"Description: This report penetrates into the Chinese masterbatch industry, and discloses the market, production and investment opportunities of masterbatch in China. With the demand from the downstream industries including automobile, architecture, appliance, package and so on, Chinese masterbatch industry has been growing rapidly for near 20 years. Now China has become one of the largest masterbatch production and consumption countries in the world. Many multinational companies have entered Chinese masterbatch, which brings in advanced technologies into China on the one hand, and fierce competition on the other hand. The consumption of masterbatch in China was growing rapidly with a CAGR of 27 % in 2003~ 2007, but in 2008~2013, the CAGR will become much slower. What’s more, great changes will take place in China’s market, including reorganizations and changes in production structure. What factors attribute to such changes? You will find answers in this report. Chinese government is becoming stricter and stricter to with the pollution and the resources. Though the production of masterbatch would cause pollution to a certain extent, the policies do not influence the industry much. On the other hand, the stricter policies will promote the use of masterbatch for coloration instead of pigments, as the use of former generates less pollution and wastewater. The cancel of export rebate also influences the masterbatch industry. As the threshold of masterbatch industry is low, many small producers with low technology level and poor pollution treatment equipments appear all the time. What impact have they brought on China’s masterbatch industry? What is the price trend of the raw materials of masterbatch, and how do they influence China’s masterbatch industry? As the development of downstream industries goes on, there will be a large demand for high quality masterbatch in the future. Opportunities in China’s masterbatch industry are many. Masterbatch is already very saturated and mature in the eastern part of China, how about the situation in the western part of China? Are there investment opportunities in Chinese masterbatch industry? You can find the answers in this report. "

1. CCMData & Primary Intelligence
Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com
Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
Production, Market and Investment Opportunities
of Masterbatch in China
July 2008
Researched & Prepared by:
Guangzhou CCM Information Science and Technology Co., Ltd .
Guangzhou, P. R. China
Copyright by Guangzhou CCM Information Science and Technology Co., Ltd (P. R. China)
Any publication, distribution or copying of the content in this report is prohibited.
Website: http://www.cnchemicals.com
Tel: +86-20-3761 6606
Fax: +86-20-3761 6968
Email: econtact@cnchemicals.com

2. CCMData & Primary Intelligence
Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com
Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
Description:
This report penetrates into the Chinese masterbatch industry, and discloses the market,
production and investment opportunities of masterbatch in China. With the demand from the
downstream industries including automobile, architecture, appliance, package and so on, Chinese
masterbatch industry has been growing rapidly for near 20 years. Now China has become one of
the largest masterbatch production and consumption countries in the world. Many multinational
companies have entered Chinese masterbatch, which brings in advanced technologies into China
on the one hand, and fierce competition on the other hand.
The consumption of masterbatch in China was growing rapidly with a CAGR of 27 % in 2003~
2007, but in 2008~2013, the CAGR will become much slower. What’s more, great changes will
take place in China’s market, including reorganizations and changes in production structure. What
factors attribute to such changes? You will find answers in this report.
Chinese government is becoming stricter and stricter to with the pollution and the resources.
Though the production of masterbatch would cause pollution to a certain extent, the policies do not
influence the industry much. On the other hand, the stricter policies will promote the use of
masterbatch for coloration instead of pigments, as the use of former generates less pollution and
wastewater. The cancel of export rebate also influences the masterbatch industry.
As the threshold of masterbatch industry is low, many small producers with low technology level
and poor pollution treatment equipments appear all the time. What impact have they brought on
China’s masterbatch industry?
What is the price trend of the raw materials of masterbatch, and how do they influence China’s
masterbatch industry?
As the development of downstream industries goes on, there will be a large demand for high
quality masterbatch in the future. Opportunities in China’s masterbatch industry are many.
Masterbatch is already very saturated and mature in the eastern part of China, how about the
situation in the western part of China? Are there investment opportunities in Chinese masterbatch
industry? You can find the answers in this report.

