Propylene Oxide Market

The article discusses the increasing demand for methyloxirane (propylene oxide) globally, with consumption expected to rise steadily over the next eight years. The market performance is forecasted to decelerate, with a projected CAGR of +0.0%, reaching 2.4M tons by 2030. The market value is also expected to increase, reaching $4.7B by 2030. The Netherlands is the largest consumer and exporter of propylene oxide, while Belgium, China, and Germany are significant importers. Global production and export prices have shown fluctuations over the years, with some countries experiencing growth in value terms. Overall, the market for propylene oxide is dynamic and influenced by various factors such as consumption patterns, production trends, and import/export dynamics.

Market Forecast

Driven by increasing demand for methyloxirane (propylene oxide) worldwide, the market is expected to continue an upward consumption trend over the next eight-year period. Market performance is forecast to decelerate, expanding with an anticipated CAGR of +0.0% for the period from 2022 to 2030, which is projected to bring the market volume to 2.4M tons by the end of 2030.

In value terms, the market is forecast to increase with an anticipated CAGR of +1.8% for the period from 2022 to 2030, which is projected to bring the market value to $4.7B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Methyloxirane (Propylene Oxide)

In 2022, the amount of methyloxirane (propylene oxide) consumed worldwide fell to 2.4M tons, declining by -1.8% against the previous year. Over the period under review, the total consumption indicated a temperate expansion from 2012 to 2022: its volume increased at an average annual rate of +3.7% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +50.4% against 2016 indices. As a result, consumption attained the peak volume of 2.5M tons, and then fell slightly in the following year.

The global propylene oxide market value expanded markedly to $4.1B in 2022, surging by 9.6% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). In general, the total consumption indicated a noticeable expansion from 2012 to 2022: its value increased at an average annual rate of +3.5% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, consumption increased by +69.8% against 2020 indices. Global consumption peaked in 2022 and is likely to see steady growth in the near future.

Consumption By Country

The Netherlands (670K tons) remains the largest propylene oxide consuming country worldwide, comprising approx. 28% of total volume. Moreover, propylene oxide consumption in the Netherlands exceeded the figures recorded by the second-largest consumer, China (292K tons), twofold. The third position in this ranking was held by Thailand (251K tons), with a 10% share.

From 2012 to 2022, the average annual growth rate of volume in the Netherlands stood at +24.6%. In the other countries, the average annual rates were as follows: China (-5.5% per year) and Thailand (+10.5% per year).

In value terms, the Netherlands ($913M), Singapore ($661M) and China ($416M) were the countries with the highest levels of market value in 2022, with a combined 49% share of the global market.

In terms of the main consuming countries, Singapore, with a CAGR of +611.0%, recorded the highest growth rate of market size over the period under review, while market for the other global leaders experienced more modest paces of growth.

In 2022, the highest levels of propylene oxide per capita consumption was registered in the Netherlands (38 kg per person), followed by Belgium (9.2 kg per person), Singapore (8.9 kg per person) and Taiwan (Chinese) (4.4 kg per person), while the world average per capita consumption of propylene oxide was estimated at 0.3 kg per person.

From 2012 to 2022, the average annual rate of growth in terms of the propylene oxide per capita consumption in the Netherlands stood at +24.1%. The remaining consuming countries recorded the following average annual rates of per capita consumption growth: Belgium (-1.5% per year) and Singapore (+486.8% per year).

Production

World Production of Methyloxirane (Propylene Oxide)

In 2022, the amount of methyloxirane (propylene oxide) produced worldwide declined modestly to 2.4M tons, waning by -3.9% against 2021 figures. In general, the total production indicated a perceptible expansion from 2012 to 2022: its volume increased at an average annual rate of +4.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +50.5% against 2017 indices. The most prominent rate of growth was recorded in 2021 when the production volume increased by 42% against the previous year. As a result, production reached the peak volume of 2.5M tons, and then shrank slightly in the following year.

In value terms, propylene oxide production amounted to $3.9B in 2022 estimated in export price. Over the period under review, the total production indicated a measured expansion from 2012 to 2022: its value increased at an average annual rate of +4.0% over the last decade. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2022 figures, production increased by +87.3% against 2016 indices. The most prominent rate of growth was recorded in 2021 with an increase of 55% against the previous year. Global production peaked in 2022 and is expected to retain growth in years to come.

Production By Country

The countries with the highest volumes of production in 2022 were the Netherlands (774K tons), Thailand (389K tons) and Saudi Arabia (308K tons), with a combined 61% share of global production.

From 2012 to 2022, the biggest increases were recorded for the Netherlands (with a CAGR of +18.6%), while production for the other global leaders experienced more modest paces of growth.

