The prospects of polyoxymethylene

It has great potential for growth; there are many projects under construction in the country currently, and everyone is optimistic about this project

It must be great; polymers have very promising research prospects these days!

Its application in the automotive industry has always had a gradually promising future.

I’m not very optimistic. After all, the market demand is limited; otherwise, foreign countries wouldn’t have eased their technological restrictions on us. Don’t all rush into this – be rational. There are many other areas where there is also a strong market demand. There are numerous downstream products of methanol

Reply to 5# TH373637: At the beginning of 2010, the production capacity of domestic polyoxymethylene was only 100,000 tons, but by the end of this year it will reach 400,000 tons, representing a tripling of the production capacity from the beginning of last year. For domestic polyoxymethylene manufacturers, conducting research on modified high-end varieties to enable them to meet the requirements of a wider range of applications is likely to be a practical approach. Polyoxymethylene is finding increasingly wide applications in fields such as the machinery industry, light industry, electronics and electrical appliances, the automotive industry, and agricultural equipment. With the successful localization of related technologies and equipment, the prospects for the polyoxymethylene industry are immense.

Only by expanding the domestic polyoxymethylene market and improving its quality can we attract better polyoxymethylene technologies to the country.

Zheng Kai, Secretary-General of the China Engineering Plastics Industry Association: When investing in polyoxymethylene, several key issues need to be considered. First, the application areas for this product are very diverse, which results in high sales costs. Customers who purchase polyoxymethylene at the Yuyao Plastic Trading Mall usually buy in quantities of a few tons or half a ton, so most people are unwilling to act as agents for selling this product. Second, it is difficult to obtain the technology. The technology from Poland, South Korea, and ** introduced by domestic enterprises is second-rate and has high energy consumption. First-class technologies from Europe and the United States are reluctant to be transferred, and domestic production is mostly carried out by sole proprietors. Third, experienced production technicians are hard to find. Fourth, the market growth for polyoxymethylene is not particularly fast, and there is limited market space for new enterprises. Polyoxymethylene is less used in large plastic components and is mainly applied to small ones. It does not belong to the engineering plastics with rapid demand growth; currently, the annual domestic demand is around 300,000 tons. Jiang Bowen, a professor at Ningbo University: In addition to having a gap in production technology compared to developed countries, domestic products also lag far behind foreign ones in terms of processing technology and equipment for polyoxymethylene. In the processing and application of polyoxymethylene in China, the following problems often occur: yellowing of the products, strong processing odors, high toxicity, high shrinkage rate, brittleness of the products, poor surface finish, warping and deformation, as well as voids or bubbles. The occurrence of these problems is related, on the one hand, to the inherent properties of polyoxymethylene; on the other hand, polyoxymethylene is also sensitive to light, and it tends to decompose under the influence of light, which causes the products to turn yellow ； The second reason is outdated processing technologies and equipment; for example, the poor precision of injection machines and inaccurate temperature control lead to the decomposition of polyoxymethylene, causing the products to turn yellow. Due to inferior technology, foreign companies drive down the prices of common-grade polyoxymethylene resins that can be produced domestically while raising the prices of high-end grades, thereby squeezing the profits and survival space of domestic polyoxymethylene manufacturers. Domestic companies are once again launching projects in large numbers, and from the day they begin operations, they face fierce competition. Person in charge of Zhejiang Yuyao Xinxin Chemical Co., Ltd.: China imports a large amount of polyoxymethylene, but the actual domestic demand is not as high as that amount of imports; the quantity imported through processing trade does not represent the true domestic demand, and this portion of imports should be excluded. Therefore, the actual domestic consumption should be the sum of production and net imports through general trade. In 2010, China’s import volume of polyoxymethylene was approximately 223,000 tons; after deducting the 107,000 tons imported under the processing under contract and processing with supplied materials trade arrangements, the actual domestic consumption volume was 116,000 tons.

