|
Paraffins
|
PRODUCER |
CAPACITY* |
|
CONDEA Vista, Lake Charles,
La. |
330 |
|
Exxon, Baytown, Tex. |
550 |
| Total |
880 |
*Millions of pounds per year of
C9-C17 normal paraffins separated from kerosene or gas oil fractions of crude
oil. CONDEA Vista, a unit of SASOL, uses most of its material captively for
linear alkylbenzene (LAB) production.
Exxon and Mobil merged in 1999 to
form the new entity, ExxonMobil. In March, 2001, SASOL Ltd. of South Africa
completed the acquisition of CONDEA, formerly a unit of RWE-DEA AG.
Profile last published 9/7/98; this
revision 6/25/01.
DEMAND
1999: 497 million pounds; 2000: 507 million pounds; 2004: 538 million
pounds, projected. Demand equals production plus imports, less exports. The U.S.
Department of Commerce does not collect trade data on normal paraffins. CMR
estimates that imports are less than 50 million pounds per year and exports are
approximately 200 million pounds per year.
GROWTH
Historical (1995 - 2000): 1 percent per year; future: 1 to 2 percent per
year through 2004.
PRICE
Historical (1995 - 2000): High, $0.28; low, $0.20, same basis. Current: $0.28,
same basis.
Pricing in n-paraffins moved away from cost-plus over the
last three years due to market tightness and crude oil near or above $30 per
barrel for the past year and a half.
USES
Linear alkylbenzene (LAB), 90 percent; solvents and lubricants, 7
percent; chlorinated paraffins, 3 percent.
STRENGTH
Global demand for n-paraffins to produce linear alkylbenzene
sulfonates (LAS) the detergent industry's workhorse surfactants - continues to
grow at nearly 6 percent annually, led by Latin America, Eastern Europe and
Asia. LAS is more mature in the U.S. where the growth rate is about 1 to 2
percent.
WEAKNESS
The production of normal paraffins is influenced by the availability of
n-paraffin-rich kerosene at the n-paraffin producing facilities. This has been
in relatively short supply, compared to previous years, contributing to the
tight market situation.
OUTLOOK
New LAB producers, overseas in particular, have put pressure on the n-paraffins
global market. The limited availability of rich paraffinic kerosene is also a
reason for the constrained production of normal paraffins. Together, these
forces are pressuring the U.S. merchant market. It appears that this situation
will continue into the foreseeable future.
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