Phenol
22 January 2001 00:00 [Source: ICB]
Global demand is set to grow by 3-4%/year, which should be
met by new plants planned in Thailand and SingaporeUpdated from
product profile, ECN 17 MAY 1999
Uses
Bisphenol-A (BPA), used in polycarbonate and epoxy resins, has
overtaken phenolic resins as the major consumer with 37% of total
demand. Phenolic resins, used to make adhesives and laminated
boards, is next, accounting for about 34%. About 15% of phenol is
used in the fibre intermediate, caprolactam. Strong growth is
projected, although from a relatively small base, in ortho-xylenol
used in polyphenylene oxide engineering plastics. Other derivatives
are alkylphenols, adipic acid, aniline, chlorinated phenols and
diphenols. It is also used in pharmaceuticals, acetylsalicylic acid
and paracetamol.
Supply/demand
Over 90% of capacity is concentrated in Western Europe, Asia and
North America. West European capacity totals 2.35m tonne/year, with
over 1.8m tonne/year available to the merchant market. Germany,
Belgium and the Netherlands absorb over 50% of European production.
US production totals 2.8m tonne/year, and new capacities onstream
last year moved it to a net exporter with over half of its capacity
serving merchant markets. Asia, a net importer, has a total
capacity of 1.5m tonne/year with nearly 66% consumed internally by
derivatives, although expansions will double the region's merchant
capacity in the next few years. Global markets are oversupplied.
However, technical problems at EniChem in Porto Torres during 2000
restricted European supply, and availability is tight in early 2001
but should loosen. BPA demand is strong, but players report weaker
phenolic resins consumption, particularly in the US where housing
and automotive markets have slowed.
###9733###
Pricing
Most European contracts dropped by about DM40/tonne in January,
reflecting lower benzene and propylene feedstock costs, although
some accounts have rolled over. The average monthly contract price
is quoted at DM1850/tonne FD, before discounts. US suppliers are
seeking a 4 cent/lb rise in January on contract prices of 32.5-36.5
cent/lb.
Technology
Cumene-based technology is the dominant process and is
considered to be the most economic, supported by demand for
coproduct acetone. About 6 tonne of acetone is made for every 10
tonne of phenol. A few producers use an older process involving the
hydrolysis of chlorobenzene. A third route is the liquid phase
oxidation of toluene, developed and operated by DSM. Recent
research has concentrated on technologies avoiding the coproduction
of acetone. A one-step route from benzene has been developed by
Russia's Boreskov Institute of Catalysis, and Solutia will
commercialise the Alphox technology in a new plant in Pensacola,
US, due onstream late 2003. Mitsui Petrochemical has also developed
a new process where benzene is partially hydrogenated to
cyclohexane, followed by conversion to cyclohexanol and
dehydrogenation to phenol.
Health and safety
Pure phenol occurs as colourless to yellow crystals which turn
pink on exposure to light and air. It is solid at ambient
temperatures and is normally sold in bulk quantities as a heated
liquid. It is moderately soluble in water. It reacts with oxidants,
causing a fire and explosion hazard and forms toxic sooty fumes
when heated. Its vapour is corrosive to body tissues and poisoning
can occur by skin absorption, inhalation or ingestion.
Outlook
Phenol demand worldwide is expected to grow at 3-4%/year. Global
demand growth for BPA is estimated at 7-8%/year, with phenolic
resins at just 1-2%/year. Players expect supply/demand to become
more balanced within the next two years as markets digest new
capacity. Debottleneckings at Ertisa (due quarter one) and EniChem
(completed) will feed GE Plastics' new BPA/PC capacity in Spain.
Caprolactam Leuna's expansion in quarter three will feed Radici's
new adipic acid output. Phenolchemie still plans a 400 000
tonne/year plant in Thailand. Mitsui will bring onstream a 200 000
tonne/year unit in Singapore in September, and is also looking at
Thailand or Singapore for an additional plant by 2004-05.
MAJOR GLOBAL PHENOL CAPACITY, '000
TONNE/YEAR
| Producer |
Location |
Capacity |
| Borealis |
Porvoo, Finland |
130 |
| Caprolactam Leuna |
Leuna, Germany |
130 |
| Chiba Phenol |
Chiba, Japan |
200 |
| Dow Chemical |
Freeport, Texas, US |
295 |
| DSM |
Botlek, Netherlands |
110 |
| EniChem |
Mantova, Italy |
295 |
| Formosa Plastics |
Mailiao, Taiwan |
200 |
| GE Plastics |
Mount Vernon, Indiana, US |
320 |
| Georgia Gulf |
Pasadena, Texas, US |
73 |
| Plaquemine, Louisiana, US |
227 |
| Kumho P&B |
Yeochon, South Korea |
120 |
| Mitsubishi Chemicals |
Kashima, Japan |
180 |
| Mitsui Chemicals |
Chiba, Japan |
190 |
| Nippon Steel |
Tobata, Japan |
120 |
| Phenolchemie |
Theodore, Alabama, US |
400 |
| Rhodia |
Paulinia, Brazil |
130 |
| Shell |
Deer Park, Texas, US |
545 |
| Sunoco |
Frankford, Pennsylvania, US |
460 |
| Taiwan Prosperity |
Lin Yuan, Taiwan |
120 |
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