By the end of 2020, global cobalt reserves totaled about 7 million tons, 3.60 million tons or 50% of which were in Congo (Kinshasa). Australia, Cuba. Etc. accounted for 5% to 20% respectively while China only accounted for only about 1%.

In 2020, the global production volume of cobalt was about 140,000 tons, decreasing by nearly 3% YOY. The production volume of cobalt in Congo (Kinshasa) was about 95,000 tons, decreasing by nearly 5% YOY. Cobalt production declined consecutively in Congo (Kinshasa) from 2018 to 2020 because Luoyang Molybdenum’ TFM copper and cobalt mine, the world’s third largest cobalt mine, has reduced its production from 2019. Glencore’ Mutanda, the world’s largest mine, has been shut down for technical reforms for three consecutive years since 2020. At the same time, the new crown epidemic has affected the cobalt mining industry, resulting in insufficient cobalt supply,stimulating the rise of cobalt prices.

In recent years, global cobalt production stay above 130,000 tons per year and cobalt demand is also small. Therefore, cobalt prices can be easily manipulated to soar or slump, which is different from copper, aluminum, lead, zinc and other bulk commodities.

According to CRI’ market research, cobalt is mostly used in battery materials. It is estimated that in 2020, more than 60% of global cobalt consumption was attributable to the materials for 3C batteries, energy storage batteries, power batteries for new energy vehicles and other batteries. With the advent of 5G smart phones, 3C electronic shipments and unit charge will increase in the future. Mobile phones and new energy vehicles will account for about 70% of China’s cobalt applications.

If there is no major technological innovation, the cobalt demand from cemented carbides, high-temperature alloys and magnetic materials will remain stable in the next few years. And battery materials will be the largest growth driver for the cobalt demand from 2021 to 2025.

It is expected that li-ion batteries for electric vehicles will be the largest growth area for cobalt consumption in the battery sector. In recent years, the global production volume of electric vehicles has been growing fast at a growth rate far exceeding that of traditional vehicles. In 2020, the production volume of electric vehicles in China reached about 1.456 million units, increasing by 22% as compared to 2019. The demand for cobalt, an important raw material for electric vehicle batteries, will continue to grow. Power batteries have taken up the largest proportion of the downstream applications of cobalt.

As global new energy vehicle industry is developing rapidly, the global cobalt demand will also continue to rise. It is expected that from 2021 to 2025, the global production volume of new energy vehicles will grow at a CAGR of around 40%, the cobalt demand from ternary materials will grow at a CAGR of about 50% and the demand for energy storage lithium batteries will grow at a CAGR of nearly 50%. Meanwhile, ternary batteries will see an increase in penetration rate and their demand for cobalt will grow at a CAGR of 80%. The cobalt demand from 3C batteries and industrial batteries will maintain a CAGR of about 5%. Overall, the CAGR of global cobalt demand will stay around 10% from 2021 to 2025.

Topics covered:
Development environment for the cobalt industry
Supply of and demand for cobalt on global and Chinese markets
Analysis on major downstream industries of cobalt
Price trend of cobalt
Major cobalt mining and smelting enterprises and downstream enterprises in China and the world
Driving forces and market opportunities for the cobalt industry from 2021 to 2025
Threats and challenges to the cobalt industry from 2021 to 2025
Prospect of global and China’s cobalt industries from 2021 to 2025

The post Investigation Report on the Chinese Cobalt Market 2021-2025 first appeared on CRI Report.

According to CRI’s analysis, driven by low mining costs and low environmental protection costs, in the 1990s, Chinese enterprises started mining and exporting rare earth on a large scale. In the past decade, China’s rare earth reserves fell sharply. Its proportion in the global rare earth reserves once exceeded 70% while at the end of 2020, the proportion was only 38%. From 1998 to 2015, the Chinese government introduced an export quota licensing system for rare earth. On Mar. 26, 2014, the WTO ruled that China’s administrative measures for rare earth exports breached WTO rules. On May 1, 2015, the Chinese government canceled its tariffs on rare earth exports. On Jan. 1, 2016, it abolished the export quota licensing system. Before the export quota licensing system was abolished, many Chinese rare earth enterprises had difficulty obtaining export quotas, and smuggling became the main export method. Although the Chinese government rectified this phenomenon many times, it has not been able to completely eliminate this phenomenon.

