November 2009

Bromine
Citric Acid
Gasoline Octane Improvers
Isophthalic Acid
Naphthalene
Plasticizers
Sodium Sulfate
Biodiesel from Algae
Dimethyl Ether (DME) from Coal
Corrosion Inhibitors
Printing Inks
Chemweek’s Business Daily
CEH Reports and Product Reviews in Preparation
PEP Reports Scheduled for 2009
SCUP Reports Scheduled for 2009

CEH Marketing Research Report Abstract
BROMINE
By James Glauser

Bromine is used in numerous inorganic and organic compounds. Since it is an element, it cannot be substituted by other materials without the properties of the compound being changed, often significantly. However, some bromine compounds, especially organic compounds, are susceptible to substitution by products with completely different chemistries. Important attributes for its use in inorganic compounds include its oxidation potential and its relatively high molecular weight (compared with chlorine). Since bromine is so expensive to transport because of the lead containers required and safety issues, most brominated flame retardants are produced near the brine and bromine source, and shipped as finished product.

Globally, the largest application for bromine is the production of brominated flame retardants, accounting for about 48% of all bromine consumption. Clear brine fluids are second, but far behind at about 11%. Actual consumption of clear brine fluids is higher as more fluids are being reclaimed for economical and environmental reasons. Hydrogen bromide (HBr) is used as a catalyst in the production of purified terephthalic acid (PTA) and accounts for about 4.4% of bromine consumption. Methyl bromide consumption, primarily as a fumigant, accounts for 3.0% of bromine consumption, but is declining per the Montreal Protocol on the Ozone Layer. Water treatment accounted for 4.4% of consumption. Sodium and ammonium bromides and brominated hydantoins are used primarily in three regions—the United States, Western Europe and China. All other applications accounted for the remainder. Use as intermediates in the production of multiple organic compounds is the leading application in this segment. Production of pharmaceuticals, agricultural/pesticides and dyes accounts for a large portion of this usage. All uses are seeing significant growth in China and India.

The following pie chart shows world consumption of bromine compounds:

China has rapidly increased its bromine production, but these brines are being diluted and long-term production is not expected to maintain this growth. India has also increased capacity and production. Ukraine had increased capacity but suspended some of its production beginning in late 2008 because of its not being competitive in the marketplace. U.S. capacity is also believed to be declining with no new wells being drilled. It is uncertain whether the Republic of Korea is still producing elemental bromine.

China is forecast to have the highest consumption growth rate, at almost 4% annually during 2008–2013, as a result of continued use in brominated flame retardants, clear brine fluids, and as intermediates in organic synthesis, in particular pharmaceuticals, agricultural/pesticides and dyes. Globally, use of bromine in brominated flame retardants is declining, but it is being buoyed to some extent by increased consumption as bromides in clear brine fluids in deepwater oil and gas drilling and workover operations.

(For the complete marketing research report on BROMINE, visit this report’s home page or see p. 719.1000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
CITRIC ACID
By Michael P. Malveda with Hossein Janshekar and Yoshio Inoguchi

Citric acid is a commodity chemical produced and consumed throughout the world. It is used mainly in the food and beverage industry, primarily as an acidulant. It is estimated that about 75% of the citric acid produced is consumed for food and beverages. The majority of production capacity and consumption in 2009 was in China, Western Europe and the United States. Western Europe, the United States, China, Other Asia, and Central and Eastern Europe combined are estimated to account for nearly 80% of global citric acid consumption. The citric acid industry continues to be influenced by an increased supply from China and an abundant global capacity. In recent years, prices have been driven down by these factors. Tariffs have been enacted worldwide to keep citric acid markets competitive and prices from declining further.

