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Automotive Lightweighting Promotes Strong Demand For Modified Plastics
Sep 26, 2018

Automotive lightweighting promotes strong demand for modified plastics

Due to its excellent performance, modified plastic products are widely used in home appliances, automobiles, construction and other industries, of which home appliances and automobiles are the two largest application areas. In recent years, the rise of new energy vehicles has become more demanding on the lightweight of automobiles, which has led to a large increase in demand for modified plastics.

Lightweight car produces a strong demand for modified plastics

    According to Transparency Market Research, the global demand for modified plastics in 2012 was 125 million tons, and it is expected to increase to 170 million tons in 2019, with a compound annual growth rate of 4.5%. According to data released by China Industrial Information Network, the output of China's modified plastics increased from 5.7 million tons in 2009 to more than 10 million tons in 2016, and the modification rate increased from 8% in 2004 to 19% in 2016.

    Home appliances are currently the largest application area of modified plastics, accounting for 44% of the total consumption of modified plastics. The total domestic demand has exceeded 4 million tons/year, but the output growth of electrical appliances such as refrigerators, washing machines, air conditioners and televisions has declined. Impact, the growth rate of demand for modified plastics in this area has slowed to below 5% in recent years. Affected by the demand for lightweight vehicles, the automotive industry has become the fastest growing demand for modified plastics. According to Markets and Markets, global automotive plastic consumption is expected to increase from 7.1 million tons in 2012 to 11.3 million tons in 2018. The compound growth rate will reach 13.4%.

    In addition, China's automobile production growth rate has been much higher than the global level in the past years, and the consumption of bicycle plastics is much lower than that of developed countries such as Europe and the United States. The development space is huge, especially the rapid development of new energy vehicles, and the need for lightweight materials is more needed. Chemical Consulting expects that the compound growth rate of domestic automotive modified plastics demand will exceed 26% in the next five years.

    China's modified plastics industry started late, and compared with international chemical giants, it has no advantage in technology, scale and industrial chain. At present, although there are thousands of enterprises in China engaged in the production of modified plastics, there are only more than 70 large-scale enterprises (capacity exceeding 3,000 tons). Although the total production capacity exceeds 2 million tons, high-end modified plastics still need to be imported, showing a structural excess. From the perspective of market share, domestic enterprises account for only 30% of the market share, far lower than foreign companies. Keyuan modified plastic products have been widely used in BMW, Mercedes-Benz, General Motors, Ford, SAIC Volkswagen, SAIC-GM, Shanghai Automotive, Great Wall Motor, Geely Automobile, Changan Automobile, BYD, and other vehicles.