CEH Report

Table of Contents

Abstract

Most phenol is consumed molten as a clear, colorless liquid. It is both the simplest hydroxybenzene and the most commercially important. Phenol was first isolated from coal tars in the mid-1800s. Currently, nearly all world production of phenol is via cumene peroxidation, with acetone as a coproduct. Its main use is as a chemical intermediate in the manufacture of bisphenol A, phenol-formaldehyde resins, caprolactam, alkylphenols, aniline and 2,6-xylenol.

Bisphenol A accounted for 49% of global phenol consumption in 2010, followed by phenol-formaldehyde resins at 25%. Bisphenol A and phenol-formaldehyde resins are produced in all regions; production of bisphenol A is more prevalent in developed economies. However, there have been recent investments in bisphenol A facilities and others are planned for start-up in developing regions where demand has surged in recent years (before and after the 2008–2009 slump). Phenol consumption for caprolactam and, to a lesser degree, alkylphenols is limited mainly to the United States and Western Europe.

The following pie chart shows world consumption of phenol:

Growth rates for end-use markets vary by region. Consumption of phenol for bisphenol A will be driven by growth in Asia, the Middle East, and Central and South America. Increased demand and capacity for bisphenol A will result in strong demand for phenol in these regions. Overall, world consumption of phenol for bisphenol A is expected to grow at an average annual rate of about 3% during 2010–2015. Significant growth in the consumption of phenol for bisphenol A and phenol-formaldehyde resins occurred in 2010 on a global basis as economies improved from the lows of 2009.

Stronger growth will likely be seen during 2010–2012 with more modest growth occurring over 2012–2015. U.S. export demand will slow as new phenol/acetone and bisphenol A plants come onstream in other regions in 2013.

Asia will continue to play a large role in the global phenol market. In recent years, the significant increase in demand and lack of sufficient domestic phenol supply in the region helped boost phenol production in the developed regions for export to Asia. However, with the additional capacity that is slated to come onstream by 2013 (in Asia), particularly driven by phenol demand for bisphenol A (for polycarbonate and epoxy resins) and phenolic resins, export demand in developed regions will slow, translating into lower operating rates in these regions.