Favorable factors

　　1. Increasingly strict fire safety requirements

　　The introduction of laws and regulations on flame retardant and fire prevention in European and American developed countries can be traced back to the middle of the 20th century. Since then, a number of fire safety regulations have been promulgated, as well as very strict and detailed fire resistance testing standards for various materials, including furniture, mattresses, Clothing, vehicle interiors, toys and building materials, etc., have a wide coverage, and since then flame retardants have been widely used. In recent years, China has also intensively issued a series of laws and regulations on fire safety, mainly involving flame retardant and fire protection standards for various materials. With the further development of China's economy, people's awareness of fire safety will also gradually increase. Fire safety requirements will drive material manufacturers and governments to provide people with products that meet fire standards.

　　2. Industrial policy support

　　Flame retardant as a plastic modification additive is an industry encouraged by the state.

　　The National Development and Reform Commission's "Guidance Catalogue for Industrial Structure Adjustment (2005 Version)" encouraged industries include: "Synthetic resin processing new additives, new adsorbents, high-performance additives and compound technology development, large-scale synthetic resin and new synthetic resin technology , New product development. "The National Development and Reform Commission's" Industrial Structure Adjustment Guidance Catalog (2011 Version) "encouraged industries include:" Technology development and application to reduce and control dioxin emissions; alternatives to persistent organic pollutant products Development and application. "The topic of" Development of Decabromodiphenyl Ether Flame Retardant Substitutes "jointly undertaken by Beijing Institute of Technology and the issuer is a sub-project of the National High-Tech Research and Development Program (863 Program), and the topic is" typical Give priority to the development of alternative products and alternative technologies for persistent organic pollutants. " The company's R & D and production conform to the encouraging direction of the national industrial policy. At the same time, according to the appendix "National Key Supported High-tech Fields" of the "Measures for the Administration of High-tech Enterprises" (Guo Ke Fa Huo (2008) No. 172) jointly issued by the Ministry of Science and Technology, the Ministry of Finance and the State Administration of Taxation, it is clearly mentioned that " "New rubber and plastic additives technology" belongs to the high-tech field supported by the state. The organic phosphorus flame retardant belongs to a new type of rubber and plastic additives.

　　In December 2011, the National Development and Reform Commission and the Ministry of Industry and Information Technology issued the “Notice on Carrying Out Special Work on Industrial Revitalization and Technological Transformation in 2012” (Fagaiban Industry [2011] No. 3063). The annex clearly states that “environmentally friendly water treatment agents and "Rubber and plastic additives" and "halogen-free flame retardants" are categorized as high-end chemical products in Topic 5.

　　In May 2012, the National Development and Reform Commission issued the "Notice of the General Office of the National Development and Reform Commission on Requesting Organizations to declare Resources Conservation and Environmental Protection 2013 Central Budget Investment Alternatives" (Faigaoban Huanzi [2012] No. 1335), The annex clearly lists "flame retardant insulation materials" in the selection of "building energy saving" projects. The polyurethane rigid foam flame retardants produced by the company are mainly used to produce flame retardant insulation materials.

　　As can be seen from the above industrial policies, China's policy guidance for the flame retardant industry has shifted from the development of high-performance products to the development of products with both high performance and environmental protection. The proposition of these policies provides a good policy support for the structural adjustment and healthy development of China's flame retardant industry, and can guide China's flame retardant industry to better participate in the international market competition.

　　Third, the domestic market has great potential for flame retardants

　　Because only a few developed countries and regions in the world, such as the United States and the European Union, have implemented laws and regulations on the mandatory use of flame retardants, the global flame retardant consumption is unevenly distributed and is currently mainly concentrated in a few countries and regions. With the increasing emphasis on fire safety in China and the gradual improvement of relevant laws and regulations, the potential for the demand for flame retardants in the domestic market will gradually be tapped. It is predicted that the demand for flame retardants in China will increase steadily at a rate of about 15% 14. In fact, from 2005 to 2012, the proportion of flame retardant consumption in other Asian regions (except Japan) represented by China has increased from 18% to 29% 15, taking into account the Chinese market for plastics, rubber, etc. The greater demand for polymer materials, and the current flame retardant ratio, which is significantly lower than the global average, the future demand for flame retardants in the domestic market has a broad room for growth.

　　Fourth, the advantages of China's phosphate resources are more conducive to the development of the organic phosphorus flame retardant industry

　　Organic phosphorus flame retardant production enterprises, phosphorus element is one of the indispensable raw materials, so phosphate mineral resources are very important for organic phosphorus flame retardant production enterprises. China is rich in phosphate resources and ranks among the top three in the world in terms of reserves with Morocco and the United States. In recent years, in order to curb the large-scale, disordered and low-cost export of early phosphate rock, China has gradually increased the export quota restrictions and tariff ratio of phosphate rock. 100% special export tariffs are imposed on various phosphate mineral products such as chalk (except apatite), apatite and yellow phosphorus (white phosphorus). In this way, domestic phosphorus resource-related production enterprises can obtain better raw material protection than foreign competitors.

　　And bromine flame retardants, bromine is an indispensable raw material, 70% -80% of the world's bromine is used for flame retardant manufacturing. In recent years, the price of bromine has been high and fluctuated greatly. Because bromine is a non-renewable resource, China's bromine resources are not abundant, so phosphorus-based flame retardants have more advantages than bromine-based flame retardants in raw material supply.

　　Unfavorable factors

　　1. The domestic flame retardant regulations are in the process of being perfected, and the implementation efforts need to be further strengthened

　　Since the addition of flame retardants will increase the cost of materials, it is difficult to directly bring economic benefits to material manufacturers. Therefore, in the initial stage of the development of flame retardants, we can only rely on the state to develop relevant regulations and standards for mandatory Claim. Although China has successively promulgated a series of laws and regulations and application standards related to the flame retardant industry, such as the "Fire Protection Law of the People's Republic of China", "Administrative Measures on the Labeling of Flame Retardant Products", "Combustion Performance Requirements and Labeling of Flame Retardant Products for Public Places", However, compared with developed countries such as Europe and the United States, there are still gaps in the corresponding system construction. There are certain uncertainties in the implementation of laws and regulations. The problem mainly reflects the incoherence between legislation and law enforcement.

　　Second, the downstream industry has not formed a flame retardant　awareness of international integration

　　Because the domestic flame retardant industry is still in its infancy, there is still a big gap between the public's understanding of fire safety and international advanced concepts. For example, after a major fire in Shanghai ’s Jing’an District in November 2010, the public and the media unanimously attributed the accident to the building ’s use of polyurethane materials for exterior wall insulation, and believed that flammable polyurethane materials were the direct cause of the fire.

　　In fact, polyurethane foam has many advantages such as low thermal conductivity, good stability, easy construction, environmental protection, etc. It is an ideal insulation material to achieve China's building energy conservation goals. In foreign countries, the technology of polyurethane as an external wall insulation material is very mature and widely used. One of the reasons for the "11.15" fire in Shanghai was precisely because the polyurethane foam used in the building was not flame-retardant according to the regulations, and did not meet the B1 flame retardant standard stipulated in the "Code for Fire Protection Design of High-Rise Civil Buildings". Belong to substandard materials.

　　The above incidents reflect that there is still a certain gap between the domestic public and the industry's understanding and understanding of material flame retardancy from the international advanced level. The concept of "flame retardant" has not yet gained popularity, and it may take a long time for the market to fully mature.