September 2009

Recycling and the Chemical Industry
Caprolactam
Ethylene
Hypochlorite Bleaches
Lactic Acid, Its Salts and Esters
Natural and Man-Made Fibers Overview
Polyester Polyols
Resorcinol
Sulfuric Acid
Thermoplastic Polyester Engineering Resins
Ethylene Glycol
Gasoline Benzene Removal
Supercritical CO2: A Green Solvent
ChemicalWeek Regulatory Watch
CEH Reports and Product Reviews in Preparation
PEP Reports Scheduled for 2009
SCUP Reports Scheduled for 2009

Safe & Sustainable Chemicals Report Abstract
RECYCLING AND THE CHEMICAL INDUSTRY
By Robert Davenport with Carol Bennett and Larisa Dorfman

The global market for chemicals is roughly $3 trillion. Accounting for the overall impact of recycling on the chemical industry requires making a great number of assumptions about amounts and values of recycle streams, but the overall assessment of this report is that several tens of billions of dollars' worth of virgin chemical use during 2008 was replaced by recycled secondary materials. But this is only part of the story. Much of the end use of recycled chemicals and polymers is in new markets and applications that do not displace virgin raw materials. It is difficult to estimate the value of these products, but as a first approximation, it is likely somewhat less than the value of virgin materials displaced.

One of the major thrusts of industry today is sustainability. There has been much published on what constitutes sustainability including definitions in other reports in this SRI Consulting series. But suffice to say here, sustainability involves all actions that assure the continued survival—indeed prosperity—of an entity indefinitely. This usually encompasses continued financial health and a continued positive interaction with the social network surrounding the operation, with no harm to the environment.

This is a big order. For most companies, getting to this ideal is a long time in the future. However, most companies are taking some actions to accomplish this now. For many, recycling is an aspect of sustainability plans.

Recycling affects the chemical industry in many ways but can generally be grouped into these major categories:

• Business opportunities for profiting from recapturing the value of waste chemicals and polymers
  – Postindustrial
  – Postconsumer
• Business opportunities for cost avoidance through safe disposal of waste products

But it should also be noted that recycling is one aspect of a green manufacturing system incorporating several methodologies including the following:

• Design for minimal materials use
• Design for component reuse
• Design for minimal generation of toxic materials
  – During manufacturing
  – During disposal
• Increased use of materials with common recycle methodologies

Recycling is not without its shortcomings. A number of attributes of recycling can actually exacerbate waste problems. This does not necessarily mean that recycling in these cases shouldn’t be done, but rather that efforts to alleviate these negative attributes must be undertaken. Some of these issues are as follows:

• Toxic product may be generated or concentrated during recycling of materials
• Similarly, waste streams from recycling may be more problematic than the unprocessed waste stream
• Infrastructure may need to be developed to accommodate certain recycled materials
• Recycled materials may perform inferiorly to virgin materials and need to be carefully segregated from virgin materials at user plants
• Imbalances in supply/demand for recycle streams can create significant problems with the overall economics of recycling
• Government regulations may inadvertently create situations where oversupply in recycling raw materials and recyclates exists

Various conclusions about the role of recycling and its impact on chemicals can be drawn from information presented in this report and other observations.

Economics is—no surprise—an important determinant of what materials are recycled and what are disposed of in a nonbeneficial way. During times of low energy and raw material costs, there is less incentive to recycle materials, as the cost of recycling may not be as elastic as the price of competing virgin materials. This has been clearly shown with recycling rates of various products plotted against general price trends for virgin materials. But the relative prices of the virgin and recycled materials are not the only component of the overall economic equation for the decision to recycle.

Recycling affects the chemical industry in several major ways. It reduces the net consumption of certain chemical inputs to manufacturing by returning recycled materials to the value chain. In order to recycle some chemicals and materials, certain other chemicals will be required. Some of these are similar to reagents and reactants used in the production of the original polymer, chemical or material, but others are used expressly for the recycling of various materials and recovery of these values. New markets are created by recycling materials. These may be chemicals derived during the recycling process or chemicals used to facilitate the use of these new products.

Efforts to reduce the use of toxic materials are longstanding. A high percentage of regulations over the years has been focused on reducing or eliminating the use of toxic materials, be they a component of the item of commerce or a necessary by-product of the process used. With increased emphasis on recycling a larger range of products, the removal of these materials will continue. While much progress has already occurred, more attention will necessarily be focused on the potentially toxic products of various recycling processes and steps taken to ameliorate these issues.

