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June 2009 Isopropyl Alcohol

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CEH Product Review

ISOPROPYL ALCOHOL (IPA)

By

Elvira O. Camara Greiner


and
Yoshio Inoguchi

CEH Product Reviews provide analysis, historical data and forecasts pertaining to the
international competitive market environment for chemical products. Supply and demand data
are developed for the United States, Western Europe, Japan and other relevant countries or
regions with the cooperation of chemical producers and consumers worldwide. The detail and
analysis may be more limited than that found in CEH Marketing Research Reports.
Updated information may be available from the following CEH Program services:
● SRIC Web Library—Available at www.sriconsulting.com.
● Manual of Current Indicators (MCI)—Updates of statistical data derived from
published sources. Issued semiannually.
● The Economic Environment of the Chemical Industry (EECI)—Economic
indicators that impact the chemical industry. Issued semiannually.
● CEH Inquiry Service—SRI Consulting researchers are available to answer your
questions.
U.S.A.—Telephone: 650/384-4334 Fax: 650/330-1149
Zürich—Telephone: 4144/283-6333 Fax: 4144/283-6330
Tokyo—Telephone: 813/5202-7320 Fax: 813/5202-7333

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The information provided in this publication has been obtained from a variety of sources, which SRI
Consulting believes to be reliable. SRI Consulting makes no warranties as to the accuracy,
completeness or correctness of the information in this publication. Consequently, SRI Consulting will
not be liable for any technical inaccuracies, typographical errors or omissions contained in this
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including but not limited to, implied warranties of merchantability, fitness for a particular purpose, or
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IN NO EVENT WILL SRI CONSULTING BE LIABLE FOR ANY INCIDENTAL,


CONSEQUENTIAL OR INDIRECT DAMAGES (INCLUDING BUT NOT LIMITED TO
DAMAGES FOR LOSS OF PROFITS, BUSINESS INTERRUPTION, OR THE LIKE) ARISING
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DAMAGES, THE ABOVE LIMITATION MAY NOT APPLY TO YOU. IN SUCH STATES SRI
CONSULTING’S LIABILITY IS LIMITED TO THE MAXIMUM EXTENT PERMITTED BY
SUCH LAW.

Certain statements in this publication are projections or other forward-looking statements. Any such
statements contained herein are based upon SRI Consulting’s current knowledge and assumptions
about future events, including, without limitation, anticipated levels of global demand and supply,
expected costs, trade patterns, and general economic, political, and marketing conditions. Although
SRI Consulting believes that the expectations reflected in the forward-looking statements are
reasonable, it cannot, and does not, guarantee, without limitation, future results, levels of activity,
performance or achievements. Readers should verify through independent third-party sources any
estimates, projections or other forward-looking statements or data contained herein before reaching
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Reader’s use of any information in this publication.

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rights may not exist in a particular name. No listing, description or designation in this publication is to
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designation, nor to the validity or ownership of any trademark.

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TABLE OF CONTENTS

Summary ........................................................................................................................................................4

Introduction....................................................................................................................................................8

Manufacturing Processes ...............................................................................................................................8

Supply and Demand By Region ....................................................................................................................9


United States..............................................................................................................................................9
Producing Companies ............................................................................................................................9
Salient Statistics..................................................................................................................................... 9
Consumption........................................................................................................................................11
Price ..................................................................................................................................................... 13
Trade ....................................................................................................................................................15
Canada ..................................................................................................................................................... 16
Producing Companies ..........................................................................................................................16
Production............................................................................................................................................17
Consumption........................................................................................................................................17
Trade ....................................................................................................................................................18
Mexico ..................................................................................................................................................... 19
Producing Companies ..........................................................................................................................19
Salient Statistics...................................................................................................................................19
Trade ....................................................................................................................................................20
Central and South America......................................................................................................................20
Producing Companies ..........................................................................................................................20
Salient Statistics...................................................................................................................................21
Consumption........................................................................................................................................21
Western Europe........................................................................................................................................22
Producing Companies ..........................................................................................................................22
Salient Statistics...................................................................................................................................23
Consumption........................................................................................................................................23
Price ..................................................................................................................................................... 25
Trade ....................................................................................................................................................26
Central and Eastern Europe ..................................................................................................................... 26
Producing Companies ..........................................................................................................................26
Salient Statistics...................................................................................................................................26
Japan ........................................................................................................................................................27
Producing Companies ..........................................................................................................................27
Salient Statistics...................................................................................................................................28
Consumption........................................................................................................................................28
Price ..................................................................................................................................................... 30
Trade ....................................................................................................................................................30
Other Asia................................................................................................................................................31

Bibliography ................................................................................................................................................36

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SUMMARY

The following table presents world supply and demand for isopropyl alcohol (IPA) in 2008:

World Supply/Demand for Isopropyl Alcohol—2008


(thousands of metric tons)
Average Annual
Annual Consumption Growth Rate,
Capacity 2008-2013
(year-end) Production Imports Exports 2008 2013 (percent)

North America
United States 728 a 720 64 306 478 500 0.9
Canada 104 82 8 67 23 24 0.9
Mexico --b --b 31 <1 31 35 2.5

Total 832 802 103 373 532 559 1.0%

Central and South America 65 53 33 16 70 81 3.0


Western Europe 670 414 109 c 33c 490 429 –2.6d
Central and Eastern Europe 74 35 33 20 48 58 3.9
Africa 0 0 14 0 14 17 4.0
Middle East 0 0 35 3 32 38 3.5
Asia
China 130 124 100 1 223 272 4.1
India 70 54 29 5 78 102 5.5
Japan 192 152 28e 31e 145 149 0.5
Korea, Republic of 130 66 21 26 61 86 7.1
Singapore 70 63 45 81 27 33 4.1
Taiwan 130 78 11 40 49 51 0.8
Otherf 0 0 88 2 86 111 5.2

Total 722 537 322 186 669 804 3.7%

Oceania 0 0 6 0 6 7 3.1

Total 2,363 1,841 655 631 1,862 1,993 1.4%

a. Anhydrous IPA capacity. Crude IPA capacity was 887 thousand metric tons.

b. Multipurpose plant. All IPA is captively consumed.

c. Excludes intra–Western European trade.

d. The negative growth rate reflects the assumption that no IPA-based acetone will be produced in Europe from 2010.

e. Includes a small amount of n-propyl alcohol.

f. Includes Indonesia, Malaysia, Pakistan, Philippines and Thailand.

SOURCE: CEH estimates.

The following table presents the largest producers of isopropyl alcohol by capacity:

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Major Global Producers of Isopropyl Alcohol


Annual Nameplate
Capacity
as of April 2009
(thousands of Percent of
metric tons) Total

Shell 404 18
ExxonMobil 380 17
SASOL 240 11
Dow 161 7
LyondellBasell 130 6
Lee Chang Yung 110 5

Total 1,425 65%a

a. Based on a total world capacity of 2,205 thousand


metric tons as of April 2009.

SOURCE: CEH estimates.

All other producers each have less than a 5% share of the global capacity. Some capacity and company
changes occurred during 2006-2009 as follows:

World Capacity Changes for Isopropyl Alcohol—2006-2009


Annual Capacity
Change, 2006-2009
Company and (thousands of
Plant Location metric tons) Remarks

Deepak Fertilisers and Petrochemicals


Taloja, Maharashtra, India +70 New plant began operations in 2006.

ExxonMobil
Baton Rouge, Louisiana, United States +40 Increased capacity in 2006.

ISU Chemical
Ulsan, Republic of Korea +30 New plant began operations in 2008.

Nippon Oil Corporation


Kawasaki, Kanagawa, Japan +10 Increased capacity in October 2008.

Sasol
Moers, Germany +20 Debottlenecked capacity in 2007.

Shandong Dongying Haike Xinyuan


Dongying, Shandong, China +30 New plant began operations at the end of 2005.

Shell Chemical
Deer Park, Texas, United States –190 Oversupply and decreased demand resulted in the closure
of Shell’s Deer Park, Texas, IPA plant in November 2008.

Total +10

SOURCE: CEH estimates.

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● Shell sold its oil refinery and associated businesses at the Berre l’Etang petrochemical complex to
LyondellBasell in early 2008.

● Nippon Petrochemicals, formerly an IPA producer, was merged with Nippon Oil Corporation in
2006.

