Organic outer insulation materials will usher in a broad market prospect

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China Drying Network News The Ministry of Public Security Fire Department issued the "Circular on Fire Building Supervision and Management of External Thermal Insulation Materials for Civil Buildings" (No. 350), which made it exciting for polyurethanes and other organic exterior insulation materials industries. Enterprises and investment analysis agencies have stated that organic exterior insulation materials such as polyurethane and polystyrene will welcome a broad market prospect.

Li Jianbo, deputy secretary-general of the China Polyurethane Industry Association and secretary general of the Isocyanate Special Committee, believes that the issuance of the No. 350 document fully demonstrates the tightening of the policy on the use of exterior insulation materials tightened after a safety accident such as the Shanghai fire, which will also promote the The market for organic exterior insulation materials, including polyurethane and polystyrene, has recovered. Among them, polyurethane insulation materials have higher system fire safety and insulation effect, and the proportion of applications in large and medium-sized cities and high-end building exterior walls is expected to increase; and polystyrene insulation materials will also rely on cost advantages to achieve rapid development. .

Goldman Sachs Gao Hua Securities research report pointed out that polyurethane external wall insulation board has excellent insulation properties, but the fire performance can only reach the B1 level standard. The promulgation of No. 65 document of the Ministry of Public Security banned the use of polyurethane thermal insulation materials, and the promulgation of Circular No. 350 indicated that the polyurethane external wall thermal insulation material could be used for building external wall thermal insulation in the future, which is beneficial to the future of polyurethane external wall thermal insulation panels. Opening up the market and benefiting the upstream MDI and polyether production enterprises will help Yantai Wanhua Company continue to expand its building energy-saving market and digest new MDI production capacity.

According to the analysis report of Shanxi Securities, due to the influence of policy restrictions, the consumption of organic thermal insulation materials declined significantly in 2011. From 2008 to 2010, the average annual growth rate of rockwool slag wool and products was 7.74%. In 2011, the annual growth rate of consumption was as high as 25%; while the consumption of organic thermal insulation products declined from 16.69% to 13.5%. The speed has dropped significantly. Analyst Yan Yunpeng predicts that organic insulation materials will no longer be subject to policy restrictions, and their consumption growth will rise to around 17%. In the long run, listed companies such as Lianchuang Energy, Hongbaoli, Yantai Wanhua, Binhua and Jacques will all benefit significantly from the building energy efficiency market.

It is understood that at present, China’s building energy consumption accounts for nearly 30% of the country’s energy consumption. To complete the national “Twelfth Five-Year” energy-saving and emission reduction plan, building energy conservation is imperative. Wall energy consumption accounts for about 50% of building energy consumption. The application of exterior wall thermal insulation materials is one of the major measures for building energy conservation.

Driven by favorable policies, related companies' confidence in the organic insulation material market is gradually recovering. Wang Xiaosong, secretary of the Shuangliang energy-saving director, said that the promulgation and implementation of the No. 350 document will fully release the market space for thermal insulation materials such as expanded polystyrene and polyurethane. Shuangliang Energy-saving Expanded Polystyrene Products passed the national inspection in July 2011 and reached B1 level. The company will gradually increase the production of B1 products according to market demand. With the accelerating pace of urbanization, Shuangliang Energy has full confidence in the market prospects of foamed polystyrene building insulation materials that meet safety requirements, good insulation properties, and cost-effectiveness.

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