Vinyl acetate (VAC) is an important organic chemical raw material, which can be widely used in the production of polyvinyl acetate (PVAC), polyvinyl alcohol (PVA), paint, adhesive, vinylon, film, vinyl copolymer resin, acetal resin and other chemical products.
At present, there are two major VAC production methods in China, namely, acetylene and ethylene methods. Acetylene accounts for 63.89% of the total production capacity while ethylene accounts for 36.11%.
Thanks to the rapid development of the downstream industries, the production output of VAC in China has been rising steadily since 2009. And in 2018, the VAC output reached about 1.97 million tons, and in the past ten years, the VAC output in China has seen an annual compound growth rate of 11.4%.
Due to the
influence of environmental protection limits and supply-side structural reform,
China's vinyl acetate production capacity of various regions of changed greatly.
Inner Mongolia is currently the largest producing region of vinyl acetate in
China, with a production capacity of 720,000 tons per year, accounting for
21.70% of the total production capacity.
In terms of
imports and exports over the past decade, China's VAC imports have remained
relatively stable but have declined after 2013, while VAC exports have surged
since 2014. The main reason is that the domestic production technology of vinyl
acetate in China is becoming mature to meet the needs of high-end products, and
the competitiveness in the international market is gradually enhanced. But in
general, there is still a significant import dependence for high-end products
due to the technological advantages of the imported products.
As an important basic
chemical products, VAC is widely used in downstream industries. In 2018, the
market size for the vinyl acetate has reached 15.47 billion Yuan, seeing a
16.2% YoY growth.
It is conclude
that though the VAC has seen a rapid development in China in the recent years, production
equipment still mainly uses the acetylene method which may result in higher
cost and more pollutions to the environment. And some high-end products still
rely on imports from other countries.
In the future,
China will eliminate the backward production capacity and realize the diversity
of products. At the same time, it will vigorously
develop the integration of upstream and downstream industry chain to avoid business
risks and realize maximum benefit.