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Commissioning! Surges by over 700%!

New Chemical Materials 2025-03-04 09:20:55

Recently, multiple PMMA project updates have been announced: 1. Jiangxi Jingsu Technology Co., Ltd. has publicized an 88,000-ton optical-grade PMMA project; 2. Zhejiang Huashuaite New Material Technology Co., Ltd. has commenced a 35,000-ton annual aviation PMMA project; 3. Yan'an Energy and Chemical plans to build a 50,000-ton/year MMA and 50,000-ton/year PMMA facility.

Notably, at the beginning of the year, Shuangxiang Corporation released its 2024 performance forecast: the net profit attributable to shareholders is expected to increase by 714.97% - 841.74% year-on-year; the net profit after deducting non-recurring gains and losses is projected to grow by 122.08% - 210.91% year-on-year. The significant growth in performance is mainly attributed to the gradual release of production capacity from its wholly-owned subsidiary, Chongqing Shuangxiang Optical Materials Co., Ltd., which includes a 300,000-ton annual PMMA, MS, and 40,000-ton special ester project.

A New Round of Expansion

Currently, domestic PMMA still benefits from the demand for replacing high-end imported products, while some capacities with low integration levels, small scale, and limited technology will face the risk of being phased out.

At present, the PMMA industry has entered a new round of expansion. The rapid increase in the production scale of upstream MMA monomers and the replacement of imported products provide significant opportunities for the development of downstream industries.

As of 2023, the domestic PMMA capacity is about 800,000 tons/year, including 490,000 tons/year of PMMA resin pellets, 300,000 tons/year of PMMA sheet, and about 10,000 tons/year of other forms of PMMA. The specific distribution of PMMA resin is as follows:

As of 2023, the domestic PMMA capacity is approximately 800,000 tons/year, with PMMA resin granule capacity at 490,000 tons/year, PMMA sheet capacity at 300,000 tons/year, and other forms of PMMA capacity at around 10,000 tons/year. The specific distribution of PMMA resin is as follows:

From the perspective of imports and exports, primary form PMMA remains the main imported product. In 2024, the import volume of primary shape polymethyl methacrylate (PMMA) is about 163,000 tons, while the export volume is 54,000 tons. In 2023, the corresponding import volume was about 182,000 tons, and the export volume was 37,000 tons.

In terms of actual consumption, in 2023, the domestic consumption of PMMA (resin granules) was about 310,000 tons, a year-on-year increase of 3%. In the detailed demand for this market, the four major sectors—automotive transportation, display light guide plates, consumer electronics, and LED lighting—account for the majority of the market share.

Based on a comprehensive analysis of domestic production capacity, customs import and export data, and other sources, China's PMMA resin production capacity has increased from 350,000 tons/year to 490,000 tons/year over the past five years, with an annual compound growth rate of about 7%. However, despite this, the corresponding import volume remains at a high level, while the operating rate of domestic PMMA facilities lingers around a low of about 60%. The main reason for this phenomenon is the overcapacity and high concentration of low-end products.

In addition, local companies such as Wanhua Chemical and Shuangxiang Co., Ltd. have begun to stand out, while foreign enterprises like Chimei Chemical (Zhenjiang) and Mitsubishi Chemical have experienced declines in capacity utilization and market share, indicating an accelerating trend of "domestic substitution."

PMMA Application Situation

Applications of PMMA

With the continuous increase in domestic production capacity, it is essential to place greater emphasis on developing diversified downstream applications in the future to maintain a competitive edge.

The PMMA industry experienced a period of fluctuating adjustments from 2021 to 2023, during which it was influenced by technological advancements, industry transformation, and global economic conditions, leading to dynamic changes in PMMA demand across different downstream sectors:

In 2021, driven by the global pandemic control measures that boosted demand for sheets and the recovery of the automotive industry, the application of PMMA in downstream fields significantly increased; entering 2022, with the ongoing impact of the global pandemic, activities in the advertising and exhibition industries drastically decreased, resulting in a contraction in the demand for PMMA materials in these areas, particularly in the hygiene and construction sectors. Meanwhile, due to the rapid development of OLED technology, the demand for PMMA particles in TV displays decreased, and larger panels increasingly opted for MS materials in automotive display applications.

