Propylene oxide a colorless highly volatile chemical intermediate which competes with acrylic acid as the second or third largest demand use of propylene produced globally. It is produced by the oxidation of propylene. The historically important production method is by the chlorohydrin process involving chlorine, it is also produced with styrene monomer co product, tertiary butyl alcohol co product or by hrdroperoxidation. Due to its flammable nature and low flash point it is used captively predominantly, its trade being relatively small compared to the size of its market.
Consumption growth has occurred on average above GDP levels, mainly as more consumers in Asia Pacific purchase furnishings and automotives. Propylene Oxide (PO) consumption growth is driven mainly by the polyether polyols market. Polyether polyols are used to produce polyurethanes its market driven by the construction, consumer goods and automotive sectors. Polyurethanes are manufactured by reaction of polyols with an isocyanate, typically toluene diisocyanate and methylene diphenyl diisocyanate. Polyurethanes are used in flexible foams such as for furniture as well as non-foam applications and coatings, adhesives, sealants and elastomers.
The second biggest consumer of propylene oxide is in production of propylene glycols. Propylene glycols are also used to produce certain polyether polyols, and unsaturated polyester resins. Propylene glycols find use in cosmetics, food and personal care products and pharmaceuticals. Propylene oxide is also used in production of glycol ethers, polyalkylene glycols, surfactants and 1,4 butanediol.
Propylene oxide is currently competing with bio and renewable polyols and glycol ethers for market share. It has historically had operating rates greater than 80 percent, with major capacity developments occurring in Asia, mainly China and India as well as the Middle East and South America.
This report provides intelligence and analysis on Propylene Oxide supply sources, demand drivers and trade. The report includes a 5 year history and 10 year forecast for all major producing regions listed below with new capacity additions documented. This report provides intelligence and analysis on Propylene Oxide supply sources, demand drivers and trade. The report also includes end use applications such as polyols and propylene glycols, making use of intelligence within Petrochemical Reporters data base to obtain a detailed analysis of demand based on derivative consumption. An overview of each of the commercial technologies mentioned will be included in the appendix along with a detailed methodology.
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