2-ethylhexanol

13 September 1999 00:00 [Source: ICB]

A number of Far East investments in response to growing demand for PVC in Asia and growing availability of propylene are threatening traditional suppliers to the region, in particular western Europe.

Supply/demand

2-ethylhexanol (2-EH) is the most important oxo-alcohol, together with n-butanol. Total world supply is estimated at around 3.35m tonne/year, of which Europe accounts for around 35%. Global demand is estimated at around 2.5m tonne. Traditionally Europe and to a lesser extent the US and Japan have been the major suppliers of 2-EH into Asia. However over recent years there has been a significant build of new 2-EH capacity in Asia, in particular in Korea and Taiwan, resulting in a shift away from western Europe as a major supplier.

Uses

The main outlet for 2-EH is to produce phthalate plasticisers such as di-octyl-phthalate (DOP). DOP is produced by combining oxo alcohols with phthalic anhydride and accounts for around 40% of 2-EH demand. Plasticisers are used in the manufacture of PVC, so growth rates are linked to PVC. Another important application for oxo-alcohols is in coatings.

Technology

The usual starting point in 2-EH manufacture is the hydroformylation of propylene and synthesis gas (carbon monoxide and hydrogen) with a catalyst to make n-butyraldehyde as well as isobutyraldehyde. Rhodium catalysts have succeeded earlier cobalt hydrocarbonyl catalysts. The n-butyraldehyde is then separated by distillation and converted into 2-EH in three steps - aldoling, dehydration and hydrogenation. Kvaerner/Union Carbide is a major licensor of 2-EH/oxo technology and has recently developed a new rhodium catalyst modified by a phosphite ligand.

Health & safety

2-EH can irritate the skin and eyes while inhalation of high vapour concentrations can cause irritation of the upper respiratory tract. However, its low vapour pressure reduces likelihood of a serious inhalation hazard. 2-EH is a combustible liquid.

Pricing

European 2-EH prices have surged from DM550-570/tonne FD at the start of the year to levels around DM1000-1100/tonne FD in early September with the low end indicated for spot volumes and the higher end for contract business. Rising propylene feedstock costs are seen as the major factor driving price increases although 2-EH supply is said to be considerably tighter than at the start of the year following a series of planned and unplanned maintenance shutdowns since quarter two. European availability of 2-EH for export is described as limited although one trader talked of Russian material available at $430-440/tonne fob. Neste Oxo brought down its Stenungsund unit in Sweden for ten days early September and a company source said the unit would be operating at reduced rates until mid-November in line with maintenance at a major supplier. Also, feedstock problems are reported to be impacting production at the Polish units.

Quarter three Asian contracts have been agreed at $455/tonne CFR which compares with earlier price ideas of $480-495/tonne CFR. However, spot prices in the region have moved up since the third quarter settlement with business done into Taiwan at $480/tonne CFR and into China at $490/tonne CFR, according to a trader. The new 150 000 tonne/year Nan Ya Plastics facility in Mailiao, Taiwan, has been delayed coming onstream following a fire at the plant in July. Although Asian DOP prices have also started to recover, this has been at a lower pace than for 2-EH.

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EUROPEAN 2-EH CAPACITY, '000 TONNE/YEAR

Company

Location

Capacity

Western Europe

Oxochimie

Lavéra, France

125

BASF

Ludwigshafen, Germany

200

Tarragona, Spain

Celanese

Oberhausen, Germany

300

Oxeno

Marl, Germany

240

Neste Oxo

Stenungsund, Sweden

120

Eastern Europe

Zaklady

Azotowe

Kedzierzyn, Poland

167

Oltchim

Rimnicu Vilcea, Romania

Solventul

Timisoara, Romania

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