CEH Report

Table of Contents

Abstract

World consumption of plasticizers in 2008 was at nearly the same level as in 2005. Global capacity utilization decreased significantly to 62% in 2008 from 71% in 2005 as a result of increased capacity and weak demand caused by the global recession. Between 2005 and 2008, world capacity for plasticizers grew at an average annual rate of 4.7%, greatly outpacing world consumption, which grew at an average annual rate of 0.2% during the same period. Although world demand increased during 2005–2007, it weakened considerably during 2008 in most regions, wiping out most volume gains since 2005. Most capacity growth during 2005–2008 occurred in Asia (mainly China), followed by Western Europe.

Plasticizers are grouped into the following categories: phthalates, aliphatics (mainly adipates), epoxy, trimellitates, polymerics, phosphates and other. Phthalic acid esters, generally known as phthalate plasticizers, are by far the predominant type of plasticizer produced and consumed in the world.

The following pie chart shows world consumption of plasticizers:

Demand for most downstream plasticizer markets is greatly influenced by general economic conditions. As a result, demand for plasticizers largely follows the patterns of the leading world economies. The major end-use markets include construction/remodeling, automotive production and original equipment manufacture. Communication and building wire and cable, film and sheet (calendered and extruded), coated fabrics and dispersions (flooring and other) are the largest markets for plasticizers.

Phthalates accounted for almost 86% of world consumption of plasticizers in 2008, down from about 89% in 2005; they are forecast to account for about 86% of world consumption in 2013. The decrease in market share during 2005–2008 was largely due to the discontinuation of large-scale production and consumption of linear phthalates. During 2008–2013, continued discontinuation of production and consumption of several relatively minor phthalates will largely be negated by increased consumption of DPHP, DINP and DEHP. World consumption of phthalate plasticizers is forecast to grow at an average annual rate of 1.6% during 2008–2013. World consumption of linear phthalates is forecast to continue to decline but at a much slower rate. Replacement of linear phthalates, mostly by other phthalates, is nearly complete. World consumption of other phthalates is forecast to decline during 2008–2013, largely the result of declining demand for some phthalates, such as BBP and DBP, in many regions caused by regulatory issues and discontinued consumption of other relatively minor phthalates.

World consumption of most other plasticizers (aliphatics, trimellitates, epoxy, polymerics and phosphates) is forecast to grow at an average annual rate of 1.5–2.1% during 2008–2013, in line with general economic trends. Benzoates and specialty plasticizers (including citrates, alkane sulfonic esters of phenol and hydrogenated phthalates) are expected to grow rapidly during 2008–2013, albeit from a small base, largely because of replacement of several phthalates.