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MEK (methyl ethyl ketone)
ExxonMobile and Shell produce methyl ethyl ketone by the catalytic dehydrogenation of sec-butanol. The alcohol is obtained in a two-step process starting from butenes. Both companies have made modest improvements in the past two years to their respective MEK units, increasing annual capacity to 300 million pounds per year at each site. Celanese derives methyl ethyl ketone as a byproduct in acetic acid production by the liquid-phase oxidation of n-butane. Profile
last published 3/1/99; this revision, 10/27/03. DEMAND 2001: 422
million pounds; 2002: 421 million pounds; 2006: 445 million pounds,
projected. Demand equals production plus imports (2001: 33 million pounds;
2002: 26 million pounds) less exports (2001: 194 million pounds; 2002: 263
million pounds). GROWTH Historical
(1997 - 2002): 1.8 percent per year; future: 1.5 percent per year through
2006. PRICE Historical
(1997 - 2002): High, 51.0¢ per pound, tanks, Gulf, contract, dlvd. East;
low, 36.0, same basis. Current: 37.0, same basis. USES Coatings
solvent, 55 percent; adhesives, 14 percent; chemical intermediates, 7
percent; lube oil de-waxing, 6 percent; magnetic tapes, 5 percent; printing
inks, 4 percent; miscellaneous, 9 percent. STRENGTH In 1996 the
Chemical Manufacturers Association (CMA) petitioned the Environmental
Protection Agency (EPA) to unlist MEK from the Hazardous Air Pollutants (HAPs)
roster. In 1999 the CMA filed a complete petition to unlist MEK using new
information to show the chemical’s lack of toxicity. Last May, the EPA
published a Federal Register notice that proposes removing MEK from the list
of HAPs under section 112(b) of the Clean Air Act. The notice in the Federal
Register initiates a comment period (through August 28, 2003) in which
comments can be made to the EPA on the proposed ruling. Following a review
of the comments received, the EPA will decide whether or not to unlist MEK
from the HAPs list. Removal of
MEK from the HAPs list could reverse the declining trend of MEK’s use as a
solvent in coating applications, MEK’s largest application segment.
Coating solvent applications employ MEK as an active solvent to dissolve
resins, pigments and other constituents. MEK is favored for applications in
coatings that utilize highly polar resins such as epoxies, urethanes,
cellulosics and vinyls. Much of the use of MEK is in wood furniture
finishing and automotive refinishing, where low-solids coatings still
predominate. The use of
MEK in adhesives, chemical intermediates and printing inks represents
strongest segments of growth – all growing at rates between 2 and 3
percent annually. Together, these segments make up 25 percent of MEK’s
demand. WEAKNESS MEK has
been in decline as a solvent for coating applications since the late 1980s
when the EPA proposed to limit volatile organic compounds and classify MEK
as a hazardous air pollutant. Unless this trend is turned around, by a
reversal EPA ruling as noted above, MEK in solvent coating applications will
continue to diminish. MEK consumed in coating applications was 340 million
pounds in 1988, but had declined to 230 million pounds in 2002. MEK is used
in solvent blends for urethane lacquers that are used to coat magnetic tapes
for computers, instrumentation and video and audio equipment. Consumption in
this application has decreased over the last few years, especially with the
rise in usage of compact discs (CDs) and digital versatile disks (DVDs).
With increased competition from waterbornes, other solvent systems, better
solvent recovery and the increasing shift to CDs and DVDs, consumption of
MEK in this application is expected to decline over the forecast period by 2
percent annually. Consumption of MEK in this application segment was 22
million pounds in 2002. MEK
functions as a de-waxing agent during the refining of lubricating oils. More
efficient engines today produce fewer emissions, decreasing MEK demand in
de-waxing operations. During the forecast period, this sector is anticipated
to be flat. OUTLOOK Short term
growth for MEK is projected to be very modest. MEK is a mature product, but
with the recovering economy all sectors excepting lube oil de-waxing and
magnetic tapes should produce an aggregate growth rate of 1.5 percent for
the forecast period. Longer term, if the EPA does follow through and remove
MEK from the HAPs list, the coatings solvents sector should respond with
positive growth. If this happens, then aggregate growth could amount to as
much as 2.5 percent annually. HISTORICAL DATA
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