In H2 2016, new Chinese nicotinamide
(vitamin B3, VB3) producers plan to put their newly constructed plants into
pilot production. Moreover, existing players are expanding production capacity.
These factors may intensify domestic market competition and keep the market
price of VB3 low.
Source: Baidu
In May 2016, Nanjing Redsun Co., Ltd.
(Nanjing Redsun, stock code: 000525) planned to put its nicotinamide plant into
pilot production in H2 this year, according to the Investor Relation Management
platform. Specifically, this new 20,000 t/a nicotinamide project was launched
by its wholly-owned subsidiary, Anhui Ruibang Biotechnology Co., Ltd. (Anhui
Ruibang), in Feb. 2015 (two phases, 10,000 t/a each).
The new plant is located
in the chemical industrial park of Dangtu Economic Development Zone, Ma’anshan
City, Anhui Province, and has seen a total of USD68.30 million – RMB450 million
in investment (USD933,387 – RMB6.15 million invested in environmental
protection).
Nanjing Redsun is an agrochemical
enterprise devoted to the production and sale of environmentally-friendly
pesticides, pharmaceuticals and intermediates as well as fine chemicals.
Notably, as a leading Chinese pyridine and paraquat (downstream product of
pyridine) producer, it previously had a paraquat production capacity of 48,000
t/a (converted to technical). Yet, the application and sale of paraquat AS are
to be banned in China from 1 July, 2016 onwards, which is prompting
manufacturers to transition towards producing other related
pesticides.
"This year, we will accelerate the
R&D and industrialization of pyridine base, chloropyridine and
fluorinated/chlorinated pyridine. Meanwhile, we will ensure the smooth
operation of the new nicotinamide plant," said Nanjing Redsun.
Of Nanjing Redsun's pyridine base products,
2/3 are said to be pure pyridine (and are consumed during Nanjing Redsun's
production of pesticides) and 1/3 to be 3-methylpyridine (for sale). Anhui
Ruibang's new nicotinamide project can take advantage of this fact and further
complete its supply chain, helping itself stand out in the domestic
nicotinamide industry. In addition, this new project will also extend Nanjing
Redsun's "3-methylpyridine – 3-cyanopyridine –nicotinamide"
production line.
Moreover, Nantong Acetic Acid Chemical Co.,
Ltd. (Nantong Acetic Acid, stock code: 603968), a leading domestic acetic acid
derivatives and pyridine derivatives producer, is constructing a 5,000 t/a
nicotinamide + 44 t/a niacin project (total investment of USD16.32 million –
RMB107.55 million) and plans to put it into production by Aug. 2016. Notably,
the company boasts a patent named "the combined production technique of
nicotinamide and niacin hydrolyzed from 3-cyanopyridine" (patent No.:
ZL200910031484.5).
Nicotinamide, as a downstream product of 3-cyanopyridine,
can extend the company's supply chain to food and feed additives, which will
makes it more resilient to changes in the market.
Nantong Acetic Acid's pyridine
supply chain
Source: Nantong Acetic Acid Chemical Co., Ltd.
As one of the leading nicotinamide
producers in China, Brother Enterprises Holding Co., Ltd. (Brother Enterprises,
production capacity of 5,000 t/a) raised funds for the construction on two
10,000 t/a 3-cyanopyridine projects, one 8,000 t/a nicotinamide project and one
5,000 t/a niacin project at the end of 2014. These new plants are expected to
go into production in Q3 this year.
After years of transforming and upgrading
production technology, the company is said to have solved issues that had
previously restricted 3-cyanopyridine production and to be poised to realize
independent production, which is of great significance for controlling
production costs, stabilizing quality and increasing output of VB3.
According to CCM's research, as of May
2016, China's total production capacity of nicotinamide is around 55,000 t/a.
This figure will be further increased when the new industry players begin
production and existing manufacturers' production capacity is expanded. By
2017, it is expected to reached 95,000+ t/a.
As about 70% of domestically produced
nicotinamide is used for feed additives, it plays an indispensable role in the
feed and livestock industries. So far, given the fact that both the total
output of feed and demand for nicotinamide remain stable, significant expansion
of production capacity may intensify competition in the domestic market and
further depress the market price of nicotinamide. According to CCM's price
monitoring, the market price of 99% feed grade nicotinamide fell slightly to
USD6,503/t (RMB42,845/t) in May.
Monthly market price of 99%
feed grade nicotinamide in China, Jan. 2015-May 2016
Source: CCM
This article comes from Vitamins China E-News 1606, CCM
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Tag: vitamin nicotinamide