The development of formaldehyde, the main downstream product of methanol

With the sustained and stable development of our economy, the demand for formaldehyde is expected to grow at an annual rate of 13%. The total domestic demand for formaldehyde is expected to be around 2.65 million tons this year, with the overall demand reaching 4 million tons by 2005. There are currently over 540 formaldehyde manufacturers worldwide, with a total annual production capacity of around 28 million tons. Among them, there are nearly 240 manufacturers in China, with a total annual production capacity of around 4.7 million tons ； There are over 50 manufacturers in the United States, with a total annual production capacity of around 4.7 million tons ； Germany’s total annual production capacity is approximately 2.6 million tons ； Japan’s total annual production capacity is approximately 1.8 million tons ； The total annual production capacity of the former Soviet Union was approximately 1.65 million tons ； Italy’s total annual production capacity is approximately 1.3 million tons ； Indonesia’s total annual production capacity is approximately 1.15 million tons. The combined annual production capacity of formaldehyde in the aforementioned countries and regions accounts for approximately 64% of the global total capacity. At present, the production capacity of the formaldehyde industry in developed countries has exceeded consumption levels. Therefore, some large foreign companies have recently had to shut down certain facilities in order to maintain supply and demand balance. For example, as demand for formaldehyde declines in its main application area, namely adhesives for plywood, Mitsubishi Chemical, Japan’s largest producer of formaldehyde, has shut down its 18,000 tons per year formaldehyde plant in Inazawa. Its 90,000 tons per year formaldehyde plant in Morigawa is also set to be closed, resulting in a 31% reduction in Mitsubishi Chemical’s total annual production capacity for formaldehyde. It is expected that in the coming years, the production capacity of formaldehyde abroad will grow slowly, with new market demand mainly emerging in developing countries. Abroad, formaldehyde is mainly used in the production of urea-formaldehyde resins, phenol-formaldehyde resins, and melamine-formaldehyde resins; it is also used to manufacture acetal resins, 1,4-butanediol, polyols, and urotropin. The consumption structure of formaldehyde in the United States is as follows: urea-formaldehyde resin accounts for 24%, phenol-formaldehyde resin accounts for 21%, polyacetal resin accounts for 12%, alkyne chemicals account for 13%, pentaerythritol accounts for 4.5%, hexamethylenetetramine accounts for 4%, melamine resin accounts for 3%, MDI accounts for 6%, formaldehyde concentrate accounts for 4.5%, and others account for 8%. Currently, formaldehyde is almost always produced by the methanol-air oxidation method. Depending on the type of catalyst used, it can be divided into the iron-molybdenum catalyst method and the silver catalyst method. Approximately 70% of existing formaldehyde production plants abroad use the silver process, while most newly built formaldehyde plants in recent years have adopted the iron-molybdenum process. Formaldehyde production plants that use the iron-molybdenum catalyst process generally have a high production capacity; the methanol conversion rate can reach 95%–99%. Methanol consumption is low, and no distillation equipment is required. This approach allows for the production of high-concentration formaldehyde, with low alcohol content in the final product. The catalyst has a long service life, but the initial investment is high and electricity consumption is significant. The silver-based process is simple, requires less investment, has strong adjustability, and results in low levels of formic acid in the product. However, it features a low methanol conversion rate, high specific consumption, a short catalyst lifespan, high requirements for methanol purity, and high levels of methanol in the final formaldehyde product; as a result, it can only be used to produce formaldehyde at low concentrations. In Western Europe, about 55% of production capacity uses this technology. In our country, formaldehyde is mainly used in the production of adhesives, plastics, coatings, pentaerythritol, and urethane derivatives. Among them, formaldehyde consumed by adhesives accounts for a large proportion, reaching 33% ； Formaldehyde consumption in plastic production accounts for 15% of the total ； Coatings account for about 5% of formaldehyde consumption. The continuous development of China’s real estate, electronics and electrical engineering, automotive, and machinery industries, coupled with research institutions currently working actively on the development of downstream products derived from formaldehyde, will drive an increasing demand for formaldehyde. China’s formaldehyde industry primarily uses the silver process to produce low-concentration formaldehyde with a concentration of 37%. Thus, in the production of downstream products using formaldehyde, 37% dilute formaldehyde is first concentrated to formaldehyde with a concentration of over 50% before further use. During the concentration of dilute formaldehyde, not only is a large amount of energy and labor required, but significant amounts of