The development of polycarbonate diol market will drive the development of local Chinese enterprises

Polycarbonate diol (PCD or PCDL) is a propylene glycol ether type polycarbonate diol, which contains repeated carbonate groups (-O-COO-) in the main chain of the molecule and hydroxyl groups (-OH) at the chain ends. Polymer, a type of polycarbonate polyol, is the raw material for the synthesis of a new generation of polyester carbonate polyurethane. The molecular formula is C19H24O5, the molecular weight is 332.39086, and the flash point is 119.4°C. It can be widely used in the synthesis of polyurethane products, such as Polyurethane elastomer, polyurethane coating, polyurethane adhesive, polyurethane leather and other fields.

The market distribution of polycarbonate diol demand is closely related to the production of polyurethane coatings, polyurethane elastomers, polyurethane adhesives, polyurethane leather, etc. in each region, and is also related to the polyurethane product structure in each region. At present, the Asian region represented by China is the world’s main manufacturing center for polyurethane elastomers, polyurethane coatings, polyurethane adhesives, polyurethane leather and other polyurethane products. The production scale of polyurethane elastomers, coatings, adhesives and other products is large, so Asia is the world’s largest demand market for polycarbonate diols. According to the released “In-depth Research Report on the Global and China Polycarbonate Diol Industry in 2023“, in 2022, the global polycarbonate diol industry will be The demand for ester diol is 36,200 tons, and the demand in Asia exceeds 18,000 tons. For a long time to come, Asia will remain the world’s largest demand market for polycarbonate diols.

As far as the Chinese market is concerned, due to the high technical barriers to polycarbonate diol, the technology and market of polycarbonate diol have long been monopolized by companies in developed countries such as Japan and Europe. There are few local companies in China that have mastered the production technology of polycarbonate diol and their output is low. Small, resulting in China’s polycarbonate diol market being heavily dependent on foreign brand products, including imported products of foreign brands and products produced by foreign brands in Chinese factories. Therefore, there will be greater room for import substitution in China’s polycarbonate diol market in the future.

From the competitive landscape, Ube Kosan Co., Ltd. (Ube) has a relatively large polycarbonate diol production capacity, relatively mature polycarbonate diol production technology, more stable product quality, and high brand awareness; Asahi Kasei Chemical Co., Ltd. (Asahi KASEI) has a polycarbonate diol production base in China, with a relatively high degree of localization. Both have relatively high shares in the domestic market and belong to the first echelon of competition; other foreign brands such as Tosoh Co., Ltd. have first-mover advantages and product and brand advantages, and belong to the second echelon of competition; Sichuan Zhongou New Materials Co., Ltd. The polycarbonate diol production line of the company and Yuanli Chemical Group Co., Ltd. has been put into operation for a short time, and its influence in the domestic market is still weak, and it belongs to the third echelon of competition.

Analysts believe that stimulated by market demand, China’s polycarbonate diol industry will continue to develop. The production capacity and product quality of the alcohol industry will be improved, thereby replacing imported products. Especially due to the strong cost and product price advantages of local polycarbonate diol companies, downstream users may gradually use local products, further promoting local Polycarbonate diol industry development.