Domestic cashew nut shell liquid relies entirely on imports, cashew nut shell liquid derivatives will become the entry point

Cashew nut shell liquid includes cashew nut shell liquid (CNSL) and industrial cashew nut shell liquid (TCNSL). Among them, cashew nut shell stock liquid (CNSL) is a dark brown viscous liquid extracted from cashew nut shells through cold pressing or solvent; industrial cashew nut shell liquid (TCNSL) is obtained by further processing the cashew nut shell stock liquid through a heating process.

Currently, China has only planted cashew nuts in Hainan, Yunnan, Guangxi, Guangdong, Fujian and Taiwan. However, because the profits did not meet expectations, the scale of domestic cashew planting has been significantly reduced, and the output is very limited. The” China Cashew Nut Shell Liquid Market Feasibility Research Report 2023-2027″ issued by the Industrial Research Center shows that due to cashew nut supply constraints, There are currently no companies in China that produce cashew nut shell liquid, and all cashew nut shell liquid in the domestic market is imported. Import sources are Vietnam, India and other cashew nut shell liquid producing countries.

Judging from the downstream demand of cashew nut shell liquid, cashew nut shell liquid is rich in resources and low in price. It is mainly used in phenolic resin modification, antibacterial coatings, surfactants, epoxy curing agents and other fields. It can also be used in medicine, biological composite materials, etc. industry. In recent years, driven by downstream industries, domestic demand for cashew nut shell liquid has continued to rise. In the future, with the further development of epoxy curing agents, phenolic resins, antibacterial coatings, surfactants and other industries, as well as the expansion of the application scope of cashew nut shell liquid derivatives, the domestic market demand for cashew nut shell liquid will continue to increase.

However, considering the supply of upstream raw materials, there is a high probability that no domestic company will consider localized production of cashew nut shell liquid. There will be no fundamental changes in the competition pattern of China’s cashew nut shell liquid market, and cashew nut shell liquid products will remain dependent on imports. . However, cashew nut shell liquid has excellent properties in modification and polymerization, and can be widely used in phenolic resin, epoxy curing agent, antibacterial coating, surfactant and other fields, and cashew nut shell liquid polyol can be used in the production of polyurethane series products, so domestic There will be companies that may invest in the cashew nut shell liquid derivatives industry, such as cardanol, CNSL resin, epoxy curing agents, cashew nut shell liquid polyols and glycols, etc.

Industry analysts said that foreign cashew nut shell oil companies can be roughly divided into three categories in terms of business layout: First, “cashew nut processing + Cashew nut shell liquid” business portfolio, the second is the “cashew nut shell liquid + cashew nut shell liquid derivatives” business portfolio; the third is the “shelled cashews + cashew nut processing + cashew nut shell liquid + cashew nut shell liquid derivatives” full industry chain business portfolio. Domestic companies that directly develop the cashew nut shell liquid business will be restricted by upstream raw materials and will not have cost advantages. However, in the field of cashew nut shell liquid derivatives, relevant companies can participate in market competition with existing companies through technological innovation, and can also participate in market competition through technological innovation, such as in Vietnam. Locally establish a cashew nut shell liquid production base to meet its own production needs.