February 8, 2025 – Tianfeng Securities Issues Positive Report on Kaili New Materials’ Mercury-Free Catalyst Market Prospects
Tianfeng Securities Co., Ltd. analysts, including Tang Jie, Zhang Feng, Guo Jianqi, and Liu Yiting, have recently conducted an in-depth study on Kaili New Materials and released a research report titled “The Minamata Convention Ushers in a Large Market for Mercury-Free Catalysts in the PVC Industry”, assigning a buy rating to the company.
The Minamata Convention, an international treaty with over 140 parties, imposes strict restrictions on the production and use of mercury. Since its entry into force in 2017, global efforts to control mercury have been continuously strengthened, particularly with the explicit goal of banning the mining of primary mercury by 2032. As one of the first signatories to the Minamata Convention, China has been actively fulfilling its obligations under the treaty and promoting mercury pollution prevention and control.
According to industry insights from the Color Masterbatch Industry Network, the PVC industry, a vital component of the chemical sector, plays a crucial role in achieving the goals of the Minamata Convention through its mercury-free transition. Vinyl chloride, a key raw material for PVC production, uses mercury-containing ingredients in its manufacturing process, prompting the Convention to set clear phase-out requirements for the PVC industry. As a major producer and consumer of PVC globally, China relies heavily on the calcium carbide method, which accounts for approximately 75% of its PVC production. However, the mercury-containing catalysts used in this process have led to significant mercury pollution issues.
In response to the Convention’s requirements, China has implemented a series of policies aimed at prohibiting the construction of new mercury-containing process facilities and promoting the application of mercury-free technologies in the PVC industry. Against this backdrop, the demand for mercury-free catalysts is experiencing explosive growth. Estimates suggest that with the calcium carbide method continuing to dominate PVC production at nearly 75%, and assuming the complete elimination of mercury in the acetylene-based PVC production process, the annual demand for gold-based mercury-free catalysts is projected to reach around 10,000 tons, indicating a vast market potential.
Kaili New Materials, as a leading player in the mercury-free catalyst industry, boasts competitive products and a significant market share. With the accelerated progress of the PVC industry’s mercury-free transition, Kaili New Materials is poised to embrace an even broader development horizon.