Almost two-third of the propylene oxide produced, worldwide, is consumed by its largest end use, polyether polyols. They act as a building block in the formation of polyurethanes, which in turn, is employed widely in flexible foams for the furniture and automotive industries, and rigid foams for appliance and building insulation. Over the years, this segment has shown the highest rate of growth due to the increasing applications. Moreover, polyols are also used for non-foam applications such as coatings, adhesives, sealants, and elastomers, as well as thermoplastic resins, and fibers.
The second-largest market consumer of propylene oxide is the propylene glycol, which is mainly used to make unsaturated polyester resins (UPR). These when modified further have downstream applications in building panels, bathroom components, fixtures, corrosion-resistant tanks, pipes, and ducts. More uses include pleasure boats, recreational vehicles, passenger cars, and trucks. Other major consumers are carbonates, amines, ethers based on which propylene oxide is segmented. Commercially, propylene is used as raw material for manufacturing propylene oxide via the chlorohydrin process (CHPO). Other processes like PO/TBA peroxidation, PO/SM process, and PO-only cumene-based process are also commercially viable.
As a basic product, propylene oxide finds its use as modified food starch, a pasteurizing agent, microbial fumigant, for the production of non-ionic tensides (textiles) in the dyeing industry and for the separation of crude oil emulsions. As a functional fluid, it offers good lubricant and solvent properties leading to its usage in hydraulic and brake fluids, heat transfer liquids, surfactants, and foam control. However, being highly inflammable and potentially carcinogenic, new alternatives like alkylene carbonate have emerged, which will prove detrimental to propylene oxide market. Due to the environmental liabilities and large capital investment requirements of CHPO process, some major players like BASF have developed environmental-friendly HPPO technology to manufacture propylene oxide.
AREAS WITH SCOPE FOR PROPYLENE OXIDE
In 2016, Asia-Pacific, led mainly by China, emerged as the major propylene oxide consumer, responsible for nearly 40% of global consumption, followed by Europe and the United States. Increasing demand for polyols in China is expected to boost the consumption scenario and, further, making it the leading consumer of propylene oxide, globally, during 2017-2022 (the forecast period). The fast pace of growth in the industries, such as automotive, construction, and polyurethane plastics, is expected to drive the demand for propylene oxide. Although the United States, China, and the Netherlands make up top three propylene oxide manufacturing countries, new plants have been set up in Thailand and Saudi Arabia, which are anticipated to drive the global market of propylene oxide and its downstream products.
NOTABLE DEVELOPMENTS IN THE MARKET
- In November 2016, the Chinese government officially approved the joint venture of Shell Nanhai and China National Offshore Oil Corporation (CNOOC) ownership of the new petrochemical complex constructed in Huizhou, Guangdong Province. This expansion project includes the largest styrene monomer and propylene oxide (SMPO) plant in China, with a capacity of 300,000 tpa of propylene oxide.
- In September 2016, LyondellBasell announced plans to build a mega-size propylene oxide plant at its existing Channelview chemical park in Texas, US. This plant is expected to produce 1 billion pounds of propylene oxide, annually and would be the biggest project ever in the company’s history.
- In May 2016, Sadara Chemical Company agreed to supply propylene and ethylene oxides to Surfactants’ Detergent Company (SDC), a joint venture being developed by a Saudi/South Korean consortium. For this, SDC planned to build a chemical production facility in PlasChem Park, located in Jubail Industrial City II.
- Will the growing automotive industry accelerate the propylene oxide market?
- Know about: the latest regulations and policies of propylene oxide
- How will the emergence of new alternatives affect the propylene oxide market?
- Analyzing various perspectives of the market with the help of porter’s five forces analysis
- What would be the global impact of LyondellBasell’s biggest project on propylene oxide production?
- Which of the regions will witness the fastest growth during the forecast period?
- Identify the latest developments, market shares and strategies employed by the major market players, such as:
The Dow Chemicals
Huntsman International LLC.
