Luxi Chemical enters the market strongly, and the global propionic acid market is facing a comprehensive reshuffle

From the perspective of the global market, propionic acid production areas are currently mainly concentrated in Germany, the United States, Sweden and other places. Among them, international petrochemical giants such as BASF, Dow Chemical, Eastman, and Pasto occupy a dominant position in the market. In 2021, foreign The companies account for more than 50% of the market share in total. In addition, there is only one domestic joint venture that occupies a partial market share in the global propionic acid market. It is Yangzi BASF, a joint venture between PetroChina and BASF of Germany, which occupies about 10% of the market share.

At present, under the background that the domestic enterprise Luxi Chemical continues to promote the propionic acid project, the global market structure is expected to be completely reshuffled. In March 2022, Luxi Chemical is advancing the second phase of the propionic acid project as scheduled. After the second phase of the propionic acid project is put into operation, Luxi Chemical will have an annual production capacity of 200,000 tons of propionic acid and is expected to occupy 32% of the global market share and become a global The largest producer of propionic acid. In the future, with the strong entry of local companies, the localization level of the global propionic acid market will be greatly improved, and the industry has broad prospects for development.

As an important fine chemical product in my country, propionic acid has a wide range of applications and increasing market demand. In 2021, the domestic propionic acid market demand will be approximately 96,000 tons. At present, there is a large gap between domestic supply and demand of propionic acid, and production capacity is difficult to meet the growing market demand. Therefore, my country’s propionic acid imports are currently showing a continuous growth trend. According to data from the General Administration of Customs, my country’s propionic acid imports from January to April 2021 were 9,500 tons, a year-on-year increase of 8.35%. Industrial analysts said that in the future, after the propionic acid production capacity of local enterprise Luxi Chemical is completed, the problem of insufficient domestic propionic acid supply is expected to be solved. Luxi Chemical is one of the largest fine chemicals manufacturers in my country. In the future, the domestic propionic acid market will develop rapidly driven by leading companies, and the industry has huge development potential.