CEH Report

Table of Contents

Abstract

Demand for most downstream markets for plasticizer alcohols is greatly influenced by general economic conditions. As a result, demand for plasticizer alcohols largely follows the patterns of the leading world economies. The major end-use markets include construction/remodeling, automotive production and original equipment manufacture (OEM).

2-Ethylhexanol (2-EH) and n-butanol account for 70% of world consumption of plasticizer alcohols. Moderate consumption growth for both alcohols will continue during 2008–2013; however, n-butanol is forecast to surpass 2-EH consumption by 2013. This is partly due to substitution of DEHP, the main plasticizer derived from 2-EH, with other plasticizers derived from other plasticizer alcohols, such as isononyl alcohol and introduction of 2-propylheptanol.

The following pie chart shows world consumption of plasticizer alcohols:

Plasticizers are by far the largest end-use market for plasticizer alcohols, accounting for nearly 49% of world consumption. Although plasticizers will remain the largest application, growth in world consumption is forecast to be moderate at 2.0% during 2008–2013, below the annual growth rate for all plasticizer alcohol markets. The major plasticizer producing regions, such as the United States and Western Europe, are experiencing moderate growth rates, while Japan is expected to see flat growth for plasticizers. Other plasticizer markets in Asia, including China, are forecast to experience slower growth during 2008–2013 than in previous years, as growth moderates and enters a more mature phase.

BASF is the largest producer of plasticizer alcohols, with production facilities in the United States, Germany, China and Malaysia. BASF has plans to add annual capacity in Germany and China during 2009–2010. ExxonMobil Chemical operates plants in the United States, the Netherlands and Singapore; it has plans to add annual isononyl alcohol capacity in Singapore during 2011–2012. In Argentina, ExxonMobil Chemical has an exclusive agreement to market the entire output of higher-branched plasticizer alcohols produced by Repsol-YPF. Dow operates plants in the United States and Malaysia, while Eastman Chemical has operations in the United States and Singapore.