Isopropanol (IPA) Uses and Market Data

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Isopropanol - IPA is used as a solvent in paints (sources Akzo Nobel)The main use for isopropanol (IPA) is in solvents with outlets in cosmetics and personal care products, de-icers, paints and resins, pharmaceuticals, food, inks and adhesives. It is used in the extraction and purification of natural products such as vegetable and animal oil and fats. Other applications include its use as a cleaning and drying agent in the manufacture of electronic parts and metals, and as an aerosol solvent in medical and veterinary products. Little or no growth is expected in solvent applications due to stricter regulations on volatile organic compounds (VOCs).

 

Some chemical compounds are manufactured from IPA, in particular derivative ketones such as methyl isobutyl ketone (MIBK), isopropylamines and isopropyl esters. Here, IPA demand is growing. However, its use as a raw material in acetone production is declining as more acetone is produced as a byproduct in phenol production by the cumene peroxidation process.

 

The global market remains oversupplied, with flat demand growth in Europe and the US but stronger growth in Asia. Hence global demand is expected to grow at only 2-2.5%/year.

 

The European market had been suffering from overcapacity but this changed with plant closures by BP Chemical and Shell Chemical in the UK. However, in 2006 there were some plant expansions. Sasol increased output at Moers, Germany, by 15,000 tonnes/year and Shell added 50,000 tonnes/year of capacity at Pernis, the Netherlands. Novapex is now considering building a 40,000 tonnes/year plant in southeast France taking acetone feedstock from its Roussillon, France site.

 

In the US, IPA is considered a mature product and forecast to grow at only 1.6%/year through to 2010. According to ICB, US demand will increase from 592,000 tonnes in 2006 to 631,000 tonnes in 2010. Imports in 2006 were 70,000 tonnes while exports were 330,000 tonnes.

 

The strongest end-use markets for IPA are isopropylamines, household, cosmetic and personal care products, and pharmaceuticals, growing at about 2.8%/year. Collectively, these three segments account for 34% of IPA’s demand in the US.

 

However, the largest outlet for IPA in the US – solvents at 45% - is only expected to see modest growth of perhaps 1.2%/year. Growth is limited by regulations covering VOCs with the greatest impact being felt in surface coatings. Solvent usage is being reduced as customers switch to waterborne or high-solids coatings.

 

US exports of IPA have been flat for the past four years, averaging 331,000 tonnes/year.

 

In the US, IPA is said to have been in tight supply with industry operating rates at slightly below 80%. IPA capacity in the US was increased in 2006. Dow Chemical expanded its plant at Texas City from 250,000 tonnes/year to 410,000 tonnes/year while ExxonMobil increase the capacity of its Baton Rouge, Louisiana  plant by 40,000 tonnes/year  to 380,000 tonnes/year. No further capacity additions are apparent up to 2010.

 

Higher growth for IPA is expected in Asia but it is weaker than previously forecast and likely to be at GDP levels. However, there are a number of new plants and expansions planned in Asia, all due for start-up in 2008. Jinzhou Petrochemical is building a 100,000 tonnes/year plant in Liaoning, China. In South Korea, Isu Chemical is constructing a 40,000 tonnes/year plant while LG Chemical is expanding its Chonnam facilities by 50,000 tonnes/year to 100,000 tonnes/year. Tasco Chemical is adding 20,000 tonnes/year capacity in Kaohsiung, Taiwan.

 

(Updated: November 2007. Sources: ICB Chemical Profiles, 22 October 2007 and 29 January 2007.)

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Isopropanol Process Technologies

Two commercial routes to IPA are used. The older method is based on the indirect hydration of refinery-grade propylene using sulphuric acid to form isopropyl sulphate which is then hydrolysed with steam to form sulphuric acid and IPA. The crude IPA is distilled to the desired purity.
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