Bentonite Industry Definition

Bentonite is a non-metallic mineral with montmorillonite as the main mineral composition. Its core is characterized by the crystal structure of montmorillonite, which is composed of two silicon oxygen tetrahedra sandwiched between a layer of aluminum oxygen octahedra 2:1 type structure. Because the unit cell of montmorillonite exhibits a layered structure and contains cations such as Cu, Mg, Na, K, etc., the interaction between these cations and the unit cell of montmorillonite is unstable and easily replaced by other cations, therefore, bentonite has good ion exchange performance. Bentonite also has other other other name, such as bentonite, bentonite or bentonite. In China, the development and utilization of bentonite has a long history, initially it is only used as a detergent. However, its wide application in various fields is nearly a hundred years.

　Bentonite Industry Classification

According to the type and content of exchangeable cations between montmorillonite layers, bentonite can be classified into four main types: calcium bentonite, which is characterized by containing more calcium ions; Sodium bentonite, which is characterized by high content of sodium ions; Magnesium bentonite, mainly magnesium ions; and aluminum (hydrogen) bentonite. In this type of bentonite, aluminum ions or hydrogen ions occupy a prominent position. The main components of calcium-based bentonite are montmorillonite and illite, which are commonly found in marine sediments and volcanic ash. Although the adsorption capacity of calcium bentonite is weak, it has good stability and high temperature resistance. The main components of Na-bentonite are montmorillonite and bentonite minerals, which are mainly distributed in river and lake sediments. In addition, there is an illite bentonite, which is a kind of mineral with a relatively complete layered structure, mainly composed of silicate and hydrated aluminum silicate. Illite bentonite has a high water absorption, can absorb and maintain a large amount of water.

　Development history of bentonite industry

From the 1970 s to the 1980 s, with the progress of science and technology and the in-depth study of the characteristics of bentonite, its application in the fields of environmental protection, agriculture and food processing began to expand. During this period, the mining and processing technology of bentonite has also been significantly improved. In the 1990 s, the trend of globalization promoted the internationalization of the bentonite market. China and other resource-rich countries began to increase investment and development in the bentonite industry, forming a large-scale production and export situation. In the 21st century, especially from 2000 to 2010, the bentonite industry has entered a stage of rapid development. Technological innovation has driven the diversification of product categories, including the development and application of high-performance materials such as organic bentonite. These new materials have found new markets in petroleum exploration, coatings, cosmetics and other fields.

Since 2010, the bentonite industry has continued to deepen structural adjustment and industrial upgrading, focusing on green environmental protection and sustainable development. China and other major producing countries have implemented strict environmental protection policies and industry norms, promoting the transformation of the industry to the direction of high efficiency, environmental protection and high-end. At the same time, the investment in scientific research has increased, and the production and expansion of new projects, such as the 30000-ton bentonite production line in Qufu, Shandong (2020), and the start of the new bentonite material project in Ningguo City, Anhui (2020), have further consolidated and enhanced China's position in the global bentonite industry chain.

　　Upstream, midstream and downstream of bentonite industry

The upstream of bentonite is mainly the mining and processing of bentonite ore, including mining, beneficiation, crushing, classification and other links. Bentonite ore is mainly distributed in river and lake sediments, marine sediments and volcanic ash, so its distribution range is wide, but the high-quality ore resources are relatively small. The downstream application industry of bentonite is very extensive, mainly including environmental protection, agriculture, construction, medicine and other fields. In the field of environmental protection, bentonite can be used in water treatment, waste gas treatment and solid waste treatment; in the field of agriculture, bentonite can be used as soil conditioner, pesticide additive and feed additive; in the field of construction, bentonite can be used to produce building materials, waterproof materials and heat insulation materials; in the field of medicine, bentonite can be used to prepare drug carriers, drug controlled release systems and medical dressings.

　　Market size and growth rate of bentonite industry in China

China is rich in global bentonite resources, with huge reserves. According to statistics from the Ministry of Natural Resources, by 2022, my country's bentonite reserves have reached 332.7185 million tons, an increase of 32 million tons over the previous year. This kind of mineral resources are widely distributed in China, covering 23 provinces and regions in China. The main production mining areas are located in Xuanhua, Hebei, Yuhang, Zhejiang, Longhua, Hebei and other places. In terms of domestic consumption, bentonite products are widely used in many industries. Among them, the metallurgical industry has the largest demand for bentonite for iron ore pellets, accounting for about 51% of the total consumption; the consumption of the foundry industry accounts for about 15%; and the consumption in the field of drilling mud accounts for about 18%. In addition, bentonite is also widely used in the fields of petrochemical industry, light industry, textile industry, agriculture and building materials.

According to statistics, in the five years from 2016 to 2020, the annual output of bentonite in my country will remain in the range of 3.2 million to 3.65 million tons. During this period, bentonite production for foundry sand, drilling mud, metallurgical pellets and other traditional industries accounted for about 85% of the total annual output. As of 2022, the size of China's bentonite market reached about 6.598 billion yuan, an increase of 44.9 compared to the previous year, showing strong market vitality. However, with the gradual stabilization of downstream industry demand and the increasing strictness of relevant standards, the output of domestic bentonite has shown a clear downward trend. In 2022, China's bentonite production is about 2.1 million tons, basically the same as the previous year. At the same time, the market demand is showing a moderate growth trend. In the same year, China's demand for bentonite was 1.9704 million tons, an increase of 5% over the previous year, indicating that although the output has declined, the market demand is still growing steadily.

