CEH Report

Table of Contents

Abstract

Plasticizers account for the majority of world phthalic anhydride consumption, followed by alkyd resins and unsaturated polyester resins (UPR). Other smaller-volume applications include polyester polyols, saccharin, pigments, dyes and flame retardants. Demand for most downstream markets for phthalic anhydride is greatly influenced by general economic conditions. As a result, demand for phthalic anhydride largely follows the patterns of the leading world economies. Consumption of phthalic anhydride depends heavily on construction/remodeling activity (residential and nonresidential), automotive production and original equipment manufacture (OEM).

The following pie chart shows world consumption of phthalic anhydride:

Growth in world consumption of phthalic anhydride during 2009–2014 is expected to vary greatly by application and region. For plasticizers, Western Europe and Asia will be the leaders in volume growth; a robust economy in Asia for domestic and export markets and the expected commissioning of large esterification units for the production of di(2-propylheptyl) phthalate (DPHP) during 2009–2014 are the main factors for increased demand for phthalic anhydride in these two regions. North American consumption of phthalic anhydride for plasticizers is forecast to grow at an average annual rate of 1.0% during 2009–2014; continued weak demand during 2010 in construction and automotive markets, especially in the United States, will drag overall demand growth. Demand for phthalic anhydride in alkyd resins is expected to decline in North America and Western Europe; most other regions are forecast to experience moderate growth. Growth in phthalic anhydride demand for UPR is also expected to vary by region; most Asian markets are forecast to see moderate-to-significant growth in demand while moderate growth is forecast in North America and Western Europe. World demand for phthalic anhydride is expected to start recovering in 2010–2012, largely as a result of improved construction/remodeling activity and stronger OEM and automotive production. As a result, world consumption of phthalic anhydride is forecast to grow at an average annual rate of 2.8% during 2009–2014.

Future concerns for the phthalic anhydride market include stricter environmental regulations affecting and/or limiting the use of phthalates. Consumption of several phthalates is forecast to diminish due to limits on use; they will be replaced largely by other phthalates, benzoates, citrates and specialty plasticizers.