3. CCMData & Primary Intelligence
Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com
Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
Main content:
No. Content Page
Executive Summary 5
I Production situation of masterbatch in China 8
I-1 Development history of masterbatch industry in China 9
I-2 The current production situation in China 11
I-2.1 Overview of masterbatch production and producers 12
I-2.2 Introduction to major types of masterbatch, by color 13
- white masterbatch 14
- black masterbatch 15
- colored masterbatch 15
- additive masterbatch 16
I-2.3 Introduction to major types of masterbatch, by grade 17
I-3 Raw material supply situation 18
I-3.1 Supply of colorants 19
- Supply of titanium pigment 19
- Supply of carbon black 20
-Supply of other pigments 21
I-3.2 Supply of other raw materials 23
-Supply of dispersing agent 23
-Supply of Carrier resin 24
I-4 Competitive landscape 24
I-5 Pricing of masterbatch in recent years and factors for the changes 25
- Pricing of masterbatch (by value) 25
- Factors for the changes and its trend 26
II Import & Export analysis 27
III Market situation of masterbatch in China 33
III-1 Overview of masterbatch market (2003-now) by color 33
- Market analysis of white masterbatch 34
- Market analysis of black masterbatch 34
- Market analysis of colored masterbatch 35
- Market analysis of additive masterbatch 35
III-2 Overview of masterbatch market (2003-now) by grade 35
- Market analysis of injection grade masterbatch 36
- Market analysis of blow molding grade masterbatch 37
- Market analysis of fiber grade masterbatch 37
III-3 Introduction to major end use segments 38
III-3.1 Plastic 38
III-3.1.1 Automotives 38

4. CCMData & Primary Intelligence
Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com
Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
III-3.1.2 Home appliances 41
III-3.1.3 Architecture 43
III-3.1.4 Plastic bottles 45
III-3.1.5 Films (agricultural and package) 45
III-3.1.6 Wire and cable 47
III-3.1.7 Other plastic products 48
III-3.2 Chemical fibre 48
- Textile 48
- non-woven 48
IV Future forecast of the masterbatch industry (2009-2013) 50
IV-1 Barrier and driven force for the development of masterbatch industry 50
IV-2 Quantitative and qualitative forecast of the masterbatch industry 51
V Investment opportutnities of masterbatch in China 55
VI Conclusion 68
VII Appendix: The profiles of major masterbatch producers 69
VII-1 Jiangsu Wuxi Changhong Masterbatch co.,Ltd. 69
... ... 0
VII-30 Jiangsu Vulchem Material Science (ChangShu) Co., Ltd. 92
Executive summary:
After more than 30 years’ development, China has become one of the largest masterbatch
production and consumption countries now. Masterbatch industry developed rapidly in China in
the past few years with the CAGR of XXXX% in 2003~2007. The total capacity of masterbatch has
reach XXXXt/a in 2008 and the output was XXXX tonnes in 2007 in China, which is able to meet
the demand of plastic industry and chemical fiber industry. The masterbatch industry has entered
upon a steadily developing period and China’s manufacturers are making efforts to produce high
class masterbatch with high technology, high content and multifunction. The production and
market grew especially fleetly from 2005 to 2007 because of the bursting demand from
downstream industries.
The masterbatch industry shows outstanding regional features in China. The industry is much
more flourishing in south China than that in north, and it develops better in east than in west.
Most of China’s masterbatch producers are located in Guangdong, Jiangsu, Zhejiang, Shanghai
and Shandong, and the total capacity in these five areas accounts for about XXXX% of total
capacity in China in 2008.
There are about XXXX manufacturers producing masterbatch with the total capacity of XXXX t/a in

5. CCMData & Primary Intelligence
Website: http://www.cnchemicals.com Email: econtact@cnchemicals.com
Tel: +86-20-3761 6606 Fax: +86-20-3761 6968
China in 2008. There are XXXX producers with the masterbatch capacity exceeding XXXX t/a, and
their total capacity is XXXX t/a, accounting for XXXX% of total masterbatch capacity in China.
There are XXXX producers whose capacity ranges from XXXX t/a to XXXX t/a, and their total
capacity is XXXX t/a, accounting for XXXX % of China’s total masterbatch capacity.
China has been the largest market of masterbatch, and the rate of market growth is the highest in
the world. About XXXX tonnes of masterbatch was consumed in China in 2007, and the market
was growing rapidly from 2003 to 2007 with a CAGR of XXXX %. Masterbatch is mainly consumed
in plastic industry and chemical fiber industry. China has the largest production of plastic products
and exports the most textile in the world.
In 2007, the consumption volume of masterbatch were XXXX tonnes in plastic industry and XXXX
tonnes in chemical fiber industry.
The potential investment opportunities of Chinese masterbatch industry will emerge in central
China and west China in the future, because the market of masterbatch is already very saturated
and mature in the eastern part of China and with the industrial upgrade there, the labor-intensive
industries, such as plastic industry, textile industry, electronics assembly industry, etc. will witness
a slower growth rate or even decline in the future. It’s estimated that many producers of these
industries will move to inland provinces with lower cost of labor and land and more preferential
investment policies than eastern provinces.
XXX is the most attractive province for investment in masterbatch in China.
Character of CCM' Report:
The aim of this report is to provide powerful assistance to the strategy group and the management
team in making correct decision as how to penetrate the ever-increasing China market and how to
catch the maximum commercial opportunities. The report is formulated independently by CCM’s
professional market researchers, based on the first-hand and primary data which are analyzed by
scientific methodology, confirmed with both manufacturers/end users/traders and legal authorities,
and presented in a logic way.
Sample pages：

