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In 2012, China witnessed several major fire incidents that shocked the public and raised serious concerns about building safety. Among the most notable were the fire at the teacher’s apartment on Jiaozhou Road in Shanghai on November 15 and the devastating blaze at Wanxin Mansion in Shenyang on February 3. These tragedies resulted in significant loss of life and property damage, exposing the risks associated with substandard thermal insulation materials. As a result, both the government and the public became more vigilant, leading to increased scrutiny and awareness around the use of insulation materials.
This growing concern set the stage for significant changes in 2013. On December 5th, the Ministry of Public Security Fire Department released a new notice titled “Circular on Fire Supervision and Management of External Thermal Insulation Materials for Civil Buildings†(No. 350). This document marked a turning point by repealing the previous "65 Document" issued in March 2011, which had been a source of confusion and debate among officials and industry players for over two years. The new policy aimed to bring clarity and consistency to the regulation of external wall insulation materials.
The key change was that buildings no longer needed to use only Class A (non-combustible) insulation materials. Previously, many projects were restricted from using organic materials due to strict fire regulations. Now, with the updated guidelines, developers could once again consider a wider range of options, including some organic materials that offer better thermal performance and cost-effectiveness.
Currently, inorganic insulation materials—such as foam glass panels, phenolic boards, rock wool sheets, and composite rock wool boards—make up less than 10% of the market. While these materials are safer in terms of fire resistance, they often fall short in thermal efficiency compared to their organic counterparts. Additionally, the installation process is more complex, and the overall cost is higher, making them less appealing to developers.
With the new regulations in place, the demand for high-performance, cost-effective insulation materials is expected to rise. China remains the world's largest construction market, with an annual new construction volume of 2 billion square meters. Over 95% of these new buildings are still energy inefficient, highlighting the urgent need for better insulation solutions.
As urbanization continues to accelerate, the insulation market is poised for growth. The revised policies not only encourage safer building practices but also open the door for more affordable and efficient materials. This shift is likely to benefit both developers and consumers, promoting a more balanced approach to fire safety and energy efficiency in the construction sector.