World Analysis – Propylene Oxide

Duration: Long-term outlook to 2050

Propylene oxide (POX) is a highly reactive chemical intermediate with no direct consumer application. The dominant end use for propylene oxide is to produce polyether polyols. Polyether polyols are further used in the production of flexible and rigid polyurethane systems, which find applications in a wide range of industries and products such as transportation, construction, appliances, furniture, bedding, packaging, adhesives and sealants, and surface coatings. The second-largest end use of propylene oxide is propylene glycol, used in food and pharmaceutical sectors as well as for antifreeze and deicing aircraft. Butanediol can also be produced from propylene oxide, but this demand segment is small.

Propylene is the primary feedstock to produce POX, and there are three main production routes: the chlorohydrin route, peroxidation, and hydroperoxidation. The chlorohydrin process to produce POX—the oldest and, at one time, the most prevalent technology—has slowly been losing capacity share as other technologies have become more attractive. As the process utilizes chlorine, only integrated chlor-alkali producers use this route. The PO direct processes (either hydrogen peroxide–propylene oxide [HPPO] or cumene) represent the latest generation of production technology and are designed to produce POX without concerns of coproduct economics or environmental issues surrounding chlorohydrin. The process is more capital-intensive than the competing technologies, and its operating costs are higher than propylene oxide–styrene monomer (PO–SM) and propylene oxide–tert-butyl alcohol/methyl tert-butyl ether (PO–TBA/MTBE). However, it remains a preferred technology because it does not possess the risk level of other technologies. POX processes relying on coproduct values have been subject to the volatility of the coproduct markets over the years, particularly as PO–SM and PO–TBA/MTBE coproducts are produced at a rate of 2.1–2.3 times the output of POX.

Duration: Long-term outlook to 2050

The World Analysis – Propylene Oxide provides a comprehensive analysis and key insights into critical market developments as they shape the future outlook for the global propylene oxide market.

The following reports, data files, analytical tools and visualization modules are available online and can be downloaded from our website:

• Direct Access to the Subject Matter Experts
• In-depth exploration of present market strategic insights, recognition of critical challenges, and presentation of our experts’ forecasts and analysis
• Explanatory Notes detailing data sources, methodologies, unit and conversion factors, and World Analysis deliverables.
• Energy and Economy assumptions
• Price, cost, and margin base assumptions forecast and sensitivities analysis, including price assessment methodology and price definitions across all regions.
• Excel data files with standard supply/demand graphics and price forecasts extended to 2050, trade grids with country and regional trade flows Data appendix (Excel) with supply/demand, capacity and trade tables.
• An online dashboard visualization of capacity, supply/demand, trade grids, and price, cost and margin forecasts
• Supply/demand and capacity database access via data browser
• Data Appendix (Excel) with supply/demand and capacity tables
• Capacity by company/shareholder, capacity integration, top producer/consumer and surplus/deficit capacity ranking, and ownership/subsidiary information

In addition to the main product, propylene oxide, capacity data is provided for the following products:

• 1,4-Butanediol
• Polyether polyols
• Propylene glycol

This World Analysis contains detailed information on capacities, production, demand, and trade for all significant producing and consuming countries and regions. Although data gathering is essential for understanding history and potential future trends, we believe that the interpretation and analysis of the data is the most valuable information to our clients.

Duration: Long-term outlook to 2050