Specialty Chemical Industry - Yang Wei
Specialty Chemical Industry - Yang Wei
Specialty Chemical Industry - Yang Wei
Yang Wei
Director, Specialty Chemicals
+86 (0)10 65334695
wei.yang@ihsmarkit.com
Central/South America
China 5%
23%
Western Europe
Japan 17%
8%
Commodity Commodity
chemical chemical
92% 83%
Source: IHS Markit © 2017 IHS Markit Source: IHS Markit © 2017 IHS Markit
China and Other Asia still have a long way to grow per capita
300
Dollars
200
100
0
North America Western Japan China Other Asia World average
Source: IHS Markit Europe © 2017©IHS
2016
Markit
IHS
Surfactants
Other
9%
39%
Oilfield chemicals
7%
Specialty polymers
Water-management 6%
chemicals
4% Catalysts
5% Water-soluble polymers
Cosmetic chemicals 5%
4% Food additives Flavor&Fragrance
Source: IHS Markit 5% 5% © 2017©IHS
2016
Markit
IHS
Specialty Coating
7%
Cleaners
4%
Water soluble polymers
5%
Flavor&Fragrance
4%
Surfactant Catalyst Plastics Additive
Source: IHS Markit 4% 5% 5% © 2017©IHS
2016
Markit
IHS
0
North CSA Western CEE MEA Japan China Other Asia
America Europe
Source: IHS Markit © 2017©IHS
2016
Markit
IHS
Substantially
– Electronics – Digitalization
above GDP – Health care – Ageing population
– Personal care – Wealthier middle class
– Automotive – Urbanization/increased family income
Above GDP – Food – Regulation
– Home care – Consumption upgrade1
– Petrochemicals – Consumption upgrade1
In line with – Oil & gas – Off-shore, shale gas
GDP
– Slowdown in infrastructure spend/ recent
– Construction oversupply
– Apparel/textile – Relocation to lower labor cost countries
Below GDP – Publishing – Digitalization
– Mining – Resource intensity of economy
Confidential. © 2017 IHS MarkitTM. All Rights Reserved.
11
Average = 6.3%
15
Market size ($billion)
Construction
Electronic
10
Special coating
Plastic additive
F&F Cleaner
Textile
5 Cosmetic
Paper Nutraceutical
Synlube HP thermoplastics
Water management
0
4 5 6 7 8 9 10
Source: IHS Markit Annual growth rate (%) © 2017 IHS Markit
Group II
Mineral
Additives Group III
Group I
Vacuum
distillation
Atmospheric Solvent
HDT HIS Group II Group III
residue extraction
C8-C12 PAO
Nonionic, Detergent
C10-C16
alcohol
Chemicals Enter New Frontiers: Industry Innovates and Adjusts to Uncertainty in Energy and Economy
Confidential. © 2017 IHS MarkitTM. All Rights Reserved. 16
17
China PAO consumption by market- 2015 N.A PAO consumption by market- 2015
Industrial Other
Automotive compress 2%
22% or
13%
Industrial
Wind gear oil
Industrial turbine 20%
67% 11%
Automotive
65%
300 50%
250 40%
% Change
200
30%
gw
150
20%
100
50 10%
0 0%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: IHS Markit
Wind capacity Capacity change © 2017©IHS
2016
Markit
IHS
Percent %
14%
12%
10%
8%
6%
4%
2%
0%
Source: IHS Auto/Aviation Wind turbine Industrial © 2016 IHS
• Small = cheaper
• Small = better
65 nm
=130×0.7 We are HERE
=90×0.7 45 nm
=65×0.7 ……
22 nm
Note that 1 nm=1/1,000,000,000 14 nm
m 10 nm
7 nm
Confidential. © 2017 IHS MarkitTM. All Rights Reserved.
Chemical Materials
• Silicon Wafer
Metal Circuit • Atmospheric and Specialty Gases
• Dielectric Materials: low-k and high-k
• Thin Film Metals
Silicon Gate • Copper Plating Chemicals
Insulator(SiO2)
• Photoresist and Ancillaries
Source Drain • CMP Slurries
Atmospheric&Special
Gases
19%
Silicone Wafer
42%
CMP Slurries
8%
Wet Processing
Chemicals
7%
Photoresist&Ancillary
17%
Confidential. © 2017 IHS MarkitTM. All Rights Reserved.
26
27
IC Process Chemicals
IC Process Chemicals Market by Region- 2013 IC Process Chemicals Market by Region- 2016
Europe Europe
12% 11%
Korea Korea
19% Japan
19%
Japan 17%
China 19% China
8% 10%
12
10
0
North America Europe Japan China Korea Taiwan ROW
Strategic Implications
• The market growth of specialty chemicals is in line
with regional GDP
• China is leading the specialty chemical market
growth
• China is transitioning its focus from commodity to
specialty chemicals
• PAO is more blended into auto engine oil
• Electronic chemicals are moving from Japan and
Europe to mainland China