Nonetheless, recycling rates are generally forecast to increase over the next decade due to growing scarcity—and increasing prices—for many metals and concern over new mining activity, among other things. But for the immediate future, virgin production will also grow—probably at least as fast as increases in recycling rates. This will probably hold more true in the industrialized countries than in areas where recycling is not now highly practiced.

This new Safe & Sustainable Chemicals Series report discusses the recycling market in several major chemical industry areas including carbon dioxide, catalysts, electrical and electronic chemicals (including battery recycling), functional fluids, glass, metals, paper, plastic resins, rubber, and other industries. It includes coverage of the current status and future outlook for recycling in these industries, as well as government regulations and societal issues creating the need for change, and the impact of recycling on production of virgin chemicals for these industries.

(See this report's home page for more information or to purchase this report.)

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CEH Marketing Research Report Abstract
CAPROLACTAM
By Sean Davis with Hiroaki Mori

Caprolactam is used primarily in the production of nylon 6 fibers and nylon 6 resins and films. About 60% of world caprolactam consumption is for nylon 6 fibers and around 40% is for nylon 6 resins and films. Nylon 6 fibers are used in the textile, carpet and industrial yarn industries. Nylon resins are used as engineering plastics, with applications in the automotive industry and specialty film packaging for food, wire and cable. Demand for nylon resins has increased in recent years because of the increase in automobile production.

Caprolactam is widely traded. Western Europe, Central and Eastern Europe, Japan and the United States send significant quantities to China, Taiwan and the Republic of Korea. Net imports account for 46% of total Asian (except Japan) consumption.

The following pie chart shows world consumption of caprolactam:

Other Asia is the largest consuming region in the world, mainly because of nylon 6 fiber production, which has moved away from the more industrialized nations of North America, Western Europe and Japan. Other Asia accounted for about 52% of global nylon fiber production in 2008 (compared with 43% in 2005 and 35% in 2001). Nylon fiber production is expected to continue to grow in this region, leading to caprolactam demand growth of 2.5% per year (versus 1.8% for the entire world).

Central and Eastern Europe will have relatively strong demand growth led by demand in nylon 6 plastics and resins, which are anticipated to increase at a rate of 4.6% per year to 2013. In addition, investments in nylon fiber capacity and technology over the past few years have been aimed at reducing dependency on export markets and improving raw material and production synergies. Regional caprolactam demand growth will be 2.7% per year over the forecast period.

(For the complete marketing research report on CAPROLACTAM, visit this report’s home page or see p. 625.2000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
ETHYLENE
By Michael T. Devanney

Ethylene is primarily a petrochemically derived monomer used as a feedstock in the production of plastics, fibers and other organic chemicals that are ultimately consumed in the packaging, transportation and construction industries and in a multitude of industrial and consumer markets. Nondurable or consumable—in particular, packaging—end uses make up more than half (55%) of ethylene derivative consumption worldwide. Because it is one of the largest-volume petrochemicals in the world, with a diverse derivative portfolio that includes durable end uses as well, ethylene is often used as a surrogate for the performance of the petrochemical industry at large. As a result, ethylene demand is sensitive to both economic and energy cycles.

The effects of the current severe global economic downturn have been taken into consideration in this world analysis of ethylene. Economic conditions deteriorated severely in the last quarter of 2008 and continued unimproved into the middle of 2009 such that world year-over-year comparisons are negative for all but a few ethylene end uses. While the economy seems to have stopped decelerating, forecasts for the last two quarters of 2009 are expected to reflect a bottoming-out process for ethylene sales and revenue. In 2008, worldwide consumption of ethylene fell 1–2% from 2007. In 2009, production and consumption are forecast to drift lower as the brunt of the severe recession continues. Ethylene is usually less affected by recessions compared with other petrochemicals, as its principal consumable packaging markets track more stable food sales. However, the current severe economic recession features an unprecedented inventory decline in the supply chain and this has exacerbated ethylene sales weakness in packaging markets.

The following pie chart shows world consumption of ethylene:

The largest world market for ethylene is the production of polymers, with the largest being polyethylene (PE). During 2008–2013, polyethylene will continue to be the largest consumer of ethylene, increasing to nearly 60% of total consumption and growing at a rate of 3% per year. Large growth markets include LLDPE at 4.3%, driven by substitution of LLDPE for other polyethylenes in packaging. The largest single ethylene market, HDPE, with 27% of the total, will grow at a less-than-world-average rate of 3.1% per year.

The ethylene consumption decline during 2008–2009 would have been worse if not bolstered by Asian demand and its fastest-growing country, China. Growth in Chinese demand should average over 4% per year during 2008–2009. Nevertheless, consumption is expected to be particularly dismal in the mature economies of North America, Western Europe and Japan where demand will shrink 4–7% per year over the next two years.

