The geopolitical crisis in Eastern Europe may provide new opportunities for the domestic 4,4′-diaminodicyclohexylmethane industry

4,4′-Diaminodicyclohexylmethane, referred to as PACM or HMDA, is a colorless or slightly yellowish viscous or white waxy substance. It has a wide range of uses and can be used in textiles, papermaking, artificial leather, and plastic processing; as dyes and medicines Raw material for intermediates; also raw material for manufacturing urethane, polyamide resin, epoxy resin curing agent, strong electrical insulation material, tape adhesive, etc.

4,4′-Diaminodicyclohexylmethane is a capital- and technology-intensive industry with relatively few global production companies. The production capacity is mainly concentrated in the hands of Air Chemicals, BASF and Yantai Wanhua Chemical. Among them, Air Chemicals and BASF are the major players. An established chemical giant with relatively strong technical strength, a long production history, and market channel layout in various regions around the world, it has great influence in the industry. However, due to the relocation of manufacturing industries in Europe and the United States and the industrial development of developing countries represented by China, the center of global 4,4′-diaminodicyclohexylmethane production has shifted from developed countries in Europe and the United States to developing countries. The air quality of the United States has Chemicals and BASF’s dominant position in the global 4,4′-diaminodicyclohexylmethane industry has weakened. The participation of China’s Yexu Industrial, Qingquan Chemical and other companies has also largely promoted the development of the 4,4′-diaminodicyclohexylmethane industry and the reshaping of the global supply structure. According to the released “2022 PACM (4,4′-diaminodicyclohexylmethane) industry development status and investment strategy recommendations report》shows that in 2021, the global 4,4′-diaminodicyclohexylmethane production capacity will exceed 30,000 tons, with China accounting for more than half of the share. China has gradually become the center of global 4,4′-diaminodicyclohexylmethane production.

Although 4,4′-diaminodicyclohexylmethane is widely used, it is mainly used in the production of HMDI and as an epoxy resin curing agent. It is rarely used in other fields. Therefore, the development of HMDI and epoxy resin markets has a great impact on 4 , 4′-diaminodicyclohexylmethane demand has a relatively large impact. In recent years, domestic chemical companies represented by Wanhua Chemical have realized the production of the entire industrial chain from PACM to HMDI. Most of the PACM they produce are directly used to produce HMDI, and only a small number of products are exported. In terms of curing agents, with the development of China’s epoxy resin industry, 4,4′-diaminodicyclohexylmethane, as an important epoxy resin curing agent, has seen an overall growth trend in market demand. Especially in 2021, with the global market recovering and the supply chain disordered, the global 4,4′-diaminodicyclohexylmethane market volume and price have increased, which has greatly stimulated China’s 4,4′-diaminodicyclohexylmethane market. Expansion of the methane market size.

Analysts believe that recently, the chemical market has declined, and the demand and prices for many types of chemical raw materials have declined. At the same time, geopolitical conflicts in Eastern Europe have triggered turbulence in the global energy market. Coupled with the approaching winter and rising heating demand, production in industrial countries such as Germany and France has been greatly affected. BASF’s production base in Germany is facing difficulties, which may lead to global 4,4 ‘-Diaminodicyclohexylmethane demand direction seeks supply from Chinese companies, which in turn brings new growth opportunities to related domestic companies.