CHE180-1 | Formaldehyde Resin

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Urea Formaldehyde (Market Study)

Urea-formaldehyde is chemically known as the urea-methanol. It is a non-transparent thermo
setting resin or plastic and is made from urea and formaldehyde heated in the presence of a mild
base such as ammonia or pyridine. The resins are very useful in adhesives, and also in the MDF,
and the molded objects. It is first time synthesized in 1884 by Hlzer, with coworker Bernhard
Tollens. In 1919, Hanns John (18911942) of Prague, Czechoslovakia obtained the first patent
for urea-formaldehyde resin.

Market Trends
Urea formaldehyde (UF), chemically known as urea methanol, is a chemical composition of urea
and formaldehyde and is set to witness high surge in demand in next couple of years primarily
due to its high tensile strength, flexural modulus and scratch resistant properties that makes it
suitable for being used as adhesives in various enduse industries. The urea formaldehyde
market is a double-digit billion dollar industry and is expected to grow at a very impressive rate
during the forecast period. The UF resins are economically cost-effective in nature than other
resins such as phenol-formaldehyde resins, thus making it more popular among industries such
as textiles, papers, foundry, etc.
There are 1 million metric tons of urea-formaldehyde are produced every year and is used
worldwide as the data provided and Over 70% of this production is then put into use by the forest
industry products and also used as a great resin for bonding particleboard (61%), medium density
fiberboard (27%), hardwood plywood (5%), and laminating adhesive (7%).
Drivers & Restraints
The demand for good quality and economically viable adhesives and resins is
expected to fuel the market of urea formaldehyde. Most of the demand is expected
to generate from automobiles and electrical appliances globally. Challenges
include government legislation promoting sustainable products in lieu of UF
adhesives and resins.
Segmentation
On the basis of end-use industries, the global urea formaldehyde market is
segmented into,
Automobiles

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Electrical Appliances
Home Appliances (Furniture)
Agriculture
Others

Most of the demand is expected to generate from home appliances and electrical appliances,
however, its usage in agriculture is gaining momentum, particularly as a source of nitrogen
fertilizer.

On the basis of end-use applications, urea formaldehyde market is segmented

into,
Adhesives
Particle Board
Plywood
Roofing Mats
Others

Particle board followed by adhesives and plywood are the key applications of urea
formaldehyde. High growth is expected in adhesive applications, primarily due to increasing
penetration in automobiles and electrical appliances industries during the forecast period.

Region-Wise Outlook
On the basis of region urea formaldehyde finds its market scope in North
America, Latin America, Middle East & Africa, Europe and Asia-Pacific. North
America and Europe dominates the urea formaldehyde market in terms of
consumption, however, Asia Pacific and Latin America are expected to be the
most promising region in terms of incremental opportunities lying ahead for

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generating high revenue. High production cost coupled with prolonged economic
crisis in developed regions of Europe has led to the shifting of urea formaldehyde
market to Asia Pacific. Economic reforms in Malaysia, China and India along
with high GDP growth rate is fuelling the urea formaldehyde market in these
regions. Though Asia Pacific is lucrative in terms of revenue generation, volatility
exists mainly due to the unorganized end-use industries in two large market baseschina and India.

Price Data
Urea Formaldehyde Resin is manufactured by reacting urea with formaldehyde. This liquid resin
usually contains 60% to 65% solids in water. About 4.2 billion pounds are consumed annually in
the North America for manufacturing products for interior uses. This resin and products bonded
with it have the following characteristics:

A low-cost resin, about $0.25 per dry pound.

UF requires a low curing temperature (~130 oC) and short press time (1 minute to 5
minutes depending upon thickness of products)
UF adhesive bonds are water-resistant but not waterproof, and these bonds tend to
degrade under elevated temperature and humid environments, causing separation of
bonded wood elements and emission of formaldehyde gas.

Existing Technologies
Self-Repairing Concrete Used Urea-Formaldehyde Resin Polymer Micro-Capsules and
Method for Fabricating Same (US 20110060074 A1)
A self-repairing concrete includes urea-formaldehyde resin polymer microcapsules, in which the urea-formaldehyde resin polymer micro-capsules are mixed
for a fixed function of micro-cracks. The quality mixture ratio is: concrete/micro
capsules/water=100:1-15:15-50. The manufacturing method is weighing a full
amount of water in a container, adding urea-formaldehyde resin polymer microcapsules, stirring, until fully dispersed microcapsules; pouring the water into the
mixing container, adding the corresponding quality of cement; stirring; adding
sand and gravel filling materials, conducting worksite watering, volume for
each time, vibrating, and air exhausting; until the paste filling mold.

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Competitors
Company needs to meet the stringent quality norms before marketing their product especially in
developing regions of Asia Pacific. Some of the market participants in the global urea
formaldehyde market are BASF SE, The Dow Chemical Company, Ashland Inc., DuPont,
Kronospan Ltd., Advachem SA, etc.
The Asia-Pacific urea formaldehyde resin market had approximately 40.5% of market share
value in 2013. The market has grown considerably during the past few years and is expected to
grow at a more rapid pace in the coming years. Currently more than half of the total global
market is part of manufacturing adhesives sector, because of its property of high reactivity,
wonderful performance and low price. China is the largest consumer of urea formaldehyde
resin in Asia-Pacific, having a consumption share of around 74% of the total Asia-Pacific
demand in 2013.
In the past 20 years, China has become one of the largest producers of furniture. China surpassed
Canada and has become worlds second largest producers of sawn wood after the U.S. It also
produces wood-based panels, paperboard in extensive proportion. It was estimated to be the
largest exporter of wood-based panels in the global market. The construction industry in China
had seen a good growth and is expected to grow by an average of around 8.0% each year by
2018. Factors such as industrialization and urbanization, increase in purchasing power, growth of
domestic household industries with high consumption will fuel Chinas wood panel industry.
Subsequent to China are Indonesia, Malaysia and Republic of Korea.
The key countries covered in the Asia-Pacific urea formaldehyde resin market are China,
Indonesia, Malaysia and Republic of Korea. The various applications studied include solvents,
chemical intermediate, pharmaceutical and others.

References:
http://www.google.com/patents/US20110060074
http://www.futuremarketinsights.com/reports/urea-formaldehyde-market
http://www.micromarketmonitor.com/market/asia-pacific-urea-formaldehyde-resin7877103988.html
http://blog.oureducation.in/properties-and-uses-of-urea-formaldehyde-resin/

Market Reports:

CHE180-1 | Formaldehyde Resin

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http://www.researchandmarkets.com/reports/2364726/ureaformaldehyde_uf_a_global_market_w
atch
https://www.zauba.com/import-UREA+FORMALDEHYDE+RESIN-hs-code.html
http://www.marketwatch.com/story/urea-formaldehyde-market-resin-2019---2020-outlook-forglobal-and-chinese-regions-2015-05-21-9203247
http://beforeitsnews.com/business/2015/11/urea-formaldehyde-resin-market-2016-2021-globalindustry-forecasts-and-research-report-2774192.html