DRAFT Phenol

CEH Marketing Research Report
PHENOL
By
Elvira O. Camara Greiner
CEH Marketing Research Reports provide comprehensive analysis, historical data and
forecasts pertaining to the international competitive market environment for chemical
products. Detailed supply and demand data are developed for the United States,
Western Europe and Japan with the cooperation of chemical producers and consumers
worldwide.
Updated information may be available from the following CEH Program services:
z CEH Online—The full text retrieval and update database. Updated monthly.
z CEH CD-ROM—The entire contents of the CEH on one CD-ROM and including CEH
Online updates. Issued quarterly.
z Manual of Current Indicators (MCI)—Updates of statistical data derived from
published sources. Issued semiannually.
z The Economic Environment of the Chemical Industry (EECI)—Economic
indicators that impact the chemical industry; issued quarterly.
z CEH Inquiry Service—SRI Consulting researchers are available to answer your
questions.
U.S.A.—Telephone: 650/859-3900 Fax: 650/859-2182
Zürich—Telephone: 411/283-6333 Fax: 411/283-6330
Tokyo—Telephone: 813/5251-1741 Fax: 813/5251-1754
*1* phenol CEH DRAFT—2 May 17, 2005-EG

TABLE OF CONTENTS
SUMMARY.................................................................................................................................................. 4
INTRODUCTION ........................................................................................................................................ 8
MANUFACTURING PROCESSES............................................................................................................. 9
SYNTHETIC PROCESSES ..................................................................................................................... 9
Cumene Peroxidation............................................................................................................................ 9
Toluene Oxidation .............................................................................................................................. 10
NATURAL RECOVERY ....................................................................................................................... 11
OTHER PROCESSES ............................................................................................................................ 11
Benzene Sulfonation ........................................................................................................................... 12
Chlorobenzene Process ....................................................................................................................... 13
Raschig Process .................................................................................................................................. 14
Benzene via Cyclohexene ................................................................................................................... 14
Direct Oxidation of Benzene .............................................................................................................. 15
Direct Catalytic Conversion of Benzene............................................................................................. 16
SUPPLY AND DEMAND BY REGION ................................................................................................... 16

UNITED STATES .................................................................................................................................. 17
Producing Companies ......................................................................................................................... 17
Salient Statistics.................................................................................................................................. 20
Production........................................................................................................................................... 20
Consumption....................................................................................................................................... 22
Bisphenol A .................................................................................................................................... 25
PF Resins ........................................................................................................................................ 26
Caprolactam .................................................................................................................................... 28
Aniline .............................................................................................Error! Bookmark not defined.
2,6-Xylenol ..................................................................................................................................... 31
Adipic Acid..................................................................................................................................... 31
Salicylic Acid...................................................................................Error! Bookmark not defined.
Alkylphenols................................................................................................................................... 32
p-Nonylphenol ............................................................................................................................ 32
p-Dodecylphenol......................................................................................................................... 33
Other ........................................................................................................................................... 34
Other ............................................................................................................................................... 35
Aryl phosphates .......................................................................................................................... 36
o-Cresol....................................................................................................................................... 36
2,4-D ........................................................................................................................................... 36
Pentachlorophenol....................................................................................................................... 37
Cyclohexanol/cyclohexanone ..................................................................................................... 37
Miscellaneous.............................................................................................................................. 37
Price .................................................................................................................................................... 38
Trade ................................................................................................................................................... 40
CANADA................................................................................................................................................ 42
MEXICO................................................................................................................................................. 43

Consumption....................................................................................................................................... 44
SOUTH AND CENTRAL AMERICA ................................................................................................... 45
Consumption....................................................................................................................................... 46
WESTERN EUROPE ............................................................................................................................. 48
Consumption....................................................................................................................................... 50
Price .................................................................................................................................................... 51
CENTRAL AND EASTERN EUROPE ................................................................................................. 53
Consumption....................................................................................................................................... 55
JAPAN .................................................................................................................................................... 55
Consumption....................................................................................................................................... 56
Price .................................................................................................................................................... 58
OTHER ASIA ....................................................................................................................................... 59
Consumption....................................................................................................................................... 61
OTHER REGIONS ................................................................................................................................. 61
Consumption....................................................................................................................................... 62
BIBLIOGRAPHY....................................................................................................................................... 63

SUMMARY
The following table presents world supply/demand for phenol in 2004:
World Supply/Demand for Phenol—2004

(thousands of metric tons)
Annual Operating
Capacity Rate
(year-end) Production (percent) Imports Exports Consumption
North America
Canada 0 0 -- 162 -- 162
Mexico (42) 0 -- 20 -- 20
United States 2,993 2,650 93a 3 515 2,126
South and Central America 165 140 85 46b -- 186
Western Europe 2,463 2,300 93 1,120c 1,253c 2,167
Central and Eastern Europe 499 332 66 –46b -- 286
Africa 44 40 91 4 30 14
Middle East 0 0 -- 34 -- 34
Japan 974 966 99 1 87 880
Other Asia
China 537 370 69 281 3 648
India 86 80 93 70 5 145
Korea, Republic of 130 121 93 97 7 211
Singapore 250 240 96 15 15 240
Taiwan 540 420 78 22 72 370
Otherd 0 0 -- 249 10 239
Oceania 22 16 73 3 2 17
Total 8,681 7,675 90%e 2,081 1,999 7,745
a. Operating rate is based on an effective capacity of 2,834 thousand metric tons.
b. Datum is reported as net imports.
c. Includes intra-Western European trade.
d. Includes Indonesia, Malaysia, Pakistan, the Philippines, Thailand, Vietnam and the Democratic People’s
Republic of Korea.
e. Operating rate is based on an effective capacity of 8,522 thousand metric tons.
SOURCE: CEH estimates.
Global production of phenol was nearly 7.7 million metric tons in 2004, valued at approximately $7
billion. Global capacity utilization rose to 90% in 2004 from 83% in 2001 because of increased demand
and tighter supply. Phenol prices reached record highs in the fourth quarter of 2004 as a result of rising
feedstock costs and robust demand.

Bisphenol A (BPA) accounted for 40% of global phenol consumption in 2004, followed by phenol-
formaldehyde (PF) resins at 29%. BPA and PF resins are produced in all regions; production of BPA is
more prevalent in developed economies. Other applications for phenol include caprolactam, alkylphenols,
aniline and adipic acid. Phenol consumption for caprolactam and, to a lesser degree, alkylphenols is
limited to mainly the United States and Western Europe. The following table presents world consumption
of phenol by region and end use in 2004:
World Consumption of Phenol by Region and End Use—2004

PF
Bisphenol A Resins Caprolactam Alkylphenols Othera Total
North America
Canada 0 159 0 2 1 162
Mexico 0 12 0 4 4 20
United States 850 650 305 104 217 2,126
South and Central America 20 108 0 6 52 186
Western Europe 928 532 279 100 328 2,167
Central and Eastern Europe 60 110 52 21 43 286
Japan 493 180 0 -- 207 880
Other Asiab 745 555 --c 49 504 1,853
Other Regionsd 10 39 0 0 17 65
Total 3,106 2,345 636 286 1,373 7,745
a. Includes aniline, adipic acid, 2,6-xylenol and other applications. Data may include some phenol consumed for
caprolactam and alkylphenols.
b. Includes China, India, Indonesia, the Republic of Korea, Taiwan, Thailand, Malaysia, Vietnam, the
Democratic People’s Republic of Korea, Singapore, Pakistan and the Philippines.
c. Included in Other.
d. Includes Africa, Middle East and Oceania.
Demand for BPA, PF resins and caprolactam are greatly influenced by general economic conditions. As a
result, demand for phenol largely follows the patterns of the leading world economies. The following
table presents world consumption of phenol in 2004 and estimates for 2009 by end use:

World Consumption of Phenol by End Use
Average Annual
Percent of Percent of Growth Rate,
Consumption, Consumption, 2004-2009
2004 2004 2009 2009 (percent)
Bisphenol A 3,106 40 4,258 45 6.5

