Market Study: Propylene - USA

Introduction

With its market study "Propylene - USA", Ceresana is setting new standards. For the very first time this market report provides complete transparency regarding current and future development, market trends, market size and market growth of the entire propylene value chain. The entire US propylene market is analyzed. Starting with an analysis of the feedstocks used, mainly gasoil, naphtha and propane, the entire propylene value chain is examined. Attention is also given to various downstream products at different points of the value chain until final end applications.

Propylene - Important Petrochemical

The importance of propylene as major feedstock in the petrochemical industry can be seen in the immense demand volume. In 2013, the USA single-handedly consumed more than 14 million tonnes of propylene. Thus, propylene is the second most important petrochemical feedstock after ethylene. Downstream industries manufacture a range of products based on propylene. Direct applications include, besides the plastic polypropylene, chemicals such as propylene oxide (PO), acrylonitrile, cumene, butyraldehyde, acrylic acid and isopropanol. The markets for these derivatives are analyzed in detail in the study.

Fracking Influencing Propylene Prices

As a result of the shale gas boom, ethane has become the dominant feedstock in steam crackers. In contrast to other feedstocks such as naphtha or gasoil, the cracking of ethane yields a rather high amount of ethylene but only small amounts of propylene. This development has a notable influence on prices for propylene in the USA. The change from naphtha based crackers to ethane based production reduced the supply of propylene and increased volatility of prices.

More Propylene Made By Dehydrogenation of Propane

In order to counteract the supply deficit, an increasing amount of propylene is to be manufactured from propane in the USA. Dehydrogenation of propane is a way to produce a high amount of propylene directly. Ceresana expects the share of propane in propylene production to rise to more than a third in 2021. Manufacturers are profiting from increasing propane supply in the USA.

Polypropylene Prime Application

Propylene is mainly processed into polypropylene (PP). According to analyses of Ceresana, US demand for this plastic will increase by about 2% until 2021. The standard plastic polypropylene (PP) is one of the most versatile packaging materials. Other applications include fibers, textiles, vehicle parts, electrical devices and household goods.

Polyurethane Scoring With Versatility

The segment propylene oxide is highly dependent on the US market for polyurethane (PUR)PUR demand in the USA recovered comparatively quickly after the economic crisis hit, pre-crisis levels were already exceeded. The development on the PUR market is supported by innovations in particular, which continue to open up additional application areas. The manifold application possibilities include building insulation, cooling and refrigerating units, furniture and bedding, shoes, vehicles, varnishes, coatings, adhesives, binders, and rubber. But also the segments sports and leisure as well as electronics and electrics are reporting a rising demand for polyurethanes.

Limited Growth for Oxo Alcohols

Butyraldehyde, manufactured from propylene using oxo synthesis, is processed directly in to the oxo alcohols butanol and 2-ethylhexanol in the USA. Butanol is used in the production of varnishes, fragrances and the syntheses of ethers and esters, while 2-ethylhexanol is, amongst others, utilized in various plasticizers. We expect downstream industries to provide only limited impulses for oxo alcohols in the near future.

Market Study Propylene Value Chain USA


The Study in Brief:

Chapter 1 depicts supply and prices of feedstocks and their effects on the propylene industry - starting with crude oil and natural gas up to gasoil, naphtha, propane, ethane and butane. Quarterly depiction of the years 2005 to 2013 and forecasts for the years 2013 to 2021 is provided.

In addition to an analyses of propylene production split by feedstock and production process, effects of the shale gas boom on prices for propylene and ethylene will be explained in detail.

Chapter 2 offers an overview over the market for propylene in the USA: market data regarding development of revenues, demand and production, current and future capacities as well as international trade are examined in detail.

Chapter 3 analyzes the market for derivatives of propylene. Data on demand, revenues, prices, costs, production, trade and a list of manufacturers including current capacities is provided for the most important applications.

Chapter 3.1 will analyze the market for polypropylene (PP). Propylene oxide (PO) and the downstream markets propylene glycol, polyether polyol and polyurethane (PUR) will be covered under heading 3.2. Section 3.3 is dealing with the acrylonitrile value chain, from acrylonitrile to acrylonitrile-butadiene-styrene (ABS)/styrene-acrylonitrile (SAN). Demand for propylene in the segment cumene is examined in regard to downstream products such as phenol and acetone as well as the plastics polycarbonate, epoxy resins, phenolic resins and methyl methacrylate (MMA).

