CEH Report

Table of Contents

Abstract

In the United States and Western Europe, resorcinol is used primarily in the production of specialty adhesives and/or adhesive improvers for tires and wood products. Resorcinol-based resins are used in these applications because of their resistance to high temperatures and their durability under mechanical stress. In the United States and Western Europe, resorcinol is also used in diphosphate ester flame retardants. In Japan, the largest markets for resorcinol are rubber products and meta-aminophenol production. In developed regions of the world, smaller amounts of resorcinol are also used as a chemical intermediate in the production of UV stabilizers, functional and textile dyes, pharmaceuticals, explosives and herbicides (in Other Asia—particularly China—approximately 20% of resorcinol is used for UV stabilizers). Outside the United States, Western Europe and Japan, the principal use of resorcinol is in the production of adhesive resins for tires.

The resorcinol business is global. Markets are similar across world regions (except that the preponderance of meta-aminophenol production is located in Japan) and trade represents a major portion of world production. Only three companies produce resorcinol in developed regions of the world:

• INDSPEC Chemical Corporation (United States)
• Mitsui Chemicals, Inc. (Japan)
• Sumitomo Chemical Company, Ltd. (the largest producer in Japan

The following pie chart shows world consumption of resorcinol:

On a global basis, resorcinol is at or near the mature phase of its product life cycle; however, growth prospects for resorcinol differ somewhat in each region. Moreover, with the exception of flame retardants, it is still possible to identify a growth component in each major end-use market for resorcinol. For example, growth in the tire and construction industries is related to population and economic activity and both of the latter are increasing on a worldwide basis. In this regard, China and the Far East are likely to constitute an attractive regional market for resorcinol throughout the foreseeable future.

Since approximately 60% of resorcinol demand is for rubber products, the tire industry will continue to drive resorcinol consumption. On a regional basis, China will drive the consumption of resorcinol during 2008–2013.