Chlorobenzenes     

PRODUCER CAPACITY*

CAPACITY*

 

monochloro-

o-dichloro-

p-dichloro-

PPG Industries, Natrium, W.Va.

       45

       20

       40

Solutia, Sauget, Ill.

     160

       12

       39

Total

     205

       32

       79

*Millions of pounds per year. US commercial production is by direct chlorination of benzene, primarily to manufacture monochlorobenzene, with ortho- and para- dichlorobenzenes as coproducts. Metadichlorobenzene and trichlorobenzene are also produced, but are not commercially important chlorobenzenes.

In 1998 Charter Oak Capital Partners acquired Standard Chlorine Chemical with its chlorobenzene facility in New Castle, Del. The business was renamed Metachem Products, but after loosing a key customer (Memphis, Tenn.-based Cedar Chemical Corp. who ceased operations earlier that same year), the facility was closed in May 2002. The closure eliminated 150 million pounds of monochlorobenzene, 50 million pounds of orthodichlorobenzene and 75 million pounds of paradichlorobenzene annual capacities.

Profile last published: monochlorobenzene, 5/17/99; orthodichlorobenzene, 9/9/96; paradichlorobenzene, 6/7/99; this revision, 4/5/04.

DEMAND

Monochlorobenzene - 2002: 116 million pounds; 2003: 119 million pounds; 2007: 130 million pounds, projected. Demand equals production plus imports (2002: neg.; 2003: neg.) less exports (2002: 3.5 million pounds; 2003: 1.5 million pounds).

Orthodichlorobenzene - 2002: 4 million pounds; 2003: 3 million pounds; 2007: 3 million pounds, projected. Demand equals production plus imports (2002: 0.7 million pounds; 2003: 0.9 million pounds) less exports (2002: 19 million pounds; 2003: 18 million pounds).

Paradichlorobenzene - 2002: 66 million pounds; 2003: 68 million pounds; 2007: 82 million pounds, projected. Demand equals production plus imports (2002: 10 million pounds; 2003: 20 million pounds) less exports (2002: 12 million pounds; 2003: 11 million pounds).

GROWTH

Monochlorobenzene - Historical (1998 - 2003): -3.3 (negative) percent per year; future: 2.5 percent per year through 2007.

Orthodichlorobenzene - Historical (1998 - 2003): -30 (negative) percent per year; future: 0 percent per year through 2007.

Paradichlorobenzene - Historical (1998 - 2003): -1.7 (negative) percent per year; future: 5 percent per year through 2007.

PRICE

Monochlorobenzene - Historical (1998 - 2003): High, 63 ˘ per pound, tanks, f.o.b.; low, 55 ˘ per pound, same basis. Current: 63 ˘ per pound, same basis.

Orthodichlorobenzene - Historical (1998 - 2003): High, 68 ˘ per pound, tanks, f.o.b.; low, 67 ˘ per pound, same basis. Current: 68 ˘ per pound, same basis.

Paradichlorobenzene - Historical (1998 - 2003): High, 69 ˘ per pound, tanks, f.o.b.; low, 61 ˘ per pound, same basis. Current: 69 ˘ per pound, same basis.

USES

Monochlorobenzene: Nitrochlorobenzenes, 48 percent; polysulfone polymers, 26 percent; solvents in various formulations and for processing isocyanates, 6 percent; miscellaneous, 20 percent.

Orthodichlorobenzene: Miscellaneous solvent uses (paint removers, engine cleaners and deinking solvents), 67 percent; toluene diisocyanate process solvent, 33 percent.

Paradichlorobenzene: Polyphenylene sulfide (PPS) resin, 52 percent: room deodorants, 22 percent; moth control, 15 percent: miscellaneous, including dye and pesticide intermediate uses, 11 percent.

STRENGTH

Monochlorobenzene is a starting material for the manufacture of sulfone polymers. Three members of the sulfone polymer family are commercially available; they are commonly termed polysulfone (PSO), polyethersulfone (PES) and polyphenylsulfone (PPSO). Approximately 28 million pounds of monochlorobenzene were consumed for sulfone polymers in 2003. Sulfone polymers are resistant to degradation by moisture and exhibit excellent dimensional stability and dielectric properties. Major applications are in electrical/electronic components, transportation, medical equipment, food processing and handling equipment and industrial parts. U.S. consumption is projected to grow at an average annual rate of 6 percent from 2003 through 2007.

The largest market segment and growth opportunity for paradichlorobenzene is the production of polyphenylene sulfide resin (PPS), an engineering plastic. Domestic consumption of paradichlorobenzene for PPS was estimated at 34 million pounds in 2003. PPS is consumed primarily in electrical and electronics applications for its useful insulating and dielectric properties. It also exhibits excellent chemical and heat resistance. PPS also has applications for mechanical/industrial and automotive parts by replacing fabricated metal parts. Growth is projected at 8 percent per year through 2007.

WEAKNESS

The largest use for monochlorobenzene, accounting for about half of its consumption, is for the production of nitrochlorobenzenes. Nitrochlorobenzenes are versatile intermediates for a wide range of chemical products. Unfortunately these derivatives are all mature. The segment has declined significantly since the early 1990s, but now seems stable, but with essentially a zero growth prospect.

Orthodichlorobenzene demand has been declining in recent years. The major use of orthodichlorobenzene was the synthesis of 3,4-dichloroaniline, from which a variety of herbicides were derived. Essentially no orthodichlorobenzene was consumed in the production of 3,4-dichloroaniline in 2003, down from 16 million pounds in 1998. Cedar Chemical was the only domestic producer after DuPont ceased production of 3,4-dichloroaniline in 1994. Since 2002 when Cedar Chemical ceased operations, the US market has been served by imported 3,4-dichloroaniline derived herbicides. Much of this imported material is produced with US exported orthodichlorobenzene. Exports of orthodichlorobenzene last year were 18 million pounds.

OUTLOOK

With Metachem Products’ exit of the chlorobenzene business in 2002, eliminating 75 million pounds or nearly 50 percent of the industry’s capacity for paradichlorobenzene, this substance will probably be in tight supply before the end of 2007. Supply of monochloro- and orthodichlorobenzene will be more than adequate to meet future demand growth. Demand growth for monochloro- and paradichlorobenzene will be driven principally by sulfone and sulfide polymers, respectively. Aggregate annual demand growth for the forecast period is estimated to be 2.5 percent, monochlorobenzene; 0 percent, orthodichlorobenzene; and 5 percent, paradichlorobenzene.

HISTORICAL DATA

Year

Demand

Millions of Pounds

List Price

˘ per pound, tanks, f.o.b.

 

monochloro-

o-dichloro-

p-dichloro-

monochloro-

o-dichloro-

p-dichloro-

1998

141

19

74

55

67

61

1999

145

13

76

55

67

61

2000

132

10

74

55

67

61

2001

117

  6

65

55

67

61

2002

116

  4

66

55

67

61

2003

119

  3

68

63

68

69

 

Back to Chemical Profiles List