PF Resins 2,345 30 2,687 29 2.8
Caprolactam 636 8 653 7 0.5
Alkylphenols 286 4 308 3 1.5
Other 1,373 18 1,546 16 2.4
Total 7,745 100% 9,452 100% 4.1%
The following table presents world consumption of phenol by region in 2004 and estimates for 2009:
World Consumption of Phenol by Region

Average Annual
Percent of Percent of Growth Rate,
Consumption, Consumption, 2004-2009
2004 2004 2009 2009 (percent)
North America
Canada 162 2.1 188 2.0 3.0
Mexico 20 0.3 24 0.3 3.7
United States 2,126 27.4 2,416 25.6 2.6
South and Central America 186 2.4 220 2.3 3.4
Western Europe 2,167 28.0 2,571 27.2 3.5
Central and Eastern Europe 286 3.7 323 3.4 2.5
Japan 880 11.4 957 10.1 1.7
Other Asia 1,853 23.9 2,663 28.2 7.5
Other Regions 65 0.8 90 1.0 6.7
Total 7,745 100% 9,452 100% 4.1%
Consumption of phenol for BPA will experience high growth rates in most regions, as both increased
demand and capacity for BPA will result in strong demand for phenol. As a result, BPA producers are the
most influential global consumers of phenol. Consumption of phenol for PF resins, on the other hand,
shows more regional variation. In the United States, Western Europe and Japan, phenol consumption for
PF resins is forecast to grow at 1-2% annually between 2004 and 2009. This is in contrast to developing
markets, such as Central and Eastern Europe and South and Central America (where consumption in both

regions is forecasted to grow at 3.6% annually), and Southeast Asia where consumption is expected to
grow at 5.0%.
After experiencing strong demand in 1999 and most of 2000, phenol markets declined or remained
stagnant in most regions in 2001 as a result of the economic slowdown. Lower margins, depressed
demand and significant capacity additions in 2000 and 2001 forced many phenol producers to cut
production in 2001 (and some to even exit the market). There was a global oversupply of phenol in 2002
and 2003. The situation changed dramatically in 2004 with the help of an improving global economy.
Once again demand for phenol increased substantially, driven by phenolic resins (used largely in
construction applications) and BPA. High operating rates, tight supply (due to raw material shortage) and
increased demand also drove phenol prices to historical highs. Margins were also improved despite rising
raw material costs. The weak dollar and increased demand for phenol in East Asia also provided good
export opportunities for U.S. producers.
The market in 2005 will most likely continue to fair well, but as East Asia continues to bring on
additional capacity to meet demand growth in the region, North American export opportunites will
decline. This will translate into lower operating rates in North America.
Although overall economic performance will continue to be the best indicator of future demand for
phenol, other issues that may affect the phenol market during the next five years are as follows:
z Continued high demand for bisphenol A, mainly for polycarbonate resins
z Possible stricter environmental regulations concerning formaldehyde emissions from PF resins
The following table presents the largest producers of phenol by capacity:
Major Global Producers of Phenol—2005

Annual Nameplate Capacity
as of February 2005
(thousands of Percent of
metric tons) World Capacity
INEOS Phenol 1,620 19

Sunoco 927 11
Mitsui 640 7
Shell 535 6
Polimeri Europa 480 6
Formosa 400 5
Ertisa 360 4
Georgia Gulf 300 3
Dow 295 3
Total 5,557 64%
With the exception of INEOS Phenol and Mitsui none of the top phenol producers currently operate
plants in more than one region, as regional suppliers generally meet demand. The regional capacity
concentration thus reflects variations in local demand requirements. INEOS Phenol is the largest global
producer; with two plants in Europe and one in the United States. Sunoco operates two plants in the
United States while Mitsui Chemicals has plants in Japan and Singapore.
INTRODUCTION
Phenol (carbolic acid; hydroxybenzene; C6H5OH) is a white, crystalline solid at room temperature. Most
phenol is consumed molten as a clear, colorless liquid. It is both the simplest hydroxybenzene and the
most commercially important. Phenol was first isolated from coal tars in the mid-1800s. Currently, nearly
all world production of phenol is via cumene peroxidation, with acetone as a coproduct. Its main use is as
a chemical intermediate in the manufacture of bisphenol A, phenol-formaldehyde resins, caprolactam,
alkylphenols, aniline and 2,6-xylenol.
Some of the chemicals discussed in this report are typically referred to by abbreviations, rather than their
chemical names. The most frequently used abbreviations are listed below.
BPA Bisphenol A
PF Resins Phenol-formaldehyde resins
MF Resins Melamine-formaldehyde resins
ABS Acrylonitrile-butadiene-styrene resins

PC Polycarbonate resins
MDI Methylenebis(4-phenyl isocyanate)
OSB Oriented strandboard
MANUFACTURING PROCESSES
Phenol can be produced from several processes. However, cumene peroxidation is the most common
process, since it currently offers the most cost-effective process economics. Although other synthetic
processes have been developed, most future phenol plants will be cumene-based.
Until the advent of synthetic phenol just before World War I, natural phenol recovered from coal tar and
petroleum streams was the only available source. Since that time, synthetic phenol has increased in
importance to the extent that it now accounts for nearly all global production, with more than 90% of
global capacity based on cumene peroxidation.
SYNTHETIC PROCESSES
CUMENE PEROXIDATION
Cumene is prepared by alkylating benzene with chemical- or refinery-grade propylene at about 230°C and
a pressure of 500 pounds per square inch gauge (psig) using various catalysts, predominantly zeolites,
solid phosphoric acid or aluminum chloride. Purified cumene is then oxidized with air to cumene
hydroperoxide at about 110-115°C and 80 psig in an alkali environment. The oxidation product is
separated and the bottoms, composed of cumene hydroperoxide in approximately 85% concentration, are
mixed with a small amount of acetone and sulfuric acid and maintained at about 77°C and atmospheric
pressure while the hydroperoxide splits into phenol and acetone. The reaction mixture is separated into
phenol, acetone and small amounts of alpha-methylstyrene and other by-products. The alpha-
methylstyrene is typically hydrogenated to cumene and recycled, although some is recovered for
monomer uses.

CH 3
C H
+ CH2 CHCH3 CH2
benzene propylene cumene
mol wt: 78.1 42.1 120.2
CH 3 CH3
C H C O OH
+ O2 CH 3
CH3
cumene
cumene hydroperoxide
mol wt: 120.2 152.2
CH 3
C O OH OH O
CH3 + CH3 C CH3
cumene
hydroperoxide phenol acetone
mol wt: 152.2 94.1 58.1
The industry average yield of phenol from the above process is about 91% of theoretical based on
benzene (0.91 unit of benzene per unit of phenol produced) and 95% based on cumene (1.35 units of
cumene per unit of phenol produced). These factors include the hydrogenation and recycle of alpha-
methylstyrene; yields decline by 3.5% when alpha-methylstyrene is recovered. Coproduct acetone is
obtained in the ratio of 0.60-0.62 unit acetone to 1.0 unit phenol.
TOLUENE OXIDATION
Toluene is oxidized with air to benzoic acid at about 160°C and 60 psig in the presence of a cobalt acetate
catalyst. Benzoic acid is separated, melted, mixed with a small amount of magnesium-promoted cupric
benzoate and converted to phenol by an oxidative decarboxylation reaction with air at about 240°C and
atmospheric pressure. Phenol is recovered by distillation. The major reactions are summarized as follows:

