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Surplus chemical industry overview


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An overview for surplus chemicals industry regarding some tops products.

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Surplus chemical industry overview

  1. 1. Overview of Surplus Chemical Industry Tradeasia International December, 2016
  2. 2. What is Surplus chemicals? ∞ Is there a chemical product that does not have a market for itself ? ∞ Is there a product which has very less demand but supply is on the higher side ?? ∞ Is there a product that is not the principle component of manufacture but an additional compound produced ? ∞ Is there a product which can reclaimed and used again ? ∞ Is there a product after its primary application can still be processed and used in some other industrial / consumer application ? ∞ Is there any product that is of usable quality but not being able to be sold ? ∞ Is there any chemical product that is to be disposed because of environmental impacts and restrictions of even when it can be used ? ∞ Is there any second grade product being produced which has limited applications ?
  3. 3. What is Surplus Chemicals? Surplus chemicals Recycled Excess inventory Reclaimed Second- grade products If your answer is YES to any of the above questions then welcome to the database of SURPLUS CHEMICALS
  4. 4. Overview Top products • Relevant information • Manufacturing process Market Research • Current market • Barriers for developing the market • Future market trends Classification of Surplus Chemicals Top products Market Research
  5. 5. Second grade product By- product chemical Recycled solvents Surplus Chemicals Off spec products Excess inventory chemicals Reprocessed chemicals Classification of Surplus Chemicals
  6. 6. Off – spec chemicals •Chemical products that do not meet the specified or standard requirements. •Considered as same as off – grade chemicals? Second-grade products •The quality is close to the top prime product, but possess lower quality. •Have different applications compared with prime product, cheaper. By –Product chemicals •A product that comes out of a production process in addition to the main product •Can be directly consumed, used as input in another production process. •Recycled chemicals have the function to perform as solvents Classification of Surplus Chemicals Recycled Solvents
  7. 7. By- product chemical • Ferrous Sulphate Heptahydrate (Wastewater Treatment) • Acetone (Solvent, Chemical intermediate) •Crude Glycerine 70% (Chemical intermediates) Excess inventory chemicals • Isopropyl Alcohol (Solvent, Fuel additives) • Carbon black (Pigment, Coloring agent) • Furfural 98.5% (Solvent for Phenolic resins, chemical intermediate) Recycled solvents • Recycled Toluene (solvent in paints, inks and dyes) • Recycled Ethyl Acetate ( Paint and coating formulation) Off Spec chemicals •Carbon Black (pigment, reinforcement filler) •White spirit (mild solvent, paint thinner) Classification of Surplus Chemicals
  8. 8. Relevant Information: • Name: Dimethyl ketone, 2-propanone, Formula :CH3COCH3 • Clear, colorless, volatile liquid with sweet odor. • Both the simplest and most commercially important aliphatic ketone Manufacturing process • Produced via the cumene process • By-product of Phenol production • 0.62 ton of acetone per ton of phenol produced (97%) Application • Solvent for most synthetic fibers and plastics • Manufacturing : Raw material for methyl methacrylate (MMA) and bisphenol-A (BPA) • Medical: Nail polish remover and chemical peeling • Surplus acetone : raw material for IPA production benzene propene oxygen acetone phenol Top products Acetone Why have surplus acetone? • By-product via the cumene process • Acetone market grow slower than phenol market • Huge amount of surplus acetone (2 million tonnes)
  9. 9. 34% 26% 26% 6% 8% 14% Current market Acetone global consumption -2016 Solvent MMA BPA IPA other Current market: • IPA production– 6% of total consumption – main market for surplus acetone • Novapex - 40,000 tonnes/year IPA plant (France) • LG – largest Korea Chemicals company – Acetone-based Future market trend: • Acetone-based IPA industry - 5-6% increasing globally • Led by increasing demand of IPA from South East Asia – semiconductors & end-use product Barriers of developing the market • Device - Access to hydrogen – high cost – only big firm can afford • Sluggish demand of IPA in China – less demand acetone - unit value lower concurrently Market Research
  10. 10. Relevant information • viscous liquid with naturally sweet taste light yellow to dark brown in color • Common name : Glycerol • impure form of refined glycerine Manufacturing process • From Biodiesel root: Transterification • From oleochemcial root: Fats + Sodium hydroxide – glycerol + base (Purer) Top product Crude Glycerine Application • Further refining to refined glycerine • Manufacturing : Raw material for production of polyurethane • Feed industry : Production of animal feed – good source of energy - high absorption rate Triglycerides alcohol Ethyl ester glycerine - Crude glycerine as by-product
  11. 11. Current market Future Trend • Crude Glycerine supply – annual 7% increasing • More biodiesel – more glycerine –unit-price lower • More value-added application : Animal feed stuff, ingredients for human diets – maintain value Market Research • Crude Glycerine – by-product of Biodiesel(2nd grade) • Annual 4 millions tonnes – in 2016 • $240 / tonne – 2016 $900 /tonne – Refined glycerine Barrier of developing the market • Biodiesel – huge excess of crude glycerine – utilized 20% of all crude glycerine – larger amount of surplus – price lower – profit lower
  12. 12. Manufacturing process Natural producing – Mining: pumping water into smaller ponds and allowing it to evaporate. Upon evaporation, sodium sulfate crystals will be precipitated out, and hence isolated and collected. Manufacturing of Viscose Rayon Fiber: Rayon fiber is manufactured by using wood pulp and sodium hydroxide to regenerate cellulose. Through steeping and pressing, SSA are co- produced with Rayon fiber as by-product. Top product Sodium sulfate anhydrous Application • Industrial applications: Adhesives and sealant chemicals, Bleaching agents, Fillers, Finishing agent. • Consumer Applications: Air care products, batteries, cleaning and furnishing care products Manufacture of Methioine: • Glucose/sugars are processed fermentation process to produce Methioine as main product. Sodium sulfate anhydrous are produced as main Product.
  13. 13. Current market: • China – 54% of total consumption – increasing 2-3% annually • Exports from China doubled since 2004 – to US and other Asia countries – 95% total imports with Spain Future market trend: • Global demand 2.1% increasing per year since 2016 • Natural production becoming dominant – increased production in China Market Research Target Countries for customers : USA , France Korea, India, Mexico. Largest markets for sodium sulfate.
  14. 14. Thank you!