1. Favorable factors

(1)?Policy support

As a bio-based new material and a green and environmentally friendly material, the extensive application of cellulose ether in the industrial field is the development trend of building an environment-friendly and resource-saving society in the future. The development of the industry is in line with my country’s macro goal of achieving sustainable economic development. The Chinese government has successively issued policies and measures such as “National Medium and Long-Term Science and Technology Development Plan (2006-2020)” and “Construction Industry “Twelfth Five-Year Plan” Development Plan” to support the cellulose ether industry.

According to the “2014-2019 China Pharmaceutical Food Grade Cellulose Ether Market Monitoring and Investment Prospect Analysis Report” released by China Industry Information Network, the country has also formulated strict environmental protection standards, which has raised the emphasis on environmental protection issues to a new level. Larger penalties for environmental pollution have played a positive role in solving problems such as disorderly competition in the cellulose ether industry and integrating industry production capacity.

(2)?The prospect of downstream applications is broad and the demand is increasing

Cellulose ether is known as “industrial monosodium glutamate” and can be used in various fields of the national economy. Economic development will inevitably drive the growth of the cellulose ether industry. With the continuous development of my country’s urbanization process and the government’s strong investment in fixed assets and affordable housing, the construction and building materials industry will greatly increase the demand for cellulose ether. In the fields of medicine and food, people’s awareness of health and environmental protection is gradually increasing. Physiologically harmless and non-polluting cellulose ether products such as HPMC will gradually replace other existing materials and develop rapidly. In addition, the application of cellulose ether in coatings, ceramics, cosmetics, leather, paper, rubber, daily chemical and other industries is becoming more and more extensive.

(3)?Technological progress drives industry development

In the early stage of the development of my country’s cellulose ether industry, ionic carboxymethyl cellulose ether (CMC) was the main product. With the manufacture of ionic cellulose ether represented by PAC and non-ionic cellulose ether represented by HPMC With the development and maturity of the process, the application field of cellulose ether has been expanded. New technologies and new products will quickly replace the traditional cellulose ether products in the past and promote the development of the industry.

2. Unfavorable factors

(1)?Disorderly competition in the market

Compared with other chemical projects, the construction period of the cellulose ether project is short and the products are widely used, so there is a phenomenon of disorderly expansion in the industry. In addition, due to the lack of industry standards and market norms formulated by the state, there are some small enterprises with low technical level and limited capital investment in the industry; some of them have environmental pollution problems to varying degrees in the production process, and use low-quality , The low cost and low price brought by low environmental protection investment have impacted the cellulose ether market, resulting in a state of disorderly competition in the market. After the introduction of new technologies and new products, the elimination mechanism of the market will improve the existing state of disorderly competition.

(2)?High-tech and high value-added products are subject to foreign control

The foreign cellulose ether industry started earlier, and the production enterprises represented by Dow Chemical and Hercules Group in the United States are in an absolute leading position in terms of production formula and technology. Restricted by technology, domestic cellulose ether companies mainly produce low-value-added products with relatively simple process routes and relatively low product purity, while foreign companies have monopolized the market for high-value-added cellulose ether products by taking advantage of technological advantages; therefore, In the domestic cellulose ether market, high-end products need to be imported and low-end products have weak export channels. Although the production capacity of the domestic cellulose ether industry has grown rapidly, its competitiveness in the international market is weak. With the development of the cellulose ether industry, the profit margins of low value-added products will continue to shrink, and domestic enterprises must seek technological breakthroughs to break the monopoly of foreign enterprises in the high-end product market.

(3)?Fluctuations in raw material prices

Refined cotton, the main raw material of cellulose ether, is an agricultural product. Due to changes in the natural environment, the output and price will fluctuate, which will bring difficulties to the raw material preparation and cost control of downstream industries.

In addition, petrochemical products such as propylene oxide and methyl chloride are also important raw materials for the production of cellulose ether, and their prices are greatly affected by fluctuations in the crude oil market. Changes in the international political situation often have an impact on crude oil prices, so cellulose ether manufacturers need to face the adverse effects of frequent fluctuations in oil prices on their production and operation.