Halogenated flame retardants continue to dominate Chinese markets despite environmental concerns. The primary driver for this dominance has been robust growth of the Chinese economy leading to sharp growth in demand for consumer, electronic and automotive products. Plastics additives, in particular flame retardant chemicals, are benefiting from this boom and witnessing increasing demand from a wide range of end-user markets.
A new research report from Frost & Sullivan indicates that China's flame retardant market reached 530,000 tons in 2005 and and is likely to reach 800,000 tons by 2012. The increase in demand for electric and electronic (EEE) equipments as well as ongoing development of the building and construction and automotive industries, spell good news for the growth of the Chinese flame-retardants markets. Halogenated products have traditionally dominated the market and accounted for almost 90% share. Of these, chlorinated and brominated flame retardants continue to experience significant demand due to their superior performance, especially with regard to achieving high fire safety standards in low concentrations.

However, concerns have recently surfaced about the environment friendliness of halogenated products, leading to the introduction of numerous directives such as the European Union's Restriction of Hazardous Substances (RoHS) and the Waste Electrical and Electronics Equipment (WEEE). These directives aim to prohibit the use of halogenated flame retardants such as poly brominated biphenyl (PBB) and poly brominated diphenyl ethers (PBDE) in EEE equipment produced after July 1, 2006. There has also been a spurt in research activity in the attempt to minimize brominated products or replace them entirely with more environmentally safe products such as mineral or phosphate flame retardants.
Chemical manufacturers could also consider developing more eco-friendly brominated flame retardants, which are likely to be attractive to original equipment manufacturers (OEMs) trying to comply with the directives on these chemicals.

For the moment, however, halogenated products are likely to retain their dominant position in the Chinese market as there is no known alternative that can match their performance benefits, efficiency and cost effectiveness. Even though phosphate flame retardants, especially non-halogenated ones, are considered more environment friendly, they are not as cost effective because of less flame retardancy and the need for a higher loading level. This has hindered their uptake and application in the Chinese market. Current market trends continue to favor chlorinated and brominated flame retardants, with many consumers preferring the addition of these flame retardants in a variety of applications.