China is the world's largest producer and supplier of AC (Azodicarbonamide) foaming agents, with an annual production capacity of 150,000 tons, accounting for nearly 50% of global production. Actual output exceeds 110,000 tons per year. Despite this dominance, Gong Liucheng, deputy director of the Plastics Additives Special Committee of the China Engineering Plastics Association, highlighted at a conference in Nanchang in 2007 that while China leads in production, it is far from being a leading global player in this industry. The gap between being a large producer and a powerful one remains significant.
AC foaming agent is 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 commonly 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 been able to match its performance. In China, AC is the primary foaming agent produced, with domestic demand ranging between 80,000 and 90,000 tons annually. The consumption structure includes 40% for PVC, 35% for PE, 12% for PP, 5% for rubber, and 8% for other applications. Over 30 manufacturers are involved, with key players including Jiangxi Dhua Chemical, Jiangsu Sopro, Ningxia Summer Sheng, and Fujian Longhua Group. Production is mainly exported to Southeast Asia, Japan, South Korea, and Russia, with around 24,000 tons shipped annually.
Despite high export volumes, the majority of China’s AC foaming agent is sold as raw powder, resulting in low profit margins. Technological and quality gaps still exist compared to foreign competitors. 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and the U.S. use advanced methods such as ketone-nitrogen or hydrogen peroxide processes, China still relies on the outdated urea method, which is resource-intensive and environmentally harmful. Domestic production processes also suffer from low efficiency, high emissions, and poor waste management. Most companies only produce raw powders and lack the capability to manufacture high-value modified products, leaving them stuck in the low-end of the global market.
Currently, the domestic AC foaming agent industry faces a paradox: production capacity keeps expanding, but competition intensifies, pushing prices down. 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 focus remains on low-end products, while high-margin modified AC foaming agents are largely overlooked. Modified versions are cleaner, require less investment, and offer higher added value. Globally, hundreds of varieties have been developed, with Japan alone having nearly 20 brands of modified AC for PVC.
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, with many producing less than 2,000 or even 1,000 tons. This limited scale, combined with insufficient R&D investment, results in a narrow product range and lack of modification capabilities. Although a few companies have started research, only 3–5 brands have emerged, and none can meet the specialized requirements of both domestic and international markets. As a result, the entire industry remains at a disadvantage in global competition.
Experts like Gong Liucheng suggest that improving production processes, investing in new varieties, and focusing on modification and environmental management are crucial steps forward. They believe that if China can enhance its raw material routes, upgrade its technology, accelerate product modification, and improve overall industry standards, it can transform its advantages into quality and variety leadership. With the right strategies, the AC foaming agent industry still holds great potential for future growth.
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