Beware of the ‘great leap forward’ in polyoxymethylene – Source: China Chemical Information Network. Believe it or not, at the beginning of 2010, the production capacity of domestic polyoxymethylene was only 100,000 tons; by the end of this year, that capacity will reach 400,000 tons, representing a tripling compared to the capacity at the beginning of last year. 　　Methanol manufacturers are eager to overcome the problem of overproduction. Polyoxymethylene is a downstream product of methanol, and it is the third most widely used engineering plastic, after polyamides and polycarbonates. Due to its high tensile strength, self-lubricating properties, as well as excellent corrosion and weather resistance, it is widely used as a substitute for metals, especially for replacing non-ferrous metal materials such as copper, aluminum, and zinc. It is known as the \"metal among plastics\" or \"super steel\". Since polyoxymethylene is a high-tech product, China still needs to import a large amount of it for domestic use, with an import dependence rate of over 70%. In 2010, China’s apparent demand for polyoxymethylene was 314,000 tons, of which 223,000 tons were imported. 　　But since the beginning of last year, domestic companies suddenly began to invest heavily in polyoxymethylene. In less than a year, production capacity has increased from 100,000 tons to the current 300,000 tons, and it is approaching 400,000 tons; production capacity will further increase in the future. 　　Based on preliminary information, the polyoxymethylene projects that have already been launched or are in the process of being launched include: Tianjin Alkali Plant with an annual production capacity of 40,000 tons of polyoxymethylene; Henan Longyu Chemical Co., Ltd. with a first-phase production capacity of 40,000 tons per year; CNOOC Tiannye Chemical Co., Ltd. with an annual production capacity of 60,000 tons; Shenhua Ningmei Group with an annual production capacity of 60,000 tons; Kailuan Energy and Chemical Co., Ltd. with a production capacity of 60,000 tons; Yankuang Lunan Fertilizer Factory with a production capacity of 40,000 tons; Xinjiang United Chemical with a production capacity of 40,000 tons; Henan Longyu Chemical Co., Ltd. with a second-phase production capacity of 60,000 tons; and Shanxi Tongmei Group with a production capacity of 240,000 tons... Reporters found that almost all of the companies mentioned above that are producing polyoxymethylene also manufacture methanol. In response to this, industry experts explain that there is an overcapacity of methanol production in the country at present, and methanol manufacturers are eager to expand into downstream markets. Moreover, there is an overwhelming excess capacity in the production of traditional downstream products such as dimethyl ether, formaldehyde, acetic acid, and dimethylformamide, without exception. As a result, companies with methanol production capacity turned their attention to polyoxymethylene, which requires large-scale imports each year. 　　“Start producing polyoxymethylene – you can make money as soon as it’s manufactured. If the equipment is properly set up, it is possible to produce 1 ton of polyoxymethylene from less than 3 tons of methanol. Including costs such as equipment depreciation, management, and sales, the total cost amounts to around 10,000 yuan per ton. For current generic products, the cost is between 12,000 and 13,000 yuan per ton, resulting in a profit of 2,000 to 3,000 yuan per ton – which is quite substantial. ”The head of a company that has just started operations in the country said optimistically. 　　Another battle of low quality and low prices is ahead. Can domestic polyoxymethylene products truly become in demand? Experts point out that the production technology for polyoxymethylene has relied on imports for many years, and even the technologies introduced so far have not been fully mastered, which represents the biggest weakness of domestically produced polyoxymethylene. 　　It is understood that the research, development, and production of polyoxymethylene in China began in 1959, almost simultaneously with those carried out by companies such as DuPont in the United States and Teknoray, which is part of the Solutia company. They started at the same time, but their development did not keep pace. Domestic companies are gradually being left far behind by companies from developed countries such as the United States, Japan, and Germany; top-tier technologies are in the hands of companies from these countries. Before the mid-1990s, China had only two polyoxymethylene production facilities with a capacity of 1,000 tons each, namely the Shanghai Solvent Factory and the Jishihua Shijinggou Combined Chemical Plant. Due to factors such as small scale, outdated production technologies, and unstable