The following tables present isopropyl alcohol consumption by region in 2008 and 2013:

World Consumption of Isopropyl Alcohol by Region


(thousands of metric tons)
2008

North Western Other Other


America Europe Japan China Asia Regionsa Total

Direct Solvent 290 288 76 168 238 b 99b 1,159b


Chemical Intermediates 128 c 34 39d 33 --e --e 234
Household, Cosmetic and
Personal Care Products 79 48 6 --f --f --f 133
Acetone 8 80 -- -- 23 13 124
Pharmaceuticals 27 40 9 --f --f --f 76
Other -- -- 15 22 41 58 136

Total 532 490 145 223 302 170 1,862

2013

North Western Other Other


America Europe Japan China Asia Regionsa Total

Direct Solvent 306 302 78 204 303 b 119 b 1,312b


Chemical Intermediates 132 c 34 40d 41 --e --e 247
Household, Cosmetic and
Personal Care Products 84 52 6 --f --f --f 142
Acetone 8 0 -- -- 29 15 52
Pharmaceuticals 29 41 9 --f --f --f 79
Other -- -- 16 27 52 67 136

Total 559 429 149 272 384 201 1,994

a. Includes Central and South America, Central and Eastern Europe, Africa, the Middle East and Oceania.

b. Includes use as a chemical intermediate.

c. Includes consumption for the production of isopropylamines, MIBK/MIBC/DIBK, isopropyl acetate and
other isopropyl esters.

d. Includes use as a raw material for organic synthesis, pesticides and industrial cleaners.

e. Included in Direct Solvent and Other.

f. Included in Other.

SOURCE: CEH estimates.

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The following table presents world consumption of isopropyl alcohol by end use:

World Consumption of Isopropyl Alcohol by End Use


(thousands of metric tons)
2008 2013 Average Annual
Growth Rate,
Thousands of Percent of Thousands of Percent of 2008-2013
Metric Tons Total Metric Tons Total (percent)

Direct Solvent 1,159 62 1,312 66 2.5


Chemical Intermediates 234 13 247 12 1.1
Household, Cosmetic and 1.3
Personal Care Products 133 7 142 7
Acetone 124 7 52 3 –16.0a
Pharmaceuticals 76 4 79 4 0.8
Other 136 7 162 8 3.6

Total 1,862 100% 1,994 100% 1.4%

a. The negative growth rate reflects the assumption that no IPA-based acetone will be produced in Europe
from 2010.

SOURCE: CEH estimates.

Use of IPA in direct solvent applications consumed 62% of total IPA demand in 2008. IPA is also used in
surface coatings, inks, pesticide formulations, electronic applications, reagents and as a processing solvent
in the production of resins.

Global IPA-based acetone production is expected to decrease with the increase of phenol capacity
(acetone is a coproduct of phenol by the cumene peroxidation process). It is estimated that IPA-based
acetone will no longer be produced in Western Europe from 2010. Worldwide IPA consumption is
estimated to grow at an average annual rate of 1.0-1.5% during 2008-2013.

Key findings and future implications for the isopropyl alcohol market include:

● At least three IPA plants came on stream in Asia during 2005-2008, adding 130 thousand metric
tons to world capacity; Shell closed its Deer Park plant in part due to ample supply overseas with
the start-up of these plants.

● Novapex in Roussillon, France plans to switch part of its acetone production capacity to isopropyl
alcohol and plans to start production in January 2010. The annual capacity for IPA will be
approximately 40 thousand metric tons.

● Several companies expanded IPA capacity during 2006-2008, including ExxonMobil, Sasol and
Nippon Oil.

● Supplies of IPA were tight in 2006 in most regions due to increased demand from countries with
recovering or emerging economies and capacity limitations.

● In 2008, global supply and demand was relatively balanced as demand decreased due to the
weakened global economy.

● Ample capacity and decreased demand resulted in a global operating rate of 78% in 2008.

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● As long as the demand for IPA continues to grow at the estimated annual rate of 1.0-1.5%
through 2013 and there are no major capacity additions, the industry operating rate should be in
the mid-80s.

● As of late 2008/early 2009, the acetone market has been tight due to its coproduct phenol’s
decreased demand (and hence production). This could lead to increased IPA consumption for
competing applications, particularly chemical intermediates.

● It is estimated that IPA-based acetone will no longer be produced in Europe from 2010—
primarily due to ample cumene-based acetone supply that should be available.

● Pricing increased in 2008 as many producers were able to pass along price increases (due to
higher raw material costs and IPA shortages).

● Supply/demand and feedstock (propylene) costs have had and will continue to have the greatest
effect on IPA pricing.

INTRODUCTION

Isopropyl alcohol, (CH3 ) 2 CHOH (also known as IPA or 2-propanol), is a clear, colorless, volatile,
flammable liquid with a slight odor. It is miscible with water and a variety of organic solvents. Various
grades of 99% IPA are commercially available, including USP (United States Pharmacopoeia), ACS
reagent and ACS semiconductor.

MANUFACTURING PROCESSES

Isopropyl alcohol is produced by three different processes, two of which use propylene as a starting
material. The first method consists of indirect hydration of propylene via a two-step process. In the first
step, propylene reacts with sulfuric acid to form mono- and diisopropyl sulfates. The second step involves
the hydrolysis of the isopropyl sulfates to isopropyl alcohol. One advantage of this process is that high-
purity propylene feedstock is not required. Consequently, a C 3 stream isolated from refinery off-gases
that contains 40-60% propylene is often used.

The second method of manufacture involves the direct hydration of propylene with an acid catalyst. The
reaction is as follows:

acid
catalyst
CH3CH CH2 + H 2O (CH3)2CHOH

mol wt: 42.0 18.0 60.1

This process, involving use of superheated steam and high pressures, is used in Canada, Mexico, Western
Europe and Southeast Asia, including Japan, but not in the United States.

The third method of manufacture involves the hydrogenation of acetone to isopropyl alcohol. This
process is used in Brazil and the United States.

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SUPPLY AND DEMAND BY REGION

UNITED STATES

PRODUCING COMPANIES

The following table presents U.S. producers of isopropyl alcohol:

U.S. Producers of Isopropyl Alcohol


Annual Capacity
as of April 2009
(thousands of metric tons)

Company and Plant Location Crudea Anhydrousb Raw Material and Process

The Dow Chemical Company


Texas City, TX 280 161 Captive propylene; indirect hydration; grades of 99%
IPA are technical, USP, ACS reagent and
spectrophotometric, semiconductor and European
Pharmacopoeia (EP)

Equistar Chemicals, LPc


Channelview, TX -- 29 Crude acetone; hydrogenation; anhydrous IPA only

ExxonMobil Chemical Company


Baton Rouge, LA 380 380 Captive propylene; indirect hydration

Total 660 570

a. Crude IPA (the azeotropic mixture of IPA and water) produced by the indirect hydration of propylene is generally 87-
91% IPA and may contain odor-causing compounds, diisopropyl ether or other impurities. Few direct applications
exist for crude IPA.

b. Anhydrous IPA is produced by the distillation of crude IPA to a purity level of 99% or better. Anhydrous IPA is used
in the majority of applications.

c. A subsidiary of Lyondell Chemical Company. Company hydrogenates crude acetone generated as a by-product of
propylene oxide manufacture by Lyondell.

SOURCE: CEH estimates.

● ExxonMobil increased capacity in Baton Rouge, Louisiana by 40 thousand metric tons in 2006.

● Shell Chemicals closed its Deer Park, Texas solvents operation, including IPA and the C 6
solvents MIBK, MIBC, diacetone alcohol and hexylene glycol, in November 2008, citing poor
demand and oversupply as primary reasons for the closure.

