year increase of 8.6%. The global POE market is mainly concentrated in the Asia-Pacific region. my country’s high-carbon alpha olefin industry has high technical barriers and insufficient supply of raw materials, resulting in POE being highly dependent on imports.

In recent years, my country’s local companies have continued to increase investment in research and development, driving the development of the high-carbon alpha olefins industry to further accelerate. On July 5, 2022, the 1-hexene unit independently developed by Daqing Petrochemical, a subsidiary of PetroChina, ended its 57 days of stable operation. The output of 1-hexene reached 713.0 tons, setting a record high in terms of operation time and output.

Industry analysts said that high-carbon alpha olefins are key raw materials for the preparation of POE and high-end polyolefins. Due to technical barriers, my country’s high-carbon alpha olefins are The carbon alpha olefin market is in short supply, and demand is highly dependent on imports. It is expected that in the coming period, driven by strong market demand and technological innovation of local companies, the localization process of high-carbon alpha olefins in my country will accelerate.