The severity of the current petrochemical recession is reflected in the 2009 world GDP, which is expected to have less than zero growth based on a purchasing parity basis, the lowest figure recorded since world data have been aggregated. While the precise track of any recovery is not known, analysis points to a rebound of production demand over early to mid-2010 through 2011, fed by increasing world GDP including restocking of the inventory supply chain in developed countries.

(For the complete marketing research report on ETHYLENE, visit this report’s home page or see p. 432.0000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
HYPOCHLORITE BLEACHES
By James Glauser and Takashi Kumamoto

Sodium, calcium, potassium and lithium hypochlorite are strong oxidizing agents used for bleaching, sanitation and disinfection. On a consumption basis, sodium hypochlorite accounted for 91% of total global hypochlorite use, with calcium hypochlorite at 9%. Lithium and potassium hypochlorite account for a negligible share.

Sodium hypochlorite is commonly referred to as “liquid chlorine bleach” throughout the world. In the United States, it is used by households as a laundry bleach or household cleaner as a 6.15% solution (equivalent to 64.2 grams or 5.9 weight percent available chlorine per liter of solution). In Western Europe, concentrations range around 2.5–8.5%, with the average between 4% and 5% concentration. It is also used in municipal and industrial applications as a 12.6% sodium hypochlorite solution (equivalent to 120 grams or 12.0 weight percent available chlorine per liter of solution).

The following pie chart shows world consumption of sodium hypochlorite:

In the household, sodium hypochlorite is used principally for household laundry bleaching and disinfection. Use of household bleach has increased during the past few years, with the growing concerns over infectious diseases. Mold and mildew became an issue in the U.S. Gulf Coast region as a result of hurricane damage. The number of household disinfectant products containing chlorine compounds has increased in the past few years, aimed at being convenient and easy to use. Global demand for disinfectants and antimicrobials is forecast to grow at over 4% annually during 2008–2013, because of consumer concern over foodborne pathogens and recent outbreaks of Severe Acute Respiratory Syndrome (SARS), avian influenza and influenza H1N1 (swine flu). Consumption of hypochlorites is forecast to grow only 1.4%, but is dependent on the region.

Consumption of sodium hypochlorite in laundry bleach applications currently accounts for 67% of usage, with disinfectant use accounting for the remaining 33%. Clorox and other suppliers are attempting to create new applications and increase sales of bleach, with emphasis on its disinfectant characteristics as the primary focus. Use as bleach has been declining and this is expected to continue, as a result of a declining elderly population that used bleach on a regular basis and a reduction of shelf space at retail chains to increase dollar-per-cubic-foot sales. In addition, consumers and manufacturers are affected by the “going green” movement, with a shift to more environmentally friendly products. Supermarkets/hypermarkets account for over 55% of the retail sales value, with independent retailers (36%), convenience stores (3%) and all other (6%) accounting for the remainder.

The World Bank estimates that 1.1 billion people globally lack access to safe drinking water, 2.5 billion lack adequate sanitization, and nearly 50% of the world’s hospital beds are populated by people who have contracted waterborne diseases. Furthermore, if present consumption rates continue, in 25 years, the world will be using 90% of all available freshwater. As a result, desalination and water reuse will become a more important source of freshwater. Currently, there are over 10,000 desalination plants in the world, in at least 120 countries. There are over 100 water reuse facilities.

Both desalination and water reuse technology will require reliable disinfection technologies, some of which include sodium hypochlorite either in pre- or posttreatment to prevent biological fouling within the system or distribution system. At present, nearly 75% of all global desalination capacity is in the Middle East, Persian Gulf and North Africa. In the past five years, reverse osmosis (RO) has become the leading desalination technology, replacing multistage flash distillation. Most plants installed in Saudi Arabia, Kuwait and the United Arab Emirates use distillation. Most plants in the United States rely upon RO and vapor compression. Four states account for most of U.S. capacity—Florida, California, Arizona and Texas. As a result, consumption of sodium hypochlorite is forecast to continue to grow. (For more information on global water supply issues, see the Safe & Sustainable Chemicals report on Water and Sustainability in the 21st Century.)

The largest consumption market for calcium hypochlorite is swimming pool sanitization, but use for disinfection in food and aquaculture applications is forecast to continue to grow globally. Aquaculture has been growing at over 9% annually for the past ten years and production is forecast to continue at that pace and double in the next twelve to fifteen years. All regions are growing and require disinfection. Asia is the leading producer of aquaculture, accounting for nearly 91% of all production in 2007 and 2008, with China being the largest producer.