SALIENT STATISTICS

The following table presents U.S. supply and demand for isopropyl alcohol:

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U.S. Supply/Demand for Isopropyl Alcohol


(thousands of metric tons)
Apparent
Production Sales Importsa Exportsb Consumptionc

1960 535.2 188.1 -- 7.2 528.0

1965 697.6 263.8 -- 21.0 676.6

1970 870.5 390.6 -- 36.9 833.6

1975 690.1 368.9 -- 55.9 634.2

1980 832.6 465.3 21.7 78.7 775.6

1985 560.0 386.7 61.8 80.9 540.9

1990 660.5 562.8 48.0 159.9 548.6


1991 608.6 498.3 42.9 147.3 504.2
1992 583.6 497.2 39.1 177.6 445.1
1993 576.8 487.0 24.3 127.0 474.1
1994 658.2 549.1 40.8 179.2 519.8

1995 646.0 -- 46.1 195.0 497.1


1996 627.8 -- 52.1 241.5 438.4
1997 670.4 -- 30.8 258.1 443.1
1998 657.4 -- 51.9 215.4 493.9
1999 668.9 -- 49.0 185.4 532.5

2000 660.4 -- 62.9 184.6 538.7


2001 675.7 -- 80.2 210.9 545.0
2002 695 -- 91.3 273.0 513
2003 750 -- 73.5 323.1 500
2004 781 -- 68.0 324.0d 525

2005 727 -- 76.4 302.6 501


2006 763 -- 70.2 331.6 502
2007 775 -- 72.7 343.0d 505
2008 721 -- 63.4 306.4 478

See MANUAL OF CURRENT INDICATORS for additional information.

a. Imports are reported under code # 2905.12.00.50 for 1989-2008.

b. Exports are reported under code # 2905.12.00.50 for 1989-2008.

c. Equals PRODUCTION plus IMPORTS minus EXPORTS.

d. CEH estimate. Exports are believed to be overstated by the U.S. Department of


Commerce in 2004 and 2007.

SOURCES: (A) Synthetic Organic Chemicals, U.S. Production and Sales, U.S.
International Trade Commission (data for PRODUCTION and
SALES for 1960-1994).

(B) Preliminary Report on U.S. Production of Selected Synthetic


Organic Chemicals, SOC Series C/P-89-5, U.S. International
Trade Commission (datum for PRODUCTION for 1995).

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(C) NPRA Petrochemical Surveys, National Petrochemical &


Refiners Association (data for PRODUCTION for 1996-2000).

(D) U.S. Imports, U.S. Department of Commerce, Bureau of the


Census (data for IMPORTS).

(E) U.S. Exports, U.S. Department of Commerce, Bureau of the


Census (data for EXPORTS, except for 2004 and 2007).

(F) CEH estimates (all other data).

Production and exports of IPA will decrease substantially in 2009 due to the closure of Shell Chemicals’
Deer Park solvents plant in November 2008.

CONSUMPTION

The following table presents U.S. consumption of isopropyl alcohol:

U.S. Consumption of Isopropyl Alcohol


2008 2013 Average Annual
Growth Rate,
Thousands of Percent of Thousands of 2008-2013
Metric Tons Total Metric Tons (percent)

Direct Solvent Applications 250 52 263 1.0


Chemical Derivatives
Isopropylamines 50 10 50 0.0
MIBK/MIBC/DIBK 45 9 48 1.3
Isopropyl Acetate 17 4 17 0.0
Other Isopropyl Esters 9 2 9 0.0

Total 121 25% 124 0.5%

Household, Cosmetic and


Personal Care Products 74 15 78 1.1
Pharmaceuticals 25 5 27 1.6
Acetone 8 2 8 0.0

Total 478 100% 500 0.9%

SOURCE: CEH estimates.

The following table presents historical U.S. consumption of isopropyl alcohol:

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Historical U.S. Consumption of Isopropyl Alcohol


(thousands of metric tons)
1999 2002 2005

Direct Solvent Applications 251 227 259


Chemical Derivatives
MIBK/MIBC/DIBK 70 71 60
Isopropylamines 79 85 54
Isopropyl Acetate 30 24 18
Other Isopropyl Esters 9 9 9

Total 188 189 141

Household, Cosmetic and


Personal Care Products 64 68 70
Pharmaceuticals 20 21 23
Acetone 10 8 8

Total 533 513 501

SOURCE: CEH estimates.

Consumption of IPA in direct solvent applications was 250 thousand metric tons in 2008. IPA is used in
surface coatings, including wood finishes, auto refinishes and thinners. Other direct solvent applications
include inks (IPA is used as a cosolvent in waterborne formulations); pesticide formulations; processing
solvent in the production of resins; electronics applications and reagents. The recent weak economy,
decreased automobile production and decreased resins production have all contributed to a decline in IPA
consumption as a direct solvent. Stricter volatile organic compound (VOC) regulations will limit growth
in direct solvent demand. The greatest impact will be felt in surface coating applications. Solvent
concentrations may be reduced considerably as customers switch to waterborne or high-solids coatings.
Despite possible limited growth in coatings applications, the overall use of IPA as a direct solvent is
expected to grow 1.0% annually through 2013.

Consumption of IPA for the manufacture of chemical derivatives was 121 thousand metric tons in 2008.
The largest-volume derivatives include methyl isobutyl ketone (MIBK), methyl isobutyl carbinol
(MIBC), diisobutyl ketone (DIBK), isopropylamines, and isopropyl acetate. Monoisopropylamine
(MIPA) is used in herbicides (triazines and glyphosate). MIBK, DIBK and isopropyl acetate are used
primarily as solvents in paints, coatings and inks. MIBC is used in lube oil additives and in froth flotation
for ore beneficiation. Various isopropyl esters are used in lube oil additives and cosmetic and personal
care products. Despite strong demand for glyphosate, IPA consumption for isopropylamines is expected
to remain flat or decrease. Monoethanolamine (MEA) is used to make a glyphosate MEA salt. The large
drop in IPA consumption for isopropylamines from 2002 to 2005 was attributed to a supply/demand drop
because of weather-related conditions, better technology (using MEA instead of MIPA for glyphosate)
and legislation passed in 2004 in the agricultural industry that benefited MEA. Chemical intermediates
also consumed acetone at the expense of IPA. Acetone is the feedstock of choice for MIBK.

Total demand for IPA in chemical derivatives is expected to grow at an average annual rate of 0.5%
through 2013, driven primarily by demand for MIBC. Methyl isobutyl carbinol is experiencing positive
growth as a flotation frother (especially in actively mined regions). MIBC, used to manufacture zinc
dialkyldithiophosphate (ZDDP) antiwear and corrosion inhibitor additives for lube oil additives, may
benefit significantly when GF-5 specification (currently being studied and planned to be introduced in
2010) for improving lube oil performance is launched.

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Consumption of IPA in household, cosmetic and personal care products was 74 thousand metric tons in
2008. These products include rubbing alcohols, disinfectants, pine cleaners, glass cleaners, cosmetics and
other personal care products. Rubbing alcohol and household products account for approximately 60
thousand metric tons of IPA consumption. As with chemical derivatives, growth rates vary considerably
for different applications, but the overall average annual growth rate is anticipated to follow GDP rates.

Consumption of IPA in pharmaceutical solvent applications was 25 thousand metric tons in 2008. IPA is
used primarily as a processing solvent during drug manufacture, but is also used in medical wipes and
some medicinal formulations. Solvent recovery systems that were installed at many pharmaceutical
companies reduced virgin IPA consumption. However, this drop in demand has stabilized and IPA
consumption as a pharmaceutical solvent is forecast to grow at an average annual rate of 1.6% through
2013.

Consumption of IPA for the production of acetone was 8 thousand metric tons in 2008. Dow is the sole
producer of acetone from IPA; all other large-scale U.S. acetone producers use cumene oxidation.
Although more costly than the use of cumene, the use of IPA produces better-quality acetone. IPA-
derived acetone contains less water and has no benzene contamination. Dow’s consumption of IPA for
acetone depends on demand for acetone and acetone derivatives such as MIBK, isophorone and aldol
chemicals. IPA-based acetone production is expected to remain the same through 2013.

Solvent applications, either directly or indirectly via chemical derivatives, account for greater than 80% of
total IPA demand in the United States. Therefore, regulations concerning VOCs and emissions may affect
future demand for IPA.

Total demand for IPA is estimated to grow at an average annual rate of 0.9% through 2013, reaching 500
thousand metric tons in 2013.

