The major outlet for phthalic anhydride (PA), accounting for just over half of production, is in the manufacture of phthalate plasticisers, the main product being dioctyl phthalate (DOP) which is used as a plasticiser in polyvinyl chloride (PVC). Hence, the consumption of PA is mainly dependent on the growth of flexible PVC, which is sensitive to general economic conditions as it consumed in the construction and automobile industries. Health and environmental issues that surround phthalates used in plasticisers for PVC could also hinder future growth prospects.
The second largest use of PA, at around 18% of output, is in unsaturated polyester resins (UPR) which are used to produce fibreglass-reinforced resins. Their principal markets - construction, marine and transportation - are also linked to economic conditions while UPR growth is tempered by the major application areas having become saturated.
The third largest outlet is PA-based alkyd resins, which are used in solvent-based coatings for architectural, machinery, furniture and fixture applications. They are in slow decline due to limits in the level of volatile organic compounds in surface coatings. As a result, there has been a switch to water-based and power coating technologies.
Small volume uses for PA include the manufacture of dyes, detergents, fire retardants, saccharin and polyester resin cross-linking agents.
Global demand for PA was forecast by consultants to be around 3.6m tonnes/year in 2006 with worldwide growth rates expected to be around 3.0-3.5%/year over the next five years. This growth is led by the Asia-Pacific region where demand is forecast to increase at 4.0-4.5%/year. Demand growth in the US and western Europe is much lower at 1.0-1.5%/year.
Demand in the US is only expected to grow at a relatively modest rate of 1.5%/year to 2009. According to CMR, it will increase from 431,000 tonnes in 2005 to reach 458,000 tonnes in 2009. In 2005, exports amounted to 22,700 tonnes while imports were 7,260 tonnes.
Demand in Europe is growing at 2-3%/year, but this is mainly driven by rising consumption in central and east European markets, notably from the construction sector. Demand growth in northwest Europe will remain low but stable.
The shift continues away from DOP into alternatives such as diisononly phthalate (DINP) and other C10 plasticisers. This is partly due to concern over the health effects of phthalate plasticisers. For example, the European Parliament has prohibited the use of six phthalates for the softening of PVC in toys.
Players in the European PA market have also had to contend with a switch from quarterly to monthly contract pricing, following the same switch in the orthoxylene feedstock contract. While some producers have welcomed this change, consumers have found the change more difficult as they need stable prices. This is of particular concern for consumers whose downstream pricing is based on six month or even longer-term contracts.
The highest growth rates are in emerging markets such as China, India and southeast Asia where demand is surging by up to 5%/year or more. This trend reflects the growth in industrial output and boom in the construction sector. A number of new plants have been built or are under construction in China.
(Updated: April 2007. Sources: ICB Chemical Profile, 26 February 2007. CMR Chemical Profile, 28 August 2006).
Phthalic anhydride
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Phthalic anhydride
Process Technologies
Phthalic anhydride was first produced by the oxidation of naphthalene in concentrated sulphuric acid in the presence of mercury sulphate. This route was later replaced by the catalytic vapour phase oxidation of naphthalene in air in the presence of a vanadium oxide catalyst.
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