CEH Report

Table of Contents

Abstract

Naphthalene is derived from two sources—coal tar and petroleum. In 2008, over 90% of U.S. naphthalene was produced from coal tar; most naphthalene in Western Europe was produced from coal tar and all naphthalene produced in Japan was from coal tar.

The major outlet for naphthalene is in the production of phthalic anhydride, particularly in Japan and the United States, where it accounted for 70% and 61% of naphthalene demand, respectively, in 2008. Phthalic anhydride is also produced from ortho-xylene, which is available in large quantities. The naphthalene sulfonate market is a significant outlet for naphthalene and is currently the only naphthalene market showing growth in all major regions.

The following pie chart shows world consumption of naphthalene:

In the United States, naphthalene consumption for production of phthalic anhydride accounts for almost two-thirds of total consumption. Currently, only about 10% of phthalic anhydride production is naphthalene-derived; most is based on o-xylene. Naphthalene’s market share may decline if phthalic anhydride producers rely more on o-xylene as a feedstock in the future. Good growth is expected for naphthalene sulfonates, particularly for use in concrete admixtures. Overall, naphthalene consumption growth is projected to be flat through 2013.

There is only one remaining phthalic anhydride producer in Western Europe. Consumption for naphthalene sulfonates and alkylnaphthalene solvents is expected to grow by 2.5% and 1.0% per year, respectively, through 2013. Overall demand will rise by about 2.0% per year from 2008 to 2013.

Japanese phthalic anhydride production accounted for 70% of domestic consumption of naphthalene in 2008. Phthalic anhydride plays a more dominant role in naphthalene demand in Japan than in the United States or Western Europe. Domestic naphthalene demand for phthalic anhydride is expected to remain unchanged during 2008–2013. Dyestuff intermediates were the second-largest end use, followed by refined naphthalene and naphthalene sulfonates. Overall Japanese demand for naphthalene is expected to decrease by about 1.4% per year between 2008 and 2013.