CH 3 COOH
+ 3 O2 + 2 H2O
2 2
toluene benzoic acid
mol wt: 92.1 122.1
OH
COOH
+ O2 2 + 2 CO2
2
benzoic acid phenol
mol wt: 122.1 94.1
The yield of phenol from toluene is believed to be only about 68% of theoretical, corresponding to 1.44
units of toluene consumed per unit of phenol produced.
NATURAL RECOVERY
Most natural phenol originates from petroleum caustic wash streams consisting primarily of cresols; only
minor amounts are derived from coal tar refining operations.
Phenols are generated as coproducts during catalytic cracking of petroleum. The effluent stream of the
cracker is washed with sodium hydroxide, primarily to remove mercaptans and other organic sulfur
compounds. The caustic wash operation simultaneously extracts phenols and cresols as sodium salts.
Similarly, the refining of tars and off-gases from coke ovens involves a caustic wash of the lighter
fractions in which phenols, cresols and xylenols transfer to the aqueous phase as soluble sodium salts.
The natural phenol producers process the caustic wash streams to regenerate and recover phenol, cresols,
xylenols and mixtures known as cresylic acids, either for sale or for captive use.
OTHER PROCESSES
Three processes for synthetic phenol production are no longer used in the United States, Western Europe
or Japan. These include benzene sulfonation, the chlorobenzene process and the Raschig process. All

have limited use in other regions and will probably be phased out eventually in favor of newer
technology.
BENZENE SULFONATION
Benzenesulfonic acid is prepared by reacting benzene with oleum or concentrated sulfuric acid at
temperatures of up to approximately 150°C. The benzenesulfonic acid is reacted with sodium sulfite and
the sodium benzenesulfonate (containing a small amount of sodium sulfate) is separated. The sodium
benzenesulfonate is fused with sodium hydroxide at about 315°C to yield sodium phenolate. Sodium
phenolate solution is acidified with sulfur dioxide and a small amount of sulfuric acid. The crude phenol,
which separates as an upper layer over a solution of sodium sulfite (and a small amount of sodium
sulfate), is separated and purified by distillation. The process may be summarized as follows:
SO3H SO3Na
+ 2 Na 2SO3 + SO2 + H 2O + Na2SO 3
2 2
benzenesulfonic sodium
acid benzenesulfonate
mol wt: 158.2 180.2
SO3Na ONa
+ 2 NaOH + Na2SO3 + H 2O
sodium sodium
benzenesulfonate phenolate
mol wt: 180.2 116.1
ONa OH
H2SO 4
2 + SO2 + H 2O 2 + Na2SO3
sodium
phenolate phenol
mol wt: 116.1 94.1

The yield of phenol is about 88% of theoretical or 1.06 units of phenol per unit of benzene consumed.
The ratio of phenol produced to coproduct sodium sulfite produced is about 1:1.7.
CHLOROBENZENE PROCESS
The chlorobenzene process involves three steps. Benzene is chlorinated at 38-60°C in the presence of a
ferric chloride catalyst to form monochlorobenzene:
Cl
+ Cl2 + HCl
benzene chlorobenzene
mol wt: 78.1 112.6
Chlorobenzene and aqueous caustic soda are introduced, along with small quantities of anticorrosion
agents, emulsifiers and a catalyst, into a reactor in which hydrolysis to sodium phenolate takes place at
4,000 pounds pressure and 400°C. The impure sodium phenolate is reacted with hydrochloric acid to
obtain phenol, which is decanted and distilled under vacuum. These reactions are summarized as follows:
SO3Na ONa
+ 2 NaOH + Na2SO3 + H 2O
sodium sodium
benzenesulfonate phenolate
mol wt: 180.2 116.1
ONa OH
H2SO 4
2 + SO2 + H 2O 2 + Na2SO3
sodium
phenolate phenol
mol wt: 116.1 94.1
The yield of phenol by this process is about 82% of theoretical based on benzene and 95% based on
chlorobenzene.

RASCHIG PROCESS
The Raschig process produces phenol from benzene in two catalytic vapor-phase stages. Benzene is
oxychlorinated to chlorobenzene with hydrochloric acid and air in the presence of iron and copper
chloride catalysts at approximately 200-260°C and atmospheric pressure. Hydrolysis of chlorobenzene at
about 480°C over a suitable catalyst produces phenol and hydrochloric acid:
Cl
+ HCl + 1/2 O2 + H 2O
benzene chlorobenzene
mol wt: 78.1 112.6
Cl OH
+ H2O + HCI
chlorobenzene phenol
mol wt: 112.6 94.1
The yield of phenol by the Raschig process is believed to be about 89% of theoretical based on benzene.
BENZENE VIA CYCLOHEXENE
Mitsui Chemicals patented a new process that uses benzene as the feedstock. Benzene is partially
hydrogenated to cyclohexene (with a ruthenium-zinc catalyst), reacted with water to form cyclohexanol
or oxidized to cyclohexanone, followed by dehydrogenation of the oxygenated compound, yielding
phenol.
catalyst
+ 2 H2
H2O
benzene cyclohexene

OH OH
+
H
+ H2 O
catalyst catalyst
cyclohexene cyclohexanol phenol
O OH
O2
+ 3 H2 + 2 H2
catalyst catalyst
cyclohexene cyclohexanone phenol
Cyclohexane, formed as a coproduct in the benzene hydrogenation reaction, is dehydrogenated to
benzene, which is recycled and used in the initial hydrogenation step. Hydrogen produced in the
cyclohexanol/cyclohexanone dehydrogenation reaction and the cyclohexane dehydrogenation reaction is
sufficient to supply the initial hydrogenation step. The cyclohexanol/cyclohexanone intermediate also
may be used in the production of alternate products, including caprolactam and adipic acid.
DIRECT OXIDATION OF BENZENE
Mitsui Chemicals has also developed a process for converting benzene to phenol with nitric acid as the
oxidizing agent:
OH
+ 2 HNO3 + 2 NO 2 + H 2O
benzene phenol
A small amount of nitrobenzene is formed as a by-product. Nitrogen dioxide and water may be converted
to nitric acid for recycling.

DIRECT CATALYTIC CONVERSION OF BENZENE
Solutia has developed a one-step process that produces phenol directly from benzene and nitrous oxide.
The major advantages of this process include the use of waste nitrous oxide from Solutia’s adipic acid
production, a high yield and elimination of cumene (as an intermediate) and acetone (as a coproduct).
Solutia operated a benzene-to-phenol pilot plant for two to three years at Pensacola, Florida in support of
its planned 136 thousand metric ton plant, originally due for completion in 1999. JLM Industries was to
market approximately one half of the output. However, faced with an oversupplied phenol market and
after postponing the project twice, Solutia and JLM Industries terminated their agreement to build the
plant in mid-2001.
SUPPLY AND DEMAND BY REGION
Global end-use markets for phenol are similar in all regions. The following table presents applications for
the major derivatives of phenol; variations in regional applications are discussed under each region:
Applications of Phenol
Derivative Main Products Main Markets Remarks
Bisphenol A PC resins (automotive Automotive, OEM, opti- Consumption is dependent on OEM and
lighting systems, instrument cal media, construction automotive production, construction,
panel clusters, front and rear (residential and nonresi- remodeling activity and discretionary
bumpers, exterior car pan- dential), remodeling and income and personal spending. PC com-
els, CDs, CD-ROMs, computers. petes with glass and acrylic resins in
DVDs, windows and doors, glazing/sheet and automotive applications
signs and displays, appli- and ABS in appliances/power tools.
ances/power tools and com-
puter housings).
Epoxy resins (surface coat- Automotive OEM, con- Consumption is dependent on OEM and
ings, rigid printed circuit tainers, industrial struc- automotive production, construction,
boards, adhesives). tures (maintenance and remodeling activity. Epoxy resins com-
new construction) and pete with polyurethanes and modified
computers. acrylics in adhesive applications.
PF Resins Wood adhesives for oriented Construction (residential Competes with MDI in OSB. Consump-
strandboard (OSB), hard- and nonresidential), re- tion is dependent on construction, remod-
board and plywood. modeling and furniture. eling activity and furniture production.
Decorative laminates for Construction (residential Competes with MF resins, mineral-filled
cabinets, furniture, paneling and nonresidential), re- acrylic sheet and low-pressure polyester
and kitchen and bathroom modeling and furniture. laminates.
countertops. Industrial lami-
nates for gears, bearings,
valves and printed circuits.