Further sections separately depict and analyze markets for the propylene derivatives acrylic acid and isopropanol as well as for the alcohols butanol and 2-ethylhexanol.

Chapter 4 offers a useful directory of producers within the US propylene value chain. The profiles are clearly arranged according to contact details, sales, profit, product range, production sites, and summary profile.

Each profile also includes specific information about the value creation chain as well as current and future production capacities for propylene and derivatives. These are split by site and product.

Extensive profiles of 48 are given, including LyondellBasell, ExxonMobil, Shell, Dow, Ineos, BASF, Total, Braskem, Enterprise Products and DSM. 

Table of Contents

1 Feedstocks, Costs, and Prices
1.1 Feedstock Consumption
1.2 Price Analysis

2 Market Data - Propylene
2.1 Demand
2.2 Revenues
2.3 Production
2.4 Capacities and Trade

3 Market Data - Derivatives
3.1 Polypropylene
Demand
Revenues, Prices, and Costs
Production
Capacities and Trade
3.2 Propylene Oxide
Demand
Revenues, Prices, and Costs
Production
Capacities and Trade
3.2.1 Propylene Glycol
Demand
Production
Capacities and Trade
3.2.2 Polyether Polyol
Demand
Production and Trade
3.2.2.1 Polyurethane
Demand
Production and Trade
3.3 Acrylonitrile
Demand
Revenues, Prices, and Costs
Production
Capacities and Trade
3.3.1 ABS/SAN
Demand
Production
Capacities and Trade
3.4 Butyraldehyde
Demand
Production
3.4.1 Butanol
Demand
Production
Capacities and Trade
3.4.2 2-Ethylhexanol
Demand
Production
Capacities and Trade
3.5 Cumene
Demand
Revenues, Prices, and Costs
Production
Capacities and Trade
3.5.1 Phenol
Demand
Production
Capacities and Trade
3.5.1.1 Bisphenol A
Demand
Production
Capacities and Trade
3.5.1.1.1 Polycarbonate
Demand
Production
Capacities and Trade
3.5.1.1.2 Epoxy Resin
Demand
Production
Capacities and Trade
3.5.1.2 Phenolic Resin
Demand
Production and Trade
3.5.1.3 Caprolactam
Demand
Production
Capacities and Trade
3.5.2 Acetone
Demand
Production
Capacities and Trade
3.5.2.1 Methyl Methacrylate
Demand
Production
Capacities and Trade
3.6 Acrylic Acid
Demand
Production
Capacities and Trade
3.7 Isopropanol
Demand
Production
Capacities and Trade
3.8 Other Applications for Propylene

4 Company Profiles
4.1 Western Europe
4.1.1 France (2 Producers)
4.1.2 Germany (4)
4.1.3 Switzerland (1)
4.1.4 The Netherlands (1)
4.2 North America
4.2.1 USA (34)
4.3 South America
4.3.1 Brazil (1)
4.4 Asia-Pacific
4.4.1 Japan (1)
4.4.2 Taiwan (1)
4.5 Middle East
4.5.1 Saudi Arabia (2)
4.6 Africa
4.6.1 South Africa (1)