The following pie chart shows world consumption of citric acid:

In the United States, the citric acid market will continue to grow as a result of growth in the beverage and detergent markets. Although consumption decreased slightly in 2009 from 2008 levels because of the economic downturn, a rebound in the beverage market and strong growth in the detergent market will increase citric acid use. New product introductions and continued use in diet colas, fruit-flavored waters, iced teas and sports drinks will lead to higher growth. Liquid detergent growth and environmentally friendly citric acid products in this market will also contribute to growing citric acid demand. New growth will also be seen in industrial applications such as plasticizers and green cement, as demand for renewable resources continues to grow. In Canada, citric acid use may rebound in oil recovery applications if oil prices head further upwards.

In Europe, the citric acid market has been under pressure since 2002 and continues to spiral downward, with prices falling as low-cost suppliers flood the market. The closures have represented an industry trend and have tightened the supply in Europe. Companies are trying to restructure in order to enhance the competitiveness of their citric acid production activities. New markets are not expected to develop.

The citric acid market is impacted by price, which has been driven down by a combination of strong competition from Chinese products and an abundance of global capacity. European producers are contending with imports from Chinese producers. While the average prices were declining, Chinese imports of citric acid to Western Europe grew significantly from 2004 to 2007. The significant increase in imports during these years led to high European Commission antidumping duties in 2008, which helped to increase prices (up about 35% on average in dollar terms) in 2008 compared with 2007. However, the antidumping measures have not been as effective on import volumes as was expected. After antidumping measures were applied for all Chinese producers during 2008, several Chinese producers were exempted from the antidumping duty in 2009, as long as they met the minimum import price (MIP) as defined by the EU and reviewed quarterly. As a result, list prices started to drop later in 2009 compared with 2008 levels.

Chinese competition is mainly in citric acid monohydrate (solid form) and sodium citrate, the most-used form of citric acid salts. In the future, the European manufacturers of citric acid and citrates might concentrate on the production of citric acid solutions (using solid form produced in-house or imported) and/or higher-value citrates. The general trend is that producers are trying to get the anhydrous material closer to the cost of monohydrate, because of the better storage characteristics (longer shelf life, more stability) of the anhydrous material (the monohydrate tends to harden in storage). The main growth driver is believed to be in mineral fortifiers (e.g., calcium citrate, calcium phosphate, magnesium citrate and zinc citrate) produced from citric acid. The role of fortifiers for the health food industry is expected to increase in the coming years.

In Other Asia, consumption is highest in India, Indonesia, Thailand and the Republic of Korea. Growth in this region is expected to be 6–7% per year over the next few years, driven mainly by beverages, which account for 85–90% of demand.

(For the complete marketing research report on CITRIC ACID, visit this report’s home page or seep. 636.5000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
GASOLINE OCTANE IMPROVERS/OXYGENATES
By Eric Linak, Hossein Janshekar and Masahiro Yoneyama

This report focuses on blending agents incorporated into gasoline mainly to raise the octane value of the fuel and to reduce harmful vehicle emissions. Gasoline with an octane rating that satisfies market requirements is produced in refineries by blending various refinery streams that differ in composition, boiling range and octane rating.

Gasoline octane improvers/oxygenates include three major compounds—ethanol, methyl tertiary-butyl ether (MTBE) and ethyl tertiary-butyl ether (ETBE).

The following pie charts show world consumption of fuel ethanol and MTBE in gasoline:
 

The largest-volume gasoline octane improver/oxygenate used in the world in 2008 was ethanol. In recent years, ethanol use has grown significantly in the United States and Brazil, and to a lesser extent in Western Europe, for several reasons:

• It boosts octane levels.
• It increases combustion efficiency, as ethanol is an oxygenate that helps reduce air pollutants.
• Ethanol made by fermentation is a renewable resource.
• It is biodegradable in surface water, groundwater and soil.
• It extends gasoline supplies.
• It decreases emissions of greenhouse gases (GHGs), although the extent of reduction depends on the feedstock and other factors.
• It supports local agriculture. In the industrialized world, agriculture often has a strong political influence on national policies, so increased ethanol production in the United States is supported strongly by Midwestern corn growers. In the less industrialized world, stimulation of local agriculture is very attractive to government officials.
• It decreases dependency on imports of crude oil or gasoline if the country is not a producer of crude oil but is a producer of ethanol.