Saudi Arabia Basic Industries Corporation
1.1 Scope of the Report
1.2 Research Methodology
2. Executive Summary
3. Market Insights
3.1 Industry Value Chain Analysis
3.2 Industry Attractiveness - Porter’s Five Force Analysis
3.2.1 Bargaining Power of Suppliers
3.2.2 Bargaining Power of Consumers
3.2.3 Threat of New Entrants
3.2.4 Threat of Substitute Products & Services
3.2.5 Degree of Competition
3.3 Technological Snapshot
3.3.1 Production Process
3.3.2 Technology Licensing and Patent Analysis
3.4 Trade Analysis
3.5 Price Index
3.6 Supply Scenario
3.6.1 Capacity and Production Analysis
188.8.131.52 Major Plants and locations (Installed Capacities)
3.7 Upcoming Projects
3.8 Regulatory Policy Analysis
4. Market Dynamics
4.1.1 Rising Demand for Polyether Polyols for Polyurethane Production
4.1.2 Wide Ranging Downstream Applications of Propylene Glycol
4.1.3 Continuous Growth of Automotive Sector
4.2.1 Threat Due to the Emerging Alternatives
4.2.2 Potential Carcinogenicity and Hazardous Effects on Mammals
4.2.3 Risks Due to Flammable and Explosive Nature
4.2.4 Environmental Liablities of Chlorohydrin Process
4.3.1 Increasing Infrastructure Spending in Emerging Economies like China, India, and Brazil
5. Market Segmentation and Analysis (Market Size, Growth, and Forecast)
5.1 By End-User Product
5.1.1 Polyether Polyols
5.1.2 Propylene Glycols
5.1.3 Propylene Glycol Ethers (PGE)
5.1.4 Polyalkylene Glycols
5.2 By Production Process
5.2.1 Chlorohydrin Process (CHPO)
5.2.2 Ethylbenzene Hydroperoxide with Tert-butyl alcohol co-product (POTBA)
5.2.3 Cumene Hydroperoxide Process (CHP)
5.2.4 Ethylbenzene Hydroperoxide with Styrene co-product (POSM)
5.2.5 Epoxidation with Hydrogen Peroxide (HPPO)
5.3 By End-User Industry
5.3.3 Food & Beverages
5.3.5 Functional Fluids
6. Regional Market Analysis - (Market size, Growth and forecast)
6.1.4 South Korea
6.1.6 Rest of Asia-Pacific
6.2 North America
6.2.1 United States
6.2.4 Rest of North America
6.3.2 United Kingdom
6.3.6 NORDIC Countries
6.3.7 Rest of Europe
6.4 South America
6.4.3 Rest of South America
6.5 Middle-East & Africa
6.5.1 Saudi Arabia
6.5.2 South Africa
6.5.3 Rest of Middle East & Africa
7. Future of the market
8. Competitive Landscape
8.1 Mergers & Acquisitions, Joint Ventures, Collaborations and Agreements
8.2 Market Share Analysis
8.3 Strategies Adopted by Leading Players
9. Company Profiles (Overview, Products & Services, Financials, Recent Developments)
9.1 Asahi Glass
9.2 LyondellBasell Industries Holdings B.V.
9.3 The Dow Chemicals
9.4 SK Chemicals
9.5 Royal Dutch Shell
9.6 Sumitomo Chemical Co., Ltd.
9.7 BASF SE
9.8 Huntsman International LLC.
9.9 AGC Chemicals
9.11 CSPC Pharmaceutical Group Limited
9.12 Air Liquide
9.13 Air Products and Chemicals, Inc.
9.14 China Petrochemical Corporation
9.15 Eastman Chemical Company
9.16 Mitsui Chemicals, Inc.
9.17 Lotte Chemical Corporation
9.18 PetroChina International Co., Ltd.
9.19 Ineos Group Limited
9.20 Tokuyama Corporation
9.21 Hanwha Group
9.22 Saudi Arabia Basic Industries Corporation
*List Not Exhaustive