Foundry materials. Automotive Competes with silicate and other inor-
(transmission and ganic no-bake systems.
crankcase cores) and
aerospace.
Structural and acoustic in- Construction (residential PF resins act as adhesives to bind the
sulation (glass fiber, mineral and nonresidential) and insulation materials. Waste fibers are
wool, waste fiber). automotive. used in roof and side sheeting in cars.
Molding compounds. Automotive (engine and Competes with polybutylene and polyeth-
transmission assemblies ylene terephthalate in appliances and
and brake components), housewares and with polyester bulk
appliances (iron handles), molding compounds in electrical applica-
housewares (cookware tions.
handles, toaster end pan-
els) and electrical (outlet
boxes, sockets).
Caprolactam Nylon 6 fibers (carpet and Construction (residential Consumption is dependent on construc-
rug yarns), resins (auto- and nonresidential), re- tion and remodeling activity and OEM
motive and truck parts modeling, OEM and and automobile production. Nylon 6 fi-
including rear-end license automotive. bers for carpets and rugs compete with
panels, louvers, mirror resilient flooring, laminates and tile.
housings and wheel covers
and fan blades) and films
(food packaging).
UNITED STATES
PRODUCING COMPANIES
The following table presents U.S. producers of phenol:

U.S. Producers of Phenol
Annual Capacity
as of January 1, 2005
(thousands of
Company and Plant Location metric tons) Process Remarks
Dakota Gasification Company

Beulah, ND 15 Natural recovery from coal All merchant sales.
gasification
Dow Chemical U.S.A.

Oyster Creek, TX 295 Cumene peroxidation Purchased cumene. Some captive consumption for
bisphenol A and salicylic acid. Merchant sales account
for approximately 40%.
Georgia Gulf Corporation

Pasadena, TX 73 Cumene peroxidation Captive cumene. All merchant sales. Plant was
temporarily idled in 2002.
Plaquemine, LA 227 Cumene peroxidation Captive cumene. All merchant sales.
INEOS Phenol Inc.

Theodore, AL 490a Cumene peroxidation Purchased cumene. All merchant sales.
JLM Chemicals, Inc.

Blue Island, IL 45 Cumene peroxidation Captive cumene. All merchant sales.
Merisol USA LLCb

Houston, TX 12 Natural recovery from petroleum All captive consumption for xylenols and cresols.
and coal tars
Mount Vernon Phenol Plant Partnershipc

Mount Vernon, IN 340 Cumene peroxidation Purchased cumene. Mostly captive consumption by part
owner GE for bisphenol A, 2,6-xylenol, nonylphenol and
phenolic resins.
Noveon Inc.
Kalama, WA 34 Toluene oxidation Purchased toluene. Some captive consumption for
alkylphenols.
Shell Chemical Company

Deer Park, TX 535 Cumene peroxidation Captive cumene. All merchant sales.

Sunoco, Inc.
Ironton, OH 427d Cumene peroxidation Captive and purchased cumene. Some captive
consumption for bisphenol A. Merchant sales account for
approximately 50%.
Philadelphia, PA 500 Cumene peroxidation Captive cumene. All merchant sales, mainly to
Honeywell for caprolactam.
Total 2,993e
a. INEOS Phenol’s annual capacity as of February 2005 is 540 thousand metric tons.
b. Owned 50% by Merichem Company and 50% by Sasol Limited, South Africa.
c. Partnership was established in 1987, with GE holding 49%; CITGO Petroleum Corp., 49%; and JLM Industries, 2%. Plant is operated by GE Plastics.
d. Namplate capacity is 427 thousand metric tons. A temporarily idled unit of 159 thousand metric tons brings effective capacity to 268 thousand metric tons.
e. Namplate capacity. Effective capacity is 2,834 (Sunoco has a 159 thousand metric tons-per-year unit temporarily idled).

SALIENT STATISTICS
The following table presents U.S. salient statistics for phenol:
U.S. Supply/Demand for Phenol

Annual
Nameplate Operating
Capacity Rate Actual
(year-end) (percent) Production Imports Exports Consumption
1987 1,597 95 1,519 4 84 1,453
1992 1,879 91 1,701 9 149 1,559

1993 1,891 91 1,730 19 134 1,639
1994 1,891 99 1,873 29 140 1,781
1995 2,006 95 1,899 42 141 1,870

1996 2,024 94 1,905 106 135 1,921
1997 2,067 94 1,936 138 132 1,965
1998 2,160 94 2,033 153 176 2,009
1999 2,280 96 2,197 183 176 2,090
2000 2,937 87 2,548 54 265 2,195

2001 2,937 82 2,401 14 288 2,015
2002 2,943 80 2,350 27 332 2,025
2003 2,943 83 2,449 6 507 1,935
2004 2,993 93a 2,650 3 515 2,126
a. Operating rate is based on an effective capacity of 2,834 thousand metric tons since Sunoco
temporarily idled a 159 thousand metric tons-per-year unit in 2003.
PRODUCTION
The following table presents U.S. production and sales of phenol:

U.S. Production and Sales of Phenol
Production
Synthetica
Sales
From From Other
Cumene Processes Total Natural Total Synthetic Natural
1960 78 253 331 19 350 173 19

1965 254 278 532 25 557 218 24
1970 529 245 774 21 795 336 13
1975 703 75 778 14 792 420
1980 1,133 18 1,151 14 1,165 588
1985 1,256 20 1,276 12 1,288 649

1986 1,378 23 1,401 12 1,413 700
1987 1,476 27 1,503 16 1,519 695
1988 1,573 27 1,600 15 1,615 715
1989 1,575 29 1,604 15 1,619 654
1990 1,561 29 1,590 15 1,605 682

1991 1,579 27 1,606 25 1,631 889
1992 1,647 29 1,676 25 1,701 938
1993 1,676 29 1,705 25 1,730 959
1994 1,816 30 1,846 27 1,873 709
1995 1,841 31 1,872 27 1,899 --

1996 1,847 31 1,878 27 1,905 --
1997 1,878 31 1,909 27 1,936 --
1998 1,975 31 2,006 27 2,033 --
1999 2,138 31 2,169 28 2,197 --
2000 2,502 31 2,533 15 2,548 --

2001 2,350 31 2,381 20 2,401 --
2002 2,304 31 2,335 15 2,350 --
2003 2,403 31 2,434 15 2,449 --
2004 2,604 31 2,635 15 2,650 --
See MANUAL OF CURRENT INDICATORS for additional information.
a. Reported data for phenol produced from noncumene-based processes were overstated by the source for
1977, 1978, 1980-1989 and 1991-1993. The data in this table have been adjusted to represent actual
conditions more accurately. The data reported by the source were as follows (thousands of metric tons):

From All Other
Cumene Phenol
1977 967 93
1978 869 347
1980 1,104 61
1981 1,119 42
1982 918 69
1983 932 265
1984 1,237 73
1985 1,212 76
1986 1,343 70
1987 1,421 99
1988 1,299 317
1989 1,406 320
1990 1,593 12
1991 1,119 na
1992 1,636 127
1993 1,447 97
The data for All Other Phenol are believed to include natural and noncumene synthetic phenol, as
reported by the source. Reported production in 1989 is believed to be overstated.
SOURCES: (A) Synthetic Organic Chemicals, U.S. Production and Sales, U.S. International Trade
Commission (data for TOTAL SYNTHETIC PRODUCTION and SALES except for
1971; data for NATURAL PRODUCTION for 1960-1974; data for SYNTHETIC
FROM CUMENE for 1975-1977 and 1979; data for TOTAL PRODUCTION for 1975-
1991; data in footnote a).
(B) Preliminary Report on U.S. Production of Selected Synthetic Organic Chemicals, U.S.
International Trade Commission (data for NATURAL PRODUCTION for 1976-1978).
(C) CEH estimates (all other data).
Cumene peroxidation has been the primary source of phenol since 1967. Cumene-based phenol accounted
for 98% of total U.S. production in 2004, up from 22% in 1960.
CONSUMPTION
The following table presents U.S. consumption of phenol:

U.S. Consumption of Phenol
Average Annual
Percent of Growth Rate,
Consumption 2004-2009
2004 in 2004 2009 (percent)
Bisphenol A 850 42 1,060 4.5