The next-leading gasoline octane improver/oxygenate is MTBE. Starting in the late 1970s, MTBE was the predominant choice of gasoline oxygenate used worldwide because of its low cost, high octane value and easy incorporation into gasoline stock. However, in the late 1990s, MTBE was alleged to cause detrimental environmental impacts by contaminating water supplies. As a result, use in Japan ceased in 2003, and in the United States and Canada in 2006. Global use peaked in 2000 at about 20.4 million metric tons.

The United States still produces MTBE but practically all is exported. However, output will decline significantly as the largest producer, LyondellBasell, shuts down one of its units and converts 30% of its remaining capacity to ETBE during 2009. There are several large Latin American consumers of MTBE; the largest are Mexico and Venezuela. Both countries import considerable quantities of MTBE from the United States; both have made some plans to use more ethanol or ETBE to reduce GHGs, but general inertia and fear of higher corn prices will limit the switch. In Brazil, there is no consumption of MTBE, and all of the production is exported.

Global consumption of ETBE in 2008 was almost all in Western Europe, with a lesser amount in Eastern Europe. Western Europe partially switched from MTBE to ETBE, mainly as a result of tax incentives for refiners and blenders to use ethanol to make fuels from renewable resources. There are almost twenty ETBE plant sites in the EU 25, with production dominated by Total and its subsidiaries and joint ventures, LyondellBasell and Repsol-Petróleo. Some MTBE producers can switch between MTBE and ETBE.

(For the complete marketing research report on GASOLINE OCTANE IMPROVERS/OXYGENATES, visit this report’s home page or see see p. 543.7500 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
ISOPHTHALIC ACID
By Eric Linak and Takashi Kumamoto

Isophthalic acid is a colorless crystalline solid. It is used as an intermediate primarily for unsaturated polyester resins and alkyd and polyester coating resins; other applications include use in aramid fibers, as a component of copolyester resins and in high-temperature polymers. At one time, some producers sold isophthalic acid/terephthalic acid mixtures, which contain from less than 1% to 30% terephthalic acid. In recent years, however, the trend has been toward nearly pure isophthalic acid with a purity of >99.8%. This material is called purified isophthalic acid or PIA.

The following pie chart shows world consumption of isophthalic acid:

Currently, there is significant global overcapacity for isophthalic acid, with sufficient spare capacity for the next five years. However, there have been several recent announcements regarding new plant construction.

• In 2007, Russia’s Zavod novykh polimerov Senezh announced plans to build a 6 thousand metric ton-per-year plant to service the growing market for PET bottle resins.
• In 2008, Mossi & Ghisolfi (M&G), the largest global producer of PET bottle resins, announced plans to begin manufacture of PIA at its Paulínia, São Paulo, Brazil site, which also makes PET fibers and bottle resins. The output will be sent to other M&G locations around the world. Expected start-up is by the end of 2009.
• In 2010, Sinopec Beijing Yanshan is expected to complete an expansion that will add 15 thousand metric tons per year of capacity.

PIA has three major uses:

• PET copolymer, which is used in bottle resins and to a much lesser extent, for fibers. PIA reduces the crystallinity of PET, which serves to improve clarity and increase the productivity of bottlemaking manufacture.
• Unsaturated polyester resins, where the addition of PIA improves thermal resistance and mechanical performance, as well as resistance to chemicals and water.
• Polyester/alkyd surface coating resins, where PIA increases resistance to water, overall durability and weatherability.

The best prospects for growth for PIA are in the developing areas of Asia. Consumption in China is expected to increase by about 13% per year, mainly as a result of increased production of PET bottle resins, which is forecast to grow at about 15% per year through the forecast period. Other markets such as unsaturated polyester resins and surface coatings should grow at an average of 10–12% per year. PET bottle resins are also expected to grow in countries like the Republic of Korea and Taiwan, but to a lesser extent.

(For the complete marketing research report on ISOPHTHALIC ACID, visit this report’s home page or see p. 667.5000 A of the Chemical Economics Handbook.)

