CEH Report

Table of Contents

Abstract

Use of IPA in direct solvent applications accounted for 62% of total IPA demand in 2008. IPA is also used in surface coatings, inks, pesticide formulations, electronic applications, reagents and as a processing solvent in the production of resins.

Global IPA-based acetone production is expected to decrease with the increase of phenol capacity (acetone is a coproduct of phenol by the cumene peroxidation process). It is estimated that IPA-based acetone will no longer be produced in Western Europe after 2010. Worldwide IPA consumption is forecast to grow at an average annual rate of 1.0–1.5% during 2008–2013.

The following pie chart shows world consumption of isopropyl alcohol:

In 2008, global supply/demand was relatively balanced as demand decreased because of the weakened global economy. As of late 2008/early 2009, the acetone market has been tight as a result of its coproduct phenol's decreased demand (and hence production). This could lead to increased IPA consumption for competing applications, particularly chemical intermediates. Supply/demand and feedstock (propylene) costs have had and will continue to have the greatest effect on IPA pricing.