PO, Propylene glycol show strength, but new capacity darkens the outlook. (propylene oxide, 1997 forecast)

Chemical Market Reporter, February, 1997 by Hoffman, John

PROPYLENE GLYCOL and propylene oxide are enjoying strong demand, though both are being pressured by rising feedstock costs. Producers expect 1997 to be a solid year once propylene prices ease, but expansions and acquisitions will restructure the market by the end of the decade. Arco Chemical Company is adding capacity in the US and opening a massive grassroots plant in Europe, and Dow Chemical Company is greatly expanding its worldwide operations.

In addition, Huntsman Corporation has bought Texaco Inc.'s propylene oxide and methyl tert-butyl ether businesses for nearly $600 million, and Olin Corporation is looking to sell its Doe Run facility in Brandenburg, Ky., including its propylene glycol operations. "The propylene glycol market is...

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