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Cresylics
Dakota
Gasification produces crude cresylic acids at its Beulah, N.D., coal
gasification plant. GE
Plastics, using a process based on methylation of phenol, maximizes 2,6-xylenol
for captive use in the production of its polyphenylene ether engineering resins
(PPE). The PPE requirement for 2,6-xylenol is estimated to be about 120 million
pounds annually. GE also produces o-cresol, 2,4-xylenol and cresylic acids at
its Selkirk plant. Merisol,
a joint venture established in 1997 between Merichem Company and Sasol Ltd. of
South Africa, derives a full line of cresylics from petroleum and coal tar raw
materials. In 2001 Merisol added 7
million pounds of o-cresol capacity to its Houston plant, raising total annual
capacity of o-cresol to 40 million pounds. Merisol
Antioxidants LLC produces 6-t-butyl-m-cresol at its plant in Oil City, Penn. by
butylation of p-cresol. In
2001 PMC Specialties Group exited the p-cresol business and closed its Chicago
facility, which had a p-cresol capacity of 37 million pounds. Profile
last published 8/2/99; this revision, 3/22/04. 2002:
340 million pounds; 2003: 365 million pounds; 2007: 385 million pounds,
projected. Demand equals production plus imports (2002: 16 million pounds; 2003:
18 million pounds) less exports (2002: 89 million pounds; 2003: 90 million
pounds). GROWTH Historical
(1998 - 2003): 4.7 percent per year; future: 1.5 percent per year through 2007. PRICE Historical
(1998 - 2003): High, ¢80 per pound, cresylic acid, tanks, frt. equald; low, ¢55same
basis. Current: ¢65 to ¢80, same basis. USES Antioxidants,
27 percent; epoxy-cresol novolac, cresol- formaldehyde and cresylic
acid-formaldehyde resins, 21 percent; magnet wire enamel solvent, 16 percent;
vitamin E intermediate, 13 percent; fine chemicals intermediate, 9 percent;
tricresyl phosphate and phosphate esters, 4 percent; miscellaneous, including
polymerization inhibitors, cleaners and disinfectants, and ore flotation, 10
percent. STRENGTH Rapid
growth is expected to continue in 2,6-xylenol, following a projected 4.5 percent
average annual increase in GE's production of polyphenylene ether resins. m-Cresol's
outlet to 2,3,6-trimethylphenol, an intermediate in the production of synthetic
vitamin E, is growing in conjunction with end-uses for the vitamin, which range
from a human nutritional supplement and an animal feed additive to an
antioxidant for polymers. WEAKNESS Butylated
hydroxytoluene, a workhorse antioxidant based on p-cresol, is under pressure in
terms of both pricing and consumption, though some of the technology that led to
its elimination from flexible polyurethane foam systems is being reconsidered.
Cresols are on the HAPs (hazardous air pollutants) list and are subject to
strict mandates from the Environmental Protection Agency. OUTLOOK With
the exception of 2,6-xylenol for polyphenylene ether engineering resins, no
growth is projected for the major cresylics. 2,6-Xylenol accounts for one third
of cresylics’ consumption and should grow at 4.5 percent annually.
Intermediate uses for m-cresol in the manufacture of pyrethroid insecticides and
hindered phenol antioxidants are steady, as are epoxy-cresol novolac resins, the
major outlet for o-cresol. Cresylic acid is expected to maintain its share of
the 25-million-pound-per-year magnet wire solvent market, where it competes with
phenol, but the wire enamel industry continues to look for ways to reduce
solvents in its coatings formulations. The use of cresylic acid-formaldehyde
resins is not expected to grow, and in the mining industry, the trend is toward
the use of ore flotation agents other than cresylic acid. Overall, growth
prospects for the cresylics group is projected to be 1.5 percent annually,
through 2007. HISTORICAL DATA
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