Calcium hypochlorite is consumed in the United States mostly by the swimming pool industry; other major uses for calcium hypochlorite include food applications, water disinfection and health care. Consumption of calcium hypochlorite in Western Europe is primarily for swimming pool sanitization. In Russia, however, it is used mainly for odor control. The majority of Japanese production is exported. Latin America, the Middle East and Africa mainly use the product internally, with little export. China is the largest producer and exporter of calcium hypochlorite bleaching powders.

(For the complete marketing research report on HYPOCHLORITE BLEACHES, visit this report’s home page or see p. 508.2000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
LACTIC ACID, ITS SALTS AND ESTERS
By Michael P. Malveda with Milen Blagoev and Takashi Kumamoto

The United States continues to be the largest consumer of lactic acid, followed by Western Europe and China. The United States surpassed Western Europe as the largest consumer of lactic acid in 2001–2002 with the commissioning of NatureWorks’ polylactic acid (PLA) plant in late 2001. In mid-2009, NatureWorks expanded its PLA capacity in the United States with an additional 70 thousand metric ton unit. In 2008, PURAC started up a 100 thousand metric ton lactic acid plant in Thailand.

In the last several years, lactic acid consumption for industrial applications has surpassed the food and beverages industry as the leading market for lactic acid. This shift is expected to continue as growth rates for industrial uses will be much higher than growth rates for other uses. This is a result of the continued high growth of PLA applications. It is expected that by 2013, industrial applications will account for more than half of global lactic acid use.

The following pie chart shows world consumption of lactic acid, its salts and esters:

In recent years, Asia has become nearly equivalent to Western Europe as a consumer of lactic acid products. All three major regions—the United States, Western Europe and Asia (driven mainly by China)—will continue to show strong annual growth at 7%, 9% and 5.5%, respectively, in the next few years. Globally, lactic acid consumption will continue to increase significantly, at about 7% per year from 2008 to 2013.

Growth in demand for lactic acid, its salts and esters in industrial applications will be driven mainly by lactic acid–based biodegradable polymers and, to a lesser degree, lactate solvents. The use of polylactic acid, especially in the plastics packaging, container and cutlery markets, is being highly promoted because of its environmentally friendly characteristics. Environmental benefits include product biodegradability; composting of waste by-products from PLA production; growth in the use of plant-based materials, which reduces carbon dioxide in the atmosphere; and the potential energy saved versus conventional polymer production. In the United States, PLA demand for industrial applications such as fibers, containers and packaging is expected to continue to increase. Likewise, demand for PLA will increase significantly in Western Europe, mainly for packaging uses.

The main obstacles to large-scale use of biodegradable lactic acid–based polymers in packaging applications are cost, environmental legislation concerning waste disposal and composting, and consumer attitudes and behaviors concerning the environment. Also, there is ongoing debate about the true amount of energy (often in the form of fossil fuels) consumed to produce PLA from raw materials such as corn. With large-scale production, prices are expected to continue to decline; however, lactic acid–based biodegradable polymers are expected to remain more expensive than commodity polymers in the near future.

The food and beverages market will also continue to drive lactic acid growth. In the United States, lactic acid will continue to be used mainly as an acidulant but will also continue to grow in the ready-to-eat meat industry. However, growth will depend on the prevailing economic situation. Likewise, growth in this market for Western Europe and Japan will be moderate. In China and Other Asia, growth in the food and beverages market will be stronger as lactic acid will continue to be used in local foods, as well as food fortifiers and pH adjusters.

Pharmaceuticals and personal care products have become an important market for lactic acid, its salts and esters. This market will continue to increase steadily in the United States and Western Europe, while China will experience stronger growth in this area. Uses include intravenous solutions, shampoos, soaps, antiaging alpha-hydroxy skin creams and moisturizers.

(For the complete marketing research report on LACTIC ACID, ITS SALTS AND ESTERS, visit
this report’s home page or see p. 670.5000 A of the Chemical Economics Handbook.)

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CEH Product Review Abstract
NATURAL AND MAN-MADE FIBERS OVERVIEW
By Katherine Shariq

This study presents a global supply and demand analysis of natural fibers (cotton and wool) and man-made fibers (synthetic fibers and cellulosic fibers), broken out by major world regions. Because of regional differences in data collection methods certain fiber data for polyolefin fibers, as well as lyocell fibers, are not included in the world totals but can be found in the respective regional sections of this report.