alcohol-containing wastewater are also generated. This not only keeps the production costs of formaldehyde-derived products high, but it also exacerbates environmental pollution. In terms of the development of downstream products, China’s formaldehyde industry is also far behind that of developed countries. At present, there are already over a hundred downstream products of formaldehyde in developed countries, while in China there are only a dozen or so such products, and the production processes used are outdated. To ensure the healthy development of China’s formaldehyde industry, special attention should be paid to one thing: expanding production scale. Accelerate the development of the iron-molybdenum process, concentrated formaldehyde production technology, and its stable storage and transportation techniques, or introduce advanced foreign production technologies to build large-scale production facilities. Secondly, it is necessary to vigorously develop downstream products of formaldehyde and expand the market. The 600,000-ton plastic production base in Yangzi has taken initial shape. Report by Jiang Lianjia, our correspondent: At 11 a.m. on August 25, good news came from the Yangzi Petrochemical Plastic Plant – the final production unit in that company’s 650,000-ton ethylene transformation project, namely the 200,000-ton/year polyethylene plant, was successfully commissioned for the first time, producing high-quality plastic products. To date, Yangzi Petrochemical has a plastic production capacity of 800,000 tons per year, making it one of the largest plastic producers and suppliers in the country. These high-quality plastic products will provide high-grade raw materials to support the economic development of Jiangsu and even the entire East China region, reduce China’s reliance on imported products, and promote the healthy growth of related industries. China’s petrochemical industry started late, and with the rapid economic development, a large market gap has emerged; in particular, high-quality plastic products have long relied on imports. In recent years, the annual import volume of plastics has exceeded 50% of domestic consumption, indicating a vast market potential; developing the petrochemical industry is in line with China’s industrial policies. Yangzi Petrochemical’s 650,000-ton ethylene upgrading project is a key technological upgrade project that benefits from **fiscal interest-subsidized loans**, with a total investment of over 4 billion yuan. Upon completion of the renovation, Yangzi Petrochemical’s ethylene production capacity will increase from 400,000 tons per year to over 650,000 tons per year, while its plastic production capacity will rise from 400,000 tons per year to 800,000 tons per year, making it one of the largest petrochemical product production bases in China. The polyethylene plant put into operation this time adopts the gas-phase process developed by the American company UNIVATION, and utilizes advanced petrochemical technologies available today. It features a short production process as well as low material and energy consumption. The introduction of high-quality specialized materials in 61 different grades, including film materials, blown plastic materials, pipe materials, injection molding materials, and wire and cable materials, will **improve the quality of Yangzi Petrochemical’s plastic products and optimize their product portfolio. This enables Yangzi Petrochemical to produce large quantities of high-quality plastic materials that can replace imported ones, thereby increasing the proportion of domestically produced specialized materials in China’s plastic market and reducing reliance on foreign products for such materials. It also provides high-quality specialized plastic products for industries such as wire and cable manufacturing, contributing to their healthy development. In addition, this new facility complements the existing 170,000-ton polyethylene production capacity dedicated to general-purpose materials, creating a synergistic relationship between specialized and general-purpose materials. Production is carried out according to demand, which enhances Yangzi Petrochemical’s ability to cope with market risks and helps it achieve maximum economic benefits. The polyethylene plant put into operation this time has an investment of around 750 million yuan, and it is the largest and most advanced of its kind in China at present. This round of ethylene transformation was carried out taking advantage of the transition period provided by China’s accession to the WTO. Approximately 5 years from now, tariffs on imported petrochemical products will drop by around 10%, and foreign companies will be able to enter China and enjoy national treatment. In this sense, this is also the last opportunity for Yangzi Petrochemical to enhance its competitiveness. The project was designed by the Yangzi Petrochemical Design Institute and constructed by Wu Jian Company; thanks to the joint efforts of all the participating units, it was completed and put into operation ahead of schedule. To date, all three terminal product units for butadiene, polypropylene, and polyethylene, built as part of Yangzi Petrochemical’s second round of ethylene transformation project, have been completed and put into operation. (This article is from Baidu; for reference only)