PF Resins 650 27 684 1.0
Caprolactam 305 15 322 1.1
Alkylphenols
p-Nonylphenol 71 3 71 0
p-Dodecylphenol 33 2 31 -1.2
2,6-Xylenol 82 4 100 4.0
Adipic Acid 20 <1 20 0
Other 115 6 128 2.2
Total 2,126 100% 2,416 2.6%
The following table presents historical U.S. consumption of phenol:
Historical U. S. Consumption of Phenol

Bisphenol Aa PF Resinsb Caprolactamc 2,6-Xylenold Nonylphenole Anilinef
1965 38 252 73 -- 14 0
1970 79 327 108 4 18 0
1975 114 361 131 20 19 0
1980 207 439 166 36 35 0
1985 317 474 225 54 43 30

1986 335 476 231 39 49 57
1987 402 503 245 43 49 66
1988 433 519 249 48 47 73
1989 441 528 254 49 50 73
1990 477 477 265 50 53 54

1991 502 458 254 48 55 68
1992 486 476 261 50 56 66
1993 524 494 275 51 59 59
1994 588 540 290 54 62 66
1995 657 542 299 57 62 68

1996 689 556 300 61 62 68
1997 715 560 305 65 63 67
1998 747 564 305 68 64 68
1999 825 564 298 75 66 67
2000 940 575 290 80 67 61

2001 830 535 278 73 67 60
2002 809 542 292 80 69 60
2003 798 530 288 79 71 0
2004 850 650 305 82 71 0

Historical U. S. Consumption of Phenol (continued)
Adipic Salicylic
Dodecylphenolg Acidh Acidi Otherj Total
1965 11 17 8 100 513
1970 14 21 14 110 695
1975 14 23 11 90 783
1980 16 19 14 97 1,029
1985 17 9 10 100 1,279

1986 18 9 11 105 1,330
1987 21 9 9 106 1,453
1988 23 9 10 105 1,516
1989 25 9 9 108 1,546
1990 26 9 9 116 1,536

1991 26 9 9 117 1,546
1992 26 9 9 120 1,559
1993 27 14 10 126 1,639
1994 27 14 10 130 1,781
1995 28 16 11 130 1,870

1996 28 16 11 130 1,921
1997 31 16 11 132 1,965
1998 31 16 11 135 2,009
1999 32 16 11 136 2,090
2000 33 19 11 119 2,195

2001 33 19 10 110 2,015
2002 33 19 8 113 2,025
2003 33 20 0 116 1,935
2004 33 20 0 115 2,126
a. Assumes that 0.86 unit of phenol is consumed per unit of bisphenol A produced during 1987-2000;
0.88 unit of phenol was consumed in prior years.
b. Assumes that, on the average, 0.73 unit of phenol is consumed per unit of PF resin produced.
c. Assumes that 0.90 unit of phenol is consumed per unit of caprolactam produced during 1987-2000;
0.92 unit of phenol was consumed in prior years.
d. Assumes that 0.80-0.82 unit of phenol is consumed per unit of 2,6-xylenol produced.
e. Assumes that 0.46 unit of phenol is consumed per unit of p-nonylphenol produced.
f. Assumes that 1.02 units of phenol are consumed per unit of aniline produced. Sunoco idled its aniline
plant at Ironton, Ohio in December 2002.
g. Assumes that 0.38 unit of phenol is consumed per unit of p-dodecylphenol produced.
h. Assumes that 0.72 unit of phenol is consumed per unit of adipic acid produced.
i. Assumes that 0.80 unit of phenol is consumed per unit of salicylic acid produced. Rhodia shut down
the sole U.S. acetylsalicylic acid plant in February 2003.
j. Category incorporates changes in inventory.

Bisphenol A
Bisphenol A (BPA) is produced by reacting phenol and acetone in the presence of an acid catalyst.
Estimated U.S. production of 988 thousand metric tons of BPA in 2004 required 850 thousand metric tons
of phenol. Yields based on phenol consumption are typically 96% of theoretical, requiring 0.85-0.87 unit
of phenol per unit of BPA produced.
General Electric, Resolution Performance Products, Bayer, Dow and Sunoco produce BPA in the United
States. With the exception of Bayer and Resolution Performance Products, all producers have captive
sources of phenol and acetone, and, with the exception of Sunoco, all have captive uses for BPA.
The following table presents U.S. consumption of bisphenol A:
U.S. Consumption of Bisphenol A—2004

(percent)
Polycarbonate Resins 71
Epoxy Resins 23
Flame Retardants 4
Other 2
Total 100%
Automotive applications accounted for 20% of the total U.S. consumption of polycarbonate (PC) resins in
2004—PC resins are used in place of metal and glass in automotive components. Glazing and sheet uses,
such as architectural, security and transportation, also accounted for 20% of PC resin consumption.
Optical media, including audio compact discs (CDs), CD-ROMs, recordable CDs and digital versatile
disks (DVDs) accounted for 20% of demand in 2004. PC resin consumption for this sector increased at
more than 40% per year during 1988-2000. Other important markets for PC resins include appliances and
business and electronics applications. In addition, PC resins have a variety of smaller uses including
medical applications, recreational products, safety equipment and packaging applications. Optical discs
are the fastest-growing use for PC resins, with CDs being the largest-volume sector in the category and
recordable CDs and DVDs driving the market.

Surface coatings account for approximately 53% of all U.S. epoxy resin consumption. Most epoxy resins
consumed in coatings are made from bisphenol A and epichlorohydrin. Other uses for epoxy resins
include fiber-reinforced laminates and composites, bonding and adhesives, flooring and paving, casting
and molding resins and various specialty applications.
BPA is used in the production of tetrabromobisphenol A (TBBA), which is used to impart flame
resistance to epoxy resins used in printed circuit boards, polycarbonates, ABS and unsaturated polyester
resins. Other small volume applications for BPA include unsaturated polyester resins, polysulfone resins,
polyetherimides and polyarylates.
For additional information, see the CEH Bisphenol A product review and the CEH Polycarbonate Resins
and Epoxy Resins marketing research reports.
PF Resins
The manufacture of phenol-formaldehyde (PF) resins is a relatively simple operation. Phenol,
formaldehyde and a catalyst are charged into a reactor and initially heated to 60-65°C to initiate reaction.
The reaction is terminated at the desired product properties by cooling. While continuous processes have
been developed, batch production is practiced to capitalize on the flexibility of the facilities; the same
equipment is often used to produce resins with varying formulations and molecular weights over a short
period of time. On the average, about 0.73 unit of phenol is required per unit of PF resin produced (100%
solids), with resins for wood products requiring less phenol and industrial resins requiring more phenol
per unit of resin.
The largest U.S. producers of PF resins are Georgia-Pacific, Borden, Dynea and Durez. With the
exception of Durez, all of these producers have captive formaldehyde but none has captive phenol.
The following table presents U.S. consumption of phenol-formaldehyde resins:

U.S. Consumption of Phenol-Formaldehyde Resins—2004
(percent)
Wood Adhesives
Fibrous and Granulated Wood 35
Plywood 21
Insulation 14
Laminates 8
Foundry Materials 7
Molding Compounds 5
Other 10
Total 100%
Oriented strandboard (OSB) accounts for 82% of U.S. PF resin consumption in fibrous and granulated
wood. OSB has been gaining market share at the expense of plywood, primarily because of its low cost,
performance characteristics and the limited availability of plywood because of logging restrictions. OSB
is used in paneling, roofing and flooring. Consumption of phenol in fibrous and granulated wood
applications has increased since OSB production requires 10-20% more PF resins per square foot than
plywood. Demand for PF resins for the production of OSB has been driving the demand for phenol in the
PF resin market. Other fibrous and granulated wood products include hardboard and molded wood.
Hardboard has also replaced plywood in some applications. It is used in furniture, paneling, door skins,
insulation and flooring. PF resins are also used in the small but fast-growing application of laminated
veneer lumber (LVL), an engineered wood composite used in residential and commercial applications.
LVL’s durability and strength allows for its use in manufactured housing, truck and container decking,
scaffold planks, wooden I-beams and floor joists. Increases in LVL production will make up for some of
the decrease in PF resins consumed in plywood production.
PF resins are used to bind glass fiber, mineral wool (rock wool) or shredded waste fibers, such as cotton,
wool or polyester, for structural and acoustical insulation. Glass fiber accounts for over 80% of PF resin
consumption in insulation.