In 2008, the global production of textile fibers was on target, through the first half of the year, to rise another 4%. While strong global demand for textile goods in the first half of the year was tempered by the need to raise fiber prices to counteract the rising fuel and raw material costs, there was an expectation that sales in the fourth quarter would correct any imbalance. However, the sudden financial collapse brought on by the subprime mortgage crisis in the United States had dramatic effects on banking systems across the world. By October 2008, demand for textile goods had softened significantly as home foreclosures rose and banks fought to stay afloat. Short-term loans were recalled and new carryover loans became impossible to get. By year-end 2008, the economy had sunk into a severe recession on a global basis. Demand for textile goods across all markets fell dramatically and global fiber production dropped 11% to a low of 61,160 thousand metric tons, down from a high of 68,926 thousand metric tons in 2007.

With the exception of China and Japan, as a result of the economic collapse, many fiber producers in the major world regions have had to restructure and close selected fiber facilities to remain solvent. While capacities in the United States and Western Europe declined 0.9% and 2.8%, respectively, man-made fiber capacity in the Other Asian countries fell at a slightly greater rate of –3.4% between 2008 and 2009.

The following pie chart shows world consumption of textile fibers:

For the first time, in 2008 China produced over half (51%) of the volume of natural and man-made fibers that were produced globally (excluding polyolefin and lyocell fibers), up from 45% of global production in 2007. Hard hit by the downturn in foreign demand, China’s fiber production barely rose by 0.8% above its 2007 production figure. For comparison, China’s fiber production in 2007 increased by 12.6% over its 2006 production level. As part of its recovery plan, the government of China has reinstated higher export tax rebates on select textile and apparel goods, instituted massive spending on domestic infrastructure projects and ordered its banks to provide carryover loans to the business sector. As a result, China, with an impressive 11.8% average annual increase since 2005, was the only country globally to see an increase in fiber consumption in 2008.

With its focus on very high-end, specialty fibers, Japanese fiber producers were able to not only maintain capacity but even to increase capacity by a slight 1.3% between 2008 and 2009. However, fiber production in 2008 fell by 14.7% in response to the global downturn and sluggish foreign demand for its goods. At the same time, consumer spending severely dropped off and as corporate earnings fell, domestic banks reduced and denied further corporate investment loans. As a result, most fiber producers reduced fiber production in an effort to maintain viability in the market. Japan’s 2008 fiber consumption was lower than 2007 levels by 5.8%.

Credit overages and reduced disposable income among consumers contributed to the significant decline in U.S. demand for textile goods in 2008. The late 2008 bank bailouts and the early 2009 adoption of the American Recovery and Reinvestment Act are designed to shore up the domestic industries.

While Western European fiber producers have continued to invest in state-of-the-art equipment and make high-quality specialty fibers and fabrics, Western European–produced textile fibers are still more costly than similar fibers in other world regions. Like the restructuring that occurred in the United States between 2005 and 2007, Western European fiber manufacturers have consolidated facilities and closed less-profitable facilities. Some have opted to exit fiber manufacturing in Europe altogether in favor of partnering and building new fiber manufacturing facilities in countries in Eastern Europe, the Middle East and Asia.

(For the complete product review, NATURAL AND MAN-MADE FIBERS OVERVIEW, visit this report’s home page or see p. 540.1000 A of the Chemical Economics Handbook.)

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CEH Product Review Abstract
POLYESTER POLYOLS
By Henry Chinn with Uwe Löchner and Hiroaki Mori

Polyester polyols are macroglycols that are prepared by the condensation of a glycol and a dicarboxylic acid or acid derivative. The three general types of polyester polyols are manufactured from aliphatic diacids, aromatic diacids or caprolactone. Polyester polyols react with polyisocyanates in the manufacture of polyurethane polymers. The functionality, structure and molecular weight of the polyester polyols are varied to produce a range of polyurethane products. Polyester polyols compete with the more widely used polyether polyols; however, polyester polyols are preferred in some applications such as rigid foam boardstock because of their low cost and improved flame retardancy. In nonfoam polyurethane markets, such as elastomers, coatings, sealants and adhesives, advantageous properties include improved wear resistance, load bearing, heat aging, chemical resistance and UV stability. Generally, caprolactone-based polyols are higher-performance polyester polyols compared with other aliphatic polyester polyols, particularly in nonfoam applications. Pricing is higher than the typical aliphatic polyester polyols based on adipic acid.

