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Oxo-alcohols
Jane Massingham London

USES days and the extended cold snap seen in europe oxo-alcohols capacity
The oxo-alcohols chain consists of n-butanol much of Europe this year. ‘000 TONNES/YEAR
(NBA), isobutanol (IBA), and 2-ethylhexanol Demand is good, but not as robust as some Company Location Capacity
(2-EH). Around 50% of 2-EH is used to make predicted. There is still confidence that con- 2-EH
plasticizers, mainly dioctyl phthalate (DOP) sumption will strengthen later in Q2. There Oxea Oberhausen, 300
and dioctyl terephthalate (DOTP). could be less spot volume as outages take Germany
NBA, IBA and 2-EH have uses as solvents place for Oxea later in Q2 and then Zak in Grupa Azoty Kedzierzyn, 170
but are primarily used as feedstock for other July, BASF from mid-August and Perstorp in Poland
products. NBA is a solvent with a variety of September. INEOS already completed its six- INEOS/ Lavera, France 125
chemical, industrial and retail end-uses. More week maintenance in Q1. Oxochemie
than half of the production is used as an Perstorp Stenungsund, 120
intermediate chemical in the production of PRICES Sweden
butyl acrylates for paints, coatings and adhe- The majority of oxo-alcohol business is NBA

sives or to formulate acetates and glycol agreed on a formula-related basis which fol- BASF Ludwigshafen, 450
Germany
ethers, as well as being used directly as an in- lows the cost of feedstock propylene. Freely
dustrial solvent. negotiated business peaked in Q2 2017 when INEOS/ Lavera, France 160
Oxochemie
Key drivers for oxo-alcohols are construc- the market was tight amid a long-term force
Oxea Oberhausen, 130
tion (home and commercial), appliances, au- majeure declaration from BASF due to its fire Germany
tomotive and industries that need imperial in Ludwigshafen, Germany, in October 2016. IBA
coating material. Prices adjusted back to what was consid-
BASF Ludwigshafen, 50
ered a more normal level during H2 2017, and Germany
SUPPLY/DEMAND 2-EH reverted back to its usual premium over INEOS/ Lavera, France 30
Oxo-alcohols traditionally hit peak consump- NBA once supplies of NBA became balanced Oxochimie
tion during Q2, and 2018 has a heavy shut- again in the latter months of 2017. Grupa Azoty Kedzierzyn, 20
down schedule, with at least two of the five Prices in 2018 have firmed for 2-EH against Poland
producers in Europe undergoing their five- snug supplies and good demand both domes- Oxea Oberhausen, 10
yearly outage programmes. tically and for export. A largely balanced NBA Germany
This maintenance takes six weeks and the market has held steady while the smaller bi-
A full list of plants and projects capacities,
producers have been or will be preparing product IBA has seen some softening. forecasts, production volumes and
stocks accordingly to cover contractual com- With higher propylene prices, suppliers in- operating rates are available on the
mitments. tend to recover some costs through the bal- ICIS Supply and Demand database
The initial order books are not as strong as ance of Q2 for freely negotiated business.
expected for the start of Q2 for NBA and IBA, programmes extends past the forecasted time-
with a stronger picture seen on 2-EH. This is TECHNOLOGY frames, then there could be consequences of a
mostly attributed to the timing of public holi- The main commercial route is the oxo pro- tighter market and therefore firming prices.
cess, comprising the catalytic hydroformyla- Propylene supply should improve in Q2 as
EUROPE OXO-ALCOHOLS tion of propylene with carbon monoxide and turnarounds come to an end.
syngas, followed by the hydrogenation of the The summer lull may not be felt as much
€/tonne, spot FD NWE
aldehydes formed to give a mixture of NBA this year, with Grupa Azoty Zak going into its
1,400
2-EH Isobutanol (IBA) and IBA. Most global production is based on planned shutdown in July and increased
N-butanol (NBA) the low-pressure process developed by the downstream capacity taking a little more
1,300
UK’s Davy Process Technology. LP Oxo Tech- 2-EH out of the market. The increased capaci-
1,200 nology has been developed and marketed in ty downstream will be for DOTP.
cooperation by US-based Dow and Davy for BASF also has maintenance from mid-Au-
1,100 more than 40 years. More than 70% of all gust to early October, and Perstorp has a
global propylene-based oxo capacity and 90% planned outage in September.
1,000 of all licensed propylene-based oxo capacity While suppliers have been preparing for
utilises LP Oxo Technology. these and say contractual commitments
900
should be covered, it is likely to impact the
800
OUTLOOK amount of spot volume available. ■
Apr Apr Provided plants restart as planned, the market
2017 2018
should remain well supported moving forward Access the archive of the Chemical Profiles
through Q2 and Q3. If one of the maintenance A-Z at icis.com/subscriber/icb

94 | ICIS Chemical Business | 18-24 May 2018 www.icis.com

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