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The oxo process or hydroformylation of olefins with synthesis gas is the principal
route to C3-C15 aldehydes, which are converted to alcohols, acids or other
derivatives. By far the most important oxo chemical is n-butyraldehyde, followed
by C6-C13 aldehydes for plasticizer alcohols, isobutyraldehyde and C12-C18
aldehydes for detergent alcohols. Nearly all oxo aldehydes are converted to
derivatives in plants adjacent to the hydroformylation unit; very small volumes
of oxo aldehydes are transported.
World production and consumption of oxo chemicals was nearly 9.6 million metric
tons in 2005. Global capacity utilization increased to 84% in 2005 from 79%
in 2001 as a result of stronger demand, increased production and rationalized
capacity. Between 2001 and 2005, world capacity for oxo chemicals grew at an
average annual rate of 1.6%, a lower rate than world consumption, which grew
at an average annual rate of 3.4% during the same period.
The following pie chart shows world consumption of oxo chemicals:

Propylene-derived n-butyraldehyde and isobutyraldehyde account for over 70%
of world consumption of oxo chemicals. High consumption volumes for both alcohol
derivatives of n-butyraldehyde, n-butanol and 2-ethylhexanol (2-EH), will continue
in the near future; however, it is expected that n-butanol will surpass 2-EH
consumption in the next ten years, partly as a result of the substitution of
di[2-ethylhexyl] phthalate (DEHP), the main plasticizer derived from 2-EH,
with other plasticizers derived from other plasticizer alcohols. C6-C13 plasticizer
oxo alcohols are expected to lose market share, primarily because of decreased
production and consumption of C7, C9 and C11linear alcohols. Consumption of
valeraldehyde will grow at the highest rate of all oxo chemicals as a result
of the introduction of 2-propylheptanol (2-PH) capacity in the United States.
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