Chemical profile: Ethyl acetate

14 April 2008 00:00  [Source: ICB]

USES

Ethyl acetate (etac) is an active solvent that is mainly used in industrial lacquers and surface coating resins. It is also used as an extraction solvent in the production of pharmaceuticals and food, and as a carrier solvent for herbicides. Miscellaneous uses include adhesives and cosmetics.

SUPPLY/DEMAND

The European market is quite balanced, with ample supply available. Demand is good and steady, although one producer cited poor demand in the first quarter as dollar-based imports undermined sales. Imports continue to arrive at usual levels.

UK major INEOS has acquired rival BP's vinyl acetate monomer (VAM) and etac businesses effective from April 1. The deal includes a 250,000 tonne/year etac plant in Hull, UK.

PRICES

Prices in Europe have been bumping along the low-€900s/tonne since mid-2007. Current business is being done in the range €900-920/tonne, although there is talk of deals below this level. High and volatile ethylene feedstock costs continue to challenge margins for ethylene-based players. European prices are higher than those in the US and China, rendering euro-based ­material uncompetitive.

TECHNOLOGY

The main route is by the esterification of ethanol, with acetic acid in the presence of a catalyst, although some is produced by the catalytic condensation of acetaldehyde with alkoxides.

Several new technologies have been ­commercialized. BP's Avada process at the Hull plant uses ethylene and acetic acid, with a solid catalyst, and is targeted at ­locations where competitive ethanol is unavailable.

Davy Process Technology of the UK has licensed its ethanol-based process to South African chemical producer Sasol. In this route, ethanol is dehydrogenated to acetaldehyde, which reacts further to form etac.

China National Petroleum has developed a one-step ethanol process where ethanol is partially oxidized to acetic acid and then esterified with excess ethanol.

HEALTH AND SAFETY

Etac is a colorless, mobile and volatile liquid, with a characteristic fruity odor. It is highly flammable and can form explosive mixtures with air. Flashback can occur in a fire as its vapors are heavier than air. Etac is moderately toxic by inhalation.

OUTLOOK

In Europe, demand is forecast to be flat, or even contract slightly as consumption by the local paints and inks sector shrinks as production moves eastwards. Global demand growth is put at 3-4%/year, driven by demand for surface coatings in Southeast Asia and China. Strong growth in the Middle East is being seen in inks and flexible packaging.

Players talk of the possibility of future consolidation in Europe as ethylene-based producers struggle to compete against more profitable ethanol-based production, which is tipped to gain market share in the short term. Europe could become more reliant on imports to satisfy demand of more than 300,000 tonnes/year.

Three projects are planned: one each in Japan, India and China for 2009-2010.

MAJOR GLOBAL ETHYL ACETATE CAPACITY*, '000 TONNES/YEAR

Company	Location	Capacity
Atanor	Baradero, Argentina	25
Carbohim - Wood and Chemical	Nizhny Novgorod, Russia	30
Celanese	La Cangrejera, Mexico	92
	Pampa, Texas, US	60
	Pulau Sakra, Singapore	60
Changhua Chemical	Jiangyin, China	40
Chiba Ethyl Acetate	Ichihara, Japan	50
Eastman Chemical	Kingsport, Tennessee, US	27
	Longview, Texas, US	32
INEOS	Hull, UK	250
International Ester	Ulsan, South Korea	75
IOL Chemicals and Pharmaceuticals	Ludhiana, India	33
Jiangmen Handsome Chemical Development	Jiangmen, China	140
Jiangsu Sopo Chemical	Zhenjiang, China	270
Jilin Fuel Ethanol	Jilin, China	50
Jubilant Organosys	Gajraula, India	26
	Nira, India	24
Korea Alcohol Industrial	Ulsan, South Korea	25
Kyowa Hakko Kogyo	Yokkaichi, Japan	40
Laxmi Organic Industries	Mahad, India	35
Nanchang Ganjiang Solvent Plant	Nanchang, China	80
Rhodia Brasil	Paulinia, Brazil	100
Sasol	Secunda, South Africa	55
Shandong Jinyimeng Chemical	Linshu County, China	180
Shanghai Wujing Chemical	Wujing, China	200
Showa Denko	Nanyo, Japan	150
	Oita, Japan	150
Showa Esterindo ­Indonesia	Merak, Indonesia	60
Somaiya Organo Chemicals	Sakarwadi, India	50
Svensk Etanolkemi	Domsjo, Sweden	35
Yangtze River Acetyls	Chongqing, China	80
NOTE: * excludes plants under 20,000 tonnes/year

SOURCE: ICIS

Profile last published November 3, 2003

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