PRICE

The following table presents U.S. prices and unit sales and trade values for isopropyl alcohol:

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U.S. Price, Unit Sales Value and Unit Trade Values for Isopropyl Alcohol
Unit Unit
Import Export
Pricea Unit Sales Value Value Value

Cents per Cents per Cents per Cents per Cents per Cents per Cents per
Gallon Poundb Kilogram Pound Kilogram Kilogram Kilogram

1955 39.0 5.85 12.9 5 11.0 -- --

1960 46.0 6.90 15.2 6 13.2 -- --

1965 46.0 6.90 15.2 6 13.2 -- --

1970 49.0 7.35 16.2 6 13.2 -- --

1975 70.0 10.50 23.1 11 24.3 -- --

1980 159.0 23.85 52.6 23 50.7 -- --

1985 202.0 30.30 66.8 24 52.9 -- --

1990 143.3 21.50 47.4 21 46.3 33.1 48.5


1991 220.7 33.10 73.0 24 52.9 41.9 52.9
1992 206.7 31.00 68.3 15 33.1 33.1 37.5
1993 210.0 31.50 69.4 18 39.7 28.7 37.5
1994 213.3 32.00 70.5 15 33.1 30.9 35.3
55.1 55.1
1995 226.7 34.00 75.0 -- --
1996 226.7 34.00 75.0 -- -- 37.5 37.5
1997 186.7 28.00 61.7 -- -- 48.5 41.9
1998 193.3 29.00 63.9 -- -- 55.1 39.7
1999 220.0 33.00 72.7 -- -- 59.5 44.1
57.3 57.3
2000 240.0 36.00 79.3 -- --
2001 232 34.8 76.7 -- -- 55.1 50.7
2002 232 34.8 76.7 -- -- 50.7 46.3
2003 -- 44.0 97.0 -- -- 58.9 50.9
2004 -- 57.0 125.7 -- -- 63.5 58.6
109.1 99.1
2005 -- 72.0 158.7 -- --
2006 -- 65.0 143.3 -- -- 98.3 84.9
2007 -- 66.0 145.5 -- -- 97.7 90.1
2008 -- 105.0 231.5 -- -- 129.9 107.2
2009c -- 87.5 192.9 -- -- -- --

a. Prices through 1988 are list prices taken on or near July 1 of each year. Whenever a range of prices was
given in the source for these years, the lowest was used. Price bases are as follows:

1955 99%, tanks, delivered


1960-1980 Anhydrous, tanks, delivered
1985-2000 Anhydrous, 99%, tanks, delivered
2001-2009 USP, coarse, 100 pound bags, truckload works, freight included.

b. Prices were converted into cents per pound using a factor of 0.15 gallon per pound.

c. Price for January 2009.

SOURCES: (A) Chemical Marketing Reporter, midyear issues (data for PRICE for 1955-1988).

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(B) CEH estimates (data for PRICE for 1989-2009).

(C) Synthetic Organic Chemicals, U.S. Production and Sales, U.S. International Trade
Commission (data for UNIT SALES VALUE).

(D) U.S. Imports and U.S. Exports, U.S. Department of Commerce, Bureau of the Census
(data for UNIT IMPORT VALUE and UNIT EXPORT VALUE).

Several factors affect the price of IPA: the price of propylene, the price of other solvents such as ethanol,
and supply/demand. In more recent years, feedstock (propylene) costs and supply/demand have had the
greatest effect on IPA pricing.

TRADE

Historical trade data are compiled in the SALIENT STATISTICS section. The following tables show 2005
and 2008 imports and exports of isopropyl alcohol by country of origin and destination, respectively.

U.S. Imports of Isopropyl Alcohol by Country of Origin


2005

Thousands of Percent of Unit Import Value


Metric Tons Total (dollars per kilogram)

Canada 74.3 97 1.09


Japan 1.1 1 0.77
Korea, Republic of 0.4 1 1.49
Other 0.6 1 --

Total 76.4 100% 1.09

2008
Thousands of Percent of Unit Import Value
Metric Tons Total (dollars per kilogram)

Canada 60.3 95 1.29


Japan 1.0 2 1.50
Switzerland 0.8 1 0.45
Korea, Republic of 0.5 1 1.74
Other 0.7 1 --

Total 63.3 100% 1.30

SOURCE: U.S. Imports, U.S. Department of Commerce, Bureau of the


Census.

 2009 by the Chemical Economics Handbook—SRI Consulting


June 2009 ISOPROPYL ALCOHOL Isopropyl Alcohol
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U.S. Exports of Isopropyl Alcohol by Country of Destination


2005

Thousands of Percent of Unit Export Value


Metric Tons Total (dollars per kilogram)

Belgium 62.8 21 0.80


China 42.4 14 0.88
Mexico 33.1 11 1.31
Singapore 20.6 7 0.98
Brazil 20.4 7 0.98
Korea, Republic of 18.9 6 1.05
Spain 17.6 6 0.82
Hong Kong 11.4 4 0.85
Taiwan 11.3 4 0.72
India 10.0 3 1.16
Other 54.2 18 --

Total 302.6 100% 0.99

2008
Thousands of Percent of Unit Export Value
Metric Tons Total (dollars per kilogram)

Belgium 69.6 23 0.99


China 40.8 13 1.13
Mexico 32.5 11 1.21
Singapore 23.6 8 0.72
Spain 20.7 7 0.74
Korea, Republic of 15.1 5 1.08
Thailand 14.6 5 0.58
Brazil 13.2 4 1.12
Indonesia 11.1 4 1.11
Canada 8.7 3 1.94
Other 56.6 18 --

Total 306.4 100% 1.07

SOURCE: U.S. Exports, U.S. Department of Commerce, Bureau of the


Census.

The United States has been a net exporter of IPA for many years. As domestic consumption of IPA began
dropping in the early 1980s because of declining demand for IPA in the production of acetone, exports
began to increase. In 2008, exports accounted for 42% of production, up from 9% in 1980.

CANADA

PRODUCING COMPANIES

The following table presents Canadian producers of isopropyl alcohol:

 2009 by the Chemical Economics Handbook—SRI Consulting


June 2009 ISOPROPYL ALCOHOL Isopropyl Alcohol
668.6000 Q Page 17

Canadian Producers of Isopropyl Alcohol


Annual Capacity
Company and as of April 2009
Plant Location (thousands of metric tons) Raw Material and Process

Shell Chemicals Canada Ltd.


Sarnia, Ontario 104 Started production of IPA in 1979. Captive propylene
from Nova Chemicals; direct hydration.

SOURCE: CEH estimates.

The IPA plant in Sarnia, Ontario is operated by LyondellBasell while Shell controls and markets the IPA.

PRODUCTION

The following table presents Canadian production of isopropyl alcohol:


Canadian Production of Isopropyl Alcohol
(thousands of metric tons)

1995 80
2000 95
2002 96
2005 91
2008 82

SOURCE: CEH estimates.

With the closure of Shell’s Deer Park, Texas plant, production will likely increase in Canada.

CONSUMPTION

The following table presents Canadian consumption of isopropyl alcohol:


Canadian Consumption of Isopropyl Alcohol
(thousands of metric tons)

1995 33
2000 36
2002 23
2005 23
2008 23
2013 24

Average Annual Growth Rate


(percent)

2008-2013 0.9%

SOURCE: CEH estimates.

 2009 by the Chemical Economics Handbook—SRI Consulting


June 2009 ISOPROPYL ALCOHOL Isopropyl Alcohol
668.6000 R Page 18

Canadian consumption of IPA was approximately 23 thousand metric tons in 2008. Solvent applications
account for nearly all consumption. Pharmaceuticals, surface coatings, inks and pesticide formulations are
the largest uses. IPA is also used in the production of some intermediate chemicals used for the mining
industry and as a processing solvent in the production of resins, in electronics and in reagents. Total
Canadian consumption of IPA is estimated to remain relatively flat from 2008 to 2013.

TRADE

The following table presents Canadian imports and exports of isopropyl alcohol:

Canadian Trade in Isopropyl Alcohol


(thousands of metric tons)
Importsa Exportsb

1989 4.8 44.9

1990 5.6 54.5


1991 7.1 51.1
1992 7.4 55.1
1993 9.5 28.1
1994 7.4 42.5

1995 7.0 53.9


1996 7.6 67.2
1997 9.5 66.5
1998 10.4 55.4
1999 12.6 65.0

2000 14.5 72.8


2001 12.7 79.2
2002 12.7 86.3
2003 12.0 71.6
2004 12.3 69.5

2005 6.4 74.5


2006 8.2 73.9
2007 8.7 73.4
2008 8.3 66.9

a. Imports are reported under code # 2905.12.00.20.

b. Exports are reported under code # 2905.12.


Includes minor amounts of propanol-1-ol (propyl
alcohol).

