As backward production capacity is gradually cleared, the concentration of the chlorinated paraffin market will increase.

Chlorinated paraffins, also known as chlorinated hydrocarbons, are chlorinated derivatives of C10-C30 paraffin hydrocarbons. The upstream raw materials of chlorinated paraffin are chlorine and liquid paraffin, which have a large demand for chlorine. According to the different chlorine content, chlorinated paraffin can be divided into chlorinated paraffin-42, chlorinated paraffin-52, chlorinated paraffin-70, etc. Variety, among which chlorinated paraffin-52 is the mainstream product in the market, accounting for more than 90%.

Chlorinated paraffin has excellent electrical insulation and is mainly used as a flame retardant and polyvinyl chloride plasticizer to produce cable materials, sheets, hoses, artificial leather and other products. Chlorinated paraffin production methods are divided into continuous chlorination method, intermittent chlorination method, etc., involving thermal chlorination method, catalytic method and photochlorination method. In recent years, due to increasingly strict environmental protection regulations, backward production capacity of chlorinated paraffins has continued to withdraw from the market, and the market competition pattern has improved.

According to the “2022-2026 Chlorinated Paraffin Industry Market In-depth Research and Investment Prospects Forecast Analysis Report released by the Industrial Research Center, my country is the world’s largest producer of chlorinated paraffin, with its production capacity accounting for more than 60% of the world’s total production capacity. In 2021, the production capacity of my country’s chlorinated paraffin industry will be about 2 million tons, and the market consumption will be about 1.1 million tons. From this point of view, my country’s chlorinated paraffin industry has serious overcapacity.

There are a large number of chlorinated paraffin production companies in my country. At present, there are more than a thousand related companies, mainly distributed in Henan, Hebei, Shandong, Jiangsu, Guangdong and other regions. Among them, Henan has a larger number of chlorinated paraffin companies. As the supply-side structural reform continues to deepen, the survival of the fittest in the chlorinated paraffin market is accelerating, and the operating pressure of backward enterprises has increased and they have gradually withdrawn from the market. Against this background, the concentration of the chlorinated paraffin market has increased, and the industry has developed towards environmental protection and health. Upgrading in the direction of specialization, scale and centralization.

Domestic chlorinated paraffin manufacturers include Zhenyang Development, Zhengzhou Century Dragon Chemical, Jiangxi Dongfang Julong Chemical, Hebei Hongxinyuan Chemical, Shihua Haoyu Chemical, etc. The market competition is fierce. Chlorinated paraffin production enterprises can be divided into two major models: supporting production by chlor-alkali enterprises and supporting production by non-chlor-alkali enterprises. Among them, supporting production enterprises have obvious advantages in raw materials, transportation, channels and costs, and have a higher market share.

The overall price of chlorinated paraffin will be relatively stable in 2021. In 2022, due to the influence of international factors, the market prices of liquid paraffin and liquid chlorine have increased, and the production cost of chlorinated paraffin has increased. At the same time, affected by the epidemic, the operating load of chlorinated paraffin units in some areas has been reduced. The decline in regional production supports the continued rise in chlorinated paraffin market prices.

Industry analysts said that my country is a major producer of chlorinated paraffin, and the domestic market is becoming increasingly mature. With the intensification of market competition and environmental protection requirements Increasingly stringent, backward production capacity of chlorinated paraffin has accelerated its withdrawal from the market, and the development of the industry has shifted towards environmental protection and scale. The chlorinated paraffin market is oversupplied, but as backward production capacity is cleared and market demand is released, the chlorinated paraffin market still has certain room for development.