MEG demand up in China

FOCUS data from AISE. Based on this figure and the most-recent market data from AISE, sales of fabric conditioners in the EU25 plus Norway and Switzerland totalled about €2.13 bn in 2006. Figures presented by Rainer Jeschke of Henkel at the 2006 Montreux conference back up this estimate, and suggest that global consumption reached at least €5.8 bn in 2005, with the US the largest market at c. €2.2 bn. The US is also among the markets that showed significant growth in demand between 2000 and 2005, as did Mexico, Japan, Italy and Spain, and some developing Asian markets. As the patent record had suggested, Jeschke showed that fabric conditioning is indeed a dynamic sector with a raft of innovations reaching the market in the past 10 years. In 1998, colour care products such as Lenor Care made their appearance, containing amine-based polymers to reduce the effects of oxygen-based bleaches. Easy-iron products with silicone polymers to reduce wrinkles and ‘gliding energy’ followed in 1999, as did clear softeners. By 2002, fabric conditioners not only kept clothes soft but also helped them retain their shape as well. The same year saw the appearance of sensitive softeners to reduce risks for skin allergy sufferers. 2003 saw the launch of products such as Comfort Fast Dry that incorporated specific silicone polymers to enhance water loss during spinning. 2005 was a bumper year with the introduction of products promising to control bacterial and fungal growth, reduce rinsing, remove malodour (by the use of cyclodextrins), and provide longer-lasting fragrance or the benefits of aromatherapy. The latest products even contain optical brighteners and bluing agents to enhance whites. Tablet and encapsulated liquid products have also been introduced to provide softening in the main wash cycle. Looking ahead, Jeschke foresees some threats to the fabric-softening sector, in the shape of garments with special moisture management and stain protection technologies, as well as growth opportunities through ‘intelligent fragrance management’ and ‘new performance solutions’ – innovations to look out for in the coming years. 2

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As this year draws to a close and the festive season fast approaches, it only remains for me to wish you all a happy Christmas and a successful New Year. Caroline Edser

RAW MATERIALS BASF increases ethylene oxide capacity in Europe for EO derivatives During planned shutdowns scheduled for 2008 and 2009, BASF will be raising ethylene oxide (EO) capacity at its sites in Ludwigshafen and Antwerp. This will increase its European EO production capacity by 140,000 tonnes/year to 845,000 tonnes/y. At Ludwigshafen, 345,000 tonnes/y of EO will be produced, with a further 500,000 tonnes/y produced at Antwerp. When the expansions have been completed, BASF’s Antwerp plant will be the largest EO plant in Europe. BASF mainly produces EO for its own use. The most important derivatives of the chemical are surfactants, ethanolamines (also used in surfactant manufacture), glycol ethers and polyols. EO derivatives are employed in a wide variety of applications from the construction and packaging industries through to automobiles and detergents. The expansions will reinforce BASF’s position as the second-largest producer of EO and the largest producer of EO derivatives in Europe. The company says the extra capacity will enable it to respond to growing demand, especially for EO derivatives, and to ensure that the market is reliably supplied in the medium term. In related news, BASF has raised its ethanolamine prices worldwide by €30/tonne for monoethanolamines, €80/tonne for diethanolamines, and €60/tonne for triethanolamines, or by the corresponding amounts in local currency. These price changes were effective from the end of Sep 2007 or as existing contracts allow. The company says the price adjustment was triggered by strong demand from all market segments and supported by continuously high raw materials

and energy costs. BASF produces ethanolamines at its Ludwigshafen and Antwerp sites. The company also raised prices for methylamines and methylamine derivatives in Europe from Oct to offset significantly increased raw material costs. The increases range from €70/tonne to €285/tonne depending on the product. Among varied uses, methylamines serve as chemical building blocks in the synthesis of detergent raw materials. Press release from: BASF AG, Germany. Website: http://www.basf.com (27 Sep & 5 Oct 2007)

MEG demand up in China China’s monoethylene glycol (MEG) capacity is 2.01 M tonne/y. Major producers include Sinopec Shanghai Petrochemical Co (610,000 tonne/y or 30.3% of the national total); CNOOC and Shell Petrochemicals Co (320,000 tonne/y) and BASF-YPC Co (300 tonne/y). MEG output in 2006 was 1.56 M tonnes (+41.7%). China’s annual MEG output increased steadily from 2001 to 2006. MEG is in short supply in China and imports are needed to meet demand. Imports rose from 1.597 M tonnes in 2001 to 4.061 M tonnes in 2006. New projects planned include a 600,000 tonne/y plant for Sinopec Zhenhai Refining & Chemical Co Ltd, a 360,000 tonne/y plant for CNPC and Chengdu Petrochemical Co Ltd and a 420,000 tonne/y plant for Tianjin Petrochemical, all with start-up dates in 2009. Capacity could rise to 4.3 M tonne/y by 2010. MEG demand rose to 5.6204 M tonnes in 2006 (1.9571 M tonnes in 2000). End uses include polyester production (94%), antifreeze, adhesives, solvents and surfactants. MEG markets are forecast to remain tight till 2010 and imports will still be needed to meet domestic demand. China Chemical Reporter, 6 Oct 2007, 18 (28), 16

SURFACTANTS Air Products launches EnviroGem 360 surfactant for coatings applications Air Products has introduced EnviroGem 360 surfactant for the global architectural and industrial DECEMBER 2007