Tag Cyclopentane

Polyurethane (PU) Foam Projects in Progress

Report on completion of fire-fighting and halon sector plan

The ozone layer in the stratosphere can absorb majority of harmful ultraviolet rays and protect the earth’s organisms from harm. However, some man-made chemicals used extensively by human beings have seriously damaged the ozone layer, resulting in a large number of harmful ultraviolet rays directed at the earth, causing serious damage to the earth’s biological and ecological environment. These ozone-depleting chemicals are collectively referred to as ozone-depleting substances (ODS) by the scientific community. In order to protect the ozone layer and phase out ODS, the “Vienna Convention for the Protection of the Ozone Layer” (hereinafter referred to as the Convention) and the “Montreal Protocol on Substances that Deplete the Ozone Layer” (hereinafter referred to as the Protocol) were signed by the international community in 1985 and 1987 respectively. China acceded to the Convention and the Protocol in 1989 and 1991, respectively.

In accordance with the provisions of the Protocol, China’s fire-fighting sector needs to phase out Annex A, Group II Halon 1211 and Halon 1301. On 12th January 1993, Chinese Government approved the implementation of the “National Programme for the Phase-out of Ozone-depleting Substances in China “(hereinafter referred to as the National Programme) and, with the support of the Multilateral Fund, the ODS phase-out action began.

In order to ensure the progress of Halon elimination in the sector, China has carried out a lot of work in the early stage of halon elimination. Under the unified planning of the State Environmental Protection Administration (SEPA), the Ministry of Public Security (MPS) and the Fire Department held many exchanging meeting, did sufficient propaganda work, conducted a thorough investigation of the whole sector, conducted a series of seminars, studied the development strategy of alternatives, and organized many important activities such as Halon Elimination Strategy.

From 1993 to 1997, China implemented a series of Halon elimination projects with a total amount of 4.657 million US dollars, which played a certain role in the elimination of halons. However, the elimination methods of single projects have limitations as China’s complex and diversified sectors and rapid economic growth. At the “International Symposium on Sector Strategy of China’s ODS Elimination” held in Xi’an in June 1995, the concept of sector overall phase-out was first proposed. At the 17th Executive Committee meeting, the Executive Committee approved the project preparation fee of “further development of sector mechanism by the World Bank (hereinafter referred to as WB)”. WB applies for funds on behalf of the Chinese government for the development of sector-based elimination methods. The consumption of Halon 1211 and halon 1301 in China’s fire-fighting sector accounts for more than one third of the national ODS consumption, and the ODP value of Halon is larger. Therefore, the elimination of halons in fire-fighting sector is of great significance to the effective implementation of the National Program. The fire sector was chosen as a pilot for the overall elimination of the other sectors, and firefighting become the first sector in China that achieved overall phase-out.

[Hot Spot Focus]: Raw materials continue to rise, why does cyclopentane price only drop?

Cyclopentane is divided into coal and petroleum production processes, so there are two kinds of raw materials. The petroleum grade feedstock is the by-product cracking C5 and reforming byproduct mixed C5 of ethylene cracking unit, and the coal grade feedstock is the by-product of crude benzol hydrogenation. Although the raw materials are different, there is no significant difference in the quality of cyclopentane, and the downstream application is basically the same, mainly as the foaming agent of rigid polyurethane foam.
At present, nearly half of the domestic enterprises use coal technology, accounting for 45% of the total number of enterprises and 47% of the production capacity. The price rise and fall of non aromatics directly affect the raw material cost of cyclopentane, and then affect the pricing of cyclopentane.
Non aromatic hydrocarbons have risen step by step since August 10, 2020 and have risen to 3,820 yuan / ton so far, up 700 yuan / ton or 22.4% compared with the beginning of the month. The high-end price of cyclopentane stabilized at 9,900 yuan / ton, while the price of low-end channel began to decline step by step since August 12, 2020 and has dropped to 8,700 yuan / ton so far, which is 500 yuan / ton or 5.4% lower than that at the beginning of the month.
Recently, the price of non aromatic hydrocarbons has been rising due to the shortage of on-site goods. However, the cyclopentane market was stable, and some ex factory prices still fell. Why?

Cyclopentane market price trend

CHINESE YUAN RENMINBI EXCHANGE RATES TABLE

Oct 19, 2020 12:26 UTC

Chinese Yuan Renminbi1.00 CNYinv. 1.00 CNY
US Dollar0.1496386.682810
  1. The price adjustment flexibility of cyclopentane in high-end channels is poor. The pricing cycle of factories and large-scale terminal industries is long, mostly quarterly or annual, so the pace of cyclopentane rising this time is limited.
  2. It is difficult for low-end channel to ship goods, and the manufacturer reduces the price to arrange the warehouse. Although the pricing of small and medium-sized terminal industries is flexible, due to the further inspection of safety and environmental protection, some of them shut down for rectification or withdraw from the market, resulting in insufficient demand, weak low-end channel delivery, rising inventory, and part of the price reduction.
    To sum up, cyclopentane market did not rise with raw materials, the price of high-end channel was stable due to the lack of pricing cycle, and the low-end channel was reduced to ship due to insufficient demand.
    Source: Chemical Industry News
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