List of Graphs

Graph 1: Production of propylene from 2005 to 2021 - split by feedstocks
Graph 2: Production of propylene from 2005 to 2013 (quarters) - split by feedstocks
Graph 3: Production of propylene from 2005 to 2021 - split by production processes
Graph 4: Production of natural gas from 2005 to 2021 - split by type of deposits
Graph 5: Average price for natural gas between 2005 and 2021 in US$/tonne and US$/MMBtu
Graph 6: Average prices for natural gas, ethane, propane, and butane between 2005 and 2013 (quarters) in US$/tonne
Graph 7: Average prices for natural gas, ethane, propane, and butane between 2005 and 2021 (quarters) in US$/tonne
Graph 8: Average price for crude oil and naphtha between 2005 and 2021 in US$/ tonne and US$/MMBtu
Graph 9: Average price for crude oil and naphtha between 2005 and 2013 (quarters) in US$/tonne und US$/barrel
Graph 10: Average price for propylene and ethylene between 2005 and 2013 (quarters) in US$/tonne
Graph 11: Average price for propylene and ethylene between 2005 and 2021 in US$/tonne
Graph 12: Demand for propylene in the USA from 2005 to 2021
Graph 13: Demand for propylene in the USA from 2005 to 2021 - split by applications
Graph 14: Revenues generated with propylene from 2005 to 2021 in billion US$ and billion €
Graph 15: Production of propylene from 2005 to 2021 in million tonnes
Graph 16: Import and export of propylene in the USA from 2005 to 2021
Graph 17: Demand for polypropylene in the USA from 2005 to 2021
Graph 18: Revenues generated with polypropylene in the USA from 2005 to 2021 in US$ billion and € billion
Graph 19: Prices and costs of polypropylene from 2005 to 2021 in US$/tonne and cts/lb
Graph 20: Production of polypropylene in the USA from 2005 to 2021
Graph 21: Import and export of polypropylene in the USA from 2005 to 2021
Graph 22: Demand for propylene oxide in the USA from 2005 to 2021
Graph 23: Demand for propylene oxide in the USA from 2005 to 2021 - split by applications
Graph 24: Revenues generated with propylene oxide in the USA from 2005 to 2021 in billion US$ and billion €
Graph 25: Prices and costs of propylene oxide from 2005 to 2021 in US$/tonne and cts/lb
Graph 26: Production of propylene oxide in the USA from 2005 to 2021
Graph 27: Import and export of propylene oxide in the USA from 2005 to 2021
Graph 28: Demand for propylene glycol in the USA from 2005 to 2021
Graph 29: Production of propylene glycol in the USA from 2005 to 2021
Graph 30: Import and export of propylene glycol in the USA from 2005 to 2021
Graph 31: Demand for polyether polyols in the USA from 2005 to 2021
Graph 32: Production of polyether polyols in the USA from 2005 to 2021
Graph 33: Import and export of polyether polyols in the USA from 2005 to 2021
Graph 34: Demand for polyurethane in the USA from 2005 to 2021
Graph 35: Production of polyurethane in the USA from 2005 to 2021
Graph 36: Import and export of polyurethane in the USA from 2005 to 2021
Graph 37: Demand for acrylonitrile in the USA from 2005 to 2021
Graph 38: Demand for acrylonitrile in the USA from 2005 to 2021 - split by applications
Graph 39: Revenues generated with acrylonitrile in the USA from 2005 to 2021 in US$ billion and € billion
Graph 40: Prices and costs of acrylonitrile from 2005 to 2021 in US$/tonne and cts/lb
Graph 41: Production of acrylonitrile in the USA from 2005 to 2021
Graph 42: Import and export of acrylonitrile in the USA from 2005 to 2021
Graph 43: Demand for ABS/SAN in the USA from 2005 to 2021
Graph 44: Production of ABS/SAN in the USA from 2005 to 2021
Graph 45: Import and export of ABS/SAN in the USA from 2005 to 2021
Graph 46: Demand for butyraldehyde in the USA from 2005 to 2021
Graph 47: Demand for butyraldehyde in the USA from 2005 to 2021 - split by applications
Graph 48: Production of butyraldehyde in the USA from 2005 to 2021
Graph 49: Demand for butanol in the USA from 2005 to 2021
Graph 50: Production of butanol in the USA from 2005 to 2021
Graph 51: Import and export of butanol in the USA from 2005 to 2021
Graph 52: Demand for 2-ethylhexanol in the USA from 2005 to 2021
Graph 53: Production of 2-ethylhexanol in the USA from 2005 to 2021
Graph 54: Import and export of 2-ethylhexanol in the USA from 2005 to 2021
Graph 55: Demand for cumene in the USA from 2005 to 2021 - split by applications
Graph 56: Revenues generated with cumene in the USA from 2005 to 2021 in US$ billion and € billion
Graph 57: Prices and costs of cumene from 2005 to 2021 in US$/tonne and cts/lb
Graph 58: Production of cumene in the USA from 2005 to 2021
Graph 59: Import and export of cumene in the USA from 2005 to 2021
Graph 60: Demand for phenol in the USA from 2005 to 2021
Graph 61: Demand for phenol in the USA from 2005 to 2021 - split by applications
Graph 62: Production of phenol in the USA from 2005 to 2021
Graph 63: Import and export of phenol in the USA from 2005 to 2021
Graph 64: Demand for bisphenol A in the USA from 2005 to 2021
Graph 65: Demand for bisphenol A in the USA from 2005 to 2021 - split by applications
Graph 66: Production of bisphenol A in the USA from 2005 to 2021
Graph 67: Import and export of bisphenol A in the USA from 2005 to 2021
Graph 68: Demand for polycarbonate in the USA from 2005 to 2021
Graph 69: Production of polycarbonate in the USA from 2005 to 2021
Graph 70: Import and export of polycarbonate in the USA from 2005 to 2021
Graph 71: Demand for epoxy resin in the USA from 2005 to 2021
Graph 72: Production of epoxy resin in the USA from 2005 to 2021
Graph 73: Import and export of epoxy resin in the USA from 2005 to 2021
Graph 74: Demand for phenolic resin in the USA from 2005 to 2021
Graph 75: Production of phenolic resin in the USA from 2005 to 2021
Graph 76: Import and export of phenolic resin in the USA from 2005 to 2021
Graph 77: Demand for caprolactam in the USA from 2005 to 2021
Graph 78: Production of caprolactam in the USA from 2005 to 2021
Graph 79: Import and export of caprolactam in the USA from 2005 to 2021
Graph 80: Demand for acetone in the USA from 2005 to 2021
Graph 81: Demand for acetone in the USA from 2005 to 2021 - split by applications
Graph 82: Production of acetone in the USA from 2005 to 2021
Graph 83: Import and export of acetone in the USA from 2005 to 2021
Graph 84: Demand for MMA in the USA from 2005 to 2021
Graph 85: Production of MMA in the USA from 2005 to 2021
Graph 86: Import and export of MMA in the USA from 2005 to 2021
Graph 87: Demand for acrylic acid in the USA from 2005 to 2021
Graph 88: Production of acrylic acid in the USA from 2005 to 2021
Graph 89: Import and export of acrylic acid in the USA from 2005 to 2021
Graph 90: Demand for isopropanol in the USA from 2005 to 2021
Graph 91: Production of isopropanol in the USA from 2005 to 2021
Graph 92: Import and export of isopropanol in the USA from 2005 to 2021
Graph 93: Demand for propylene in other applications in the USA from 2005 to 2021