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CEH Product Review Abstract
NAPHTHALENE
By Thomas Kälin with Chiyo Funada

Naphthalene is derived from two sources—coal tar and petroleum. In 2008, over 90% of U.S. naphthalene was produced from coal tar; most naphthalene in Western Europe was produced from coal tar and all naphthalene produced in Japan was from coal tar.

The major outlet for naphthalene is in the production of phthalic anhydride, particularly in Japan and the United States, where it accounted for 70% and 61% of naphthalene demand, respectively, in 2008. Phthalic anhydride is also produced from ortho-xylene, which is available in large quantities. The naphthalene sulfonate market is a significant outlet for naphthalene and is currently the only naphthalene market showing growth in all major regions.

The following pie chart shows world consumption of naphthalene:

In the United States, naphthalene consumption for production of phthalic anhydride accounts for almost two-thirds of total consumption. Currently, only about 10% of phthalic anhydride production is naphthalene-derived; most is based on o-xylene. Naphthalene’s market share may decline if phthalic anhydride producers rely more on o-xylene as a feedstock in the future. Good growth is expected for naphthalene sulfonates, particularly for use in concrete admixtures. Overall, naphthalene consumption growth is projected to be flat through 2013.

There is only one remaining phthalic anhydride producer in Western Europe. Consumption for naphthalene sulfonates and alkylnaphthalene solvents is expected to grow by 2.5% and 1.0% per year, respectively, through 2013. Overall demand will rise by about 2.0% per year from 2008 to 2013.

Japanese phthalic anhydride production accounted for 70% of domestic consumption of naphthalene in 2008. Phthalic anhydride plays a more dominant role in naphthalene demand in Japan than in the United States or Western Europe. Domestic naphthalene demand for phthalic anhydride is expected to remain unchanged during 2008–2013. Dyestuff intermediates were the second-largest end use, followed by refined naphthalene and naphthalene sulfonates. Overall Japanese demand for naphthalene is expected to decrease by about 1.4% per year between 2008 and 2013.

(For the complete product review on NAPHTHALENE, visit this report’s home page or see p. 458.0000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
PLASTICIZERS
By Sebastian N. Bizzari with Milen Blagoev and Akihiro Kishi

World consumption of plasticizers in 2008 was at nearly the same level as in 2005. Global capacity utilization decreased significantly to 62% in 2008 from 71% in 2005 as a result of increased capacity and weak demand caused by the global recession. Between 2005 and 2008, world capacity for plasticizers grew at an average annual rate of 4.7%, greatly outpacing world consumption, which grew at an average annual rate of 0.2% during the same period. Although world demand increased during 2005–2007, it weakened considerably during 2008 in most regions, wiping out most volume gains since 2005. Most capacity growth during 2005–2008 occurred in Asia (mainly China), followed by Western Europe.

Plasticizers are grouped into the following categories: phthalates, aliphatics (mainly adipates), epoxy, trimellitates, polymerics, phosphates and other. Phthalic acid esters, generally known as phthalate plasticizers, are by far the predominant type of plasticizer produced and consumed in the world.

The following pie chart shows world consumption of plasticizers:

Demand for most downstream plasticizer markets is greatly influenced by general economic conditions. As a result, demand for plasticizers largely follows the patterns of the leading world economies. The major end-use markets include construction/remodeling, automotive production and original equipment manufacture. Communication and building wire and cable, film and sheet (calendered and extruded), coated fabrics and dispersions (flooring and other) are the largest markets for plasticizers.

Phthalates accounted for almost 86% of world consumption of plasticizers in 2008, down from about 89% in 2005; they are forecast to account for about 86% of world consumption in 2013. The decrease in market share during 2005–2008 was largely due to the discontinuation of large-scale production and consumption of linear phthalates. During 2008–2013, continued discontinuation of production and consumption of several relatively minor phthalates will largely be negated by increased consumption of DPHP, DINP and DEHP. World consumption of phthalate plasticizers is forecast to grow at an average annual rate of 1.6% during 2008–2013. World consumption of linear phthalates is forecast to continue to decline but at a much slower rate. Replacement of linear phthalates, mostly by other phthalates, is nearly complete. World consumption of other phthalates is forecast to decline during 2008–2013, largely the result of declining demand for some phthalates, such as BBP and DBP, in many regions caused by regulatory issues and discontinued consumption of other relatively minor phthalates.

