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Linear Alkylbenzene
|
PRODUCER |
CAPACITY* |
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CONDEA Vista, Baltimore, MD |
300 |
|
CONDEA Vista, Lake Charles,
LA |
210 |
|
Huntsman, Chocolate Bayou,
TX |
400 |
|
Petresa Canada, Becancour,
Quebec |
220 |
| Total |
1,130
|
*Millions of pounds per year of
linear alkylbenzene (LAB). Commercial production is by alkylation of benzene
starting from n-paraffins feedstock.
CONDEA debottlenecked its
Baltimore plant, increasing capacity from 230 to 260 million pounds, in
mid-1988. Further work increased capacity to 290 million pounds and to 300
million pounds, in 1989 and 1993 respectively. Debottlenecking at the Lake
Charles plant increased capacity from 150 million to 170 million pounds in
mid-1988. Further work increased capacity to 200 million pounds and to 210
million pounds, in 1989 and 1993 respectively.
In March, 2001, SASOL Ltd. of
South Africa completed the acquisition of CONDEA, formerly a unit of RWE-DEA AG.
The CONDEA assets still operate under that name within Sasol Chemical
Industries, but a name change is anticipated before year end.
Huntsman expanded Chocolate Bayou
from 330 to 400 million pounds in 1998. Prior to this, the plant’s former
owner, Monsanto, completed an expansion from 250 to 300 million pounds in 1989,
and then to 330 million pounds in 1991.
Petresa Canada, which brought its
LAB facility on line with 165 million pounds of capacity in 1995, expanded the
unit to 220 million pounds in 1998.
Profile last published 8/31/98;
this revision 7/23/01.
DEMAND
1999: 558 million pounds; 2000: 575 million pounds; 2004: 622 million
pounds, projected. Demand equals production plus imports (1999: 165 million
pounds; 2000: 185 million pounds) less exports (1999: 311 million pounds; 2000:
356 million pounds). Nearly 50% of North American production is exported, mainly
to Asia and Latin America.
GROWTH
Historical (1995 - 2000): 5 percent per year; future: 2 percent per year
through 2004.
PRICE
Historical (1995 - 2000): High, $0.595 per pound, list, detergent alkylate,
straight-chain, dodecylbenzene, tanks, barges, f.o.b.; low, $0.545, same basis.
Current: $0.595, same basis. Current market price is $0.48 to $0.53, same basis.
USES
Linear alkylbenzene sulfonates (LAS), 100 percent: LAS for
laundry detergents, 70 percent; LAS for light-duty dish-washing liquids, 15
percent; LAS for industrial cleaners, 12 percent; LAS for household cleaners, 3
percent.
STRENGTH
Despite significant market share losses to alcohol sulfates in
the 1990s, LAS remains a strong contender among anionic surfactants and a
workhorse in the marketplace on a cost basis. LAB/LAS growth in the US continues
to be driven by a $4-billion-plus annual market for heavy-duty powder and liquid
laundry detergents. Although n-paraffin is currently tight, the global LAB and
LAS market is relatively balanced even though LAS in Europe is oversupplied.
Consumption for LAB/LAS is stable as their markets are recession-resistant. In
the US, both the LAB and the LAS markets are enjoying strong demand, and the
overall outlook is positive despite cost pressures during the last two years.
WEAKNESS
Surfactant producers are reeling from the effects of rising
feedstock and energy costs. Stronger crude oil pricing is making a bad situation
worse and is adding to pressure on LAB margins. Normal paraffin, a major
feedstock for LAB, remains tight, resulting in worldwide LAB price increases.
Installed capacities of normal paraffins are ample, but the real influence on
normal paraffin supply is the supply of normal paraffins-rich kerosenes, which
are less available.
OUTLOOK
Globally, LAB and LAS are solid and well balanced, most producers
say, projecting long-term growth for regions such as Latin America and Asia due
to their faster growing economies. One potentially negative development for
North American LAB demand is recent interest in methyl ester sulfonates (MES).
MES are anionic surfactants derived from natural oleochemical feedstocks. In the
US, at least one surfactant supplier is offering several MES substitution
products. Global consumption of LAB will grow at an annual rate of 3.6%, driven
largely by Latin American and Asian demand, while in North America, a more
modest growth rate of 2 percent is anticipated through 2004.
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