Capacity of glyoxal is in serious surplus.(Organics)

Stable growth of capacity

China started its research and development of glyoxal in the mid-1970s. By the end of July 2008, there were nearly 10 glyoxal producers in China with combined capacity of around 110 000 t/a. Actual output was around 60 000 tons in 2007. Shanghai Huayi Group Shangliu Chemical Co., Ltd. is the biggest glyoxal producer in China today and its glyoxal capacity has now reached 58 000 t/a. China's glyoxal capacity is expected to reach 140 000 t/a in 2012.

Consumption increases constantly

In China, glyoxal is mainly used in the light industry, textile dyeing/printing, pharmaceutical and petroleum sectors. The total consumption was around 51 000 tons in 2007--23.5% for the light industry, 21.6% for textile dyeing/printing, 45.1% for the pharmaceutical sector, 5.9% for the petroleum sector and 3.9% for other sectors.

2.1 Pharmaceutical sector

Glyoxal reacts with ammonia to yield imidazole and 2-methylimidazole, both of which are used in the production of antibacterial drugs such as clotrimazole and miconazole. Glyoxal is reacted with o-phenylenediamine to get quinoxaline that is an intermediate for the synthesis of anti-TB (tuberculosis) drug pyrazinamide. Glyoxal has a condensation reaction with glycinamide to get 2-hydroxypyrazine that is used as a raw material for the production of sulfonamide drugs and the insecticide thionazin. Hydroxyphenylacetic acid produced from glyoxal can be used as an intermediate for the synthesis of antibiotics. Homologues composed of 2-methyl-5-nitroimidazole and derivatives synthesized from glyoxal are broad-spectrum antibiotics used in urogenital systems.

Glyoxal-oxidized product glyoxalic acid is an organic synthesis intermediate that has been in great demand in China in recent years and can be used to produce many pharmaceutical intermediates and cosmetic additives. China's glyoxalic acid production capacity has already reached around 50 000 t/a. With the development of the pharmaceutical industry, the demand for pharmaceutical-grade glyoxal will increase constantly. The pharmaceutical sector consumed around 23 000 tons of glyoxal in 2007. The demand for glyoxal in the pharmaceutical sector is expected to reach around 30 000 tons in 2012.

2.2 Light industry

In the light industry sector, glyoxal is mainly used in papermaking. The consumption of glyoxal in the light industry was around 12 000 tons in 2007. With the steady development of the national economy, the demand for glyoxal in this sector will increase steadily, and will reach around 20 000 tons in 2012.

2.3 Textile dyeing/printing

The application of glyoxal and derivatives as finishing agents for textiles can improve shrink-resistance, crease-resistance, wash-resilience and no-iron properties of fibers such as cotton and nylon.

Glyoxal can react with amino acid compounds, aromatic diamine compounds or hydrazine compounds to produce dyestuffs or dyestuff intermediates. The textile sector consumed around 11 000 tons of glyoxal in 2007. With the improved domestic standard of living and the expanding export of clothes, the demand for glyoxal in the textile sector will increase considerably. Moreover, China has become a major dyestuff producer for the world. The bright prospects in the production and export of dyestuffs will promote an increasing demand for glyoxal in China. The demand for glyoxal in this sector is expected to reach around 15 000 tons in 2012.

2.4 Petroleum sector

In the petroleum sector, a mixed solution of glyoxal, clay and soda powder as oilfield drilling mud provides satisfactory viscosity and excellent gel strength. Lube oil synthesized from glyoxal, 2-chloroethanol and n-hexane has excellent lubricating properties. Glyoxal can also be used to synthesize oil-transmission lubricants. Glyoxal produced in China today is mainly used to produce lubricants for oil pipeline transmission. The petroleum industry consumed around 3 000 tons of glyoxal in 2007. Forecasters say that the sector's demand for glyoxal will more than double by 2012, reaching about 7 000 tons.

2.5 Others

Glyoxal can also be used to produce antirust agents, alkyd resin, polyester/epoxy resin cross-linking agents and ethylene copolymer cross-linking agents and to synthesize pressure-sensitive adhesives, antioxidants for edible oil and oily food, cement additives, rocket propellants and other fuels. It can also be used to enrich uranium. The consumption of glyoxal in these sectors was around 2 000 tons in 2007, and is expected to reach around 5 000 tons in 2012.

China's total demand for glyoxal will therefore likely reach around 77 000 tons in 2012. China's capacity to make glyoxal is charted to reach something like 140 000 t/a at that time, so the capacity of glyoxal will have a serious surplus.