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October 11, 2025

Blowing agent companies squeezing money out by raising prices

Since December, major domestic producers of ADC foaming agents have raised their export prices to over $2,000 per ton. This follows a similar price increase in July, marking the second time this year that companies have adjusted their export rates. According to reports, the primary reason for the price hike is to offset rising costs related to environmental protection measures. ADC (Azodicarbonamide) is an organic chemical widely used in the production of various foam products, including those made from polyethylene, PVC, polystyrene, polypropylene, and ABS resin. It is non-toxic, does not discolor or deteriorate, and currently has no viable substitutes in either domestic or international markets. Since 2004, China's production capacity has grown at an annual rate of around 15%, with this year’s output expected to reach 135,000 tons. In the first eight months of 2024, exports totaled nearly 50,000 tons, making China the world’s largest producer and exporter of ADC foaming agents. However, despite growing demand, ADC manufacturers have faced persistent challenges. The prices of key raw materials such as urea, sulfuric acid, caustic soda, and liquid chlorine have been steadily rising. Meanwhile, ADC product prices have remained low, leading to thin margins or even losses for many companies. A new challenge has emerged: environmental concerns. Many ADC producers use hydrazine hydrate synthesized via the urea method, which is inefficient, energy-intensive, and polluting. In June, CCTV's "Focus Interview" program exposed pollution issues at several ADC factories, sparking widespread concern. In August and October, the State Environmental Protection Administration and the Ministry of Science and Technology also investigated the environmental impact of ADC production. "Many companies are making profits abroad, but the pollution stays here," said one CEO. "We don’t want to pollute, but we just can’t afford to invest in environmental protection due to low profits." According to Kong Cuiqin, director of the ADC Foaming Agent Committee of the China Chlor-Alkali Association, pollution control costs add about 2,000 yuan per ton—over 13% of production costs. To address these issues, companies have raised prices twice this year: once in July and again in December. “At previous low prices, we couldn’t afford to invest in environmental protection,” explained Wei Yuanzhou, deputy general manager of Fujian Longhua Chemical. Jiangxi Dianhua Assistant Hu Wenfu echoed similar sentiments. Some leading producers have taken proactive steps. For example, Longhua Chemical invested over 10 million yuan in end-of-pipe treatment, while Jiangsu Thorpe, the largest ADC manufacturer in China, spent over 40 million yuan on wastewater treatment systems. They’ve adopted advanced water-saving washing devices and precision filtration to reduce ammonia levels in wastewater. However, most companies still struggle with effective pollution control. After the price increases, many firms have started new pollution control initiatives. Ma Hanbin of Longhua Technology Development Center mentioned ongoing research into ammonia removal and total emission reduction. Sun Yunxia of Jiangsu Thorpe noted that their ammonia recovery system is still under development, and they are working on new clean technologies such as hydrazine extraction and distillation purification. “After raising export prices, we now have the funds to continue investing in environmental protection,” said one company official. “Where else could we get the money?”

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