n-Butanol

*Millions of pounds per year. Most commercial production involves the hydrogenation of n-butyraldehyde made through the Oxo process, in which syngas is reacted with propylene.

In 1999, Union Carbide doubled the butanol capacity at Taft, La., to 600 million pounds per year. Dow Chemical Company acquired Union Carbide Corporation in early 2001, and with it, the plants in Taft and Texas City, Tex.

SASOL acquired CONDEA Vista from RWE-DEA AG in 2001, and with it, CONDEA’s facility at Lake Charles, La., which produces 13 million pounds per year of n-butanol; all for the merchant market.

At the end of last year, Shell Chemical withdrew from the merchant oxo alcohols market in North, South and Central America. Shell had produced n-butanol at Deer Park, Tex., in a unit rated at 145 million pounds per year. 

DEMAND
2000: 1,760 million pounds; 2001: 1,800 million pounds; 2005: 2,025 million pounds, projected. Demand equals production plus imports (2000: 0.5 million pounds; 2001: 0.4 million pounds) less exports (2000: 360 million pounds; 2001: 440 million pounds).

GROWTH
Historical (1996 - 2001): 4.5 percent per year; future: 3.0 percent per year through 2005.

PRICE
Historical (1996 - 2001): High, $0.55 per pound, list, tanks, dlvd.; low, $0.50, same basis. Current: $0.55, same basis. Market pricing is $0.35 to $0.45, same basis.

USES
Butyl acrylate and methacrylate esters, 46 percent; glycol ethers, 25 percent; butyl acetate, 15 percent; direct solvent use, 7 percent; plasticizers, 2 percent; miscellaneous, including amino resins and butylamines, 5 percent.

STRENGTH
n-Butyl acrylate and n-butyl methacrylate comprise nearly half of n-butanol’s demand. The drivers for both of these are emulsified and solution polymers used in latex surface coatings and enamals and lacquers. These are water-based systems, which have benefited in recent years from the trend to move away from solvent-born coating systems. The consumption of these coatings is heavily dependent on construction and remodeling/maintenance activities. Future growth is forecast for 4 percent per year.

WEAKNESS
The use of n-butanol as a direct solvent has been moderated by trends toward higher solids content and waterborne coatings and powder coatings. This application area is showing decline. In amino resins, n-butanol acts as an alkylating agent to reduce inherent brittleness. The alkylated resins are used in coatings for automobiles, appliances, coil, machinery and metal furniture. Here again, these coating formulations are loosing market share to water-based and powder coatings.

OUTLOOK
n-Butanol demand is projected at 3 percent annually for the forecast period, with demand being led by butanol derived esters used in water-based coatings and adhesives. Operating capacity is better than 90 percent at this time and without any new capacity announcements, the supply side is looking tight in two years time. Offsetting this somewhat, will be reduced exports as new overseas n-butanol capacity is coming on-stream is the Middle East and Southeast Asia. Butanol pricing is influenced by the cost of propylene, which is comparatively high at the present, and will likely go higher with the anticipated increasing of crude oil prices.