product quality, they also ceased production one after another by the mid-to-late 1990s. Since then, almost all the polyoxymethylene needed in our country has been imported. Entering the 21st century, some domestic companies began to try to introduce foreign technology to produce polyoxymethylene. However, the fees for top-tier technology transfer are extremely high, generally not falling below $15 million. The technology transfer fees for second-tier countries such as Poland, South Korea, and **others**, as well as regional ones, are relatively lower. According to investigations by journalists, for the polyoxymethylene projects that are currently being rapidly developed in China, the technologies used are mainly those from the Polish company ZAT, **Fuyi International, and Korean companies. 　　A technical supervisor from the former Shanghai Solvent Factory who was involved in the efforts to develop domestic production of polyoxymethylene noted that Yuntianhua introduced Polish technology 10 years ago and it took several years of effort before stable production could be achieved. South Korea’s polyoxymethylene technology does not yet have **fully developed design capabilities; there are certain shortcomings in the production techniques, and the equipment often fails to meet the required standards or achieve full capacity. But **Fuyi’s design is also not entirely satisfactory. 　　The concerns of this technical leader are not unfounded. Zhang Fengqin, a market analyst for Zhuochuang Information specializing in polyoxymethylene, told reporters that currently, domestic polyoxymethylene producers such as Yuntianhua, Shanghai Lanxing New Chemical Materials Factory, Tianjin Alkali Plant, CNOOC Tianye Chemical Co., Ltd., and Henan Longyu Chemical Company have a production capacity of 300,000 tons, yet they have only produced around 150,000 tons of polyoxymethylene products. The operation conditions of some of these companies are not ideal, and only two or three of them are able to make a profit. The main reason for the poor operating rate is the high number of unit failures, resulting in unstable overall operation, with an operating rate of around 54%. 　　Han Qiu, deputy general manager of CNOOC Tianye Chemical Group, said that foreign countries impose technological restrictions on China; the technologies used in domestic production are often second-hand technologies imported from abroad. The focus is on producing generic products, and since polyoxymethylene technology is complex, domestic companies keep such information secret from one another – there are even no facilities for training operators. 　　Yang Xiao, deputy general manager of Yuntianhua Co., Ltd.’s Chongqing branch, admitted that the main gap between domestic polyoxymethylene production technology and foreign technologies lies in stability; it is difficult to ensure consistency across batches of products. After introducing technology from the Polish company ZAT, Yuntianhua achieved some initial results after several years of effort, but it still faces many problems that need to be solved. 　　Products made with second-rate technology are bound to be of second-rate quality. 　　Yang Xiao said that domestic companies focus on producing general-purpose polyoxymethylene products, which are of medium to low quality. Coupled with the instability of the manufacturing process, the quality becomes unstable, leading to an increase in defective products; moreover, the quality of products in the same category is not as good as that of foreign products. 　　Zhang Kun, manager of the Wenzhou branch of Tianmeng Agricultural Inputs Chain Co., Ltd., a distributor of polyoxymethylene, said that foreign companies, including their factories in China, are able to produce more than 30 different grades of polyoxymethylene products, while domestic companies can produce at most 10 grades, and these are mainly mid-to-low-end standard grades; the proportion of modified high-end products is much lower compared to that of foreign companies. The general-purpose grades also differ significantly from the products of foreign companies in terms of parameters such as fluidity, solubility, and toughness. Even if the parameters are the same for a certain grade, there are differences in aspects such as the product’s color and stability. “Therefore, the polyoxymethylene products manufactured by domestic companies are sold on the market through a low-price strategy, costing 500–600 yuan per ton less than foreign-made products. ” 　　It is understood that the global usage rate of modified high-end polyoxymethylene products has currently exceeded 30%. Foreign companies are gradually shifting their market targets toward the modified high-end market. As domestic companies increase their production capacity, those with outdated technology can only compete in the low-end, general-purpose polyoxymethylene products market. Therefore, price competition among domestic polyoxymethylene manufacturers will become increasingly fierce in the future, and price wars are inevitable. In fact, such homogenized low-price competition is already emerging. The person in charge of polyoxymethylene sales at the marketing center of Shandong Daon Group told reporters that some newly established polyoxymethylene manufacturers in China are offering products at prices that are about 500 yuan per ton lower than those of Yuntianhua’s polyoxymethylene products, which they represent, thereby increasing their sales pressures significantly. 　　