PF resin–based laminates are used in decorative and industrial applications. Decorative applications
constitute the largest market; end uses include furniture, wall paneling, cabinet faces, tables and
countertops. The fastest growing market is high-pressure flooring laminates. Industrial phenolic laminates
compete primarily with epoxy and silicone products.
Phenolic molding compounds are used for heat-resistant components for household appliances, wiring
devices in the electrical industry and under-the-hood parts in the automotive market. The automotive and
appliance markets are the largest. Durez is the largest U.S. producer of phenolic molding compounds.
Foundries are used for casting metal products. PF resins are used as adhesives to strengthen the core used
for molding to allow hollow casting. HA-International (jointly owned by Borden and Delta-HA) is the
largest player in the U.S. phenolic foundry market; other participants include Georgia-Pacific Resins and
Capital Resin.
Other applications for PF resins include friction materials (clutch facings, disk brake pads, automatic
transmission components), rubber processing additives (in tires, shoe soles and other molded rubber
goods) and abrasives for metal finishing.
For more information, see the CEH Phenolic Resins marketing research report.
Caprolactam
Phenol is catalytically hydrogenated to yield cyclohexanone and cyclohexanol. The choice of catalyst
determines the cyclohexanone-to-cyclohexanol ratio. Cyclohexanone is the main product, with
cyclohexanol usually accounting for less than 5% of the output. Cyclohexanone is then reacted with
hydroxylamine sulfate to produce cyclohexanone oxime. The oxime is reacted initially with sulfuric acid
and then aqueous ammonia to yield caprolactam. The average yield is approximately 92% of theoretical,
requiring 0.90 unit of phenol per unit of caprolactam produced.

Honeywell is the sole U.S. producer of caprolactam from phenol at its 363 thousand metric ton-per-year
plant in Hopewell, Virginia.
In 2004, approximately 850 thousand metric tons of caprolactam were produced in the United States.
Phenol-based caprolactam accounted for 40% of this market. Honeywell consumes most of its
cyclohexanone captively for the production of caprolactam, but reserves a portion of cyclohexanone for
contract sales. By-product cyclohexanol is sold on the merchant market. (This excludes the product made
in Honeywell’s 5 thousand metric ton-per-year on-purpose cyclohexanol plant. The phenol consumed for
this cyclohexanol production is included in “other” uses of phenol.)
The following table presents U.S. caprolactam production from phenol and phenol consumed in its
production:
U.S. Caprolactam Production and Phenol Consumption

Caprolactam Production
from Phenol Phenol
Consumed
for Caprolactama
Thousands of Percent of (thousands of
Metric Tons Total metric tons)
1965 82 62 73
1970 120 52 108
1975 145 45 131
1980 185 45 166
1985 250 51 225

1986 255 51 231
1987 272 52 245
1988 277 48 249
1989 282 49 254
1990 295 47 265

1991 282 48 254
1992 290 48 261
1993 306 47 275
1994 315 47 290
1995 320 46 299

1996 333 40 300
1997 339 39 305
1998 339 46 305
1999 331 43 298
2000 322 41 290

2001 309 40 278
2002 324 41 292

2003 320 40 288
2004 339 40 305
a. Approximately 0.90 unit of phenol is consumed per unit of caprolactam

produced.
The following table presents U.S. consumption of caprolactam:
U.S. Consumption of Caprolactam—2004

(percent)
Nylon 6 Fibers 71
Nylon 6 Resins and Films 27
Other 2
Total 100%
The main market for nylon 6 fibers is in carpet and rug yarns, which account for 75% of U.S.
consumption. The remaining markets are in industrial applications such as tire cord and in apparel items
such as hosiery, lingerie and active wear. This market is driven by construction and remodeling activity.
U.S. demand for nylon 6 resins and films is growing at a faster rate than for nylon 6 fibers. Nylon 6 resins
exhibit high abrasion, chemical and heat resistance and superior tensile strength. The largest market is
automotive and truck parts for under-the-hood components and for some exterior applications, including
rear-view and side mirrors. Nylon 6 resins are also used for industrial machinery parts, power tools,
garden tools, film and extrusion coatings and wire and cable applications. Nylon 6 films are used mainly
for food packaging applications.
Consumption of phenol for caprolactam by Honeywell is expected to grow at an average annual rate of
1.1% during 2004-2009. U.S. consumption of caprolactam is forecast to grow at an average annual rate of
2.0% during 2004-2009.
For additional information, see the CEH Caprolactam marketing research report.

2,6-Xylenol
Phenol is catalytically methylated in the vapor phase with methanol to form 2,6-xylenol (2,6-
dimethylphenol); small volumes of o-cresol and 2,4,6-trimethylphenol are also produced. Yields are
reportedly 94-96% of theoretical, requiring 0.80-0.82 unit of phenol for each unit of 2,6-xylenol
produced.
General Electric Company (GE) is the largest U.S. producer of synthetic 2,6-xylenol; Schenectady
isolates small amounts of synthetic 2,6-xylenol during o-cresol manufacture from phenol. Nearly all 2,6-
xylenol is consumed in the production of polyphenylene ether (PPE) homopolymer, marketed as
polyphenylene oxide (PPO®) resins. These resins are blended with high-impact polystyrene and sold by
GE under the trademark Noryl®. The largest market for these resins is in automotive applications,
electronics and appliances. They are also used in computer housings, competing with ABS and
polycarbonate. PPO® resins can also be blended with other polymers such as nylon to achieve special
properties. Minor volumes of 2,6-xylenol are used to manufacture 2,6-dimethylaniline (a pesticide
intermediate) and the antioxidant bis(4-hydroxy-3,5-dimethylphenyl)methane.
In the United States, xylenols are also isolated from coal tar fractions and petroleum extracts as mixed
isomers; Merisol USA in Houston, Texas employs this process. However, methylation of phenol is
currently the only economical route to large volumes and high-purity 2,6-xylenol.
U.S. consumption of phenol for 2,6-xylenol is expected to grow at an average annual rate of 4.0%
between 2004 and 2009, reaching 100 thousand metric tons. For additional information on 2,6-xylenol,
see the CEH Polyphenylene Ether Resins/Alloys and Cresols, Xylenols and Cresylic Acid product reviews.
Adipic Acid
Inolex Chemical Company is the sole U.S. producer of adipic acid from phenol at its 20 thousand metric
ton-per-year plant in Hopewell, Virginia. This plant is operated in association with Honeywell’s

caprolactam facility. Honeywell operates the plant for Inolex. Currently, all other U.S. adipic acid
producers use cyclohexane.
Inolex recovers adipic acid as a by-product in the manufacture of cyclohexanone, an intermediate in the
production of caprolactam from phenol. Yields are reportedly 89% of theoretical, with 0.72 unit of phenol
consumed for each unit of adipic acid produced. Inolex consumes most of its adipic acid captively for
polyurethanes.
For additional information, see the CEH Adipic Acid and Cyclohexane marketing research reports.
Alkylphenols
Phenol is consumed in the production of a variety of alkylphenols. p-Nonylphenol and p-dodecylphenol
are the two most commercially significant alkylphenols made from phenol. Propylene trimer (nonene) or
tetramer (dodecene) is reacted with phenol in the presence of an acid catalyst such as sulfuric acid or
boron trifluoride to produce a mixture of isomers. Yields are typically 93% for p-nonylphenol and 95%
for p-dodecylphenol, requiring 0.46 and 0.38 unit of phenol per unit of p-nonylphenol and p-
dodecylphenol, respectively.
p-Nonylphenol
p-Nonylphenol, the most commercially important alkylphenol, is produced by Dover Chemical,
Crompton Corporation, Huntsman and Schenectady International in the United States. Schenectady is the
largest producer; in mid-2004, the company accounted for nearly 54% of U.S. capacity. The major
applications for p-nonylphenol are in surfactants, antioxidants and lube oil additives.
The largest market for p-nonylphenol is in surfactants, accounting for 75-80% of consumption. p-
Nonylphenol is ethoxylated with ethylene oxide to manufacture p-nonylphenol ethoxylates (NPEs). NPEs
are nonionic surfactants that are used mainly in detergent liquids and powders, as well as personal care
products. Approximately 35% of NPEs are consumed in industrial and commercial cleaning products.