Imports

World Imports of Methyloxirane (Propylene Oxide)

In 2022, approx. 1.3M tons of methyloxirane (propylene oxide) were imported worldwide; shrinking by -15.9% against 2021. In general, imports saw a pronounced slump. The growth pace was the most rapid in 2014 with an increase of 11% against the previous year. As a result, imports attained the peak of 2M tons. From 2015 to 2022, the growth of global imports remained at a lower figure.

In value terms, propylene oxide imports reduced rapidly to $2.2B in 2022. Over the period under review, imports showed a perceptible descent. The pace of growth appeared the most rapid in 2021 with an increase of 37% against the previous year. Global imports peaked at $3.7B in 2014; however, from 2015 to 2022, imports remained at a lower figure.

Imports By Country

The purchases of the four major importers of methyloxirane (propylene oxide), namely China, the Netherlands, Belgium and Germany, represented more than two-thirds of total import. It was distantly followed by Taiwan (Chinese) (105K tons), making up a 7.8% share of total imports. The following importers - South Korea (50K tons) and Mexico (28K tons) - together made up 5.8% of total imports.

From 2012 to 2022, the biggest increases were recorded for Taiwan (Chinese) (with a CAGR of +1.4%), while purchases for the other global leaders experienced mixed trends in the imports figures.

In value terms, the largest propylene oxide importing markets worldwide were Belgium ($472M), China ($426M) and Germany ($348M), together comprising 57% of global imports.

Among the main importing countries, Belgium, with a CAGR of +1.4%, saw the highest rates of growth with regard to the value of imports, over the period under review, while purchases for the other global leaders experienced a decline in the imports figures.

Import Prices By Country

The average propylene oxide import price stood at $1,633 per ton in 2022, remaining stable against the previous year. Over the period under review, the import price recorded a relatively flat trend pattern. The most prominent rate of growth was recorded in 2021 when the average import price increased by 33%. Global import price peaked at $1,840 per ton in 2014; however, from 2015 to 2022, import prices failed to regain momentum.

There were significant differences in the average prices amongst the major importing countries. In 2022, amid the top importers, the country with the highest price was Germany ($2,033 per ton), while the Netherlands ($1,311 per ton) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Belgium (+0.4%), while the other global leaders experienced mixed trends in the import price figures.

Exports

World Exports of Methyloxirane (Propylene Oxide)

In 2022, approx. 1.3M tons of methyloxirane (propylene oxide) were exported worldwide; waning by -18.7% against 2021 figures. Over the period under review, exports saw a pronounced decline. The most prominent rate of growth was recorded in 2014 when exports increased by 11% against the previous year. As a result, the exports reached the peak of 1.9M tons. From 2015 to 2022, the growth of the global exports remained at a lower figure.

In value terms, propylene oxide exports reduced rapidly to $2.1B in 2022. In general, exports showed a pronounced downturn. The pace of growth was the most pronounced in 2021 when exports increased by 49%. Over the period under review, the global exports hit record highs at $3.5B in 2014; however, from 2015 to 2022, the exports failed to regain momentum.

Exports By Country

In 2022, the Netherlands (361K tons), distantly followed by Saudi Arabia (192K tons), Belgium (147K tons), Thailand (145K tons), Germany (143K tons), the United States (122K tons), France (89K tons) and South Korea (64K tons) represented the key exporters of methyloxirane (propylene oxide), together creating 94% of total exports.

From 2012 to 2022, the biggest increases were recorded for South Korea (with a CAGR of +25.4%), while shipments for the other global leaders experienced more modest paces of growth.

In value terms, the Netherlands ($671M) remains the largest propylene oxide supplier worldwide, comprising 32% of global exports. The second position in the ranking was taken by Saudi Arabia ($284M), with a 14% share of global exports. It was followed by Germany, with a 10% share.

In the Netherlands, propylene oxide exports remained relatively stable over the period from 2012-2022. The remaining exporting countries recorded the following average annual rates of exports growth: Saudi Arabia (-3.0% per year) and Germany (-7.9% per year).

Export Prices By Country

In 2022, the average propylene oxide export price amounted to $1,547 per ton, with a decrease of -5.7% against the previous year. In general, the export price continues to indicate a mild slump. The most prominent rate of growth was recorded in 2021 an increase of 34% against the previous year. The global export price peaked at $1,839 per ton in 2013; however, from 2014 to 2022, the export prices stood at a somewhat lower figure.

Average prices varied somewhat amongst the major exporting countries. In 2022, major exporting countries recorded the following prices: in the Netherlands ($1,858 per ton) and the United States ($1,657 per ton), while Thailand ($1,251 per ton) and France ($1,278 per ton) were amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the Netherlands (-0.2%), while the other global leaders experienced a decline in the export price figures.

Source: IndexBox Market Intelligence Platform