Market Status of HEMC Manufacturers for Industrial Building Materials in China

Market Status of HEMC Manufacturers for Industrial Building Materials in China

Overview of China's industrial grade hydroxyethyl cellulose (HEMC) production capacity and market demand
At present, the production capacity and market demand of hydroxyethyl cellulose (HEMC) in China are showing a certain situation. In terms of production capacity, there are already multiple domestic enterprises with production capacity, and the total production capacity scale is considerable. At the same time, market demand is also continuously growing, especially in certain specific fields such as cosmetics, pharmaceuticals, and food additives, where the demand for hydroxyethyl cellulose is particularly strong. This supply and demand situation has brought good development opportunities for the domestic hydroxyethyl cellulose industry.

1.Overview of Industrial Hydroxyethyl Cellulose (HEMC)
Hydroxyethyl cellulose (building material HEMC), abbreviated as HEMC, is a crucial hydroxyalkylcellulose. Since its successful preparation in 1920, Hubert has become a widely produced water-soluble cellulose ether worldwide. Among numerous cellulose ethers, it holds a stable position second only to CMC and HPMC due to its large production and rapid development momentum. Through fine chemical processing of refined cotton (or wood pulp), hydroxyethyl cellulose is made into a non-ionic water-soluble polymer, presenting a white, flawless, odorless and tasteless powder or granular form.

2.Global Capacity and Demand Overview (HEMC Building Materials)
At present, the main production countries of hydroxyethyl cellulose in the world are concentrated in Europe and America, among which the production capacity of companies such as Hercules and Dow in the United States is particularly prominent. In addition, countries such as the UK, Japan, the Netherlands, Germany, and Russia also have certain production capabilities. It is expected that by 2013, the global production capacity of hydroxyethyl cellulose will reach 160000 tons, with a compound annual growth rate of about 2.7%.

In terms of demand for HEMC building materials, Europe and North America are the world's largest markets, while China is showing rapid growth with an annual growth rate of up to 9%. It is expected that the total global demand for hydroxyethyl cellulose will reach 88200 tons in 2013. It is worth mentioning that with the commissioning of the YaKuaLong Nanjing factory, the high-quality hydroxyethyl cellulose market, which used to be in short supply, has gradually moved towards supply-demand balance.

3. Production Capacity and Demand of Industrial HEMC in China
Since Wuxi Chemical Research Institute and Harbin Chemical Sixth Factory began developing and producing hydroxyethyl cellulose in 1977, China's non-ionic ether industry has undergone years of development and improvement. Nowadays, multiple cellulose manufacturers in the market have launched their own hydroxyethyl cellulose products, including Luzhou North Cellulose, Hubei Xiangtai, Wuxi Sanyou, Yixing Hongbo, Yangzhou Zhiwei, and Shandong Yinying.

However, despite the continuous improvement of China's (HEMC) production capacity for building materials, the market for high-quality hydroxyethyl cellulose is still mainly dominated by foreign products. At present, the domestic production capacity of hydroxyethyl cellulose is 13000 tons, but most of them are modified or compounded products, not pure hydroxyethyl cellulose. The annual production of pure hydroxyethyl cellulose is less than 3000 tons, which is far from meeting the demand of the domestic market. More than 70% of the market share relies on imports or foreign-funded enterprises.

At the same time, the domestic market for hydroxyethyl cellulose (building material HEMC) also exhibits certain regional characteristics. The Pearl River Delta and Yangtze River Delta regions have the strongest market demand, followed by the Southwest and North China regions. In the coatings industry, especially latex coatings, ten of the top twelve domestic companies are located in the South China region, which further drives the demand for hydroxyethyl cellulose in the area. In addition, the distribution of daily chemical enterprises is mainly concentrated in the southern and eastern regions of China, and these enterprises also have a considerable demand for hydroxyethyl cellulose.

From the perspective of downstream consumption, the coatings industry is the main consumer area of hydroxyethyl cellulose, followed by the daily chemical industry and the petroleum industry. However, in the high-end market, domestic products still find it difficult to compete with foreign products, and most of the market share is occupied by foreign high-end hydroxyethyl cellulose. The lower end engineering coating grade, petroleum grade, and modified hydroxyethyl cellulose are mainly supplied by domestic enterprises.
4.Excellent properties of industrial grade hydroxyethyl cellulose (HEMC)

Hydroxyethyl cellulose shows extraordinary solubility in water. It can be rapidly dissolved in both cold and hot water without gel phenomenon. Its substitution degree, solubility, and viscosity range are extremely wide, and its thermal stability is also excellent. It can maintain stability in environments below 140 ℃, and even under acidic conditions, it remains clear and transparent. In addition, hydroxyethyl cellulose solution can form a tough transparent film and has non-ionic properties that do not interact with ions, thus exhibiting excellent compatibility.

5.Wide application of hydroxyethyl cellulose (HEMC)
As a non-ionic water-soluble cellulose ether product, hydroxyethyl cellulose has a wide range of applications in various fields. It not only plays a key role in thickening, bonding, emulsification, dispersion, and stability in industrial fields such as architectural coatings, petroleum, and polymer polymerization, but also demonstrates its capabilities in industries such as medicine, daily use, papermaking and ink, fabrics, ceramics, etc. Its excellent water retention, leveling, and film-forming properties have brought significant economic and social benefits to various industries.

1) Latex coating
Hydroxyethyl cellulose plays an important role in latex coatings and is often used as a thickener. It can not only effectively thicken latex coatings, but also emulsify, disperse, stabilize, and retain water. Its notable feature is outstanding thickening effect, as well as good color development, film-forming, and storage stability. As a non-ionic cellulose derivative, hydroxyethyl cellulose can be used in a wide pH range and has good compatibility with other components in coatings, such as pigments, additives, fillers, and salts. Coatings thickened with hydroxyethyl cellulose exhibit excellent rheological properties at various shear rates and exhibit pseudoplastic characteristics. This allows for the use of various construction methods such as brush coating, roller coating, and spray coating for coatings, with good construction performance, less likely to experience dripping, sagging, and splashing, and good leveling performance.