Lu Chengfu, Business director of Tianchen Qixiang New Material, delivered his report The localization of adiponitrile aids in PA66 high-quality development

The key points include an overview of the adiponitrile industry chain, Tianchen Qixiang's development journey, and how adiponitrile helps drive high-quality growth of China's PA66 sector.

Firstly, as the most important raw material for nylon 66, adiponitrile is almost entirely used for hexamethylenediamine production, with close to 90% of hexamethylenediamine used for nylon. Mature production processes include direct cyanation of butadiene, electrolytic dimerization of acrylonitrile, and catalytic ammoniation of adipic acid. The global adiponitrile market exhibits an "oligarch monopoly" structure, with CR2=84% excluding China. From end 2022 until now, with the concentrated commissioning of Tianchen Qixiang's 200kt, Invista's 470kt, Huafon's 100kt, and Yangnong's 40kt units, China's adiponitrile landscape has undergone significant changes. China's adiponitrile is in short-term oversupply, with theoretical surplus capacity of around 180kt. Multiple adiponitrile projects are planned nationwide. If all new capacity comes online, total capacity may exceed 2 million tons, facing serious overcapacity. If all butadiene-based adiponitrile is commissioned, estimated incremental butadiene consumption is around 1.05 million tons.

Secondly, Mr. Lu introduced Tianchen Qixiang's development history and the formation process of the PA66 industry chain.

Finally, the PA66 industry has huge future growth potential, including in military clothing, high-end textiles, and automotive lightweighting applications.