The development of the Southeast Asian chemical market is based on a large consumer group, low-cost labor, and loose policies. Some people in the industry say that the current chemical market environment in Southeast Asia is very similar to that of China in the 1990s. With the experience of rapid development of China’s chemical industry, the development trend of the Southeast Asian market has become increasingly clear. So, there are many forward-looking enterprises actively expanding the Southeast Asian chemical industry, such as the epoxy propane industry chain and propylene industry chain, and increasing their investment in the Vietnamese market.
(1) Carbon black is the largest chemical exported from China to Thailand
According to customs data statistics, the scale of carbon black exported from China to Thailand in 2022 is close to 300000 tons, making it the largest chemical export among the bulk chemicals counted. Carbon black is added to rubber as a reinforcing agent (see reinforcing materials) and filler through mixing in rubber processing, and is mainly used in the tire industry.
Carbon black is a black powder formed by the complete combustion or pyrolysis of hydrocarbons, with the main elements being carbon and a small amount of oxygen and sulfur. The production process is combustion or pyrolysis, which exists in a high-temperature environment and is accompanied by a large amount of energy consumption. Currently, there are few carbon black factories in Thailand, but there are many tire enterprises, especially in the southern part of Thailand. The rapid development of the tire industry has led to a large demand for carbon black consumption, resulting in a supply gap.
Tokai Carbon Corporation of Japan announced in late 2022 that it plans to build a new carbon black factory in Rayong Province, Thailand. It plans to start construction in July 2023 and complete production before April 2025, with a carbon black production capacity of 180000 tons per year. The investment of Donghai Carbon Company in building a carbon black factory also highlights the rapid development of Thailand’s tire industry and the growing demand for its carbon black.
If this factory is completed, it will maximum fill the gap of 180000 tons/year in Thailand, and it is expected that the gap of Thai carbon black will be reduced to around 150000 tons/year.
(2) Thailand imports a large amount of oil and related products every year
According to Chinese customs statistics, the scale of oil additives exported from China to Thailand in 2022 is around 290000 tons, diesel and ethylene tar is around 250000 tons, gasoline and ethanol gasoline is around 110000 tons, kerosene is around 30000 tons, and ship fuel oil is around 25000 tons. Overall, the total scale of oil and related products imported by Thailand from China exceeds 700000 tons/year, indicating a significant scale.
Post time: May-30-2023