Deloitte released the "Deloitte Chemical Quarterly" in Shanghai on the 12th. It is expected that the annual average growth rate of demand for water treatment chemicals in China will reach 10% between 2010 and 2015. By 2015, the demand for China's aquatic chemicals market will reach 13.7 billion yuan. . Increasingly sophisticated policies and regulations, resource shortages, rising water prices, concerns for the environment, and advances in science and technology have all contributed to China's strong demand for water treatment chemicals. Deloitte believes that as the water crisis in China continues to grow and the environmental concern continues to deepen, the government has set higher goals, more stringent requirements for water/sewage treatment, and strengthened enforcement of policies and regulations. In the area of ​​science and technology, water treatment equipment (such as membranes) is replacing some low-end chemicals, but it also promotes the demand for specialty chemicals related to membrane technology. The Deloitte report stated that the demand for water treatment chemicals in China has grown rapidly, with a compound annual growth rate of 12% between 2005 and 2010. In 2010, the demand scale of China's water treatment chemicals market has reached 8.5 billion yuan, reaching 9.5 billion yuan in 2011, and it is expected that the high growth in the demand for water treatment chemicals market will remain in the next few years. Water treatment chemicals are mainly used in municipal and industrial water treatment. According to the report, industrial water treatment generally has a greater demand for chemicals and higher requirements than municipal applications, especially for recycled water and wastewater treatment. The major industries for industrial water treatment include papermaking, petrochemicals, textiles, power generation and metal smelting. The chemicals involved include scale inhibitors, corrosion inhibitors, flocculants, flocculants and bactericides. According to Deloitte's report, scale inhibitors, corrosion inhibitors, and bactericides are mainly used in industrial circulating water and their market demand is expected to maintain steady growth. Coagulants and flocculants are mainly used for municipal sewage treatment and industrial applications, such as the petrochemical industry, and this category may grow faster in the future as it can be used both for water treatment and as a degreasing agent for the petrochemical industry. Yann Cohen, the leader of Deloitte China Chemical Industry, said that the water treatment industry belongs to the energy conservation and environmental protection industry that is one of the seven strategic emerging industries identified in China's “Twelfth Five-Year Planâ€. China's plan for this industry is the industrialization of new equipment, the research and development of new solutions, and the development of related services. These plans will jointly promote the industry in the direction of special varieties, solutions and field services. At present, China's water treatment chemicals industry is still in a highly decentralized state with hundreds of small businesses. The main reason for this decentralized situation is that the threshold for industry entry is relatively low. Deloitte expects that in the next three to five years, China's water treatment chemicals market will be integrated. Firms with stronger capabilities and companies with unique capabilities that can be accepted by the market will occupy more market share. Looking ahead, Deloitte believes that providing solutions and on-site services is a key factor in improving the profitability of water treatment chemical companies. In 2009, China's water treatment chemical manufacturers had a pre-tax margin of around 10-15%. If water treatment solutions and on-site services are provided, the relevant gross profit margin of the first-line companies is expected to exceed 50%, compared with 30% to 40% for the second-tier companies. According to Guan Yang, some companies represented by multinational companies, such as Nalco, Ashland and Ao Lin, have begun to use their R&D and technical service capabilities to shift their focus from chemical production to providing customized solutions (special Chemicals and Formulations) and on-site service. Oil Seal,TC Oil Seals,Jaw Coupling Tai Shi Te Bearing Co., Ltd , http://www.jnballBearing.com
Demand for water treatment chemicals in China increases by 10% annually