6. I-2 The current production situation in China
As China has become the biggest market of masterbatch and the market is the most
flourishing in the world with the fastest annual growth rate of over 20%, many foreign
enterprises have been attracted to rush to invest in China’s masterbatch industry since 1990s.
Ngai Hing Plastic Materials Ltd. is the first overseas company to invest in Chinese masterbatch
industry in 1988 in Dongguan. Claraint Chemicals has started to sell its masterbatch since
early 1990s and built its first production base in Guangzhou in 1995. Toyo Ink started its
masterbatch production in Shanghai in 1995.
……….
Table I-2-1 Major multinational enterprises producing masterbatch in China
English name Location
Start-up
time
Capacity 2008
(Unit: t/a)
Output 2007
(Unit: tonne)
Jiangsu Resin & Pigment Technologies (Wuxi) Co., Ltd. Jiangsu 2002 12,000 6,000
Clariant Masterbatch (China) Co., Ltd. Guangdong 1995 7,500 5,400
Shanghai Toyo Plastic Colorant Co., Ltd. Shanghai 1995 6,000 4,800
Polyone (China) Co. Ltd Shanghai 2000 7,000 4,500
Jiangsu Ching Leung Hi-tech(Suzhou)Co., Ltd. Jiangsu 1999 2,000 1,500
Magenta Master Fibers (Shanghai) Co., Ltd. Shanghai 2005 2,000 1,200
Guangdong Zhongshan Dainipp-On Ink And Chemicals, Inc. Guangdong 1997 1,200 500
I-2.1 Overview of masterbatch production and producers
………
The top 99 producers produced 364,490 tonnes masterbatch in 2007, accounting for 78.90%
of the total output in the domestic market.
Table I-2.1-1 Situation of China’s producers, by capacity in 2008 and by output in 2007
Capacity in 2008 Output in 2007
Capacity range Number of producers
Capacity (t/a) Share Output, t Share
More than 10,000t/a 22 295,000 34.50% 181,000 39.18%
3,000~10,000t/a 77 342,900 40.10% 183,490 39.72%
500~3,000t/a 160 190,100 22.23% 88,630 19.19%
Less than 500t/a 81 27,100 3.17% 8,025 1.74%
Total 340 855,100 100.00% 461,945 100.00%
I-2.2 Introduction to major types of masterbatch, by color
The production of masterbatch by color has changed a lot from 2003 to 2007. The share of the
largest two types of masterbatch, white masterbatch and black masterbatch, has decreased a
lot due to the rapidly growing production of colored masterbatch and additive masterbatch.