About 45% of NPEs are used in industrial applications (as emulsifiers, degreasers and wetting agents).
Household cleaning products, mainly laundry detergents, accounted for approximately 20%.
NPEs compete with alcohol ethoxylates (AE) and sulfonated ethoxylates (AES) for the heavy-duty liquid
detergent market. Procter & Gamble and Lever Brothers have replaced NPEs in brand-name laundry
products with AE and AES because they biodegrade faster. NPEs, however, are still used by a major
detergent manufacturer in its industrial and commercial products and have gained market share with the
smaller detergent manufacturers and in private-label brands because of their better detergency and lower
cost. For additional information on NPEs, see the CEH Surfactants, Household Detergents and Their Raw
Materials marketing research report and Nonene (Propylene Trimer) and Tetramer product review.
Phosphite antioxidants decompose hydroperoxides, protect rubber and act as stabilizers for plastics and
elastomers. Phosphites are allowed in indirect food use. They also act as secondary antioxidants to
hindered phenols (such as butylated hydroxytoluene—BHT), which are used as stabilizers in plastics.
Tris-(4-nonylphenyl) phosphite (TNPP) is the largest-volume antioxidant produced from p-nonylphenol,
accounting for 80% of total antioxidant applications. The largest U.S. producer of phosphite antioxidants
is Crompton; other suppliers include Dover Chemical, Arkema and Great Lakes.
Other uses of p-nonylphenol include the manufacture of phenate lube oil additives, tackifier resins and
ethoxylated p-nonylphenol–formaldehyde resins.
p-Dodecylphenol
Chevron Oronite, Infineum U.S.A. (a joint venture of ExxonMobil and Shell) and Schenectady
International produce p-dodecylphenol in the United States. In 2004, U.S. production of p-dodecylphenol
was 86 thousand metric tons, requiring 33 thousand metric tons of phenol.
Over 90% of U.S. demand of p-dodecylphenol is consumed by Chevron Oronite, Infineum and Lubrizol
for the manufacture of detergent-class lubricating oil additives, based primarily on calcium-, magnesium-
and barium phenates. These additives have detergent, antioxidant, lubricity and anticoagulant properties.

Consumption of these additives has been driven by the use of p-dodecylphenates in gasoline and diesel
motor oils. However, demand for calcium phenate in marine lubricants, the largest market for phenates, is
stagnant and therefore restricting overall growth. Phenates are also used in transportation and mining
equipment oils, industrial equipment and metalworking oils and functional fluids such as transmission and
brake fluids to keep engines sludge-free and to provide corrosion and oxidation protection.
The other major application for p-dodecylphenol is in the production of p-dodecylphenol ethoxylate, used
primarily as an agricultural spray adjuvant. It provides a finer mist and better adhesion of the pesticide to
plant or soil surfaces. Minor amounts of p-dodecylphenol ethoxylate are also used as nonionic surfactants.
Other
U.S. consumption of phenol for other alkylphenols is included in “Other” in the U.S. consumption table.
The following table presents U.S. consumption of phenol for other alkylphenols in 2004:
U.S. Consumption of Phenol for Other Alkylphenols—2004

Thousands of
Metric Tons Producers
p-tert-Octylphenol 14 Schenectady
Cumylphenols 11 Schenectady
p-tert-Butylphenol 8 Schenectady
Di-tert-butylphenols 6 Albemarle, Schenectady
Amylphenols ⎫ Arkema, Schenectady
o-sec-Butylphenol ⎬ 10 Albemarle, Schenectady
⎭
Other 3 Albemarle, Schenectady
Total 52
z p-tert-Octylphenol is the largest-volume alkylphenol after p-nonylphenol and p-dodecylphenol.
Its major applications include surfactants, PF resins, ink resins, UV stabilizers and polycarbonate
chain termination.
z p-Cumylphenol (PCP) is used as a chain terminator, mainly in PC resins. Other uses include PCP-
formaldehyde resins, PCP-ethylene oxide condensates for nonionic surfactants and as a

fungicide/bactericide in lubricating oils. Other cumylphenols include 2,4-dicumylphenol, which
finds use in UV stabilizers and antioxidants and as a synthetic intermediate.
z p-tert-Butylphenol is available in technical and polymer grades. Its largest application is in the
production of PF resins, which accounts for over 50% of consumption. The production of oil field
chemicals is its next largest market, followed by agricultural chemicals.
z Di-tert-butylphenols consume approximately 6 thousand metric tons of phenol annually in the
United States. The 2,4- and 2,6- isomers are used mainly as intermediates in the production of
antioxidants and UV stabilizers.
z Other alkylphenols include amylphenols (used in PF resins, germicides and oil field chemicals),
o-sec-butylphenol (used in the production of a stabilizer for styrene monomer) and
isopropylphenols (used in the production of phosphate esters for functional fluids).
Other
Data for “Other” include phenol requirements for other alkylphenols, discussed in the section
immediately preceding this section.
The following table presents U.S. consumption of phenol in other applications:
U.S. Consumption of Phenol in Other Applications

Average Annual
2004 in 2004 2009 (percent)
Other Alkylphenols 52.0 44 58.8 2.5

Aryl Phosphates 21.0 17 25.0 3.5
o-Cresol 6.0 4 8.0 5.9
2,4-D 4.4 4 4.2 –0.9
Cyclohexanol/Cyclohexanone 4.3 3 5.0 3.1
Pentachlorophenol 2.0 3 2.0 0
Other 25.0 25 25.0 0
Total 114.7 100% 128.0 2.2%

Aryl phosphates
Triaryl and alkyl diaryl phosphate esters are used as flame retardant plasticizers, hydraulic fluids and lube
oil additives. Triaryl phosphate esters, such as isopropylphenyl diphenyl phosphate, tert-butylphenyl
diphenyl phosphate and triphenyl phosphate are used as flame-retardant plasticizers in polyvinyl chloride
resins, cellulose acetate, polyphenylene oxide resins and other polymers. Alkyl diaryl phosphates,
including isodecyldiphenyl phosphate and 2-ethylhexyl diphenyl phosphate, impart flame retardancy and
improved flexibility at low temperatures. Applications include coated fabrics and wall coverings. For
additional information see the CEH Plasticizers marketing research report.
o-Cresol
On-purpose production of o-cresol via methylation of phenol with methanol is practiced by Merisol USA.
General Electric isolates o-cresol as a coproduct with 2,6-xylenol; consumption of phenol by General
Electric for o-cresol is included with 2,6-xylenol. In addition to isolating o-cresol from petroleum and
coal tars, Merisol USA methylates phenol to produce additional volumes of o-cresol, mainly for
consumption in the growing application of epoxy-cresol novolac (ECN) resins. ECNs have better high-
temperature properties and chemical resistance than conventional epoxy resins. They are used in electrical
laminates and encapsulations, moldings and castings and reinforced plastics requiring high chemical
resistance. For additional information on ECNs, see the CEH Epoxy Resins marketing research report.
2,4-D
The herbicide 2,4-D (2,4-dichlorophenoxyacetic acid) is prepared by reacting monochloroacetic acid and
the sodium salt of 2,4-dichlorophenol, a product of phenol chlorination. Dow AgroSciences and Riverdale
Chemical produce 2,4-D and its salts and esters in the United States. Production of 2,4-D and its esters
and salts was 11-13 thousand metric tons in 2004, consuming approximately 4.4 thousand metric tons of
phenol. U.S. consumption of 2,4-D and its esters and salts has declined in recent years because of
environmental concerns about the possible presence of highly toxic by-products and substitution by other
more selective herbicides.