In China, there is also a total control index system for rare earth ore (rare earth oxide REO) mining. The Rare Earth Mining Index is an enterprise mining index promulgated by the State Council of China, targeting strategic metal resources such as rare earth, tungsten, and molybdenum. In 2020, China’s total control indicators for the mining, smelting and separation of rare earth ore (rare earth oxide REO) are 140,000 tons and 135,000 tons respectively. Compared with 2019, mineral products increased by 6.1%, and smelting and separated products increased by 6.3% in 2020.

According to CRI’s analysis, the mining and refining of rare earth in China is monopolized by six major state-owned enterprises (SOEs). Non-SOEs only have access to downstream industries such as the production and application of rare earth materials.
At present, the annual production capacity of rare earth separation enterprises in China is about 400,000 tons, and the global annual demand is about 200,000 tons. The international market demand is about 90,000-100,000 tons, and the domestic market demand is about 100,000 tons. China’s rare earth dominance in the global market still exists, but its dominant advantage is gradually weakening. With the increase in local mining efforts in the United States, Japan, Australia and other countries, China’s rare earth production has fallen from 81.4% in 2016 to 58.3% to 2020. In 2020, China’s actual production of rare earths will exceed 150,000 tons, which is higher than the quota. The reason is that there are illegal mining and smuggling. There is no tax to engage in illegal mining and smuggling of rare earths, and the profit rate is very high, so it cannot be completely eliminated.

CRI shows that the prices of rare earth oxides and metals in China in 2020 are mostly higher than that in 2019. With the continuous escalation of the Chinese government’s crackdown on the illegal mining of rare earths and the adoption of policies such as the national reserve of rare earths, it is expected that rare earth prices can increase in the next few years.

The downstream demand for rare earths is divided into five major sectors: permanent magnet materials, catalytic materials, luminescent materials, polishing materials, and hydrogen storage materials. With the rapid development of global high-tech industries, rare earths are being applied to more high-tech fields and the consumption of rare earth new materials is growing rapidly. The new energy vehicle industry, the wind power industry and other consumers of rare earth all have a promising future, which promotes the development of the rare earth industry. For example, in 2020, the global production of new energy vehicles reached 2.55 million, among which 1.366 million units were produced in China, up by about 10% YOY. Rare earth hydrogen storage alloys are mainly used in NiMH power batteries. 95% of the world’s rare earth hydrogen storage alloys are supplied by China and Japan. The production of China’s hydrogen storage alloys exceeds 70% of the world’s total production. A hybrid electric vehicle needs about 10 kg of hydrogen storage alloy. In general, a hydrogen storage alloy contains 30% mischmetal, which means that a hybrid electric vehicle consumes about 3 kg of rare earth. The drive motor of a hybrid electric vehicle consumes about 1 kg to 3 kg of neodymium-iron-boron magnetic materials; the drive motor of a battery electric vehicle consumes about 5 kg to 10 kg.

CRI analyzes that according to the plan of the Chinese government, the annual production of new energy vehicles in China will exceed 5 million units by 2025. If this goal can be achieved, new energy vehicles will consume 50,000 tons of rare earths in 2025 or more, which will boost the development of China’s rare earth industry.

Topics Covered:

-Global supply of and demand for rare earth
-Global trade of rare earth
-Chinese government’s policies on rare earth
-Rare earth production in China
-Demand for rare earth in China
-China’s rare earth imports and exports
-Price trends of rare earth and rare earth materials in China
-Major rare earth mining and refining enterprises in China
-Major producers of rare earth materials in China
-Driving forces and market opportunities for China’s rare earth industry from 2021 to 2025
-Forecast on the supply of and demand for rare earth in China from 2021 to 2025

The post Investigation Report on the Chinese Rare Earth Market 2021-2025 first appeared on CRI Report.

The chlor-alkali industry refers to the production of basic chemical products including caustic soda, polyvinyl chloride and chlorine as significant chemical raw materials.

According to CRI, China is a leading power of the production capacity and volume of caustic soda , polyvinyl chloride and chlorine in the globe.

Related Report: Global Caustic Soda Market Research Report – Trends & Forecast, 2017-2027
Related Report: Research Report on China’s PVC Gloves Export 2023-2032
Related Report: Research Report on China’s Polyvinyl Chloride (PVC) Industry, 2018-2022

Up to the end of 2015, the number of existing caustic soda manufacturers was 163 and the total production capacity was 38.73 million tons per year with an increase of 28.2% compared to that of 2010 in China, of which the production capacity of ion-exchange membrane was 38.18 million tons with a proportion of about 98.6%. Caustic soda manufacturers mainly concentrate in Shandong, Jiangsu, Inner Mongolia, Xinjiang, Henan and Zhejiang with an aggregate production capacity proportion of 61.5% of the total.

