U.S. amines demand to grow briskly to 2002

U.S. Amnes Demand Chart [29,320 bytes]

U.S. amines demand will increase at a rate of 4.7%/year to about 2.5 billion lb/year by 2002, according to a recent study released by the Freedonia Group Inc., Cleveland.

The firm estimates the value of this demand increase at $2 billion.

Of all the amines types studied, the most significant demand increase was seen for the more than 200 specialty amines, used in products ranging from lubricants additives to gas-treatment chemicals.

Rising demand

According to the study, demand for these specialty amines will increase 6.6%/year, to an estimated 310 million lb in 2002 from 225 million lb in 1997 (see table, this page). This increase is attributed to these specialty amines' highly reactive chemistry, thus making them prime candidates for development of further new products.

Despite the high cost of developing these new specialty products, says the Freedonia study, the high returns they capture in the marketplace justify producers' investments, in terms of both time and money.

The increases in demand for specialty amines can be seen in the projected increase in the use of pesticides (which use diethanolamine), water treatment polymers, and monoethanolamine and dimethylamine-derived surfactants. For example, demand for alkyl-amines-particularly methylamines-is expected to increase 5.2%/year, reaching a projected 795 million lb/year by 2002. This strong advance is ascribed to the increased use of methyl-amines for solvent production.

According to Freedonia's study, growth in demand for ethanolamines, fatty amines, and ethyleneamines is expected to increase as well, but not as heartily.

Demand for ethanolamines is expected to rise 4.4%/year to 795 million lb/year by 2002, while fatty amines demand is expected to reach 295 million lb, or increase by 3.8%/year during the same time.

Ethyleneamines demand showed the slowest growth, increasing 3.7%/ year to a projected 295 million lb by 2002.

Oil and gas sector

Total amines consumption in the oil and gas market will grow 4.4%/year to 435 million lb/year in 2002. This increase is valued at $345 million.

The increase in consumption shows its greatest gains in the area of gas processing. Between now and 2002, consumption of these amines is expected to increase 4.5%/year to 250 million lb/year.

Various applications in gas processing are seen to contribute greatly to this rise. Some of these uses are considered direct, such as the use of amines to neutralize acidic components, such as sulfur dioxide, hydrogen sulfide, and carbon dioxide.

Less direct uses include the extraction of butadiene from ethylene gas streams using dimethyl formamide solvents.

Imports/exports

Amines producers in the U.S. have an added competitive advantage over non-U.S. producers, according to the study, due to the accessibility of inexpensive raw materials such as alcohols, ammonia, and ethylene oxide.

The amines export market-absorbing 25% of U.S. amines production-is a crucial component of amines demand, says Freedonia. Producers of certain amines products rely even more heavily on the export market.

Imports, however, are not as notable a determinant of U.S. demand, as they comprise only 7% of total demand.