CEH Report

Table of Contents

Abstract

Adiponitrile consumption is driven by HMDA demand. Because the nylon 66 fibers market is generally considered to be mature and because of the recent economic downturn, the HMDA market has increased only slightly since 2003. The nylon 66 fibers market has also been affected by increased competition from less-expensive polyester fibers. In contrast, HMDA demand for nylon 66 resin is expected to experience greater growth than nylon 66 fibers and become the main driving force for future growth in HMDA consumption.

The mature nylon fiber market has the largest influence on world HMDA demand. This correlation, however, plays a less dominant role in Japan than it does in the United States and Western Europe because nylon resin accounts for a larger share of the Japanese HMDA market.

Most HMDA demand growth in North America and Europe in the nylon 66 resin industry will be primarily in automotive applications such as exterior automotive body components, under-the-hood components and some mechanical components. Consumption of nylon 66 resins in the automotive industry is expected to grow faster than GDP as the industry becomes more comfortable using nylon instead of metal for a variety of automotive components. Other growing nylon 66 resin applications include electronic applications, film and extrusion coatings.

In 2006, adiponitrile and hexamethylenediamine consumption in the United States and Western Europe is estimated to have been 960 thousand metric tons and 1,002 thousand metric tons, respectively.

The following pie charts show consumption of adiponitrile and hexamethylenediamine by major region.

It is assumed that all ADN is consumed in the production of HMDA. Growth in HMDA consumption throughout the world will continue to be closely tied to demand for nylon 66 fibers and resins. In the United States, Western Europe and Japan, nylon 66 fibers and resins accounted for 72% of the combined regional consumption in 2006. This trend is expected to continue into the near future.