Overview of Surplus Chemical IndustryTradeasia InternationalDecember, 2016

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 ?

What is Surplus Chemicals?

Surplus chemical

s

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

Overview

Top products• Relevant information• Manufacturing processMarket Research • Current market• Barriers for developing the market• Future market trends

Classification of Surplus Chemicals

Top products Market Research

Second

grade produc

t

By-product chemica

l

Recycled

solvents Surplus Chemicals

Off specproduct

s

Excess inventory chemical

s

Reprocessed

chemicals

Classification of Surplus Chemicals

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

RecycledSolvents

By-product chemica

l

• Ferrous Sulphate Heptahydrate (Wastewater Treatment)• Acetone (Solvent, Chemical intermediate)• Crude Glycerine 70% (Chemical intermediates)

Excess inventory chemical

s

• 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

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)

34%

26%

26%

6%8%

Current market Ace-tone global con-sumption -2016

SolventMMABPAIPAother

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-

basedFuture market trend:• Acetone-based IPA industry - 5-6% increasing globally• Led by increasing demand of IPA from South East Asia

–semiconductors & end-use productBarriers 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

Relevant information• viscous liquid with naturally sweet taste

light yellow to dark brown in color• Common name : Glycerol• impure form of refined glycerineManufacturing 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

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

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

anhydrousApplication• 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.

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 SpainFuture 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 , FranceKorea, India, Mexico.Largest markets for sodium sulfate.

Thank you!