There were 81 operating polyvinyl chloride manufacturers with a total production capacity of 23.48 million tons per year, of which the calcium carbide method was 19.18 million tons with a proportion of about 81.7% of the total by the end of 2015. Major production capacity was distributed in Inner Mongolia, Shandong, Tianjin, Shaanxi and Henan with an aggregate proportion of 62.2% of the total.

The chlor-alkali industry transfers in terms of development trend and structural problems for the slump growth rate of economy in China and the international financial crisis in 2008.

In recent years, the production capacity of new caustic soda and PVC experienced a significant growth with the rapid development and project investment in various areas. Meanwhile, the downstream consumption increased rapidly and stably while the growth rate was smaller than that of the production capacity with an intensifying overcapacity for the imbalance between supply and demand.

In addition, the production capacity of caustic soda and PVC is surplus and imbalanced in different regions. New expansion of the production capacity of caustic soda is to balance chlorine resources.

However, the production capacity of major auxiliary chlorine consuming products is surplus such as methane chloride, epichlorohydrin, chlorine-containing aromatic products, chloroethanoic acid, chlorinated paraffin, trichlorosilane, trichloroethylene and tetrachloroethylene. Central and western regions are major supply areas of caustic soda and PVC while eastern and southern regions are major consumption ones.

Large amount of PVC and solid caustic soda in central and western regions need to be sold to major consumption areas in east and south China due to the mismatch between the production capacity expansion and the distribution. According to incomplete statistics, the annual production capacity of about 800 million tons of caustic soda and 600 million tons of PVC were phased out of the market from 2011 to 2015.

The concentration rate of the chlor-alkali industry increased in China in recent years. The proportion of the production capacity scale of caustic soda enterprises under 10 million tons per year decreased from 15.4% in 2010 to 9.08% in 2015. The number of enterprises with a production capacity scale of over 40 million tons per year increased from 17 in 2010 to 23 in 2015 and the proportion increased from 27.1% to 37.7%.

Meanwhile, the proportion of the production capacity scale of PVC enterprises under 10 million tons per year decreased from 9.4% in 2010 to 4.8% in 2015. The number of enterprises with a production capacity scale of over 40 million tons per year increased from 17 in 2010 to 22 in 2015 and the proportion increased from 45.8% to 55.8%.

According to CRI, the annual export volume of caustic soda was over two million tons from 2011 to 2015 with destinations such as Australia, the U.S.A., Southeast Asia and Africa. PVC is exported to over ten destinations including India, Russia, Southeast Asia and Central Asia. Meanwhile, major export destinations of China PVC include India, Russia, Vietnam, Kazakhstan, Malaysia and Thailand.

In terms of environment protection, the Chlor-Alkali Industry is numerous in product and by-product varieties and discharge of waste water, gas as well as solid wastes, which leading to environment pressure. PVC is the most chlorine-consuming product with a consumption rate of about 40% of national chlorine output volume. Major factor influencing the sustainable development of calcium carbide PVC is the prevention and control of mercury pollution due to the increasingly exhausted mercury resources and the future implementation of international Minamata Convention about Mercury.

Products of the chlor-alkali industry are applied in various fields, and are closely related to national economy. Meanwhile, the annual growth of output volume is closely related to that of GDP. The economy growth rate declined after years’ of rapid increase while it is expected to remain over 6% in the next few years, leading to certain development space of the chlor-alkali industry in China.

Readers can obtain the following information or more through this report:

• -Overview of Chlor-Alkali Industry in China
• -Development Environment of Chlor-Alkali Industry in China
• -Trend of Production Capacity of Chlor-Alkali Industry in China
• -Development Status of PVC Industry in China
• -Competition Status of Chlor-Alkali Industry in China
• -Major Manufacturers of Chlor-Alkali Industry and Their Operation Status in China
• -Import and Export Status of Chlor-Alkali Industry in China
• -Price trend of Chlor-Alkali in China
• -Forecast on Development Trend of Chlor-Alkali Industry in China

