Propylene is one of the major building blocks of the petrochemical industry. It is also known as propene. Propylene is typically obtained via two main routes one of them is as a co-product of the refinery catalytic cracking process used to make gasoline other one is as a co-product of the steam cracking process used to make ethylene. A variety of techniques may be used for preparing propylene directly from other feedstock. The most common of these on-purpose process routes are propane dehydrogenation and metathesis. Crude oil prices determine the propylene market in Southeast Asia as it is the primary source for its production. As the crude oil prices are capricious in nature it is creating pandemonium in propylene market in terms of production, demand, supply, exports and imports.
Propylene is mainly produced from refineries as their byproduct through steam cracking in Southeast Asia. New on purpose technologies such as propane dehydrogenation which converts propane to propylene are in emerging stages currently in the region. The total market revenue for propylene market in Southeast Asian region was estimated to be $ 7111.9 mn in 2017 it is expected to grow at CAGR of 18% till 2023.
What is Propylene?
Propylene is a colorless organic gas with faint odor similar to that of petroleum products. It is highly extinguishable and can be easily ignited and may even cause explosion. The vapors are heavier than air. Any leak can either be liquid or vapor. For shipping from one place to another it is converted into a liquefied gas under its own vapor pressure and then transported by containers or pipelines. Upon coming in contact with the liquid the person can get frostbite hence it needs to be handled very carefully. It can asphyxiate by the displacement of air. Under prolonged exposure to fire or intense heat the containers may rupture violently and burst. It is used to make other chemicals which include polymer i.e. polypropylene which is plastic substitute.
What are the major applications for Propylene in Southeast Asia?
The organic chemicals such as polypropylene, acrylonitrile, propylene oxide, and oxo alcohols use propylene as a raw material in their production processes. It is also applied for producing large variety of other industrial products after being converted to derivatives. 80% of the propylene in Southeast Asia is used for the production of polypropylene itself which is further used in wide range of applications including injection molding for 3D printing techniques.
Propylene is used as raw material for processing the chemicals which are required in various end use industries including medical, automotive and building. Propylene is an alternative to propane for heating and cutting due to its superior combustion performance. Propylene is used on a large scale as a fuel gas for high-velocity oxygen fuel (HVOF) processes.
Market Research and Market Trends of Propylene Southeast Asia Ecosystem
- Latest developments in shale gas technology along with abundant availability of coal-based technologies, and continuous reduction crude oil prices in the Middle East are expected to impact the petrochemical industry and hence there is an associated impact expected on the demand of polypropylene also. The usage of naphtha compound by manufacturers has undergone a downfall recently. Significant volumes from shale gas and other sources are being produced along with ethane and propane.
- Ethylene steam cracking process and OCT techniques for the production of polymer propylene are being developed by Lummus Technology which has production plants worldwide. The process have unmatched performance, including high product yield and energy-efficiency and have low investment cost and operating reliability. There is an expected increase in consumption of acrylonitrile for manufacturing electronic gadgets, automobiles and home appliances especially in emerging economies of Southeast Asia.
- Southeast Asian countries include India, Malaysia, Taiwan, which are still developing and consequently there has been a tremendous growth in automotive, electronics, packaging and construction sectors in these areas. Market in Southeast Asia faces oversupply of propylene currently and most of it is exported to European countries but in future it is expected to get short due to highly increasing demand.
- Hydrogenolysis is an innovative catalytic process used by proprietary Archer Daniels Midland Glycols technology to readily convert glycerin into propylene glycol. This glycerol is renewable and sustainable glycerol which is a byproduct in the production of biodiesel from vegetable oils. It is then cleaned and sold or used as raw material in the production of propylene glycol. The process of converting glycerol to propylene glycol is an environmental friendly simple chemical reaction without the use of any environmentally hazardous chemicals. It uses only water for solvent.
- After being processed into derivatives, propylene is found in durable goods (cars and furniture), packaging and infrastructure (buildings and houses), and therefore its demand is connected firmly with the general economy. In Southeast Asian nations where the improvement in living standards and growing urbanization are driving there has been increasing use of a broad spectrum of polymers and chemicals. Unconventional techniques will be used for production in future to meet the supply demands of market.
Who are the Major Players in Propylene Southeast Asia market?
The players profiled in the report include HMC Polymers Co Ltd, IRPC Public Company Limited, Petrochemical Corporation of Singapore (Private) Limited, Petroliam Nasional Berhad (Petronas), PT Chandra Asri Petrochemical Tbk Filtro PTE. Ltd., DELTA EXPORTS PTE LTD, HANTON TRADING PTE. LTD., BRISYNERGY PTE. LTD, PERFECT POTION PTE. LTD.
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