The latest report titled “Report on Ethylene Oxide Production Cost” by Procurement Resource, a global procurement research and consulting firm, provides an in-depth cost analysis of the production process of Ethylene Oxide.
Procurement Resource study is based on the latest prices and other economic data available. It also offers additional analysis of the report with detailed breakdown of all cost components (capital investment details, production cost details, economics for another plant location, dynamic cost model). In addition, the report incorporates the production process with detailed process and material flow, capital investment, operating costs along with financial expenses and depreciation charges.
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Procurement Resource’s detailed report describes the stepwise consumption of material and utilities along with a detailed process flow diagram. Furthermore, the study assesses the latest developments within the industry that might influence Ethylene Oxide production cost, looking into capacity expansions, plant turnarounds, mergers, acquisitions, and investments.
Procurement Resource Assessment of Ethylene Oxide Production Process:
1. Ethylene Oxide Production Cost From Catalytic Reaction Between Ethylene and Oxygen: This report gives a summary of the production process and expense assessment for ethylene glycol industrial production in a ethylene glycol manufacturing plant. This method involves the utilization of silver metal as a catalyst to react ethylene and oxygen in a reactor. This reaction produces ethylene oxide, water, carbon dioxide, as well as heat. Then, these produced gases are cooled and scrubbed with water and potassium carbonate solution. This process dissolves ethylene oxide, which is then extracted from the solution by distillation.
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2. Ethylene Oxide Production Cost From Ethylene: This report provides an overview of the production process of and expense evaluation of ethylene glycol industrial production across ethylene glycol manufacturing plant. In this method, ethylene and oxygen are reacted with each other in a reactor at temperatures ranging from 200 to 300 degrees Celsius. Further, the obtained product undergoes cooling and scrubbing by using potassium carbonate as well as water. Lastly, ethylene oxide is separated from the solution via a desorption and distillation process.
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Product Definition:
Ethylene glycol is a chemical compound represented by the formula HOCH2CH2OCH2OH. This compound is a colorless and odorless thick liquid that has low toxicity. Ethylene glycol has various applications, including automobile and textile industries. Additionally, it has three types, namely Monoethylene Glycol (MEG), Diethylene Glycol (DEG), and Triethylene Glycol (TEG). MEG has numerous applications, such as being a chemical intermediate in the production of other chemicals like polyurethanes and phthalate plasticizers. It can also be used as a coolant and heat-transfer agent, antifreeze, precursor to polymers, among others. DEG, on the other hand, is an organic compound used mainly as a precursor to polymers and as a solvent. However, DEG is toxic and can cause damage to the kidneys, liver, and central nervous system. It can also irritate the skin. Lastly, TEG is a colorless and thick liquid that is soluble in water and has a sweet taste.
Market Drivers:
Ethylene oxide is a significant industrial chemical, primarily used as an intermediate in the production of other chemicals and as a sterilant for medical equipment and supplies. The market drivers for ethylene oxide are influenced by several factors, including:
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Demand for Downstream Products: Ethylene oxide is a precursor to producing ethylene glycol (used in antifreeze and polyester production) and other derivatives like surfactants and ethanolamines (used in detergents and personal care products). The demand in these downstream markets significantly influences ethylene oxide production.
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Global Economic Growth: As a basic chemical, the production and consumption of ethylene oxide are closely tied to overall economic activity, particularly in industries like automotive, textile, and construction, which use products derived from ethylene oxide.
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Technological Advancements: Innovations that lead to more efficient production processes or new applications for ethylene oxide and its derivatives can drive market growth.
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Regulatory Impact: Ethylene oxide is a hazardous material, and its handling, storage, and disposal are subject to strict regulatory controls. Changes in environmental regulations can impact production costs and market dynamics.
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Supply Chain Dynamics: The availability and price of raw materials (primarily ethylene) and energy costs are crucial in determining ethylene oxide production costs. Fluctuations in these areas can affect market prices and availability.
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Healthcare Industry Growth: As a sterilant, ethylene oxide’s use in the healthcare industry for sterilizing medical equipment and supplies is significant. Growth in healthcare services, particularly in emerging markets, can drive demand.
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Geopolitical Factors and Trade Policies: International trade dynamics and geopolitical tensions can affect the global supply chain of ethylene and ethylene oxide, impacting prices and availability in various regions.
Understanding these drivers is crucial for stakeholders in the chemical industry to anticipate shifts in the market and adjust their strategies accordingly.
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