In the longer term, Asia will become the world's fastest growing demand for propylene glycol, with an average annual growth rate of about 6% to 7%, and the new planning project will be mainly concentrated in Asia.
Prior to the economic recession, the annual growth rate of propylene glycol in Europe was 2% to 2.5%, and the supply and demand in the European market are now balanced. The US pharmaceutical grade propylene glycol (USP) market remained stable. Due to the severe weather conditions in Europe, deicing and antifreeze industry demand has picked up. Before the economic recession, the annual growth rate of propylene glycol in the United States was about 2%, of which the average annual growth rate of unsaturated polyester resin industry was 1.5%, and the average annual growth rate of demand in the personal care sector was about 2.5%.
In terms of new installations, China Zhenhai Refining and Leander Company invested 100,000 tons/year of propylene glycol units in Zhejiang, and Thai Siam Cement Group plans to build new projects for propylene glycol and propylene oxide in Thailand. Dow Chemical is also considering a joint venture with Saudi Aramco in Saudi Arabia to build a propylene glycol plant. In addition, with the maturation of biodiesel in the international market, commercial production of bio-based propylene glycol from glycerin raw materials has become a major trend. Huntsman will manufacture bio-based propylene glycol at its process development facility in Conroe, Texas, USA. The company currently has a 66,000-ton/year propylene glycol unit in Texas. Archer Daniel (ADM) will use a 100,000 metric ton/year propylene glycol unit based on glycerol and sorbitol in Decatur, Illinois this year. Ashland Chemical - Cargill's joint venture in Europe, 65,000 tons / year of propylene glycol project will delay the use of propylene glycol.
Propylene glycol (PG) is mainly used in the manufacture of unsaturated polyester resins (UPRs), deicing and antifreeze, food industry coolants, non-ionic detergents, plasticizers and hydraulic brake fluids. In addition, it is an excellent solvent and extractant and can act as a moisturizer. According to statistics, the global propylene glycol production capacity in 2008 was 2 million tons/year. The largest producer is Dow Chemical Co., which has a production capacity of 565,000 tons/year, accounting for about one-third of the world's total production capacity, followed by Leandel, with a capacity of 540,000 tons/year, accounting for 24%. In 2008, global demand for propylene glycol was 1.55 million tons. Unsaturated polyester resin (UPR) is the largest end-user of propylene glycol.