Epichlorohydrin Industry Overview
Epichlorohydrin (ECH) is an important organic chemical raw material and fine chemical product, currently 85% of which is used in the production of epoxy resin. Epoxy resins feature high adhesion, low shrinkage, chemical resistance, good stability, high impact strength, and excellent dielectric properties. Epichlorohydrin production processes primarily include high-temperature chlorination of propylene, chlorination of glycerin, and direct oxidation. A comparison of their process characteristics is shown below:
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Comparison Of Three Production Process Routes Of Epichlorohydrin |
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Process Route |
Features |
Main Raw Materials |
| Propylene High-Temperature Chlorination Method | Propylene; Chlorine; Calcium Oxide | Flexible production, mature process, stable operation; high gas consumption facilitates alkaline-chlorine balance in gas-alkali plants. |
| Low yield, severe equipment corrosion, high energy consumption, and large emissions of “three wastes.” | ||
| Glycerol Chlorination Method | Glycerol; Hydrogen Chloride; Sodium Hydroxide | Simple process, short flow; mild and safe operating conditions; few byproducts, low wastewater discharge; low investment and operating costs. |
| High requirements for organic high-salt wastewater treatment, difficulty in recovering and reusing salt; raw materials are significantly affected by international factors. | ||
| Direct Oxidation Method | Hydrogen Peroxide; Allyl Chloride | Advanced process, shorter flow, abundant raw materials, stable quality, low wastewater volume, no waste residue, more environmentally friendly, and more reasonable investment and operating costs. |
| Industrial application is not yet mature, and the process flow and key equipment are still in the optimization stage. | ||
Epichlorohydrin Industry Chain
Industry Chain Structure
my country’s epichlorohydrin production processes primarily include high-temperature chlorination of propylene and chlorination of glycerin. Due to national environmental protection policies, high-temperature chlorination of propylene is gradually being phased out, while chlorination of glycerin is developing rapidly. Direct oxidation is still in its exploratory stages. The upstream raw materials of the epichlorohydrin industry chain primarily include propane, chlorine, glycerin, and hydrogen chloride. The midstream of the industry chain comprises epichlorohydrin production. The downstream industry chain primarily applies to coatings, electronics, composite materials, adhesives, and other applications.
Production Process Distribution
In 2018, the primary epichlorohydrin production processes in my country were the chlorohydrin process and the glycerol chlorination process, each accounting for over 40% of the market, with similar figures. However, due to the high by-products, high energy consumption, and significant environmental pollution associated with the chlorohydrin process, increasingly stringent environmental protection policies have led to the gradual withdrawal of outdated chlorohydrin production facilities from the market, resulting in a significant decline in its share, reaching approximately 19% by 2023.
Current Development Status of the Epichlorohydrin Industry
Current Production Capacity
With the steady expansion of the downstream epoxy resin industry, my country’s epichlorohydrin manufacturers are also actively developing capacity. Driven by industrial integration, China’s epichlorohydrin production capacity will continue to expand in 2024, reaching a total of 2.215 million tons, a year-on-year increase of 20.91%. The compound annual growth rate (CAGR) for production capacity over the past six years has reached 9.19%, demonstrating rapid growth.
Supply and Demand Status
Driven by increased production capacity, my country’s epichlorohydrin production has also increased. According to statistics, my country’s epichlorohydrin production will reach 1.275 million tons in 2024. Driven by downstream markets such as epoxy resins, my country’s epichlorohydrin market demand has steadily increased. According to statistics, my country’s epichlorohydrin demand will reach 1.2744 million tons in 2024.
Import and Export Status
Regarding imports, customs data show that my country’s total epichlorohydrin imports in 2024 will reach 646.97 tons, a year-on-year decrease of 52.7%. From 2018 to 2024, my country’s epichlorohydrin imports have shown a downward trend year by year. This is mainly due to the overcapacity of epichlorohydrin in China in recent years, the tightening of the import arbitrage window, the decline in import dependence, and the weak domestic demand. Some factories are operating at low capacity, which has limited the growth rate of production and led to the decline in imports. In 2024, my country’s total epichlorohydrin exports reached 843,527,190 tons, a year-on-year increase of 45.79%, setting a new record high.
According to statistics, in 2024, my country’s epichlorohydrin exports were primarily destined for South Korea, Thailand, Taiwan, India, and Brazil. South Korea ranked first with 53,900 tons, accounting for 64.08% of total exports. Thailand was second with 12,800 tons, or 15.15%. Taiwan, India, and Brazil combined accounted for 10,600 tons, or 12.63%, while other regions accounted for 8.14%.
Epichlorohydrin Industry Development Trends
To achieve carbon peak and carbon neutrality goals, companies using the energy-intensive and highly polluting high-temperature propylene chlorination process will face severe challenges, while the share of production capacity using the glycerol process is expected to increase further. With the continued tightening of domestic environmental protection requirements and market quality standards for epichlorohydrin, the development model is shifting from high-speed growth to high-quality development. To achieve lasting progress in the epichlorohydrin sector, it is vital to push for the creation and use of eco-friendly and productive methods, cutting down on both resource use and pollution right from the start.
Studies show that greener production methods for epichlorohydrin are the way forward, especially processes using hydrogen peroxide. Companies should look into both local and global markets, change their product offerings, and broaden how epichlorohydrin is used. They can also grow their businesses by connecting different production steps, which can lower costs. By flexibly adjusting product supply, they can capitalize on profit cycles and enhance competitiveness.