The market for polyester polyols expanded rapidly between 2005 and 2008, before the economic crisis hit the chemical industry most dramatically in the fourth quarter of 2008. Global demand for polyester polyols grew from around 1.3 million metric tons in 2005 to 1.52 million metric tons in 2008, corresponding to an average growth of 5.4% per year during the 2005–2008 period. The most dynamic markets were China and Central and Eastern Europe. In terms of end uses, the demand for insulation (polyurethanes/polyisocyanurates) foam spurred demand for polyester polyols in the most developed industrial countries of North America and Europe.

The following pie chart shows world consumption of polyester polyols:

The polyester polyol business is a global one. COIM and Stepan are the largest producers. COIM produces aliphatic and aromatic products, with plants in Italy, Brazil, Singapore and the United States. Stepan has aromatic-based production sites in several locations—the United States, Germany and China.

The rigid foam polyurethane industry’s move from HCFC-141b (banned in industrialized countries in 2003 and for spray foam applications in the United States after January 1, 2005) to water-blown, hydrofluorocarbon (HFC-245fa and HFC-365mfc) and hydrocarbon (pentanes and/or mixtures) blowing agents necessitated research on and development of new polyol products that would provide the required properties (including flame retardancy, insulation properties and foam stability) in the rigid foam markets. Recently, aromatic polyester polyols are being developed with lower hydroxyl (OH) numbers, which would require less MDI in the production of rigid polyurethane foam and polyisocyanurate foams consumed in laminate insulation.

(For the complete product review on POLYESTER POLYOLS, visit this report’s home page or see p. 688.2000 A of the Chemical Economics Handbook.)

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CEH Product Review Abstract
RESORCINOL
By Elvira O. Camara Greiner and Chiyo Funada

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.

(For the complete product review on RESORCINOL, visit this report’s home page or see p. 691.7000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
SULFURIC ACID
By Bala Suresh

Sulfuric acid is one of the world’s largest-volume industrial chemicals. The production of phosphate fertilizer materials, especially wet-process phosphoric acid, is the major end-use market for sulfuric acid, accounting for nearly 53% of total world consumption in 2008. The balance is consumed in a wide variety of industrial and technical applications. Apparent world sulfuric acid consumption increased by about 25% between 1990 and 2008. Socialist Asia is the major market, accounting for about 28% of world consumption in 2008, followed by the United States, which consumed about 19%. Africa accounted for 10%. The former USSR, Central and South America, and Western Europe are also large users, each accounting for around 6–8% of world consumption. Major declines have occurred in the former USSR, Western Europe, and Central and Eastern Europe since the late 1980s. Major increases occurred in Socialist Asia, Africa, Southeast Asia, Central and South America, Southwest Asia and the Middle East between 1990 and 2008.

The global sulfuric acid market experienced an unprecedented rise and fall in pricing between fall 2007 and spring 2009. Consumption of sulfuric acid for fertilizers fell steeply in the second half of 2008 due to the collapse in the global economy. The second half of 2009 is expected to experience almost flat to slightly positive growth, anticipating the improvement in market conditions in 2010. Trade is expected to fall globally, except for Southeast Asia, which would continue to depend on imports. As of early spring 2009, the market is continuing to deteriorate as the supply shortage situation has been replaced by product oversupply in almost all regions.

Previously negotiated contract prices do not reflect the actual market conditions as consumers look for excess storage capacity since consumption has declined as a result of lack of demand. Contract renegotiations are happening worldwide, even in cases where cargo is in transit to its destination. In places such as China, smelters have reported selling at negative prices, as the oversupply situation is forecast to persist in the near future. Prices have been falling as a result of reduced demand and also the increasing availability of surplus sulfur. However, in Central and South America, there are pockets where acid supply is still tight, because there is relatively less product reaching the region and there are not that many local smelter capacities to satisfy demand.

The following pie chart shows world consumption of sulfuric acid:

Future growth for sulfuric acid is hard to predict and depends a lot on the fertilizer market. Fertilizer demand is seen to be influenced by the ongoing global economic crisis, credit availability, and dietary changes in the general population. It will also be influenced by the rate of increase in biofuels production, especially corn-based fuels. Within this context, global demand for sulfuric acid is projected to rise at an annual rate of about 1.4% in the next five years. Fertilizer demand for sulfuric acid is forecast to grow at about 1.2% during 2008–2013. Several new phosphate fertilizer plants are scheduled to be constructed over the forecast period, mostly in northern Africa, the Middle East and China. Nonfertilizer sulfuric acid demand will mostly come from nickel operations.

