The development of phosphorus-based flame retardants opened a new chapter - Yabao shutting down the production of phosphorus-based flame retardant, the industry is good. Albemarle recently announced the shutdown of the production of phosphorus-based flame retardants in the UK and China, totaling approximately 35,000 tons. The actual annual production is expected to be approximately 2 to 25,000 tons. The main reason for shutting down is that the phosphate business has suffered losses all the year round. From the perspective of industry structure, it is not only that Albemarle is in a loss state. We judge that the profitability of other phosphorus-based flame retardants in other foreign-funded enterprises is not optimistic, and it is very likely that they will join the queue of shutting down in the future. With regard to shutting down production capacity abroad, it can be assumed that the industry competition pattern is gradually improving.
The price of bromine resources has long been high, accelerating the process of phosphorus substitution. Recently, the concept of “Braid Farewell to Lower Prices†was elaborated. Overseas brominated flame retardant manufacturers have bromine resources. Their subjective willingness is to maintain that bromine prices remain high, while China currently acts as a net importer of bromine and domestically The demand has undoubtedly brought the industry the power to increase prices. The long-term high price of bromine will promote the high price of brominated flame retardants. This point has been confirmed by the increase in prices of flame retardant giants since 2010. The high price of brominated flame retardants has created an industrial base for the replacement of phosphorus.
The development of building energy conservation, phosphorus space is open. China's building energy consumption has accounted for 40-50% of the total energy consumption of the entire society, which accounts for a large proportion, and the thermal function of the vast majority of heating envelopes in China is much lower than that of the developed countries with similar climate. Therefore, the country has gradually introduced policies to increase the promotion of building energy conservation. Polyurethane as the best overall performance of the external wall insulation material will grow rapidly, while the phosphorus-based flame retardant has obvious advantages in the polyurethane, will enjoy the policy dividend, usher in rapid growth.
Epoxy clad laminate applications, phosphorus development point. Phosphorus-based flame retardants are now mainly used in the field of polyurethanes and engineering plastics, and areas that will soon achieve rapid breakthrough will be concentrated in epoxy resins. Halogen-free copper clad laminates led by end customers will become breakthrough points in the field of epoxy resins. As the largest manufacturer and exporter of phosphorus flame retardants in China, it currently has a capacity of 93,000 tons and will expand production to 153,000 tons in the future. We estimate that the company’s output will account for 20 to 25% of the global market share at that time. Based on the changing trend of the industry, it can be assumed that the company will fully share the dividends generated by the industry.
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