CEH Report

Table of Contents

Abstract

Formaldehyde is the most commercially important aldehyde. Urea-, phenol- and melamine-formaldehyde resins (UF, PF and MF resins) accounted for approximately 63% of world demand in 2009; other large applications include polyacetal resins, pentaerythritol, methylenebis(4-phenyl isocyanate) (MDI), 1,4-butanediol (BDO) and hexamethylenetetramine (HMTA). Most formaldehyde producers are concerned primarily with satisfying captive requirements for derivatives and/or supplying local merchant sales. Formaldehyde is usually produced close to the point of consumption since it is fairly easy to make, is costly to transport and can develop problems associated with stability during transport. As a result, world trade in formaldehyde is minimal and accounted for only 1% of production in 2009.

The following pie chart shows world consumption of formaldehyde:

Construction/remodeling activity, vehicle and furniture production, and original equipment manufacture (OEM) account for most world consumption of formaldehyde. Demand for these markets is greatly influenced by general economic conditions. As a result, demand for formaldehyde largely follows the patterns of the leading world economies. Formaldehyde resins are used predominantly in the wood products industry as adhesives. Growth of these resins is strongly correlated to construction/remodeling activity, which accounts for over 50% of consumption, and to a lesser degree, the automotive industry.

World consumption is forecast to grow at an average annual rate of 4.0% during 2009–2014. Continuing significant-to-rapid demand growth in Asia, mainly China, for most applications will balance out moderate growth in North America, Western Europe, Africa and Oceania. Central and South America, the Middle East, and Central and Eastern Europe are forecast to experience significant growth in formaldehyde demand during 2009–2014, largely as a result of increased production of wood panels, laminates, MDI and pentaerythritol.

Wood products have already been substituted, mainly by other wood products in construction, remodeling and furniture production. World demand for formaldehyde in wood resins is forecast to remain strong (world consumption of UF, PF and MF resins is forecast to grow at an average annual rate of just over 4% during 2009–2014) as solid wood has been replaced by manufactured wood-based panels. Overall, formaldehyde is not at risk for large-scale substitution by competing products.