General Description of Chinese Market for Foaming Agent ADC and OBSH

Foaming agent is a kind of agent which is usually added into polymer for causing microvoid by releasing the gas during the process . According to their structure, chemical foaming agents can be divided into three kinds: N - nitroso compounds (such as DPT, NTA, Foaming agent H); Azoic compounds (such as ADC,AIBN,DIAD,DEAD, Diazoaminobenzene, Barium azodicarboxylate); Hydrazides compounds (such as OBSH,TSH, BSH).At present, the main products include ADC, OBSH, H and so on, while the consuming amount of ADC occupies 90% in the global market and 95% in the Chinese market。 (Data sources: “The research status and development trend of foaming agent”, plastic science and technology, 2004).

Foaming agent ADC
China is the world's largest producer of ADC and the major manufacturers are Jiangsu Sopo, Hangzhou Haihong, Ningxia Risheng, etc.The production capacity of ADC in china has been kept growing from 100000 tons in 2005 to more than 250000 tons by the present with about 10% of the annual rate growth.
During recent years, the ADC industry in China has not only expanded its production scale but also achieved great improvements on technology, equipment, etc. On one hand, Sodium hypochlorite production equipment has been converted into large-scale with expanded condensation and oxidation reactor and using new continuous drying process, on the other hand the Hydrazine hydrate synthesis process,Oxidation process control parameters,process yield and the comprehensive utilization of by-products haav been optimized. Although the production technology has reached some great improvements, the raw material, hydrazine hydrate is synthesized by urea method which brings a serious resource waste and environmental pollution compared to the ketone nitrogen or hydrogen peroxide method widely used abroad.
There is a big gap between Chinese manufacturers and foreign suppliers on the development and research of modified ADC foaming agent,especially on production diversity and application research.Most of Chinese manufactures only produce pure ADC and only a handful suppliers develops a few modified ADC foaming agent but with a low production capacity, unstable performance and narrow range of application. China as a major exporter of ADC, mainly exported ADC powder with low added value and has to import deep processed ADC products with high added value from abroad.The market appeal of foreign products owing to the realization of oversea manufactures that the application of ADC product is as much important as producing ADC product. Thus they developed many kinds of modified ADC foaming agent according to the market needs and formed new brands with specificity of strong advantage products operating system.
ADC is widely used in EVA, PE, natural rubber, PVC + NBR blend foam, etc, especially suitable for EVAMD shoes material of large hot press molding foaming and small hot press molding foaming.The current consumption structure of ADC in Chinese market is as follows: PVC 40%,Polyethylene 35%, Polypropylene 12%, rubber 5%, others 8% (Data sources: “The research status and development trend of foaming agent”, plastic science and technology, 2004).
AC foaming agent market of China's traditional downstream industries are shoe industry and leather industry. With the expanding of application range, now AC has been used in building materials,household appliances,automobile interior trim, rubber and plastic heat preservation materials and other emerging applications.Particularly in the field of building materials and rubber & plastic heat preservation material, the market demand grows rapidly. With the industrial structure adjustment of shoe industry and leather industry, the high-end products in these industries will have a higher requirement of AC foaming agent.It is inevitable that the AC foaming agent will develop towards the trend of diversification and high grade in the future.