World consumption of most other plasticizers (aliphatics, trimellitates, epoxy, polymerics and phosphates) is forecast to grow at an average annual rate of 1.5–2.1% during 2008–2013, in line with general economic trends. Benzoates and specialty plasticizers (including citrates, alkane sulfonic esters of phenol and hydrogenated phthalates) are expected to grow rapidly during 2008–2013, albeit from a small base, largely because of replacement of several phthalates.

(For the complete marketing research report on PLASTICIZERS, visit this report’s home page or see p. 576.0000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
SODIUM SULFATE
By Bala Suresh with Chiyo Funada

Sodium sulfate may be recovered from naturally occurring brines or as a by-product of other operations. Natural sodium sulfate is extracted from brines or lakes that are enriched with the product. Sodium sulfate produced as a by-product generally occurs during the production of man-made fibers, chrome chemicals, hydrochloric acid, lead battery recycling, formic acid or desulfurization of flue gases. Natural sodium sulfate can be as pure as that of by-product manufacture. Types of sodium sulfate include anhydrous sodium sulfate, salt cake and Glauber’s.

China is the largest producer and exporter of sodium sulfate. Jiangsu Province is the world’s largest sodium sulfate production base and is expected to produce over 4.8 million metric tons by 2013. In 2003, Lautan Hongze Chemical Industry began commercial production of the world’s largest sodium sulfate plant in Hongze County. China’s production, consumption, and exports of sodium sulfate have been increasing significantly in the past few years. In 2008, China represented more than three-fourths of the global capacity and more than 70% of the production.

In North America, the closure of several plants has helped to eliminate the oversupply situation the sodium sulfate market had faced in the past. Temporary suspensions of operations are also occurring as a reaction to the current global economic downturn. In early 2009, Exide at Baton Rouge announced temporary suspension of operations and Elementis at Castle Hayne declared force majeure because of the shrinking economy. North American demand has been decreasing in both the textile industry because of the entry of cheaper imports and in the detergent industry as the demand for liquid detergents that do not use sodium sulfate increases and demand for powdered detergents that use sodium sulfate decreases.

The following pie chart shows world consumption of sodium sulfate:

Mexico has been a developing market for sodium sulfate lately mostly as a result of demand from the detergent sector. Along with production, exports to South America also grew steadily until 2005. However, with increasing domestic demand, Mexican exports have been declining and imports have been increasing for the past three to four years.

Global demand is expected to exhibit growth of 2–3% per year in the near future as exports to Central and South America increase to satisfy the expanding use of powdered detergents. A similar growth pattern is also expected in Asia and other developing countries. Growth in developing countries where dry powder is used typically instead of liquid detergents is expected to be above GDP levels. The current market in North America is balanced to slightly tight. With the current economic downturn, there has been an increase in consumption of sodium sulfate in the detergent sector in North America. In early 2009, liquid detergent producers reformulated their products by shifting from 1X concentration to 2X concentration; there were some producers that even went to 3X concentration. This resulted in an increase in dry powder sales as some consumers went back to powdered products feeling that they were getting a better value for their purchase with dry powder than with concentrated liquid detergents. With increasing raw material prices, the need to lower costs to maintain margins has provided an impetus for the increased use of sodium sulfate. This demand is expected to continue, at least in the short term.

The Chinese market is the world’s largest and is growing at over 3% annually. China has the largest reserves of mirabilite and has been building and expanding capacities to meet global demand. As production costs are relatively lower than in the rest of the world, China has become the major supplier of sodium sulfate for global consumption.

