Following the downturn in 2009, the global propylene oxide (PO) output has witnessed stable growth. In 2012, the overall production volume went beyond 7.7 million tonnes, registering growth by above 215,000 tonnes YoY. Asia, Europe and North America make up top three regional PO markets, holding the largest share of the global production – around 95% in total. The US is the dominant player in the PO market, accounting for over 26% of the overall output; it is followed by China and the Netherlands with the shares of 21.8% and 9.9%, respectively.
Propylene oxide capacity broken down by region, 2012
Asia-Pacific is the major consumer of PO worldwide. In 2012, the region’s PO consumption was estimated at nearly 3.24 million tonnes, which is equal to almost 30% of the global figure.
More than 65% of the total PO production volume goes for the manufacture of polyether polyols. Propylene glycols industry is another important PO application area.
Dow Chemical Co, LyondellBasell Chemical Co, Ellba, Shell, SCG-Dow Group and Lyondell Bayer Manufacturing Maasvlakte VOF are among leading PO companies.
The volume of the PO foreign trade increased over 2009-2011. In 2011, the world PO foreign trade was worth more than USD 3.05 billion, registering growth of around USD 0.8 billion YoY. Europe is the dominant PO exporter and importer. In 2011, the region’s PO export and import volumes were estimated at approximately USD 1.5 billion and USD 1.8 billion, respectively.
Singapore represents one of the promising markets of the APAC region. In 2012, Singapore’s PO production exceeded 400,000 tonnes, while the domestic consumption was evaluated at above 200,000 tonnes. PO exports prevail over imports in the country and they were worth almost USD 406 thousands in 2011. China is the main importer of Singapore’s PO, accounting for above 54% of the total country’s PO exports.
Export and import dynamics of Propylene oxide in Singapore in 2006-2011, tonnes
The global PO production is poised for sustainable growth in the years ahead spurred considerably by new PO capacity introductions across the world. The overall PO output is predicted to override USD 8.64 billion in 2015.
More information on the Propylene Oxide Market can be found in the report Propylene Oxide (PO): 2013 World Market Outlook and Forecast up to 2017.