DCP Market Analysis
Sep 13, 2024|
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Ava, the team leader of Evergreen Chemicals OP expert database and the brand director of Nouryon, participated in the drafting of OP safety standards and is well versed in the global supply relationship of peroxides.
AVA
Nouryon Brand DirectorRecently, the dynamics of the DCP (Dicumyl Peroxide) market have attracted significant attention within the industry. As a crucial chemical widely used in shoe materials, cable compounds, and the polymerization of styrene, China's annual production of DCP has reached 25,000 tons. The market has gradually entered an oligopoly stage. Currently, global chemical giants Nouryon and Taoming Chemicals dominate the Chinese market, with Nouryon’s Perkadox® BC-FF holding 60% of the market share and supplying its global market through its Ningbo plant.
DCP Applications and Market Demand
DCP is widely used in the polymerization and copolymerization of styrene, effectively increasing polymerization rates in bulk polymerization processes. Additionally, DCP serves as an active synergist, often combined with halogen-containing flame retardants for producing flame-retardant expandable polystyrene. With the expanding markets of shoe materials and cable compounds, these two sectors have become the primary applications for DCP in China.
Safety and Storage Recommendations
As a chemical with a SADT of 75°C, DCP requires special attention to temperature management during storage, with a recommended storage temperature of 30°C or lower. Although DCP doesn’t require strict temperature-controlled transportation, it can melt and reform into lumps under high temperatures during summer. Hence, manufacturers tend to avoid high-temperature transportation.
Purity and Environmental Challenges
Currently, DCP on the market has a purity of over 99%, nearing a pure form with a theoretical active oxygen content of 5.92%. While DCP demonstrates excellent performance in cross-linking shoe materials, the odor it generates during use poses potential environmental impacts, compelling manufacturers to strike a balance between cost-effectiveness and environmental friendliness.
Price Fluctuations and Oligopolistic Market
The DCP market in China has long been dominated by a few enterprises, with Nouryon and Taoming Chemicals holding leading positions, and frequent price fluctuations. Factories often adjust prices based on market strategies, and in some cases, even sell at a loss. This volatility introduces a certain level of uncertainty for purchasing companies.
Safety and Storage Recommendations
DCP is classified as a precursor chemical for explosives in China. Any activities involving the purchase, sale, or use of DCP must be reported to public security authorities to ensure compliance with national safety regulations.
Packaging and Sustainability
The conventional packaging for DCP is unrecyclable cartons, with a net weight of 55.1 pounds per product, typically packaged in 5x5kg cardboard boxes. As environmental regulations tighten, the demand for more sustainable packaging is increasing, and the industry is continuously exploring more eco-friendly packaging solutions.
In conclusion, competition in the DCP market in China is intensifying, but it also faces environmental and safety challenges. Finding a balance between technological innovation and market regulation will be key to future development for enterprises.
