The Propylene Market Recovers
Propylene is one of the most important
starting products in the petrochemical in-
dustry. The new study from Ceresana Re-
search forecasts a dynamic development
of the global demand for propylene,
namely an increase of more than 20 mil-
lion tons by 2017. “Sales of propylene
reached their peak value of over $90 bil-
lion in 2008,” said Oliver Kutsch, the
president of the market research institute.
“This level will be surpassed as soon as
in 2012.”
An important factor, which will impact
the global propylene market, is the mas-
sive capacity expansions for propylene
and downstream products in the Middle
East and China. Middle East countries ex-
hibit the largest increases in propylene
production and demand. Ceresana Re-
search expects that supply and demand in
these countries will have doubled by
2014. However, the Asia-Pacific region
will continue to dominate the market and
generate more than 45 percent of all de-
mand. China is rising to become the great-
est propylene consumer worldwide and
will most likely edge out the U.S. to take
over second place in 2011.
The most important buyers of propylene include manufacturers of polypropylene who account for nearly two thirds
of all demand. Polypropylene is one of
the best-selling plastics, second only to
polyethylene. The largest consumer is the
automobile industry. Polypropylene has
a very wide range of applications and is,
for example, also needed for the manufacturing of packaging films, bottle caps,
fiber ropes as well as for bicycle helmets
and nappies.
The second-largest propylene market
consists of producers of acrylonitrile,
followed by propylene oxide. The production of cumene accounts for about
5. 5 percent of the global demand for
propylene. Acrylonitrile is mainly used
to produce acrylic fibers, which are
processed into textiles. The derivatives of
propylene oxide are needed as raw ma-
terials for the manufacturing of products
like polyurethane, lacquers and adhesives, polyester resins, cooling agents,
antifreeze and solvents. Cumene is
mainly used to manufacture phenol and
acetone, and is therefore also a pre-prod-uct for bisphenol A, phenol resins,
caprolactam and methyl methacrylate.
The market study by Ceresana Research analyzes the world market for
propylene including demand, production,
imports, exports, revenues and prices are
examined, including forecasts up to 2017.
Particular emphasis is put on the 55 countries where propylene is produced. The investigated application areas include
polypropylene, acrylonitrile, propylene
oxide, cumene, isopropanol, acrylic acid,
2-ethylhexanol, and n-butanol. The buyers guide lists 137 profiles of all large
propylene manufacturers. The study is
now available in English or German from
Ceresana Research. For more information
visit www.ceresana.com/en/market-stud-ies/chemicals/propylene/ CW
U.S. market for wood
preservative chemicals
to reach $567.4M
The United States and Europe represent
major markets for wood preservative
chemicals. The markets witnessed a decline in demand during 2008-2009, primarily because of the slump in the macro
economy. However, the markets bottomed
out of the recession and displayed signs of
recovery by 2010. Factors such as a rebound of business in the real estate sector,
demand in the existing wood housing and
decks segments, and growing domestic demand for coatings are likely to steer
growth for wood preservative chemicals.
The increasing use of high-value durable
coatings offering the benefits of hassle-free
cleanup is also likely to add to the demand. Moreover, use of wood coatings in
indoor applications, consistent manufacture of pressure-treated lumber, construc-tion-related repair activities, and product
upgrading would further bolster the demand for wood coatings. This and other
information is available in a new market
report by Global Industry Analysts Inc.
Decking represents the largest end-use
application for wood preservative chemicals in the United States. Fencing and railroad products represent other major
end-use applications for wood preservative chemicals. However, revenues for
wood preservative chemicals from the
landscape-products end-use segment are
projected to register fastest growth from
2007 through 2015. In terms of volume
sales, creosote and pentachlorophenol
product segments dominate the U.S. wood
preservative chemicals market.
The interior wood application segment, driven by the revival of the housing
sector and an increase in the purchase of
residential products, is likely to increase
demand for various wood-protection
products compared to the exterior segment. Demand for wood-protection products is expected to stem from various
interior wood applications such as wood
cabinets and wood flooring. On the other
hand, growing performance and environmental issues are major factors driving
gains for greener or superior-value wood
preservatives. Growing concerns over the
emission of VOCs has paved the way for
the launch of various eco-friendly solutions such as radiation-cured coatings,
water-based coatings and powder coatings. Moreover, coatings that come with
other enhanced performance features,
such as the ability to be used for dual purposes, and improved durability are also
grabbing the attention of the consumers.
Development of wood preservatives without the use of harmful or toxic materials
such as copper, arsenic or chromium is
also on the rise.
The research report, “Wood Preservative Chemicals: A U.S. & European Market Report,” provides a comprehensive
review of current market trends, the impact of the recession on the markets, key