China is the world's largest producer and supplier of AC (Azodicarbonamide) foaming agents, with an annual production capacity of 150,000 tons, making up about 50% of global production. Actual output exceeds 110,000 tons each year. However, Gong Liucheng, deputy director of the Plastics Additives Special Committee of the China Engineering Plastics Association, highlighted at the 2007 conference on plastics additives in Nanchang that while China leads in production, it still lacks the strength to be a true industry leader. The gap between being a major player and a powerful one remains significant.
AC foaming agents are widely used in the foaming of various resins such as PVC, PE, PP, EVA, PS, and ABS, as well as in rubber products. It is the most widely used chemical foaming agent globally due to its high quality, low cost, broad application range, and excellent physical and chemical properties. No other chemical foaming agent has yet been able to match its performance. In China, the majority of foaming agents produced are AC-based. Domestic demand ranges from 80,000 to 90,000 tons annually, with PVC accounting for 40%, PE for 35%, PP for 12%, rubber for 5%, and others for 8%. There are over 30 manufacturers in the sector, with key players including Jiangxi Dhua Chemical Fine Chemical Co., Ltd., Jiangsu Sopro Chemical Industry Co., Ltd., Ningxia Summer Sheng Industrial Co., Ltd., and Fujian Longyan Longhua Group Co., Ltd. The country exports around 24,000 tons annually, primarily to Southeast Asia, Japan, South Korea, and Russia.
Despite the large export volume, China mainly exports raw powder form, which results in low profit margins. There is a significant gap between domestic technology and product quality compared to foreign counterparts. While countries like Japan and the U.S. use advanced methods such as ketone-nitrogen or hydrogen peroxide processes, China still relies on the outdated urea method, which is inefficient, resource-intensive, and environmentally harmful. Domestic production processes also result in high waste emissions and poor control. Most companies only produce raw powders and lack the capability to develop high-value modified products. As a result, China’s AC foaming agent industry remains at the lower end of global market competition.
Currently, the industry faces rising production capacity alongside fierce competition, leading to continuous price declines. In some regions, sales prices have dropped to as low as 13,000 yuan per ton. Although major producers have raised export prices to over $2,000 per ton, they still fall short by more than $700 compared to imported products. The competition is largely focused on low-end products, while the lucrative field of modified AC foaming agents sees limited domestic involvement. Modified AC foaming agents typically generate little to no "three wastes" and require less investment, offering significantly higher added value. Globally, hundreds of varieties have been developed, with Japan alone having nearly 20 PVC-modified AC brands, and new ones constantly emerging.
Gong Liucheng emphasized that the biggest challenge facing the industry is the small scale of most companies. Only four firms produce over 5,000 tons annually, and many struggle to reach even 2,000 or 1,000 tons. Small-scale operations, combined with limited technical investment, lead to narrow product ranges and limited production lines, leaving modified AC foaming agents almost entirely unexplored. While a few manufacturers have started R&D, only 3–5 brands exist, and none can meet the specialized requirements of both domestic and international markets. This has placed the entire industry at a disadvantage in global competition.
Experts like Gong Liucheng suggest that the industry must focus on improving production processes, developing new and modified AC foaming agents, and enhancing the comprehensive utilization of resources and waste treatment. They believe that despite challenges, China's AC foaming agent industry holds great potential. By optimizing raw material routes, upgrading technology, accelerating product modification, and improving overall industry standards, China can turn its current advantages into strengths in quality and diversity. With the right strategies, the industry still has a bright future ahead.
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