In 2022, the size of China's bentonite market will reach about 6.598 billion yuan, a significant growth of 44.9 percent over the previous year. However, it is worth noting that bentonite production has shown a significant decline during the same period, with annual production stable at 2.1 million tons, unchanged from the previous year. Despite the decline in production, market demand still shows a growth trend. In 2022, the demand reached 1.9704 million tons, an increase of 5% year-on-year. From the enterprise level, take Hongyu shares as an example, which is a high-tech enterprise established in 2010, focusing on the R & D, production and sales of organic bentonite. The company has a mature organic nano bentonite production line, and its main product HY series organic bentonite in the market. In 2022, Hongyu's bentonite business achieved operating income of 0.158 billion yuan, up 22.39 percent year-on-year, and maintained a high gross margin of 30.82 percent. China's bentonite mineral resources are rich and complete, including calcium bentonite, sodium bentonite, hydrogen bentonite, aluminum bentonite, sodium calcium bentonite and other types of bentonite. Among them, calcium bentonite is the most abundant, accounting for more than 80%. As of 2019, China has a total of 223 proven bentonite mining areas, with a cumulative identified resource reserves of up to 3.005 billion tons.

The main export direction of bentonite in China is Southeast Asia, such as Indonesia, Thailand, Malaysia and South Korea. In detail, exports to Indonesia were the largest in 2021, reaching 67000 tonnes, or 17 per cent of domestic exports, followed by Thailand and Malaysia, with 58900 tonnes and 53300 tonnes, or 15 per cent and 13.5 per cent, respectively.

　　Bentonite Industry Policy

Bentonite industry policy mainly includes environmental protection, safety and quality requirements. In terms of environmental protection, the government has put forward strict restrictions and management measures on the mining, processing and utilization of bentonite to protect the stability of the environment and ecosystem. In terms of safety, the government requires bentonite enterprises to establish and improve the safety production management system, strengthen equipment maintenance and personnel training, and ensure the safety of the production process. In terms of quality, the government has formulated a series of standards and specifications, requiring bentonite products to meet relevant quality requirements, and strengthening the supervision and inspection of product quality. In addition, the government also encourages and supports the technological innovation and development of the bentonite industry to improve the competitiveness and market share of enterprises.

　　Problems in the bentonite industry

From the perspective of resource management, there are problems of over-exploitation and unreasonable utilization in the industry, which not only leads to the waste of valuable bentonite resources, but also causes environmental damage and ecological imbalance. Secondly, the gap in the level of technical equipment is another significant problem. The production equipment and technology of some small enterprises are relatively backward, resulting in unstable product quality, unable to meet the needs of the high-end market, but also increased the impact on the environment.

The lack of R & D innovation capability in the industry is also an important bottleneck. At present, bentonite products are mainly concentrated in the low-end market, and the supply of high-end products is in short supply, which limits the development space and competitiveness of the industry. In addition, the imperfect construction of the standardization system is also a factor restricting the development of the industry. The inconsistency and non-standardization of product standards and testing methods have affected fair competition in the market and the protection of consumers' rights and interests. In terms of market order, due to the low concentration of the industry, chaotic market competition and frequent price wars, the profit level and healthy development of the industry have been seriously affected. Environmental protection is a serious challenge that bentonite industry must face. Waste water, waste gas and waste residue treatment in the production process need to be effectively solved to achieve harmonious coexistence with the environment. The short board of talent team construction can not be ignored. The shortage of professional and technical personnel and senior management personnel limits the ability of enterprises in technological innovation and management, thus restricting the long-term development and transformation and upgrading of the whole industry.

　　Development Prospect Forecast of Bentonite Industry

With the progress of science and technology and the diversification of market demand, the application field of bentonite continues to expand, from the traditional casting, drilling, chemical industry, agriculture and other fields to environmental protection, new materials, new energy and other high-tech fields, injecting new impetus into its development. It is expected that in the future, the industry will further enhance its technological research and innovation capabilities, strengthen basic research and deep processing technology innovation, and promote the development of large-scale and intelligent processing equipment to improve product quality and resource utilization efficiency. This will help to develop a series of high-end bentonite products to meet the needs of different markets, and give full play to the resource advantages of bentonite ore in China.

In the international market, with the growth of global demand for energy-saving and environment-friendly functional mineral materials, bentonite, as an important functional mineral material, is expected to further expand its export market. At the same time, the standardization of the industry will also be strengthened, which will help enhance the international competitiveness of China's bentonite products. In general, the bentonite industry is expected to achieve sustained and stable development in the future. Through technological innovation, industrial structure adjustment and environmental protection upgrading, it will continuously enhance the value and global influence of the industry and make important contributions to the sustainable development of the economy and society.