Important Petrochemical: Ceresana Analyzes Entire Chinese Propylene Value Chain

12-Aug-2014 - Germany

With its market study "propylene Value Chain China", Ceresana is setting new standards. For the very first time this novelty product provides complete transparency regarding current and future development of the entire propylene value chain. Attention is also given to various downstream products at various points of the value chain until final end applications.

Propylene – Important Petrochemical

In 2013, China single-handedly processed more than 18 million tonnes of propylene. Thus, propylene, besides ethylene, is the most important petrochemical feedstock in the Chinese chemical industry. Downstream industries manufacture a range of products based on propylene. Direct applications include, besides the plastic polypropylene, chemicals such as propylene oxide, acrylonitrile, cumene, butyraldehyde and acrylic acid. This study shows in great detail where the propylene manufactured will be processed in the future.

Non-Crude Oil Based Production to be Increased

Given limited crude oil resources, Chinese manufacturers of propylene are dependent on imports. A large share of propylene output occurs as either by-product of ethylene in steam crackers or catalytic cracking in refineries. Both processes predominantly use crude oil. Output of non-crude oil based propylene products is to be increased considerably in the future. In order to achieve this goal, utilization of CTO technology (coal to olefins) and production of propylene by dehydration of propane are to be expanded. Several production sites based on these technologies are scheduled to become operational in upcoming years.

Polypropylene Prime Application

Polypropylene (PP) will remain the by far largest sales market for propylene. According to analyses of Ceresana, Chinese demand for this plastic will increase by more than 5% until 2021. Polypropylene is one of the most versatile packaging materials. Other applications include fibers, textiles, vehicle parts, electrical devices and household goods.

Highest Growth Rate for Cumene

Ceresana expects Chinese propylene demand in the production of cumene to rise at double-digit growth rates in the next eight years. In China, cumene is almost exclusively used to produce phenol and acetone. Important applications for phenol are phenolic resins and bisphenol A. Phenolic resins are used for, e.g., rigid foam boards in building insulation or for printed circuit boards in the electrical industry. Bisphenol A is an important monomer for the production of high-quality polymers such as polycarbonate and epoxy resin. More than 90% of Chinese demand for bisphenol A originates in the manufacturing of these products.

ABS and Acrylic Fibers Prime Market for Acrylonitrile

The development of the Chinese acrylonitrile market is highly dependent on the applications acrylonitrile-butadiene-styrene (ABS) and acrylic fibers. Given its manifold applications in the growth sectors automotive, electrical and electronic as well as construction, demand for ABS is increasing dynamically. The market for acrylic fibers on the other hand does not grow notably, partly due to the lagging export business in the sector chemical fibers. In the future, demand for acrylic fibers will rise corresponding to the overall recovery of the global economy.

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