(For the complete marketing research report on SODIUM SULFATE, visit this report’s home page or see p. 771.1000 A of the Chemical Economics Handbook.)

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PEP Review Abstract
BIODIESEL FROM ALGAE
By Sudeep Vaswani

Growing energy demand and depletion of fossil fuel resources has created an urgency in the development of alternative energy sources. Such development would reduce dependence on foreign oil and offer the potential to reduce greenhouse gases. While biofuel technology is gaining momentum in both research laboratories and industry, the economics of making biofuels are challenged by crude oil price fluctuations. Additionally, initial investments into biofuel production technologies such as biofuels from food crops (first generation) and biofuels from nonfood crops (second generation) raised concerns about a rise in the price of food crops and land usage.

Third-generation biofuel technologies are now the center of attention. Biofuels from algae appear to resolve the problems associated with first- and second-generation biofuel technologies. Algae are fast growing organisms that need sunlight, carbon dioxide and water to generate energy that is stored in algal cells in the form of lipids. These lipids can be extracted from algal cells and converted to biofuels such as biodiesel or renewable diesel. Many companies, both small and large, have announced investments in algae biofuel technology. Of these, the announcement of a major investment worth $600 million was made by ExxonMobil in July 2009. The U.S. government is also supporting this research in the form of grants and tax incentives. While some pilot plants are being built to eventually commercialize the algae biofuel technology, no commercial plant exists today.

In this review, we analyze the technology and economics of 30 million gallons/yr of biodiesel production by a heterotrophic microalgae process, where algae utilize glucose as a fixed carbon source.

This review will be of interest to biofuels producers, technologists, investment communities and government.

(For the complete November 2009 Review 2009-9 on BIODIESEL FROM ALGAE, visit this report’s home page.)

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PEP Report Abstract
DIMETHYL ETHER (DME) FROM COAL
By Ronald Smith

Dimethyl ether (DME) is a clean energy source that can be manufactured from various raw materials such as petroleum residues, coal bed methane, and biomass as well as natural gas and coal. DME generates absolutely no SOx or black smoke (soot) when burned. Practical use of DME is advancing in the fields of power generation, automotive/industrial diesel engines, and domestic household use among other possible applications because of its excellent physical, chemical, and storage properties. Demand for this fuel in Asia is rising rapidly to provide both household and transportation energy.

The technological developments for DME production as a fuel started from natural gas around the mid-1990s and targeted the use of DME as an LPG alternative, a transportation fuel for diesel engines, and fuel for gas turbines. DME became well known as a potential multisource, multipurpose fuel produced by indirect processes. Although DME can be produced easily by the dehydration of methanol, a direct process for integrated production began to be researched in Europe, the United States and Japan. Today, DME can be produced either directly from synthesis gas or by the indirect method which passes through methanol production.

Because we recently evaluated the production of DME from natural gas in PEP Report 245A, in this report we describe and review the economic units involved in the integrated production of DME from coal. This report is unique in that it highlights all major aspects of coal gasification, production and utilization of DME as a fuel (including storage, transportation, and distribution) and a projection of future market potential from fundamentals, in addition to presenting our traditional techno-economic analysis.

Finally, process economics for integrated production of DME from coal using an alternative indirect process technology developed by Haldor Topsoe are provided and compared with a direct process technology developed by JFE.

(For the complete November 2009 Report 245B on DIMETHYL ETHER [DME] FROM COAL, visit this report’s home page.)

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SCUP Report Abstract
CORROSION INHIBITORS
By Stefan Müller with Syed Q. A. Rizvi, Kazuteru Yokose, Wei Yang and Mario Jäckel

Most sales of corrosion inhibitors by their basic manufacturers are to service companies that formulate end-use products for the water treatment, lubricants and fuels, metal treatment (including metalworking fluids and rust-preventive oils), and oil field production industries. The end-use products normally contain other functional components, as well as large volumes of solvents and dispersants. Although these service companies are more directly involved than basic manufacturers in the business of solving corrosion problems, the products and the technology of corrosion control are only a part, although an important one, of their overall business. Normally, there is a large markup in the price of the formulated products over the cost of the chemical components alone. This added value reflects the high sales costs, required formulation skills, and technical service that are normally provided.