In 2021, driven by the global pandemic prevention measures that boosted demand for panels and the recovery of the automotive industry, the application of PMMA in downstream fields significantly increased; entering 2022, with the ongoing impact of the global pandemic, activities in the advertising and exhibition industries drastically decreased, leading to a contraction in the demand for PMMA materials in these sectors, especially a decline in demand from the hygiene and construction industries. Meanwhile, due to the rapid development of OLED technology, the demand for PMMA particles in TV displays has decreased, and the trend towards larger panels has led to a greater preference for MS materials in automotive display applications.

Light guide plates for liquid crystal displays

Despite facing challenges in some traditional application areas, the growth in demand from new application areas such as automotive lighting has provided the PMMA industry with new growth points, increasing the share of the automotive sector to about 30%. In addition, there is a continuous rise in domestic demand for high-quality, high-performance PMMA products, particularly in high-end optical-grade products. The following are the latest applications and development trends of PMMA:

1. Optical fiber material - PMMA-made optical fibers have excellent performance in short-distance data transmission and are considered the best solution for the "last mile" in fiber-to-the-home (FTTH) applications. Besides the communication field, plastic optical fibers are also used in landscape lighting. Major global producers of plastic optical fibers include Mitsubishi, Asahi Kasei, and Toray from Japan, while Wanhua Chemical in China has also industrialized optical fiber-grade PMMA pellets.

1、Optical fiber material - PMMA-made optical fibers exhibit excellent performance in short-distance data transmission and are considered the best solution for the "last mile" of fiber-to-the-home. In addition to the communications sector, plastic optical fibers are also used in landscape lighting. Major global producers of plastic optical fibers include Japan's Mitsubishi, Asahi Kasei, and Toray, while domestically, Wanhua Chemical has already industrialized fiber-grade PMMA particles.

2、Medical - Medical disposables, dental restoration materials, tissue engineering scaffold materials, etc., made from PMMA possess good biocompatibility and easy sterilization properties. Moreover, in the field of biotechnology, due to its excellent sealing and processability, PMMA can be used as a microfluidic chip material for applications such as cell culture, DNA sequencing, and drug screening.

3、Automotive - Apart from iconic full-width taillights, PMMA's ASA alloy series, transparent toughening series, solvent-resistant series, laser welding series, and color series products provide more innovative integrated material solutions. Mitsubishi Chemical, in collaboration with Honda R&D, has developed a new type of PMMA material for automotive body parts, which can be applied to car doors, hoods, fenders, and other areas. This material enhances the impact resistance required for automotive bodies by mixing rubber particles with PMMA. Domestic companies like Shuangxiang Corporation and Wanhua Chemical are also actively laying out in this field.

4、PC/PMMA composite material - To meet the signal transmission requirements of 5G communications and the trend towards thinner and more portable devices, PC/PMMA composite panels have become a research focus. This composite material is co-extruded from PC and PMMA. PMMA, which has good hardness and wear resistance, is typically used as the outer layer, while PC, known for its good toughness, serves as the inner layer. The composite panel combines the advantages of both PC and PMMA, meeting the needs for rigidity and decoration while also satisfying the requirement for unshielded wireless charging.

5, The development of high-tech industries such as VR/AR/MR and smart homes will continue to have a strong demand for materials with high transparency, high strength, and excellent weather resistance. High-end optical-grade PMMA can be used as the optical lenses for head-mounted displays (HMD).

Structure of Head-Mounted Displays (HMD)

About the polymerization process of PMMA and global production capacity

The main production technologies for PMMA are bulk polymerization, solution polymerization, and suspension polymerization. The most suitable process for producing optical-grade PMMA is bulk polymerization.

In addition, during the PMMA production process, the raw material MMA monomer is a key factor affecting the final quality of PMMA. To improve the final quality, many companies currently adopt an integrated MMA-PMMA industrial chain approach. For a comprehensive view of the MMA industry, see:

In addition, during the PMMA production process, its raw material, MMA monomer, is a key factor affecting the final quality of PMMA. To improve the final quality, many companies currently adopt an integrated MMA-PMMA industry chain approach. For a comprehensive view of the MMA industry, please refer to:

Where is the Future of the MMA Industry? One Chart Takes You Through the Entire Industry Chain

Where is the Future of the MMA Industry? One Chart Takes You Through the Entire Industry ChainWhere is the Future of the MMA Industry? One Chart Takes You Through the Entire Industry Chain

As of the end of 2023, the global capacity distribution of PMMA is as follows:

Source: Petrochemical Federation, Chemical New Materials, Donghai Securities, official websites of various companies

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Commissioning! Surges by over 700%!

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