Around 98% of cumene is used to produce phenol and its co-product acetone. However, the outlook for cumene is largely dependent on the performance of phenol’s derivatives which have resulted in healthy growth rates for cumene.
The largest phenol derivative is bisphenol-A (BPA) which supplies the growing polycarbonate (PC) sector. PC resins are consumed in automotive applications in place of traditional materials such as glass and metals. Glazing and sheet uses, such as architectural, security and glazing outlets, are also important PC applications. The third largest use for PC is optical media such as compact discs (CDs) and digital versatile discs (DVDs).
PC resins consumption has slowed with the softening of the automotive sector. The strong growth in optical media has driven the PC market but this market is now slowing as it becomes replaced by MP3 players, high internet bandwidth and USB drives.
PC plastic bottles containing hot liquids have attracted the attention of environmentalists in that BPA can be released from the bottles leading to health concerns. As a result, some PC bottles for baby foods have been removed from supermarkets although this is a small market for polycarbonate.
BPA’s other main derivative is epoxy resins which are used in high performance coatings, electrical-electronic laminates, adhesives, flooring and paving applications, and composites. Growth in these markets is close to GDP levels.
Phenol’s other derivatives include phenolic resins which are largely used as durable binders and adhesives in structural wood panels and as binders in mineral wool insulation. Demand here is tied closely to the home construction market.
Another phenol derivative is caprolactam which is used mainly to make nylon 6. It is mainly the engineering resin sector of the nylon market that is seeing growth.
The key drivers in the acetone market are methyl methacrylate (MMA) and BPA. Nearly all MMA is used to make homopolymers and copolymers with electronic applications such as flat screen TVs and liquid crystal displays providing growth opportunities. However, a significant outlet for acetone is the solvent sector where market growth is stagnant.
According to US-based consultants CMAI, global cumene demand in the 2001-2006 period grew by over 5%/year. Low capacity additions resulted in global operating rates surpassing 90% in 2004 but then fell back in 2005 as additional capacity came on-stream.
CMAI expects cumene demand growth to be slightly below phenol’s growth rate of just over 4%/year in the 2006-2011 period. This could be impacted if Shell decides to build a 330,000 tonne/year phenol plant in Singapore based on a new process that uses benzene and C4 feedstocks and produces methyl ethyl ketone (MEK) as a co-product.
In the US, the projected growth rate for cumene is only 0.8% through to 2011, according to ICIS Chemical Business (ICB). With the cumene market influenced by the automotive/transportation and construction industries, demand has either slowed or in decline. US demand is expected to grow slowly from 4.68m tonnes in 2007 to 4.83m tonnes in 2011, estimates ICB.
North America has had a competitive cost position due to it producing cumene using lower priced refinery grade propylene compared to chemical or polymer grade propylene in other regions. This is despite North America being an importer of benzene with some of the highest prices in the world.
North America continues to be an exporter of cumene, says CMAI. West Europe remains a net importer although possible plans to increase capacity would decrease its reliance on imports. Northeast Asia with its substantial increase in phenol and derivatives capacity will rely partly on imported cumene.
Updated: October 2008. Sources: ICB Chemical Profile, 6 October 2008; 2007 CMAI World Petrochemical conference, Houston, Texas, 21-22 March 2007.
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The original process to manufacture cumene was propyl alkylation of benzene using sulphuric acid as the catalyst. However, this process suffered from complicated neutralisation and recycle steps as well as corrosion problems.
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