Published November 2024
Epichlorohydrin (ECH) is an intermediate chemical used in the production of epoxy resins (about 90% of the total global market), synthetic glycerin, epichlorohydrin elastomers, specialty water treatment chemicals, wet-strength resins for paper production, and surfactants. Little synthetic glycerin is produced, as abundant supplies are available as by-products from biodiesel production.
Mainland China continued to substantially expand its epichlorohydrin capacity in the past decade, now accounting for nearly 60% of global nameplate capacity. Dow Chemical divested its global epichlorohydrin and epoxy resins businesses in 2015, along with certain other related operations, to Olin. However, Dow still retains its attractive value-added downstream operations. The other large, long-standing, Western-based producers are Hexion (now Westlake) and Huntsman; both have scaled back commodity-based operations in recent years and are instead focusing on value-added downstream specialty operations.
The traditional petrochemical process for making epichlorohydrin consumes propylene and chlorine, but there has been increased commercialization of biorenewable, glycerin-based epichlorohydrin capacity, specifically glycerin derived as a by-product from the manufacture of biodiesel. Operating rates of the glycerin-based plants have increased in recent years due to the greater supplies of glycerin at competitive pricing and the drive for more ecologically sound processes. During 2020–24, mainland China’s epichlorohydrin industry expanded by over 1 million metric tons annually, of which the glycerin process accounted for 75%. The remaining capacity utilized hydrogen peroxide process — a unique approach developed and commercialized by mainland Chinese firms that reduces chlorine consumption and improves wastewater treatment.
The following pie chart shows world consumption of epichlorohydrin by major region:
Global consumption of epichlorohydrin is expected to grow at an average annual rate of nearly 3% during 2024–29, driven primarily by the production of epoxy resin. The fastest-growing markets will continue to be in Asia, particularly mainland China and India.
In their cured form, epoxy resins possess outstanding properties, including toughness, resistance to moisture and chemicals, high tensile strength and good dielectric properties. They are used in a variety of applications. Protective coatings are the largest market, accounting for 45%-50% of total consumption; other large markets are electrical/electronics, construction, composites, and adhesives.
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S&P Global’s Chemical Economics Handbook – Epichlorohydrin is the comprehensive and trusted guide for anyone seeking information on this industry. This latest report details global and regional information, including
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S&P Global’s Chemical Economics Handbook – Epichlorohydrin has been compiled using primary interviews with key suppliers and organizations, and leading representatives from the industry in combination with S&P Global’s unparalleled access to upstream and downstream market intelligence and expert insights into industry dynamics, trade, and economics.
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