Acetic acid
10 May 1999 00:00 [Source: ICB]
Supply/demand
Two factors are likely to help the balance in the European
market in 1999. The first is the blockade on Serbia which has
eliminated Serbian exports to Europe. The plant, rated at 100 000
tonne/year, had been running at around 60 000-70 000 tonne/year.
Sources suggest that even if the plant remains undamaged,
logistical links and infrastructure have been damaged and it is
unlikely that the material will reappear on the European market in
1999. Celanese's shutdown of the Frankfurt plant late 1999 will be
brought forward to July, with provision made to import material
from the US. Downstream demand, especially from Europe's PTA
sector, has been hit by new production outside Europe. Global
demand was 6.0m tonne in 1998, according to Tecnon consultant Bill
Tollett. Global capacity is much higher - around 7.8m tonne/year.
BP Amoco and Celanese have over 50% of the world's production
between them. Other producers like Acetex, Daicel, Millennium and
Eastman are major regional players.
Uses
Principal chemical uses are as a chemical intermediate and
solvent in chemical reactions. Vinyl acetate monomer, used to make
protective coatings, adhesives and plastics, is the largest, taking
around 40% of global production. PTA production accounts for around
14%, solvent esters 13% and acetic anhydride, used primarily in
cigarette filters, about 12%.
Technology
Around 55% of global production uses the methanol carbonylation
process developed by Monsanto in the 1960s. This involves combining
carbon monoxide and methanol in the presence of an appropriate
catalyst. Celanese and BP Amoco have emerged as major players
partly due to their strong technology base, with both having
developed the original methanol carbonylation route.
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Celanese patented its AO technology in 1995, which has allowed the
company to run facilities with capacities approaching 1m
tonne/year. BP Amoco's growth stemmed from its acquisition of
Monsanto's technology when the company left the market. After three
years of development, BP Amoco patented its Cativa methanol
carbonylation process which uses iridium instead of the original
rhodium catalyst. Benefits include reduced capital cost and fewer
by-products.
Other companies developing routes to acetic acid include Haldor
Topsoe and Wacker Chemie. Wacker Chemie anticipates building a
commercial scale plant should trials at a pilot scale plant proceed
well.
Pricing
Low methanol prices and the weak Asian economy have led to
contract prices falling steadily over the last five quarters.
However, some recovery in activity in Asia and a slight rise in the
methanol price suggests that a second quarter rollover of Europe's
first quarter DM850-970/tonne FD is possible. In Asia first quarter
prices were agreed at $380/tonne CFR. However, Asian second quarter
prices, which tend to be a pointer for European prices, have not
been agreed so there is still a degree of uncertainty over Europe's
second quarter pricing. Russian spot material is said to have been
available in Finland at $250/tonne fob.
Producers say the removal of Serbian sales from the European
market is a positive factor because the MSK material had in the
past undermined pricing.
GLOBAL ACETIC ACID PRODUCTION, '000 TONNE/YEAR*
| Company |
Location |
Capacity |
| Acetex |
Pardies, France |
400 |
| Air Products |
Calvert City, Kentucky |
60 |
| Sterling |
Texas City, US1 |
450 |
| BP/Petronas |
Kerteh, Malaysia2 |
500 |
| Samsung/BP |
Ulsan,South Korea |
350 |
| Yangtze River |
Sichuan, China3 |
150 |
| Celanese |
Clear Lake, US |
1000 |
| Wacker |
Burghausen, Germany7 |
80 |
| China |
(over 50 producers) |
900 |
| Chang Chun |
Miaoli, Taiwan |
80 |
| Daicel/ |
Aboshi, Japan |
400 |
| Eastman |
Kingsport, Tennesee |
186 |
| Ercros |
Tarragona, Spain8 |
100 |
| Millenium |
Deer Park, Texas |
450 |
| Severodonetsk |
Ukraine |
150 |
|
| Showa Denko |
Oita, Japan |
150 |
*Plants over 50 000 tonne/year capacity1marketed by
BP; 2onstream Q4 1999; 3Sichuan Vinyls and BP
jv; 4expanding to 130 000 tonne/year; 5to be
mothballed mid-1999; 6onstream July 2000;
750%-owned by Hoechst;8mothballed;
9mothballed
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