List of Tables

Table 1: Demand for propylene in the USA from 2005 to 2021 - split by applications
Table 2: Capacities of propylene manufacturers in the USA in 2013
Table 3: Changes in propylene capacities in the USA - split by producer
Table 4: Polypropylene capacities in the USA in 2013 - split by producer
Table 5: Changes in polypropylene capacities in the USA - split by producer
Table 6: Propylene oxide capacities in the USA in 2013 - split by producer
Table 7: Propylene glycol capacities in the USA in 2013 - split by producer
Table 8: Acrylonitrile capacities in the USA in 2013 - split by producer
Table 9: ABS capacities in the USA in 2013 - split by producer
Table 10: Butanol capacities in the USA in 2013 - split by producer
Table 11: Cumene capacities in the USA in 2013 - split by producer
Table 12: Phenol capacities in the USA in 2013 - split by producer
Table 13: Bisphenol A capacities in the USA in 2013 - split by producer
Table 14: Polycarbonate capacities in the USA in 2013 - split by producer
Table 15: Epoxy resin capacities in the USA in 2013 - split by producer
Table 16: Caprolactam capacities in the USA in 2013 - split by producer
Table 17: Acetone capacities in the USA in 2013 - split by producer
Table 18: MMA capacities in the USA in 2013 - split by producer
Table 19: Changes in MMA capacities in the USA - split by producer
Table 20: Acrylic acid capacities in the USA in 2013 - split by producer
Table 21: Isopropanol capacities in the USA in 2013 - split by producer