In most developed economies, such as North America, Western Europe, and Japan, water treatment is the largest market, within which the cooling water segment is the largest. The lubricants and fuels segment is the second largest and is followed by the oil field services and water-based fluids segments. Incidentally, the U.S. pulp and paper industry, which is part of the water treatment segment, accounts for about 2.7% of the total consumption of water treatment chemicals. Although the corrosion inhibitor treatment level in lubricants is well below 1% and in fuels it is in parts per million, the large-volume use of corrosion inhibitors in this segment is due to its sheer size. Oil and gas services include drilling, cementing and stimulating, production and refining, with the production sector being the largest.

This report describes the major active materials in formulated corrosion inhibitors, their consumption by volume (on a 100% active basis), and their value at the level of sale by the basic manufacturer to the service company. Consequently, the volumes and values reported here cannot be directly compared with those in other studies based on formulated products of widely varying activity sold to end users on the basis of performance and related service. This report also excludes many large-volume, commodity-type inorganic chemicals (e.g., alkali and lime) that are used only for neutralization, as well as boric acid and its salts.

The following pie chart shows world consumption of corrosion inhibitors on a value basis:

World consumption of corrosion inhibitors is expected to grow at an average annual rate of 2.4% during 2008–2013. The relatively low growth rates projected for corrosion inhibitors—all below GDP growth in each region—reflect the high level of maturity of most of the basic industries in the developed markets. They also reflect the replacement of steel by plastics, ceramics, and corrosion-resistant alloys in the industries. Industries have also used corrosion inhibitors more efficiently by employing better monitoring and control techniques in order to minimize discharge in effluent streams and impact on the environment.

During 2008–2013, North American as well as other global markets are expected to experience slow growth, primarily as a result of the current local and global economic downturn. It is estimated that a decrease in chemical demand, which started in the fourth quarter of 2008, will continue at least for the year 2009 and possibly the first half of 2010. A drop in demand of at least 2% for chemicals is expected during 2009, after which demand is projected to normalize, though with reservations. Although the high price of oil has subsided somewhat from its peak in mid-2008, oil production is expected to stay reasonably strong since the price of oil is still relatively high as a result of increasing global demand.

Relatively higher growth rates are expected in the developing regions, the same as in prior years. Particularly, China is expected to show the highest growth because of its rapid growth in industrial production, strong oil production, and the government’s new focus on water resources and the announced investment in water treatment.

One major market trend is the positioning of the major Western water treatment companies, such as Nalco, GE, and Ashland, in China. The other major trends in this business are related to regulatory and environmental concerns, which can result in the replacement of some product types by others that are either less toxic or perceived as less threatening to the environment. These issues can relate to the corrosion inhibitors themselves or to developments in the end-use market segment in which they are used.

(For the complete October 2009 report on CORROSION INHIBITORS, visit this report’s home page or see vol. 6 of Specialty Chemicals—Strategies for Success.)

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SCUP Report Abstract
PRINTING INKS
By Ray K. Will with Yoshio Inoguchi, Hossein Janshekar and Xiaomeng Ma

Printing inks are a customer- and applications-specific formulations business. There are two major segments—commercial printing/publishing and packaging. Printing inks are also categorized by process: lithography, rotogravure, flexography and digital printing, the newest and highest-growth process. A reputation for both quality products and technical service is essential for a printing inks company.

The world printing inks market is expected to grow only very slightly over the next five years. North America is the largest printing ink consumer. China is the fastest growing region, followed by Central and Eastern Europe/Russia, the Middle East and Africa, and the rest of Asia, while the largest markets—North America, Western Europe and Japan—are declining.

The following pie chart shows world consumption of printing inks on a value basis:

(For the complete November 2009 report on PRINTING INKS, visit this report’s home pageor see vol. 14 of Specialty Chemicals—Strategies for Success.)

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