At present, China has become one of the biggest producing areas of aniline around the world. As an important raw material of downstream products, such as MDI, rubber ingredients, the R&D of aniline in China started in 1958 by Jilin Chemical Industry Co., Ltd. Since then, aniline has maintained a strong development in China. Most of aniline producers devoted themselves to expanding their capacity of aniline. However, overcapacity has occurred to the industry since 2012, which slows down the rapid development of aniline. Even more, the problem of overcapacity of aniline has been more and more serious in 2013.
Since 2004, the capacity of aniline in China soared and little aniline was imported since then. After about three years' capacity expansion, China's aniline industry entered a stage of overcapacity in 2007. And impacted by the world economic crisis in 2008 and 2009, both the demand and output of aniline in China dropped during this period. Luckily, starting from H2 2009, the Chinese government carried out a series of stimulus policies to support the development of the aniline industry, which helped the industry to recover. And both the production and market of aniline in China enjoyed prosperity from H2 2009 to 2010, which drove many producers to enlarge their capacity of the product. These expansion plans have been proved irrational and inappropriate afterwards, especially after Wanhua Chemical, the largest consumer of aniline in China, launched its own aniline production line in early 2011, overcapacity of the industry in China got worse.
Aniline can be widely used in various fields, such as MDI, rubber ingredient, dyestuff and organic pigment, cylclohexylamine, pharmaceuticals and pesticides, the first two of which are the biggest consumption areas of aniline and increased fast in the past few years, respectively accounting for 63% and 17% of the total consumption of aniline. Their consumption shares in the aniline market increase faster than those of other downstream fields. According to CCM's investigation, it's foreseen that MDI and rubber ingredient will continue to being the two largest consumption fields of aniline in the next five years.
In order to point out the facts of the aniline industry in China and discuss the future trend, CCM made great efforts in helping clients know more about the supply and consumption of aniline in China.
In recent years, China has been one of the biggest producing region around the world. Because of great demand from downstream industries, China's aniline production has maintained strong growth. Among those application, MDI and rubber ingredients are two biggest consumption areas of aniline. However, the overcapacity and relative saturation of aniline in the domestic market has slowed down its development since 2012.
In April 2014, there were mainly XXX active aniline producers in China. At present, most of them are located in East China and North China, close to the major end-users of aniline. And in 2013, the capacity and output of aniline in China reached XXX t/a and XXX tonnes, increasing by XXX% and XXX% respectively compared with those in 2012.
Compared with output and consumption of aniline, the export and import volume of the product is usually small in China. The export volume of the product has been on a general uptrend during 2008-2013 except for 2010 when the export witnessed a sharp decline. In 2013, China's export volume of aniline reached XXX tonnes. Meanwhile, during the period of 2008-2011, the annual import volume of aniline reached the highest in 2010. In 2011, only XXX tonnes of aniline was imported in the first two months, and from March 2011 to 2012, the import volume of aniline even recorded zero.
Generally, the price fluctuation of aniline is similar to that of benzene, which is the major raw material of aniline. Of course, the change in supply and demand of aniline also can influence its price fluctuation in a short term.
In China, aniline is mainly used in the production of MDI, rubber ingredients, dyestuff and organic pigment, cylclohexylamine, pharmaceuticals, pesticides, etc., among which MDI is the largest consumption field of aniline, with XXX% of the total consumption in 2013, and the second largest is rubber ingredient. MDI and rubber ingredient will still be the two main drivers for aniline consumption. Now, aniline consumption is mainly distributed in East China in which four MDI producers, and most rubber ingredients, dyestuff and pigment, pesticide producers are concentrated. And this situation is expected to last for years.
XX Commercial in Confidence.