Overview

Bentonite, also known as montmorillonite, soapstone, or swelling rock, is a non-metallic mineral primarily composed of montmorillonite. It is generally white or light yellow, with a waxy, earthy, or oily luster, and can be found in compact block form or as loose soil. Due to its ability to swell into a paste upon hydration, any clay with this property is collectively referred to as bentonite. The montmorillonite content in bentonite is generally above 65%, and its properties are determined by montmorillonite. It can be categorized into different types based on density and is widely used in various fields such as adhesives, suspending agents, thixotropic agents, stabilizers, purification and decolorization agents, filling materials, feed, and catalysts, earning the title of “versatile clay.”

Industry Chain

The upstream of the bentonite industry chain consists of bentonite mining, including raw bentonite and mining machinery. The downstream applications are extensive, covering casting, metallurgy, drilling mud, food, petroleum, agriculture, chemical engineering, environmental protection, construction, papermaking, textile printing and dyeing, ceramics, and pharmaceuticals and cosmetics.

Development Status

Global bentonite resources are abundant and widely distributed, with the United States, the former Soviet Union, and China accounting for about three-quarters of the world’s reserves. Despite the abundance of global bentonite resources, high-quality sodium bentonite, which is in high demand, is quite scarce. In terms of consumption, the global bentonite market varies by region. The United States’ largest market for bentonite is in the adsorbent field, followed by drilling mud; in the EU, it is mainly used for cat litter and casting; in Asia, it is primarily used in casting. Data shows that in 2022, global bentonite production reached 18.869 million tons, a year-on-year increase of 0.4%. The top three producing regions are the United States, India, and China, with production shares of 23.85%, 15.9%, and 11.13%, respectively.

Currently, advanced processing technologies for bentonite include acid treatment, alkali treatment, and intercalation composites. With the advancement of science and technology and the progress of bentonite research, bentonite has found new applications in new-type ceramics, special coatings, inorganic gels, pressure-sensitive paper colorants, efficient water absorbents, pesticide carriers, and nuclear waste treatment. Efforts are being made to develop the application research and fine processing technology of bentonite, especially the artificial synthesis technology of montmorillonite, to develop high added-value products, which has become the focus of bentonite technology research and development and the key to transforming the resource advantage of bentonite into an economic advantage.

Market Price Trend

In recent years, the market average price of China’s bentonite industry has generally shown an upward trend, increasing from 973.51 yuan/ton in 2015 to about 3348.62 yuan/ton in 2022. Thanks to the continuous rise in prices, the market size of China’s bentonite industry has generally shown a fluctuating upward trend in recent years. Data shows that in 2022, the market size of China’s bentonite industry was about 6.598 billion yuan, a year-on-year increase of 44.9%.

Import and Export Trade

With the development of China’s bentonite industry, the scale of import and export trade has generally shown an upward trend in recent years. Data shows that in 2022, China’s bentonite import volume was 180,100 tons, a year-on-year increase of 23%, and the import amount was 39 million US dollars, a year-on-year increase of 18.2%; the export volume was 309,700 tons, a year-on-year decrease of 16.1%, and the export amount was 162 million US dollars, a year-on-year increase of 11%.

Key Enterprises

Hongyu Shares, established in 2010, is a high-tech enterprise mainly engaged in the research and development, production, and sales of organic bentonite. It has a mature and complete organic nano-bentonite production line, and its main product is the HY series of organic bentonite. As the first domestic enterprise to produce new-type bentonite, Hongyu Shares has been committed to the research and development, production, and sales of nano-modified organic bentonite and ultra-fine organic bentonite since its establishment, creating a modern enterprise integrating research, production, and sales. The company’s business model is based on its own technology, relying on cooperation with domestic universities and research institutions such as Zhejiang University, Zhejiang工业大学, and Hu Shi Yuan, to provide products and technical support, services, and supply chain solutions for small and medium-sized enterprises in the global organic application de bentonite market. Data shows that in 2022, Hongyu Shares’ bentonite business revenue was 158 million yuan, a year-on-year increase of 22.39%, with a gross profit margin of 30.82%.

Development Trends

The market demand situation is positive. With the rapid development of various industries, the demand for bentonite is also growing. Especially in the fields of building materials, cosmetics, food, and medicine, the application of bentonite is becoming more and more extensive. For example, in building materials, bentonite can be used as paint, cement concrete reinforcement materials, and waterproof materials, which can improve the performance and durability of building materials. At the same time, due to bentonite’s good chemical stability and biodegradability, as well as its environmental friendliness, it also has a broad application prospect in the fields of environmental protection and energy.

The application prospects in the environmental protection field are broad. In recent years, China has continuously increased support for the environmental protection industry and has increased policy support for environmental technology enterprises. The bentonite industry plays a very important role in reducing pollution and achieving sustainable development. Therefore, the government will further increase support for the bentonite industry to make its development more stable. In the future, with the strengthening of environmental protection policies and the continuous innovation of environmental protection technology, the application prospects of bentonite in the field of environmental protection will be even broader.