ACETIC ACID • VINYL ACETATE

Methanol is one of the world’s major commodity chemicals and a feedstock for chemicals used in many common consumer products. Methanol is made from natural gas and production sites are predominantly located where there are large quantities of cheap gas – often in remote areas and/or associated with oil production. It is easy to transport and is moved around the world in large volumes. Its major derivatives are formaldehyde, acetic acid, MTBE, methyl methacrylate and a variety of chemical intermediates. It also has a whole host of minor uses, including solvents, which are sometimes region-or even country-specific.

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Ethylene is one of the major chemical building blocks and the largest of the olefins (by sales volume). Its main use is as the monomer for various forms of polyethylene. Ethylene is produced by steam cracking, predominantly of naphtha in Europe and Asia, and of ethane in North America and the Middle East. Co-products are propylene and a C4 stream containing butadiene. Ethylene is also used to produce vinyl acetate and as a co-monomer in other types of resin. Although propylene is growing in importance, the demands of the ethylene market still mainly drive the operation of steam crackers.

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Acetic acid is a key chemical intermediate used in a wide spectrum of sectors including the production of paints, adhesives, plastics, synthetic fibers and pharmaceuticals. Acetic acid production is based primarily on the carbonylation of methanol, which is now preferred over historical feedstock such as ethanol, acetaldehyde and ethylene. Global acetic acid demand growth generally follows in line with GDP growth due to its use as a chemical intermediate and in consumer products. More than one-third of acetic acid globally is consumed in the production of vinyl acetate monomer, and other key derivatives include purified terephthalic acid, acetic anhydride, ethyl acetate and butyl acetate.

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Vinyl acetate monomer (VAM) is the largest derivative of acetic acid, accounting for one-third of global acetic acid demand. VAM is a key raw material in the production of paints, coatings, adhesives and other co-monomers. VAM is produced by reacting acetic acid with ethylene in either a fixed-bed or fluid-bed system. Key VAM derivatives include polyvinyl acetate, polyvinyl alcohol, ethylene vinyl acetate, and polyvinyl butyral. Vinyl based paints and emulsions are finding increased use as a substitute for acrylic based systems.

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Ethyl acetate is the largest ester solvent in terms of volume, and a key derivative of acetic acid. Ethyl acetate primarily is produced via esterification of ethanol and acetic acid, or via the Tischenko reaction using acetaldehyde. Ethyl acetate is used in a variety of markets including paints, coatings, gravure ink for flexible packaging, cosmetics and personal care items.

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Acetic anhydride is a part of the acetyls group that includes acetic acid, vinyl acetate monomer (VAM) and ethyl acetate. The primary use for acetic anhydride is in the production of cellulose acetate for acetate tow and acetate flake, although demand for those products is decreasing in most areas outside of China. Acetic anhydride is also used in consumer goods and agricultural products.

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Polyvinyl alcohol is produced from vinyl acetate monomer (VAM). The VAM is first converted to polyvinyl acetate -- itself a commercially traded material used for the manufacture of dispersions or binders for paints. Transesterification or saponification is used to convert polyvinyl acetate to polyvinyl alcohol. Polyvinyl alcohol is used in adhesives manufacture, in film and fibre applications, in textile finishing and as a protective colloid or dispersion agent. Polyvinyl butyral resin and film is the largest consumer of PVOH.

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