CEH Report

Table of Contents

Abstract

In 2009, the United States continued to be the leading producer and consumer of acetic anhydride, mainly for cellulose acetate production. Since 2007, U.S. consumption of acetic anhydride has been steadily declining as a result of lower domestic production of cellulose acetate flake. Flake production has dropped as a result of lower foreign demand, primarily from China, and flat or declining growth for use in cigarette filter tow. This has resulted in decreasing acetic anhydride consumption for cellulose acetate flake production. Similarly, in Western Europe, acetic anhydride consumption has been declining since 2007 because of declining cellulose acetate flake production for exports to China, for cigarette tow use, and as a result of the effects of the economic downturn. In Japan, production and consumption have both experienced significant declines resulting from the economy and plant maintenance issues. In contrast, China’s acetic anhydride production and consumption have both increased significantly in recent years mainly because of expanded local production capacity for acetic anhydride and cellulose acetate flake.

The following pie chart shows world consumption of acetic anhydride:

Cellulose acetate flake is the major consumer of acetic anhydride and will continue to be so in the coming years. Cellulose acetates are used in mature markets and declines have occurred in recent years, with the exceptions of such major regions as China and Central and Eastern Europe. In the past, China imported very large quantities of cellulose acetate from the United States and Europe. However, with the recent addition of cellulose acetate capacity in China, imports have been decreasing and are expected to continue to do so with more local capacity being built in the next few years. Acetic anhydride capacity in China has grown significantly as a result.

Acetic anhydride use for pharmaceuticals has also grown in recent years, particularly in China and Other Asia where industry production has increased. TAED use is significant in Europe. Other uses for acetic anhydride including polymers/resins, dyes, flavors and fragrances, etc. account for the remainder of consumption.

In China, consumption growth is expected as more cellulose acetate flake and acetic anhydride capacity come on stream. The country will also experience growth for other uses including flavors and fragrances, dyes, sweeteners, TAED and PTMEG.

Other Asia is expected to have strong growth of about 5–6% annually for acetic anhydride consumption. The main driver will be the pharmaceutical industry as more producers start up in the region, such as in India. There will also be increased use in the dyes and pigments industry. The number of smokers in China, India, and Central and Eastern Europe is increasing, leading to higher cellulose acetate flake demand and driving acetic anhydride use.

Overall, global acetic anhydride consumption is expected to grow about 1–2% annually during 2009–2014. Limited growth in the cellulose acetates market and mature uses in other sectors will account for this growth.