SOURCE: Imports and Exports by Commodity,


Statistics Canada.

Most Canadian exports of IPA were destined for the United States (90%) and the Netherlands (10%), in
2008.

 2009 by the Chemical Economics Handbook—SRI Consulting


June 2009 ISOPROPYL ALCOHOL Isopropyl Alcohol
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MEXICO

PRODUCING COMPANIES

The following table presents the sole Mexican producer of isopropyl alcohol:

Mexican Producers of Isopropyl Alcohol


Annual Capacity
as of April 2009
Company and (thousands of
Plant Location metric tons) Raw Material and Process

Celanese S.A. de C.V


La Cangrejera 25 Multipurpose plant. All IPA is captively
consumed. Produces isopropyl acetate.

SOURCE: CEH estimates.

Petroquímica Salamanca (PEMEX) idled its 15 thousand metric ton-per-year plant in 2001.

SALIENT STATISTICS

The following table presents Mexican supply and demand for isopropyl alcohol:

Mexican Supply/Demand for Isopropyl Alcohola


(thousands of metric tons)
Apparent
Production Imports Exports Consumptionb

1989 18.5 47.3 neg 65.8

1990 19.3 39.4 neg 58.7


1991 18.4 38.6 neg 57.0
1992 15.9 55.6 neg 71.5
1993 17.0 19.2 neg 36.2
1994 17.0 17.3 neg 34.3

1995 16.5 18.0 1.1 33.4


1996 15.0 24.7 1.3 38.4
1997 16.0 23.9 1.3 38.6
1998 9.0 35.4 1.0 43.4
1999 13.7 32.0 neg 45.7

2000 12.0 30.8 1.1 41.7


2001 0 29.5 0.0 29.5
2002 0 38.2 0.9 37.3
2003 0 27.3 0.4 26.9
2004 0 25.7 0.4 25.3

2005 0 27.5 0.3 27.2


2006 0 30.3 0.5 29.8
2007 0 30.8 0.7 30.1
2008 0 31.0 0.4 30.6

 2009 by the Chemical Economics Handbook—SRI Consulting


June 2009 ISOPROPYL ALCOHOL Isopropyl Alcohol
668.6000 T Page 20

a. Excludes production of IPA used for captive consumption.

b. Equals PRODUCTION plus IMPORTS minus EXPORTS.

SOURCES: (A) Secretaria de Comercio y Fomento Industrial (data


for IMPORTS and EXPORTS for 1989-1995).

(B) Asociación Nacional de la Industria Química


(ANIQ) (all data for 1996-2000).

(C) World Trade Atlas, Global Trade Information


Services, Inc. (data for IMPORTS and EXPORTS
for 2001-2007).

(D) CEH estimates (all other data).

TRADE

Most imports originate in the United States. Imports of IPA declined dramatically in 1993 when Celanese
Mexicana shut down its IPA-to-acetone plant at La Cangrejera in March of that year. Celanese Mexicana
was sourcing its IPA from imports and from IPA produced by PEMEX. Celanese currently produces IPA
at a multipurpose plant in La Cangrejera, but consumes it captively.

CENTRAL AND SOUTH AMERICA

PRODUCING COMPANIES

The following table presents Central and South American producers of isopropyl alcohol:

Central and South American Producers of Isopropyl Alcohol


Annual Capacity
as of April 2009
Company and (thousands of
Plant Location metric tons) Raw Material and Process

Argentina

SOL PETROLEO S.A.-Carboclor Division


Campana, Buenos Aires 48 Propylene; indirect hydration

Brazil

Rhodia Poliamida e Especialidades Ltda.


Paulínia, São Paulo 17 Captive acetone; hydrogenation

Total 65

SOURCE: CEH estimates.

 2009 by the Chemical Economics Handbook—SRI Consulting


June 2009 ISOPROPYL ALCOHOL Isopropyl Alcohol
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SALIENT STATISTICS

The following table presents Central and South American supply and demand for isopropyl alcohol:

Central and South American Supply/Demand for Isopropyl Alcohol


(thousands of metric tons)
Apparent
Production Imports Exports Consumptiona

2000 49 53 14 88
2001 42 57 18 81
2002 46 48 21 73
2003 49 65 17 97
2004 59 65 15 109

2005 52 51 20 83
2006 51 35 14 72
2007 47 40 12 75
2008 53 33 16 70

a. Equals PRODUCTION plus IMPORTS minus EXPORTS.

SOURCES: (A) Asociación Petroquímica y Química Latinoamericana


(APLA) (data for 2000-2005 and 2007).

(B) World Trade Atlas. Global Trade Information Services,


Inc. (data for IMPORTS and EXPORTS for 2008).

(D) CEH estimates (all other data).

CONSUMPTION

The following table shows Central and South American consumption of isopropyl alcohol:

Central and South American Consumption of Isopropyl Alcohol


2008 2013 Average Annual
Growth Rate,
Thousands of Percent of Thousands of 2008-2013
Metric Tons Total Metric Tons (percent)

Solvent 37 53 44 3.5
Acetone 13 19 15 2.9
Other 20 28 22 1.9

Total 70 100% 81 3.0%

SOURCE: CEH estimates.

The following table presents historical Central and South American consumption of isopropyl alcohol:

 2009 by the Chemical Economics Handbook—SRI Consulting


June 2009 ISOPROPYL ALCOHOL Isopropyl Alcohol
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Historical Central and South American


Consumption of Isopropyl Alcohol
(thousands of metric tons)
Solvent Acetone Other Total

2002 36 14 23 73

2005 45 12 26 83

SOURCE: CEH estimates.

WESTERN EUROPE

PRODUCING COMPANIES

The following table presents Western European producers of isopropyl alcohol:

Western European Producers of Isopropyl Alcohol


Annual Capacity
as of April 2009
Company and (thousands of
Plant Location metric tons) Raw Material and Process
France

LyondellBasell Industriesa
Berre Petrochemical Complex
Berre-l’Etang 130 Captive and purchased propylene;
indirect hydration
Germany

Sasol Solvents Germany GmbH


Herne 85 Propylene; direct hydration
Moers 155 Propylene; direct hydration
Netherlands

Shell Nederland Chemie BV


Rotterdam-Pernis 300 Captive propylene; direct hydration

Total 670

a. Shell sold its oil refinery and associated businesses at the Berre l’Etang petrochemical
complex in France to LyondellBasell in early 2008.

SOURCE: CEH estimates.

● Shell is the largest Western European producer of IPA (accounting for 45% of Western European
capacity) even after selling its oil refinery and associated businesses at the Berre l’Etang
petrochemical complex to LyondellBasell in early 2008.

● Sasol debottlenecked its Moers, Germany plant by 20 thousand metric tons in 2007.

● Novapex in Roussillon, France plans to switch part of its acetone production capacity to isopropyl
alcohol and plans to start production in January 2010. The annual capacity for IPA will be
approximately 40 thousand metric tons.

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June 2009 ISOPROPYL ALCOHOL Isopropyl Alcohol
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SALIENT STATISTICS

The following table presents Western European supply and demand for isopropyl alcohol:

Western European Supply/Demand for Isopropyl Alcohol


(thousands of metric tons)
Apparent
Production Importsa Exportsa Consumption

1994 600 56 21 635


1995 570 72 105 537
1996 525 91 21 595
1997 490 89 22 557
1999 470 77 24 523

2000 496 42 25 513


2001 470 28 25 473
2002 495 29 30 494
2003 508 40 45 503
2004 476 84 18 542

2005 425 100 27 498


2006 445 120 29 536
2007 429 135 37 527
2008 414 109 33 490

a. Trade data include extraregional shipments only.

SOURCE: CEH estimates.