Table of Contents

1 Overview of Chlor-Alkali Industry in China, 2011-2015

1.1 Relevant Concepts of Chlor-Alkali Industry in China

1.1.1 Definition of Chlor-Alkali

1.1.2 Classification of Chlor-Alkali Industry

1.2 Operation Status of Chemical Industry in China, 2011-2015

1.2.1 Overall Operation Status of Chemical Industry in China

1.2.2 Operation Status of Chemical Sub-industries in China

2 Analysis on Development Environment of Chlor-Alkali Industry in China, 2011-2016

2.1 Environment of Macro Economy

2.2 Policy Environment

2.2.1 Tax Policies

2.2.2 Domestic and Foreign Policies Concerning Dumpling and Anti-dumping

2.2.3 Environment Friendly Policies Concerning Chlor-Alkali Industry in China.

2.2.4 Industry Plan Policies

3 Analysis on Chlor-Alkali Industry by Region in China, 2011-2015

3.1 Analysis on Chlor-Alkali Sub-industries in China

3.1 Caustic Soda

3.1.1 Overview of Caustic Soda Industry in China

3.1.2 Market Competition Status of Caustic Soda Industry in China

3.2 PVC

3.2.1 Overview of PVC Industry in China

3.2.2 Market Competition Status of PVC Industry in China

4 Analysis on Factors Influencing Development of Chlor-Alkali Industry in China, 2011-2016

4.1 Raw Materials and Energy Supply

4.1.1 Market Analysis of Crude Salt

4.1.2 Market Analysis of Calcium Carbide

4.1.3 Electrovalence

4.2 Import and Export Status

4.2.1 Import and Export Status of Caustic Soda in China

4.2.2 Import and Export Status of PVC in China

4.3 Production Technology and Technical Progress

5 Analysis on Chlor-Alkali Market in China and the Globe, 2011-2020

5.1 Analysis on Global Chlor-Alkali Market, 2011-2020

5.1.1 Overview of Global Chlor-Alkali Market

5.1.2 Prediction on Global Chlor-Alkali Market

5.2 Analysis and Predication on Demand in Chlor-Alkali Market in China, 2011-2015

5.2.1 Analysis and Predication on Demand for Caustic Soda

5.2.2 Analysis and Predication on Demand for PVC

5.3 Analysis on Hydrochloric Acid Industry in China, 2011-2015

5.3.1 Status of Hydrochloric Acid Industry in China

5.3.2 Prediction on Development of Hydrochloric Acid Industry in China, 2011-2015

5.4 Analysis on Liquid Chlorine Industry in China

6 Analysis on Major Chlor-Alkali Manufacturers in China, 2011-2015

6.1 Tianjin Dagu Chemical Co., Ltd.

6.1.1 Enterprise Profile

6.1.2 Operation Status

6.1.3 Enterprise Development Strategies

6.2 Yuntianhua Group Co., Ltd.

6.2.1 Enterprise Profile

6.2.2 Operation Status

6.2.3 Enterprise Development Strategies

6.3 Juhua Group

6.4 Shandong Haihua Co., Ltd.

6.5 Yibin Tianyuan Group Co., Ltd.

6.6 Xinjiang Zhongtai Chemical Co., Ltd.

6.7 Xinjiang Tianye Co., Ltd.

6.8 Shanghai Chlor-Alkali Chemical Co., Ltd.

6.9 China Pingmei Shenma Energy Chemical Group Co., Ltd.

6.10 Hubei Yihua Chemical Industry Co., Ltd.

7 Prospect of Chlor-Alkali Industry in China, 2016-2020

7.1 Prediction on Development of Chlor-Alkali Industry in China, 2016-2020

7.1.1 Supply Trend

7.1.2 Demand Trend

7.1.3 Import and Export Trend

7.2 Development Trend of Chlor-Alkali Sub-industries in China, 2016-2020

7.2.1 Caustic Soda Industry

7.2.2 PVC Industry

7.3 Prediction of Investment Opportunities in Chlor-Alkali Industry in China

Selected Charts

Chart Output Volume of Basic Chemicals in China, 2011-2015

Chart Output Volume of Agrochemicals in China, 2011-2015

Chart Output Volume of Synthesize Materials in China, 2011-2015

Chart Export Rebates of Caustic Soda and PVC in China, 2005-2016

Chart Output Volume of PVC in China, 2011-2015

Chart Top 10 Enterprises of Production Capacity of Polyvinyl Chloride in China, 2015

Chart Capacity Structure of PVC in China, 2015

Chart Structure of Production Volume of Polyvinyl Chloride in China, 2015

Chart Import and Export Volume of PVC Powders in China, 2011-2015

Chart International Trade Frictions of Polyvinyl Chloride Industry in China in Recent Years

Chart Operation Status of Xinjiang Zhongtai Chemical Co., Ltd., 2011-2015

Chart Operation Status of Hubei Yihua Chemical Industry Co., Ltd., 2011-2015

Chart Forecast on Production Volume of Caustic Soda in China, 2016-2020

Chart Forecast on Production Volume of PVC in China, 2016-2020

The post China Chlor-Alkali Industry Overview, 2016-2020 first appeared on CRI Report.