Market advantages of polyaldehyde resin

Over the years, the expansion of a large number of polyacetal resins in the Chinese market has raised concerns about overcapacity. Four large local producers have been closed and are unlikely to restart due to environmental, quality and cost problems, while the remaining producers have a profit margin of less than 50%. Chinese local manufacturers mainly serve the low-end market, including fasteners, buckles, coffee machines, etc., and have not made progress in more challenging applications such as automobiles. Chinese manufacturers with tight supply and demand of polyacetal are therefore in difficulties.

The market is expected to remain tight in the next three years. It is expected to increase production capacity by 2022, but given China's recent environmental remediation actions, it may increase in China, but it is not clear. In the automotive sector, plastic products are expected to continue to decline as electric vehicles enter the market. Polyacetal is a related component widely used in fuel production. On the other hand, other resins in the portfolio, such as PPS and PBT, can also benefit from electrification. Another growth area of polyaldehyde resins is factory automation, where resins are used to compress valves and other components. With the growth of China's labor force and the continuous improvement of wage level, China is investing heavily in factory automation

The POM market in Japan is expected to remain tight in the next three years. Japan's Poly plastics company expects to increase production capacity by 2022, but given China's recent environmental remediation actions, it may increase in China, but it is not clear. In the automotive sector, plastic products are expected to continue to decline as electric vehicles enter the market. Polyacetal is a related component widely used in fuel production. On the other hand, other resins in the portfolio, such as PPS and PBT, can also benefit from electrification.

Another growth area of polyaldehyde resins is factory automation, where resins are used to compress valves and other components. With the growth of China's labor force and the continuous improvement of wage level, China is investing heavily in factory automation.