The industrial detonator industry has entered a stage of transformation and upgrading, and market concentration continues to increase

Industrial detonators refer to industrial blasting products containing explosives in pipelines. They are an important part of China’s civil explosive industry. Under the influence of small external energy, industrial detonators can output large explosive energy and are often used to detonate explosives. According to different detonation methods, industrial detonators can be divided into detonators, industrial fire detonators, industrial electric detonators, etc.

In recent years, in order to optimize the structure of the civil explosives industry, the country has introduced many policies. In 2021, the Ministry of Industry and Information Technology issued the “14th Five-Year Plan for the Safety Development of the Civilian Explosives Industry”, which clearly stated that production should be stopped by the end of June 2022 and the sale of ordinary industrial detonators should be stopped by the end of August. Affected by policies, my country’s industrial detonator production and sales have declined. According to statistics from the China Explosive Equipment Industry Association, my country’s industrial detonator output reached 890 million units in 2021, a year-on-year decrease of 6.9%; sales volume reached 910 million units, a year-on-year decrease of 6.9%.

The raw material of industrial detonators is polyethylene (PE), which is a thermoplastic resin. Polyethylene has the advantages of stable chemical properties, low temperature resistance, corrosion resistance, excellent electrical insulation, non-toxic, and odorless, and is widely used in the industrial field. my country is a major producer of polyethylene. According to statistics from the China Chemical Economic and Technological Development Center, my country’s polyethylene production reached 22.72 million tons in 2021, a year-on-year increase of 11.8%. However, due to strong market demand, my country’s polyethylene import dependence is high and the industry trade deficit is large. Although my country’s polyethylene market is in tight supply, it can fully meet the production demand for industrial detonators.

Benefiting from national policy support, industrial digital electronic detonators have gradually become the mainstream product in the industrial detonator market and will replace all ordinary industrial detonators. According to statistics from the China Explosive Equipment Industry Association, my country’s industrial digital electronic detonator output reached 16,000 tons in 2021, accounting for 18.4% of the total industrial detonator output. An electronic control module is connected between the ignition head and the pin of the industrial digital electronic detonator, which has the advantages of high safety, anti-static, and good stability.

According to the “China Industrial Detonator Project Investment Feasibility Research Report 2022-2027 released by the Industrial Research Center, with excess production capacity Accelerating the exit, the concentration of my country’s industrial detonator industry continues to increase. Nanling Civil Explosives and Cathay Group are my country’s leading industrial detonator companies. At present, the output of Nanling civil explosive industrial detonators ranks first in my country. According to the annual report of Nanling Civil Explosives Enterprise, the company’s industrial detonator output reached 70 million rounds in 2021, a year-on-year increase of 5.6%.

Industry analysts said that driven by positive factors such as strong application demand, my country’s industrial detonator market demand continues to be released, and the industry development space will be constantly improving. As China’s civil explosive industry enters the electronic era, industrial digital electronic detonators, as a substitute for ordinary industrial detonators, will gain broad market prospects. In recent years, my country’s leading industrial detonator companies have accelerated the adjustment of industrial structure, driving the concentration of the industry to continue to increase.