(For the complete marketing research report on SULFURIC ACID, visit this report’s home page or see p. 781.5000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
THERMOPLASTIC POLYESTER ENGINEERING RESINS
By Eric Linak with Masa Yoneyama

Polybutylene terephthalate (PBT) resins and polyethylene terephthalate (PET) engineering resins are high-performance, high-molecular-weight materials that can be converted into functional components and parts that are in turn used in a diversified array of assemblies for automotive, electrical/electronic, appliance and industrial equipment applications. PBT resins and PET engineering resins share many of the same markets; however, PBT is consumed in much larger volumes than PET because of its easier processability and shorter processing times.

The following pie chart shows world consumption of polybutylene terephthalate:

Globally, the main applications for PBT are in automotive uses (accounts for about 50% of total consumption including electrical/electronic uses), while nonautomotive electrical/electronic uses account for about 25%. Automotive use has risen as a result of increases in the number of safety and user comfort elements in vehicles, such as airbags, collision warning systems, or various electric motors (e.g., for seating mechanisms). Automotive applications account for the largest use in North America, Europe and Japan, while electrical/electronic applications are most significant in Other Asia. Most PBT (70–80%) is compounded with glass fiber and other materials to optimize costs and modify properties. About 15% of PBT is consumed in alloys, particularly with PC or PET, although it can also be blended with elastomers. Most PC/PBT applications are in automotive bumper systems where they are used for fascias and beams.

Consumption is greatest in Asia (50–55% of total 2008 global consumption), followed by Western Europe (21%) and the Americas at 20%. Growth rates from 2008 to 2013 are expected to remain highest in Asia, with more mature rates in North America and Western Europe, as some customer base continues to migrate toward Asia, especially China. The overall global market is expected to resume its historical growth rate of about 6% per year once the global economies recover. Growth in China is expected to average 12% per year, while that in other areas of Asia, except Japan, is expected to be about 10% per year. In Japan, average annual growth is expected to be about 2%.

(For the complete marketing research report on THERMOPLASTIC POLYESTER ENGINEERING RESINS, visit
this report’s home page or see p. 580.1160 A of the Chemical Economics Handbook.)

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PEP Report Abstract
ETHYLENE GLYCOL
By Syed Naqvi

This ethylene glycol (EG) report is a supplement to three previous Process Economics Program (PEP) reports—PEP Report 2F, Ethylene Oxide & Ethylene Glycol (1997); PEP Report 70B, Ethylene Glycol (1978); and PEP Report 70A, Ethylene Glycol (1975). The report examines research work and technical developments taking place in ethylene glycol manufacturing technologies since the issuance of the last report in 1997. The evaluation especially includes techno-economic analysis of those EG technologies that have been commercialized in the past twelve years.

The following two newly commercialized EG technologies are evaluated:

• Shell OMEGA^® (Only MEG Advanced) technology
• Dow METEOR^® (Most Effective Technology for Ethylene Oxide Reactions) technology

Shell’s OMEGA^® technology is a two-step process in which EG is produced from ethylene oxide (EO) via ethylene carbonate (EC), the latter being produced as an intermediate product. EO, for this process, is produced through the conventional EO technology of Shell, using a proprietary Ag-based, promoted catalyst. Ethylene conversion is 10–15% and EO selectivity is 90%. EC is produced from EO using a phosphonium halide catalyst. The overall result of the two-step process is that the MEG yield in ethylene glycol product is extremely high (99–99.5%). This is the main advantage of this new technology, that it selectively produces MEG and minimizes the production of diethylene and triethylene glycols. According to Shell, the higher growth rate in MEG demand than for DEG was a major factor for the commercialization of this technology.

Our evaluation indicates that the Shell technology may give a 15% savings in the total capital investment cost for a 400 thousand metric ton/year MEG plant.

Dow’s METEOR^® technology is a single-step process in which EG is directly produced from EO by a thermal hydrolysis process. EO, for this process, is produced through the conventional EO technology, using a proprietary Ag-based, promoted catalyst. Ethylene conversion is 8–13% and EO selectivity is 89%. The overall MEG yield in the ethylene glycols product is about 90–93%. The hallmark of the METEOR^® technology is that it is principally based on a simplified process structure involving fewer process steps, less major equipment, and smaller plot plan compared with a conventional EG plant of the same capacity.

Our evaluation indicates that the Dow technology may give an 11% savings in the total capital investment cost for a 400 thousand metric ton/year EG plant.

(For the complete September 2009 Report 2I on ETHYLENE GLYCOL, visit this report’s home page.)