7. Table I-2.2-1 The production structure of masterbatch in 2003~2007, by color
2003 2004 2005 2006 2007
Type
Output Share Output Share Output Share Output Share Output Share
White 40,000 31.37% 63,200 34.00% 87,500 35.00% 123,160 33.50% 147,483 31.93%
Black 48,000 37.65% 78,120 42.02% 110,000 44.00% 128,700 35.01% 143,351 31.03%
Color 32,000 25.10% 33,580 18.06% 35,000 14.00% 79,050 21.50% 126,927 27.48%
Additive 7,500 5.88% 11,000 5.92% 17,500 7.00% 36,740 9.99% 44,184 9.56%
Total 127,500 100.00% 185,900 100.00% 250,000 100.00% 367,650 100.00% 461,945 100.00%
I-2.3Introduction to major type masterbatch, by grade
Masterbatch can be classified into three grades according to the processes of downstream
products and they are: injection grade, blow molding grade and fiber grade. The masterbatch
of these three grades are different in price and quality, but there are general products that can
be used in all of these above processes. The injection grade masterbatch is used in most
plastic products, such as appliances including furniture, architectural materials, wire and cable,
electric equipment, automobile and so on. The blow molding grade masterbatch is mainly used
in plastic bottles, bags and films. The fiber grade masterbatch is used in textile and non-woven
materials.
Table I-2.3-1 The production structure of masterbatch in 2003~2007, by grade
Year Injection grade Blow molding grade Fiber grade Total
Output 74,780 38,400 14,320 127,500
2003
Share 58.65% 30.12% 11.23% 100.00%
Output 103,580 58,640 23,680 185,900
2004
Share 55.72% 31.54% 12.74% 100.00%
Output 138,990 76,430 34,580 250,000
2005
Share 55.60% 30.57% 13.83% 100.00%
Output 190,920 124,750 51,980 367,650
2006
Share 51.93% 33.93% 14.14% 100.00%
Output 220,998 170,080 70,867 461,945
2007
Share 47.84% 36.82% 15.34% 100.00%
III Market situation of masterbatch in China
III-1 Overview of masterbatch market (2003-now), by color
The market structure of masterbatch by color has changed a lot since 2003. Though the
percentage of each type masterbatch hasn’t changed much, the structure between domestic
and imported product has changed a lot. The volume of masterbatch purchased from abroad
has decreased greatly, with the development of China’s masterbatch production and the larger
and larger foreign investment in China’s masterbatch industry.

8. Table III-1-1 The consumption growth of masterbatch in 2003~2007, by color
Masterbatch specie 2003 2004 2005 2006 2007
Consumption tonne 48,500 63,780 85,580 121,450 146,000
White
Growth rate - 31.51% 34.18% 41.91% 20.21%
Consumption tonne 68,200 83,950 99,800 123,600 144,200
Black
Growth rate - 23.09% 18.88% 23.85% 16.67%
Consumption tonne 43,220 58,910 71,130 95,650 113,851
Colored
Growth rate - 36.30% 20.74% 34.47% 19.03%
Consumption tonne 13,780 17,500 25,540 40,200 54,500
Additive
Growth rate - 27.00% 45.94% 57.40% 35.57%
Consumption tonne 173,700 224,140 282,050 380,900 458,551
Total
Growth rate - 29.04% 25.84% 35.05% 20.39%
V Investment opportunities of masterbatch in China
The potential investment opportunities of Chinese masterbatch industry will emerge in central
China and west China in future because of the following reasons.
The market of masterbatch is already very saturated and mature in the eastern part of
China, since many large producers have already set up complete sales channels and
stable procurement systems there.
As the industrial upgrade has started in eastern part of China, the labor-intensive
industries, such as plastic industry, textile industry, electronics assembly industry, etc. will
witness a slower growth rate or even decline in the future. It’s estimated that many
producers of these industries will move to inland provinces with lower cost of labor and
land and more preferential investment policies than eastern provinces.
CCM’s research mainly focuses on the major 12 provinces or autonomous regions located in
Central China and West China, including Sichuan, Jiangxi, Shanxi, Xinjiang, Gansu, Yunnan,
Qinghai, Ningxia, Inner Mongolia, Guizhou, Hainan and Shaanxi.

9. V-1 Overview of the evaluation
According to the estimated total demand and growth rate of masterbatch in the next 5 years,
the 12 provinces are divided into four grades: A, B, C, and D based on the market potential.
Table V-1 The grade of the 12 provinces
GradeEstimated demand in 2008~2012 CAGR (08~12) Province included
A More than 50,000 tonnes About 23% Sichuan
B More than 20,000 tonnes Over 6% Xinjiang, Jiangxi, Shanxi,
C More than 10,000 tonnes Over 13% Gansu, Yunnan
D Less than 10,000 tonnes Over 12%
Qinghai, Ningxia, Hainan, Inner Mongolia, Shaanxi,
Guizhou
Note: A~D stand for market potential of masterbatch (A is the largest, D is the smallest)