Chen Wei, manager of Zhejiang Yuyao Weisheng Plastics Company, a polyoxymethylene distributor, also said that in order to capture market share, some newly established enterprises in China are offering prices 400–600 yuan/ton lower than those of the products that were produced earlier in the country; these prices range from 13,700 to 13,800 yuan/ton, with further discounts possible in actual transactions. This move led to a drop in the prices of low-end products. In contrast, high-end products abroad are in short supply; due to these shortages, their prices remain high. For example, the price per ton of several polyoxymethylene products produced by DuPont exceeds 10,000 yuan, and this trend of rising prices continues. 　　Technical equipment is key to the success of domestic manufacturers. During the interviews, it became clear to the reporters that if domestic polyoxymethylene manufacturers want to pursue a high-end market strategy and avoid fierce competition, local production of technology and equipment is essential. 　　The former technical director of the Shanghai Solvent Factory believes that the reason why domestic polyoxymethylene technology has not been developed in China over the years is the lack of breakthroughs in manufacturing processes. Domestic polyoxymethylene manufacturers should integrate advanced foreign technical concepts, conduct research on key areas, and reduce costs. Furthermore, the localization of equipment is also a crucial factor in reducing the costs for manufacturers of polyoxymethylene. Currently, the investment required to build domestic facilities capable of producing 40,000 tons of polyoxymethylene per year amounts to 1.6 billion yuan. If domestic research institutions, engineering companies, and polyoxymethylene producers work together to simplify and optimize such facilities, it will **enhance the competitiveness of domestic polyoxymethylene manufacturers. 　　The official suggested that for polyoxymethylene manufacturers, the top priority is to reduce energy consumption costs as soon as possible. The production cost of polyoxymethylene is mainly reflected in steam, raw material methanol, and electricity consumption. At present, most polyoxymethylene manufacturers have high steam consumption; 1 ton of polyoxymethylene requires 12 tons of steam when the plant is operating ideally, and even more when it is not operating properly. The cost of steam has reached 220 yuan per ton, leaving some companies with almost no profit. Therefore, companies with high costs for raw materials and energy consumption should implement certain process improvements; they can consider simplifying their processes and reducing steam usage in order to increase their profits. They should not wait until competition based on cost becomes fierce before taking steps to reduce energy consumption. 　　A senior engineer at Shanghai Lanxing Polyoxymethylene Co., Ltd. believes that for domestic polyoxymethylene manufacturers, conducting research on modified high-end varieties to enable them to meet the requirements of various applications is a practical approach. Polyoxymethylene is finding increasingly wide applications in fields such as the machinery industry, light industry, electronics and electrical appliances, the automotive industry, and agricultural equipment. With the successful localization of related technologies and equipment, the prospects for the polyoxymethylene industry are immense.

Although polyoxymethylene currently has a large production capacity, its actual output is low; therefore, China still has a long way to go in terms of polyoxymethylene production. Only those who manage to overcome the technical challenges and improve both the volume and quality of production will be able to gain a competitive edge in the market. Therefore, domestic polyoxymethylene manufacturers must make great efforts to continue exploring and innovating in order to achieve development.

If it is possible to reduce the unit consumption and improve the quality of the finished products, the benefits resulting from this will be quite significant. In the future, there will be a high demand in the automotive industry