Chemical Profile: Acetone

27 March 2006 00:00  [Source: ICB Americas]

Producer	Capacity*
Union Carbide, Institute, W.Va.	170
Dow Chemical, Oyster Creek, Tex.	354
Georgia Gulf, Pasadena, Tex.	100
Georgia Gulf, Plaquemine, La.	305
Goodyear Tire & Rubber, Bayport, Tex.	15
Ineos Phenol, Theodore, Ala.	650
JLM Chemicals, Blue Island, III.	60
Mount Vernon Phenol Plant Partnership, Mount Vernon, Ind.	460
Shell Chemical, Deer Park, Tex.	410
Sunoco, Frankford, Pa.	700
Sunoco, Haverhill, Ohio	217
TOTAL	3,441

*Millions of pounds per year of acetone. Ninety-nine percent of US acetone is produced as a coproduct with phenol through cumene peroxidation. About 0.62 pounds of acetone is produced per pound of phenol.

Last year, Ineos expanded its phenol/acetone plant at Theodore, Ala., adding 55 million pounds of acetone capacity in conjunction with a 90 million pound phenol addition. This increased total acetone capacity from 605 to 660 million pounds per year.

The Mount Vernon Phenol Plant Partnership was established in 1987, with GE holding 49%; Citgo Petroleum, 49%; and JLM Industries, 2%. GE Plastics operates the plant and all merchant sales are through JLM Chemicals, a subsidiary of JLM Industries.

Sunoco idled a 350 million pound-per-year phenol plant with an attendant 215 million pound acetone unit in 2003, at Haverhill, Ohio, because of high energy costs and an oversupplied phenol market.

PROFILE LAST PUBLISHED 4/28/03; THIS REVISION 3/27/06.
 

DEMAND

2004: 3,030 million pounds; 2005: 3,165 million pounds; 2009: 3,255 million pounds, projected. Demand equals production plus imports (2004: 101 million pounds; 2005: 163 million pounds) less exports (2004: 590 million pounds; 2005: 515 million pounds).

GROWTH

Historical (2000–2005): 0.7% per year. Future: 2.9% per year through 2009.

 

 

 

 

 

PRICE

Historical (2000–2005): High, 42.25c. per pound, contract, Gulf Coast, barges, MMA grade; low, 13.25c., same basis. Current: 36.50c. same basis.

 

 

 

 

 

 

USES

Acetone cyanohydrin for methyl methacrylate (MMA), 45%; bisphenol-A, 22%; solvent uses, 16%; aldol chemicals (MIBK, isophorone and MIBC), 13%; miscellaneous, 4%. Source: CMR

 

 

 

 

 

 

MARKET PERSPECTIVE

Acetone’s largest market sector, acetone cyanohydrin (ACH), is the precursor to methyl methacrylate (MMA) and methacrylic acid (MAA). Production of nearly 2 billion pounds of ACH in 2005 consumed 1.4 billion pounds of acetone. About 92% of this acetone was consumed for MMA production in 2005, with the remainder being used for MAA. ACH demand is growing at the rate of 3.2% per year.

Polymethylmethacrylate resins (PMMA) resins are used to produce acrylic products: cast and extruded sheet, and acrylic molding and extrusion compounds. Sheet applications include windows, windshields, skylights, signs and lighting fixtures. These products are chiefly consumed by the construction industry, in both the commercial and residential sectors. PMMA resins used in molded and extruded products find use in automotive parts, lighting fixtures, medical devices, appliances and optical discs.

Methyl methacrylates are also used extensively in latex surface coatings: architectural, OEM automotive, wood furniture, traffic paints, lacquers and enamels.

The second-largest use sector is bisphenol-A, which is manufactured by reacting acetone and phenol, in the presence of an acid catalyst. Estimated production of 2.6 billion pounds of bisphenol-A last year consumed about 695 million pounds of acetone. Bisphenol-A production is growing at approximately 4% annually, driven primarily by polycarbonate resins taking 70% of demand, followed by epoxy resins with 24% of demand.

Other significant consumption sectors include direct solvent use, which is growing at perhaps 1% per year, and aldo chemicals (produced by condensation reaction of a ketone and an aldehyde) which are used in a variety of specialty applications and growing at 3% annually.

OUTLOOK

Overall, acetone should remain balanced with the forecasted demand growth based on plant utilization rates slightly greater than 90%. Any potential supply shortages in the next four years should be met by a combination of increased imports and reduced exports. Demand growth for acetone is forecast to be 2.9% per year through 2009.

For the latest market prices and reports on more than 120 commodity chemicals from the leading independent pricing and market intelli- gence service, please visit ICIS Pricing at: www.icispricing.com

ICIS Copyright © Reed Business Information 2009

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