CONSUMPTION

The following table presents Western European consumption of isopropyl alcohol:

Western European Consumption of Isopropyl Alcohol


2008 2013 Average Annual
Growth Rate,
Thousands of Percent of Thousands of 2008-2013
Metric Tons Total Metric Tons (percent)

Direct Solvent Applications 288 59 302 1.0


Chemical Derivativesa
Isopropyl Acetate 29 6 29 0.0
Other Isopropyl Esters 5 1 5 0.0

Total 34 7 34 0.0%

Acetone 80b 16 0c --
Household, Cosmetic and
Personal Care Products 48 10 52 1.6
Pharmaceuticals 40 8 41 0.5

Total 490 100% 429 –2.6%d

 2009 by the Chemical Economics Handbook—SRI Consulting


June 2009 ISOPROPYL ALCOHOL Isopropyl Alcohol
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a. So as to avoid double counting, excludes consumption of IPA for the production of


MIBK/MIBC/DIBK since these products directly consume acetone.

b. Acetone is consumed for the production of MIBK/MIBC/DIBK.

c. Based on the assumption that cumene-based acetone supply will be ample worldwide,
i.e., no IPA-based acetone will be produced in Europe from 2010.

d. The negative growth rate reflects the assumption that no IPA-based acetone will be
produced in Europe from 2010.

SOURCE: CEH estimates.

The following table presents historical Western European consumption of isopropyl alcohol:

Historical Western European Consumption of Isopropyl Alcohol


(thousands of metric tons)
2002 2005

Direct Solvent Applications 275 270


Chemical Derivatives
MIBK/MIBC/DIBKa --a --a
Isopropyl Acetate 31 30
Isopropylamines 14 0
Other Isopropyl Esters 8 7

Total 53 37

Acetone 85b 85b


Household, Cosmetic and Personal
Care Products 55 50
Pharmaceuticals 45 40

Total 513 482

a. So as to avoid double counting, excludes consumption of IPA


for the production of MIBK/MIBC/DIBK since these products
directly consume acetone.

b. Acetone is consumed for the production of MIBK/MIBC/


DIBK.

SOURCE: CEH estimates.

Consumption of isopropyl alcohol in direct solvent applications totaled 288 thousand metric tons in 2008.
Isopropyl alcohol is primarily used as a solvent in surface coatings. Other solvent applications include
inks, pesticide formulations, as a processing solvent in the production of resins, electronics applications
and chemical reagents. Stricter VOC emission regulations will limit the future growth of IPA in direct
solvent applications. The greatest implication will be in surface coating applications. Coating
formulations are expected to follow a trend toward waterborne or higher solids content coatings. Despite
the pressure to reduce VOC emissions, IPA consumption in solvent applications is estimated to grow by
1% per year over the next five years.

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Isopropanol consumed for use as a chemical intermediate totaled 34 thousand metric tons in 2008.
Consumption of IPA in household, cosmetic and personal care products amounted to an estimated 48
thousand metric tons in 2008. Pharmaceutical solvent applications consumed approximately 40 thousand
metric tons in 2008. IPA is used primarily as a processing solvent during drug manufacture and medicinal
formulations. IPA is used as a highly effective bactericide and is used as a disinfectant in hospitals and in
preoperative skin treatment.

The IPA consumption growth rate during 2008-2013 is estimated to be –2.6% per year. This negative
growth rate assumes that no IPA-based acetone will be produced in Europe from 2010.

PRICE

The following table presents Western European prices for isopropyl alcohol:

Western European Prices for Isopropyl Alcohola


Price Exchange Rate

DM per Euros per Dollars per DM per Euros per


Kilogram Kilogram Kilogram Dollar Dollar

1990 1.02 -- 0.63 1.62 --


1991 1.03 -- 0.66 1.56 --
1992 0.81 -- 0.49 1.66 --
1993 0.80 -- 0.49 1.65 --
1994 0.70 -- 0.43 1.62 --

1995 1.20 -- 0.84 1.43 --


1996 1.10 -- 0.73 1.50 --
1997 1.20 -- 0.69 1.73 --
1998 1.10 -- 0.63 1.76 --
1999 0.97 -- 0.53 1.84 --

2000 -- 0.68 0.63 -- 1.085


2001 -- 0.66 0.59 -- 1.117
2002 -- 0.67 0.63 -- 1.058
2003 -- 0.69 0.78 -- 0.883
2004 -- 0.75 0.93 -- 0.804

2005 -- 0.87 1.08 -- 0.803


2006 -- 0.90 1.13 -- 0.796
2007 -- 1.00 1.37 -- 0.729
2008 -- 1.00 1.47 -- 0.679
2009b -- 0.86 1.12 -- 0.768c

a. Yearly average.

b. Data represent the January-April 2009 average.

c. Estimate based on January-February 2009 data.

SOURCES: (A) CEH estimates (data for PRICE).

(B) Federal Reserve Bank of St. Louis (data for EXCHANGE


RATE).

 2009 by the Chemical Economics Handbook—SRI Consulting


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Production issues coupled with (but to a lesser extent) the rising cost of propylene resulted in higher IPA
prices in 2007 and 2008. IPA shortages drove prices up in the second quarter of 2007 before coming back
down in the fourth quarter. Prices increased again in mid-2008. By early 2009, lower propylene costs and
weak demand brought IPA prices back down.

TRADE

Historical extra-European trade data are summarized in the SALIENT STATISTICS section. In addition,
official European trade data include both n-propyl alcohol and isopropyl alcohol in the same trade
category. The United States is the dominant supplier, but over recent years imports from South Africa and
the Far East have taken up some of the market share.

Accurate representation of trade flow is complicated because exports from two of the three producing
countries are treated as confidential in the official trade statistics. Export data for Germany and France are
not reported by Eurostat or by the H.M Customs and Excise. In Western Europe, significant trade
activities occur between IPA-producing countries.

CENTRAL AND EASTERN EUROPE

PRODUCING COMPANIES

Central and Eastern European Producers of Isopropyl Alcohol


Annual Capacity
as of April 2009
Company and (thousands of
Plant Location metric tons) Raw Material and Process

Orsknefteorgsintez
Orsk, Russia 74 Captive propylene; hydration of
isopropyl sulfate

SOURCE: CEH estimates.

Azerichimia in Azerbaijan may also produce some IPA.

SALIENT STATISTICS

The following table presents Central and Eastern European supply and demand for isopropyl alcohol:

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June 2009 ISOPROPYL ALCOHOL Isopropyl Alcohol
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Central and Eastern European Supply/Demand for Isopropyl Alcohol


(thousands of metric tons)
Apparent
Production Importsa Exportsa Consumption

2000 30 12 10 32
2001 23 15 5 33
2002 29 14 13 30
2003 24 21 15 30
2004 24 18 11 31
2005 29 26 22 33
2006 39 32 35 36
2007 37 34 19 52
2008 35 33 20 48

a. Includes a small amount of n-propyl alcohol.

SOURCES: (A) World Petrochemicals Program, SRI Consulting (data


for PRODUCTION).

(B) CEH estimates (all other data).

JAPAN

PRODUCING COMPANIES

The following table presents Japanese producers of isopropyl alcohol:

Japanese Producers of Isopropyl Alcohol


Annual Capacity
as of March
Company and 2009
Plant Location (thousands of Raw Material and Process
metric tons)

Mitsui Chemicals, Inc.


Takaishi, Osaka Prefecture 33 Propylene; indirect hydration

Nippon Oil Corporationa


Kawasaki, Kanagawa Prefecture 85 Captive propylene; direct hydration

Tokuyama Corp.
Shunan, Yamaguchi Prefecture 74 Propylene; direct hydration

Total 192

a. Nippon Petrochemicals, a former producer, was merged with Nippon Oil Corporation in 2006.

SOURCE: CEH estimates.

Tokuyama is the leading producer/supplier of high-purity isopropyl alcohol (IPA), which is used mostly
for precision cleaning in the electrical/electronic industry. The company also operates filling facilities for
high-purity IPA in Taiwan and Singapore. Nippon Petrochemicals, formerly an IPA producer, was
merged with Nippon Oil Corporation in 2006. Nippon Oil Corporation increased its production capacity
from 75 thousand metric tons to 85 thousand metric tons in October 2008.

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SALIENT STATISTICS

The following table presents Japanese supply and demand for isopropyl alcohol:

Japanese Supply/Demand for Isopropyl Alcohol


(thousands of metric tons)
Apparent
Production Importsa Exportsa Consumption

1993 121.8 34.7 14.3 142.2


1994 129.6 30.3 20.5 139.4

1995 132.4 35.9 21.0 147.3


1996 141.1 38.4 31.9 147.6
1997 132.6 47.8 19.9 160.5
1998 150.8 30.9 32.9 148.8
1999 156.4 30.2 31.8 154.8

2000 171.8 31.4 41.5 161.7


2001 161.3 29.2 34.2 156.3
2002 173.1 29.7 51.0 151.8
2003 181.8 26.3 49.8 158.4
2004 176.7 26.6 38.5 164.8

2005 185.2 17.5 38.6 164.0


2006 170.5 32.2 39.0 163.8
2007 188.1 23.6 53.9 157.8
2008 152.1 27.7 31.3 148.5

a. Includes a small amount of n-propyl alcohol.

