Satellite Chemical’s strong entry into the market may change the competitive landscape of the polyether macromonomer industry

Polyether macromonomer is the monomer of polycarboxylate water-reducing agent and the main raw material for the synthesis of polycarboxylate water-reducing agent. Polyether macromonomers have a variety of products. The current mainstream products in the market include isopentenyl polyoxyethylene ether (TPEG), ethylene glycol monovinyl polyethylene glycol ether (EPEG, 2+2 monomer), allyl There are four types of polyoxyethylene ether (APEG) and methamphetamine polyoxyethylene ether (HPEG), among which TPEG and HPEG have a higher market demand.

The “China Polyether Macromonomer Industry Market In-depth Research and Development Prospects Forecast Report 2021-2025” released by the Industrial Research Center shows , the market demand for polyether monomers is mainly related to the demand for construction industry, polycarboxylate water-reducing agents and concrete. In recent years, the development speed of my country’s real estate industry has slowed down, and the demand for polycarboxylate water-reducing agents has slowed down. At present, the domestic production capacity of polycarboxylate water-reducing agents is about 2.6 million tons, but the output is only 1.5 million tons. There is serious overcapacity and the development of the industry is in trouble. Due to the reduced demand for polycarboxylate water-reducing agents, the development of the polyether macromonomer industry has also been restricted, and the prosperity has not been high in recent years. On the supply side, the supply and demand in the polyether macromonomer market is relatively loose. In October 2021, the operating rate of the polyether macromonomer industry was only about 35%.

The water-reducing agent produced from polyether macromonomers has anti-freeze and durability properties, and has high application demand in fields such as high-speed railways and super high-rise buildings. Affected by the demand side, the development of the polyether macromonomer industry has entered a dilemma. In order to meet the different needs of the market in the future, polyether macromonomer companies need to continuously improve product quality and develop functional products at the same time. At the same time, due to restrictions on environmental protection policies, some polyether monomer manufacturers have been eliminated, and market concentration continues to grow.

At present, polyether macromonomer manufacturers include Aoke Co., Ltd., Cologne Co., Ltd., Satellite Chemical and other companies. Among them, Aoke Co., Ltd. is a leading polyether monomer company with an integrated industrial chain and the ability to produce ethylene oxide on its own. Aoke Co., Ltd. is the world’s largest polyether monomer manufacturer, accounting for approximately 46% of the domestic market.

Satellite Chemical is an enterprise with the integration of light hydrocarbons as its core. It has the production capacity of ethylene oxide and is currently actively expanding the field of polyether macromonomers downstream of ethylene oxide. Satellite Chemical plans to build a polyether monomer production capacity of up to 500,000 tons per year, and plans to put into production 250,000 tons each in 2021 and 2022. If fully put into production, it will bring the company more than 2 billion yuan in revenue.

Industrial analysts said that polyether macromonomers are mainly suitable for the production of polycarboxylate water-reducing agents. In recent years, they have been affected by infrastructure construction, The development speed of the real estate industry is slowing down, the market demand for polycarboxylate water-reducing agents is slowing down, and the growth opportunities of the polyether macromonomer industry are small. At present, the domestic polyether macromonomer market is highly concentrated and is mainly occupied by Oak Chemicals. However, with the strong entry of Satellite Chemical, it will have an impact on the competition pattern of the polyether macromonomer market.