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PEP Report Abstract
GASOLINE BENZENE REMOVAL
By Richard Nielsen

In most developed countries, the benzene content of gasoline is regulated to 1 vol% or less. The U.S. Environmental Protection Agency’s Mobil Source Air Toxics Phase 2 rule requires refiners and importers to the U.S. to reduce the benzene content of conventional, as well as reformulated, gasoline to a corporate annual average of 0.62 vol% effective January 1, 2011 for most refiners (2015 for small refiners). This is a reduction from the current 1.0 vol% benzene limit (except in California). The regulation also requires the maximum benzene content to be 1.3 vol% for the gasoline pool and provides for an averaging, banking and credit trading program to help meet the 0.62 vol% specification. In addition, the U.S. revised renewable fuel standard will require the future gasoline pool to contain about 10 vol% ethanol.

Catalytic reforming is the source of about 70–85 vol% of the gasoline pool benzene while fluid catalytic cracking accounts for another 10–25 vol%. To meet the current 1.0 vol% benzene requirement, many refiners have utilized reformer operational and catalyst changes. Additional benzene reduction to meet the new limit will require implementing additional strategies and adding or modifying process units in many refineries. Processes to reduce benzene include fractionation of reformer feedstock or of reformate, saturation either as a separate process or combined with hydroisomerization, benzene alkylation and extraction of benzene.

To meet the 0.62 vol% benzene requirement, more than half of the refineries reporting to the U.S. EPA indicated in their 2008 precompliance reports that they plan to install new benzene reduction facilities.

This PEP Report first provides an overview of U.S. gasoline benzene regulations, market supply and demand trends plus planned new construction. Reaction chemistry, catalysis and processes to remove benzene from gasoline streams are reviewed. We then develop the process economics for removal of benzene from the refinery gasoline pool by three different technologies:

• Saturation of benzene by catalytic distillation of whole reformate
• Saturation of benzene combined with hydroisomerization of C₅-C₆ naphtha
• Extractive distillation to recover marketable benzene and optionally toluene from a C₅-C₇ reformate cut

(For the complete September 2009 Report 273 on GASOLINE BENZENE REMOVAL, visit this report’s home page.)

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PEP Report Abstract
SUPERCRITICAL CO₂: A GREEN SOLVENT
By Susan Bell

Many industrial chemical reactions, extractions, chemical separations and cleaning processes involve the use of organic solvents. In addition to the handling and disposal issues associated with these operations, these solvents can pose a number of environmental concerns such as atmospheric and ground toxicity. In many cases, conventional organic solvents are regulated as volatile organic compounds because of their contribution to the greenhouse effect. In addition, certain organic solvents are under restriction because of their ozone-depletion potential.

Supercritical carbon dioxide is an attractive alternative solvent in place of traditional organic solvents. Early applications of supercritical fluids include chromatography applications and extraction applications, particularly caffeine extraction from tea and coffee. There have been an increasing number of commercialized and potential applications for supercritical fluids in reactions, catalysis, extractions involving natural products and pharmaceuticals, polymer production and processing, environmental and soil remediation, cleaning processes, semiconductor processing, and powder production.

This report reviews the fundamentals of supercritical CO₂ processing, current and potential applications, and patents. The technological and economic challenges involved in implementation of the technology in different applications are discussed. We also include process economic evaluation analyses of several supercritical CO₂ applications: (1) hydroformylation of octene, (2) extraction using supercritical CO₂, (3) fluoropolymer production with supercritical CO₂ as a polymerization medium, and (4) polycarbonate production with supercritical CO₂ as a raw material.

(For the complete August 2009 Report 269 on SUPERCRITICAL CO₂: A GREEN SOLVENT, visit
this report’s home page.)

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Announcing ChemicalWeek Regulatory Watch—a new semimonthly alert and news service! In it you’ll find global regulatory and legislative intelligence, interviews and insights you can’t find anywhere else. We will be investigating and reporting where industry, lawmakers and regulators are focusing their efforts, talking with industry executives, experts, attorneys, scientists, lawmakers, and industry critics, providing links to firsthand research material, and rounding up the most recent rulings and verdicts of interest to the industry. For a full description of content, go to www.chemweek.com/regulatorytrial.

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The inaugural issue on September 15, 2009 covered the following key areas:

• Climate, TSCA Top Legislative Agendas as Lawmakers Reconvene

• Chemicals Management: Preparing for TSCA Reform

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• Report: Politics, Not Consumer Attitudes, Shaped European Ag Biotech Policies

• California Assembly Rejects BPA Ban

• REACH Fails to Deliver Harmonization of EU Regulations

• U.S. Lawmakers to Scrutinize EPA Monitoring of Atrazine

• Current Initiatives Will Not Suffice to Comply with EPA’s GHG Reporting Rule

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