SOURCES: (A) Yearbook of Chemical Industries Statistics, Ministry of


International Trade and Industry (data for PRODUCTION
for 1993-1998).

(B) Yearbook of Chemical Industries Statistics, Ministry of


Economy, Trade and Industry (data for PRODUCTION
for 1999-2008).

(C) Japan Imports & Exports, Japan Tariff Association (data


for IMPORTS and EXPORTS).

CONSUMPTION

The following table presents Japanese consumption of isopropyl alcohol:

 2009 by the Chemical Economics Handbook—SRI Consulting


June 2009 ISOPROPYL ALCOHOL Isopropyl Alcohol
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Japanese Consumption of Isopropyl Alcohol


2008 2013 Average Annual
Growth Rate,
Thousands of Percent of Thousands of 2008-2013
Metric Tons Total Metric Tons (percent)

Printing Inks 41 28 43 1.0


Coatings 35 24 35 0.0
Industrial Cleaners 28 19 29 0.7
Pharmaceuticals 9 6 9 0.0
Raw Material for Organic Synthesis 9 6 9 0.0
Surfactants 6 4 6 0.0
Pesticides 2 1 2 0.0
Other 15 10 16 1.3

Total 145 100% 149 0.5%

SOURCE: CEH estimates.

The following table presents historical Japanese consumption of isopropyl alcohol:

Historical Japanese Consumption of Isopropyl Alcohol


(thousands of metric tons)
2000 2002 2004 2005 2007 2008

Printing Inks 43 42 44 44 43 41
Coatings 37 36 38 37 37 35
Industrial Cleaners 29 25 29 29 30 28
Pharmaceuticals 11 10 11 11 10 9
Raw Material for Organic Synthesis 10 8 9 9 9 9
Surfactants 7 6 6 6 6 6
Pesticides 2 2 2 2 2 2
Other 17 16 17 16 16 15

Total 156 145 156 154 153 145

SOURCES: (A) Japanese Research Company (data for 2000-2005).

(B) CEH estimates (data for 2007 and 2008).

Of total consumption in 2008, isopropyl alcohol consumed in printing inks accounted for the largest
amount (28%). Consumption is expected to increase slightly in the next five years.

Consumption of IPA for industrial cleaners was approximately 28 thousand metric tons in 2008. More
than 70% of this consumption is high-purity isopropyl alcohol for precision cleaning in the
electrical/electronic market, particularly the semiconductor and flat panel display industries. Consumption
in this area is expected to be modest at best because of the shift in overseas production in the
electrical/electronic industry.

Consumption of isopropyl alcohol for pharmaceuticals, as raw material for organic synthesis, and for
surfactants and pesticides, has mostly been stable since 1995 and will remain the same through 2013.

Overall, consumption of isopropyl alcohol in Japan is expected to remain almost the same during 2008-
2013.

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PRICE

Japanese market prices and unit sales values for isopropyl alcohol are listed in the table below.

Japanese Market Price and Unit Sales Value for Isopropyl Alcohol
Market Price Unit Sales Value

Yen per Dollars per Yen per Dollars per Exchange Rate
Kilogram Kilogram Kilogram Kilogram (yen per dollar)

1995 100 1.06 121 1.29 94


1996 105 0.96 123 1.13 109
1997 115 0.95 132 1.09 121
1998 115 0.88 130 0.99 131
1999a 125 1.10 116 1.02 114

2000 110-120 1.02-1.11 125 1.16 108


2001 110-120 0.91-0.99 132 1.09 121
2002 90-100 0.72-0.80 129 1.03 125
2003 110-120 0.95-1.03 133 1.15 116
2004 140-150 1.30-1.39 139 1.29 108

2005 140-150 1.27-1.36 149 1.36 110


2006 160-170 1.38-1.47 122 1.05 116
2007 170-180 1.44-1.53 120 1.02 118
2008a 200-210 1.94-2.04 133 1.29 103

a. Data are for first quarter to third quarter.

SOURCES: (A) Yearbook of Chemical Industries Statistics, Ministry of International Trade


and Industry (data for UNIT SALES VALUE).

(B) CEH estimates (all other data).

The price for isopropyl alcohol has changed, in principle, in line with that for propylene, which is a raw
material that accounts for a major portion of the production cost since 1995. The price for high-purity
IPA, which is used mostly for precision cleaning in the electrical/electronic industry, is estimated to be a
little more than twice the price for standard IPA.

TRADE

The following table presents Japanese trade in isopropyl alcohol:

 2009 by the Chemical Economics Handbook—SRI Consulting


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Japanese Trade in Isopropyl Alcohol


(thousands of metric tons)
Importsa Exportsa Net Exports

1993 34.7 14.3 –20.4


1994 30.3 20.5 –9.8

1995 35.9 21.0 –14.9


1996 38.4 31.9 –6.5
1997 47.8 19.9 –27.9
1998 30.9 32.9 2.0
1999 30.2 31.8 1.6

2000 31.4 41.5 10.1


2001 29.2 34.2 5.0
2002 29.7 51.1 21.4
2003 26.3 49.8 23.5
2004 26.6 38.5 11.9

2005 17.5 38.6 21.1


2006 32.2 39.0 6.8
2007 23.6 53.9 30.3
2008 27.7 31.3 3.5

a. Trade code # 2905.120.00; includes a small


amount of n-propyl alcohol.

SOURCE: Japan Imports & Exports, Japan Tariff


Association.

Japan had been a net importer of isopropyl alcohol until it increased capacity in 1997 and 1998. In recent
years, the major importers have been the United States and Singapore. Major export destinations are
Singapore, Malaysia, the Republic of Korea, Taiwan, China, Indonesia and Thailand.

OTHER ASIA

The following table presents other Asian producers of isopropyl alcohol:

Other Asian Producers of Isopropyl Alcohol


Annual Capacity
as of March 2009
Company and (thousands of
Plant Location metric tons) Remarks

China

PetroChina Jinzhou Petrochemical Company


Jinzhou Refinery
Jinzhou, Liaoning 100 Propylene; direct hydration.

Shandong Dongying Haike Xinyuan Chemical


Co., Ltd.
Dongying, Shandong 30 Started up at the end of 2005.

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Other Asian Producers of Isopropyl Alcohol (continued)


Annual Capacity
as of March 2009
Company and (thousands of
Plant Location metric tons) Remarks

India

Deepak Fertiliser & Petrochemicals Corp. Ltd.


Taloja, Maharashtra 70 Started up in 2006.

Keshava Organics Pvt. Ltd.


Thane Dist., Maharashtra na

Supraveni Chemicals Private Limited


Bangalore, Karnataka na

Korea, Republic of

ISU Chemical Co., Ltd.


Ulsan 30 Acetone; hydrogenation.

LG Chemical Ltd.
Yeosu-si, Jeollanam-do 100 Captive acetone; hydrogenation (55 thousand
metric tons). Captive propylene; direct
hydration (45 thousand metric tons).

Singapore

Shell Eastern Chemicals (Pte.) Ltd.


Pulau Bukom 70 Captive propylene; direct hydration.

Taiwan

Lee Chang Yung Chemical Industry Corp.


Linyuan, Kaohsiung Hsien 110 Propylene; direct hydration.

TASCO Chemical Corporation


Linyuan, Kaohsiung Hsien 20 Started up in 2008.

Total 530

SOURCE: CEH estimates.

● Shandong Dongying Haike Xinyuan Chemical in China started up a new 30 thousand metric ton-
per-year IPA plant at Dongying, Shandong at the end of 2005.

● Deepak Fertiliser & Petrochemicals in India started up a new 70 thousand metric ton-per-year
IPA plant at Taloja, Maharashtra in 2006.

● TASCO Chemical Corporation in Taiwan started up a new 20 thousand metric ton-per-year IPA
plant at Linyuan, Kaohsiung Hsien in 2008.

● ISU Chemical in the Republic of Korea started up a new 30 thousand metric ton-per-year IPA
plant at Ulsan in 2008.