Foaming agent OBSH
Due to the ADC foaming agent may produce toxic substances SEM(semiearbazide) during pyrolysis,the European Union issued a directive (2004/1 / EC ) on January 6, 2004, forbidding the use of ADC foaming agent applied in PVC sealing gasket. Therefore OBSH in some fields has gradually replaced the ADC foaming agent,owing to its advantages of safety. And the market demand has been on the rise.
The consumption amount of OBSH is the largest among Sulfonyl hydrazide foaming agents. The price of OBSH is higher than that of ADC. As the decomposition temperature of OBSH is low, it can be used for the processing of polymer within its decomposition temperature range. Besides, due to some of its features, OBSH occupies a certain position in the field of rubber and plastic materials processing and is the most practical one among the Sulfonyl hydrazide foaming agent.
The application of OBSH has the following features:
Since most of the decomposition residues of OBSH are non-polar aryl polymers and low decomposition temperature can decrease foam insulation contraction,OBSH is mainly used for LDPE extrusion foaming, making wire or cable insulation coating and providing good electrical insulation.
OBSH was used to vulcanize rubber- plastic mixtures or carbonyl rubber. It is not necessary to add vulcanizing agent to the formula because of the dual role of foaming and curing that have a good balance in each other. For instance, NBR-PVC mixture foaming extrusion was used to making thermal insulation material in industry.
OBSH and AC composed of mixed blowing agent with a high and a low decomposition temperature. The dosage of OBSH is the 10-50% of the dosage of AC. OBSH played the role of activating AC applying lot of PVC and PE foaming formulation. The decomposition heat of OBSH is higher than AC which makes AC resolve completely under its normal decomposition temperature to avoid products yellowing and non-uniform bubble structure. The product can be made into wallpaper with a high whiteness and reducing the dosage of titanium dioxide.
Main suppliers of OBSH around the world include EIWA in Japan, Dongjin and Kumyang in Korea, Lion Copolymer in America, Bayer in Germany, etc. In 2010, Kumyang invested in factory to product ADC, hydrazine hydrate, OBSH and other products in Inner Mongolia, China. In 2006, EIWA invested in factory to product OBSH in Jiangsu, China. In the mean time they purchase OBSH finished products and OBSC as raw material from Chinese enterprises to produce and process the special type of OBSH. Currently, China has become one of the main OBSH producer whose output has reached more than 4000 tons/year.

Foaming agent supplier in China
Currently, the ADC foaming agent, modified ADC and OBSH produced in China was mainly exported to abroad which have driven the sustainable development of the export trade in this field. Hangzhou Chemfar is the main supplier in China that has engaged in research and development of chemical foaming agent and sales for more than ten years. The main products of Hangzhou Chemfar include ADC foaming agent, modified ADC and OBSH. ADC exported by Hangzhou Chemfar was manufactured with hydrazine hydrate synthesized by new technology of hydrogen peroxide oxidation and continually used no acid condensation to achieve a cleaner production of ADC foaming agent and ROHS compliance. In addition, in accordance with the foreign customers' requirements, the company has developed the modified formula of ADC and TSH complex. Thus the company greatly broaden the application range of the ADC foaming agent products .
Meanwhile, Hangzhou Chemfar keeps doing OBSH modified research and market promoting. The Company has made great progress in compound and controlling particle size and distribution. The quality of products from Hangzhou Chemfar has basically reached the level of foreign manufacturers. Since the raw material of OBSH mainly produced in China, China's OBSH has a strong competitive price. At present, the company has established good sales channels in the international market and become one of a handful of professional supplier of OBSH in China.
The development trend of chemical foaming agent
Foaming agent market in China now appeared the phenomenon of excess production capacity after double-digit growth over the past few years . ADC is particularly overcapacity. According to Research report of China ADC foaming agent industry analysis and prospects latest published in CCAON, as of June 2012, production capacity of ADC industry was more than doubled compared with 2010 basic. Meanwhile, the ADC industry should Face with weak demand at home and abroad market. Status of oversupply has put pressure on market confidence. On the other hand, capacity of Chinese producers has not been released in full due to China has intensified the efforts on environmental policy implementation during the twelfth five-year and actual limited supply relative supporting the foaming agent market.
In consideration of gradually strengthened Industrial pollution remediation efforts by the government of China at present, major domestic manufacturers also are actively research and develop green chemical foaming agent products. For example, CFA - A8 associated research and developed by The Zibo positive Additives Co., Ltd and Shandong University of Technology which was a green environmental protection polyurethane chemical foaming agent and reached the international advanced level have passed appraisal in Beijing. The CFA - A8 is the only one completely water-soluble and non-aqueous chemical foaming agent in the world currently that compound by China scientist for the first time. The product can replace CFCS physical foaming agent existing in the world ( New type of polyurethane foaming agent going green and environmental protection, 2013-04-01, Source: Science and Technology Daily). We believe that the environment protecting chemical foaming agent products will win the market in the future.