 2009 by the Chemical Economics Handbook—SRI Consulting


June 2009 ISOPROPYL ALCOHOL Isopropyl Alcohol
668.6001 G Page 33

The following table presents other Asian supply and demand for isopropyl alcohol:

Other Asian Supply/Demand for Isopropyl Alcohol —2008


(thousand of metric tons)
Annual
Capacity
(year-end) Production Imports Exports Consumption

China 130 124 100.1 0.8 223.3


India 70 54 29.3 4.8 78.5
Indonesia -- -- 25.6 0.1 25.5
Korea, Republic of 130 66 21.1 25.7 61.4
Malaysia -- -- 17.4 1.9 15.5
Philippines -- -- 15.8 0.0 15.7
Singapore 70 63 44.5 80.7 26.8
Sri Lanka -- -- 2.5 0.0 2.5
Taiwan 130 78 11.4 40.3 49.1
Thailand -- -- 26.9 0.1 26.8

Total 530 385 294.6 154.4 525.1

SOURCE: CEH estimates compiled in association with the World Petrochemicals Program,
SRI Consulting.

China’s current annual capacity is estimated at over 130 thousand metric tons. There are a few small
fermentation plants that can produce IPA, but their production is very small. In 2008, China produced
115-125 thousand metric tons. The consumption of IPA in China in 2008 was approximately 223
thousand metric tons.

The following table presents Chinese consumption of isopropyl alcohol:

Chinese Consumption of Isopropyl Alcohol


2005 2008 2013 Average Annual
Growth Rate,
Thousands of Thousands of Percent of Thousands of Percent of 2008-2013
Metric Tons Metric Tons Total Metric Tons Total (percent)

Direct Solvent 148 168 75 204 75 4.0


Chemical Intermediates 30 33 15 41 15 4.4
Othera 20 22 10 27 10 4.2

Total 198 223 100% 272 100% 4.1%

a. Includes rubbing alcohol, disinfectants, and miscellaneous solvent uses.

SOURCE: CEH estimates.

The following table presents Chinese trade in isopropyl alcohol:

 2009 by the Chemical Economics Handbook—SRI Consulting


June 2009 ISOPROPYL ALCOHOL Isopropyl Alcohol
668.6001 H Page 34

Chinese Trade in Isopropyl Alcohol


(thousands of metric tons)
Imports Exports Net Exports

1998 46.0 4.2 –41.8


1999 55.2 2.3 –52.9

2000 54.6 1.8 –52.8


2001 68.7 1.1 –67.6
2002 76.1 2.0 –74.1
2003 103.3 0.9 –102.4
2004 107.3 2.5 –104.8

2005 111.9 4.6 –107.3


2006 95.8 1.2 –94.6
2007 109.8 1.3 –108.5
2008 100.1 0.8 –99.3

SOURCES: (A) Monthly Statistics of Imports and


Exports, Ministry of Finance, the
Republic of China (data for 1998-
2004).

(B) World Trade Atlas, Global Trade


Information Services, Inc. (data for
2005-2008).

Most imports originate from the United States, Taiwan, Singapore and the Republic of Korea, while the
major export destination is Hong Kong.

The following table presents other Asian consumption of isopropyl alcohol (excluding China):

Other Asian Consumption of Isopropyl Alcohola


2005 2008 2013 Average Annual
Growth Rate,
Thousands of Thousands of Percent of Thousands of Percent of 2008-2013
Metric Tons Metric Tons Total Metric Tons Total (percent)

Direct Solvent 180 238 79 303 79 4.9


Acetone 17 23 7 29 7 4.7
Chemical Intermediates na na na -- -- --
Otherb 31 41 14 52 14 4.9

Total 228 302 100% 384 100% 4.9%

a. Includes India, Indonesia, Republic of Korea, Malaysia, Philippines, Singapore, Sri Lanka, Taiwan and Thailand.

b. Includes household, cosmetic and personal care products; pharmaceutical applications; and other miscellaneous solvent
uses.

SOURCE: CEH estimates.

The Republic of Korea has an annual capacity of 130 thousand metric tons. Its current annual production
is estimated at about 65-70 thousand metric tons and consumption is estimated to be 60-65 thousand
metric tons.

 2009 by the Chemical Economics Handbook—SRI Consulting


June 2009 ISOPROPYL ALCOHOL Isopropyl Alcohol
668.6001 I Page 35

The following table presents Republic of Korea trade in isopropyl alcohol:

Republic of Korea Trade in Isopropyl Alcohol


(thousands of metric tons)
Imports Exports

For Making For Making Net


Semiconductorsa Otherb Total Semiconductorsa Otherb Total Exports

1995 -- -- 18.5 -- -- 11.7 –6.8


1996 2.1 18.7 20.8 0.0 12.4 12.4 –8.4
1997 1.4 19.1 20.5 0.1 14.4 14.5 –6.0
1998 1.0 13.8 14.8 0.1 10.9 11.0 –3.8
1999 0.3 21.8 22.1 0.2 8.7 8.9 –13.2

2000 0.1 24.9 25.0 neg 7.7 7.7 –17.3


2001 0.1 24.0 24.1 neg 6.5 6.5 –17.6
2002 0.1 33.4 33.5 neg 5.5 5.5 –28.0
2003 0.1 29.3 29.4 0.1 6.9 7.0 –22.4
2004 neg 33.8 33.8 neg 5.0 5.0 –28.8

2005 neg 27.4 27.4 0.1 4.1 4.2 –23.2


2006 0.6 28.2 28.7 0.1 2.0 2.2 –26.5
2007 1.4 35.8 37.2 0.2 9.1 9.4 –27.8
2008 0.2 20.9 21.1 0.2 25.5 25.7 4.6

a. Trade code # 2905.12.2000 for 1995 and # 2905.12.2010 for 1996-2008.

b. Trade code # 2905.12.2000 for 1995 and # 2905.12.2090 for 1996-2008.

SOURCES: (A) Statistical Yearbook of Foreign Trade, Korea Customs Service (data for 1995-
2004).

(B) World Trade Atlas, Global Trade Information Services, Inc. (data for 2005-2008).

Imports of high-purity isopropyl alcohol have been very small since 1996, in line with government policy
to favor the use of domestic products. The Republic of Korea imports standard IPA, mainly from the
United States, Japan, South Africa and Singapore, while considerable exports go to China, Thailand and
Indonesia.

Taiwan, which has an annual capacity of 130 thousand metric tons, was a net importer until 1997. In
2008, IPA production in Taiwan was approximately 75-80 thousand metric tons. Its current annual
consumption is estimated at approximately 45-50 thousand metric tons. The consumption of high-purity
IPA is expected to grow, reflecting the increasing production of electrical/electronic parts.

The following table presents Taiwanese trade in isopropyl alcohol:

 2009 by the Chemical Economics Handbook—SRI Consulting


June 2009 ISOPROPYL ALCOHOL Isopropyl Alcohol
668.6001 J Page 36

Taiwanese Trade in Isopropyl Alcohol


(thousands of metric tons)
Imports Exportsa Net Exports

1995 15.0 9.1 –5.9


1996 13.4 11.9 –1.5
1997 14.9 25.6 10.7
1998 12.9 24.9 12.0
1999 14.6 32.0 17.4

2000 18.8 28.1 9.3


2001 17.3 35.9 18.6
2002 15.6 36.5 20.9
2003 21.7 32.9 11.2
2004 20.4 30.3 9.9

2005 16.8 35.4 18.5


2006 19.7 43.3 23.7
2007 15.1 51.2 36.1
2008 11.4 40.3 28.9

a. Trade code # 2905.12.2000.

SOURCES: (A) Monthly Statistics of Imports and


Exports, Ministry of Finance, the
Republic of China (data for 1995-
1998).

(B) World Trade Atlas, Global Trade


Information Services, Inc. (data for
1999-2008).

Most imports originate from the United States and Japan, while major export destinations include China,
the United States, India and Singapore.

BIBLIOGRAPHY

The following references are suggested for supplemental reading:

“French Firm Mulls Isopropyl Alcohol Unit,” Chemweek’s Business Daily, October 31, 2007, p. 8.

“Shell to Close Deer Park Solvents Operations by November 1,” Platts Petrochemical Report, June 20,
2008, p. 1.

 2009 by the Chemical Economics Handbook—SRI Consulting

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