Pentachlorophenol
Pentachlorophenol (penta), a wood preservative, is produced by chlorination of phenol; Vulcan Materials
is the sole U.S. producer. U.S. production of 5 thousand metric tons in 2004 required approximately 2
thousand metric tons of phenol; approximately 0.37 metric ton of phenol is consumed per metric ton of
pentachlorophenol produced. The largest use for PCP is as a wood preservative for the treatment of utility
poles. Little if any growth is expected for pentachlorophenol through 2009; U.S. consumption has leveled
to 5-5.5 thousand metric tons annually in recent years. There may be some penta substitution for
chromated copper arsenate (CCA) in utility poles since CCA was banned from being used in residential
applications beginning January 2004. CCA use for industrial applications could also be negatively
affected because of this.
Cyclohexanol/cyclohexanone
Honeywell is the sole U.S. producer of cyclohexanone and cyclohexanol from phenol; all other U.S.
producers use cyclohexane. Most production is used captively in the manufacture of caprolactam; the
remainder is sold on the merchant market. In addition to by-product cyclohexanol, Honeywell operates a
5 thousand metric ton-per-year on-purpose cyclohexanol plant. Cyclohexanol is an intermediate for the
production of cyclohexylamine, the insecticide propargite, cyclohexyl esters and other products.
Cyclohexanone is used in the manufacture of caprolactone, as a carrier solvent to coat magnetic media
onto polyester film, as an intermediate for the production of cyclohexylamines and in the formulation of
PVC cements. For additional information, see the CEH Cyclohexanol and Cyclohexanone marketing
research report.
Miscellaneous
Solutia and Dow consume phenol in the manufacture of diphenyl oxide (DPO, phenyl ether, diphenyl
ether). DPO possesses high thermal stability and is a component of synthetic heat transfer fluids that are
used in both liquid- and vapor-phase systems. Solutia’s (Therminol VP-1®) and Dow’s (Dowtherm® A)

are blends of DPO and biphenyl; these heat transfer fluids are used in a variety of industries such as
chemicals and fiber/nylon manufacture. DPO is also used as a dye carrier in fibers.
Phenolphthalein is made by condensing phenol and phthalic anhydride in the presence of a dehydrating
agent. It is used primarily as a pH indicator and as a cathartic drug in laxatives (e.g., EX-LAX® and Feen-
a-mint®). Sigma-Aldrich Fine Chemicals is the sole U.S. producer of phenolphthalein. Approximately 0.2
thousand metric tons of phenolphthalein are produced annually, requiring 0.2 thousand metric tons of
phenol.
Phenolsulfonic acids are produced by reacting phenol with sulfuric acid. Sloss Industries and DynaChem
produce phenolsulfonic acids in the United States. Picric acid (2,4,6-trinitrophenol) can be manufactured
by the nitration of a mixture of phenolsulfonic acids; it is used mainly in explosives, pharmaceuticals and
dyes. Less than one thousand metric tons of phenol is consumed annually to manufacture phenolsulfonic
acids and derivatives.
Phenol and phenol derivatives (e.g., picric acid) are also used to manufacture various dyes. Azo dyes are
produced by coupling phenol with diazonium salts. Picric acid is used as a starting material for nigrosine
and induline dyes. Dye production consumes 1-2 thousand metric tons of phenol in the United States
annually. For information on azo dyes, see the CEH Dyes marketing research report.
Additionally, phenol is used as a solvent in petroleum refining, to remove impurities in lube stocks by
solvent extraction and for cleaning (e.g., catalytic crackers). Ethyl Corporation reacts polybutene with
formaldehyde and phenol to produce a dispersant lube oil additive.
PRICE
The following table presents U.S. contract prices and unit export values for phenol:
U.S. Contract Price and Unit Export Value for Phenola

(cents per pound)
Contract Price
Unit Export

1Q 2Q 3Q 4Q Value
1982 -- 28-33 27.5-32 27.5-32 --

1983 27.5-32 27-29 29-32 28-32 --
1984 30-34 38 33-36 33-36 --
1985 31-34 30-34 33-35 30-34 --

1986 26-29 20-25 23-31 20-25 --
1987 20-24 32-37 45-48 33-36 --
1988 33-39 38-44 40-46 43-49 --
1989 46-48 47-53 44-48 39-39.5 --
1990 40-42 35.5-42 34-36 40-42 32

1991 32.5-36 27-30 24-29 27-30 31
1992 27-30.5 25-30 28-32 25-29 31
1993 27-30 30-33 29-34 26-30 27
1994 25-29 29-33 31-36 38-39 26
1995 37-41 37-41 35-39 30-37 32

1996 30-35 31-37 34-39 37-40 27
1997 37-40 37-40 37-40 37-40 34
1998 37-40 35-39 31-36 26-28 31
1999 24-26 24-26 24-26 24-26 24
2000 24-26 32-34 30-31 30-32.5 29

2001 32.5-36.5 28-32 26-30 28-32 27
2002 32-38 32-38 36-40 39-43 29
2003 39-43 46-50 44-47 38-44 35
2004 42-48 50-56 62-68 65-70 49
2005 65-70 65-70 -- -- --
a. Price bases are synthetic, fob, shipping point, freight equalized, nearest
recognized producing point.
SOURCES: (A) World Petrochemicals Price Update, World Petrochemicals

Program, SRI Consulting (data for CONTRACT PRICE for
1982-1996).
(B) CEH estimates (data for CONTRACT PRICE for 1997-

2004).
(C) U.S. Exports, U.S. Department of Commerce, Bureau of the

Census (data for UNIT EXPORT VALUE).
Generally, phenol prices correlate strongly with propylene and benzene prices. Variations in supply and
demand also affect phenol pricing.
By the end of 2001 phenol prices were still relatively low because of weak demand and abundant supply.
In 2002, prices started climbing in response to increased demand, tighter supplies (due to unplanned
outages) and increased raw material costs. By the second quarter of 2003, prices jumped considerably

because of escalating benzene and propylene feedstock prices. This, along with plant outages, tight
supplies (fueled by a cumene shortage) and strong demand eventually took phenol prices to historical
highs in 2004 and into 2005. Pricing went from quarterly to monthly and we may see phenol follow
benzene prices more closely. Prices will probably start to decrease in the third quarter of 2005 as
supply/demand becomes balanced.
TRADE
The following table presents U.S. trade in phenol:
U.S. Trade in Phenol

Importsa Exportsb
1960 neg 22
1965 neg 5
1970 neg 22
1975 11 23
1980 neg 136
1985 27 64
1986 5 85
1987 4 84
1988 15 87
1989 9 100
1990 13 127
1991 10c 103
1992 9 149
1993 19 134
1994 29 140
1995 42 141
1996 106 135
1997 138 132
1998 153 176
1999 183 176
2000 54 265
2001 14 288
2002 27 332
2003 6 507
2004 3 515
See MANUAL OF CURRENT INDICATORS for additional information.
a. Reported under import code number 517.2014 for 1960-1975,

403.4000 for 1976-1979, 402.2000 for 1980-1988 and 2707.60.90.00
and 2907.11.00.00 for 1989-2004.

b. Reported under export code number 512.0210 for 1960-1977,
517.2014 for 1978-1988 and 2707.60.20.00 and 2907.11.00.00 for
1989-2004. Export code # 2707.60.20.00 represents phenol(s) derived
from the distillation of high-temperature coal tar, in which the weight
of the aromatic constituents (phenols) exceeds that of the nonaromatic
constituents. Export code # 2907.11.00.00 represents synthetic phenol
and its salts.
c. Source reported imports of 5.6 thousand metric tons, which industry

experts believe were understated. Estimated figure is believed to
better represent actual imports.
SOURCES: (A) U.S. Imports, U.S. Department of Commerce, Bureau

of the Census (data for IMPORTS for 1960-1990 and
1992-2004).
(B) CEH estimates (datum for IMPORTS for 1991).
(C) U.S. Exports, U.S. Department of Commerce, Bureau

of the Census (data for EXPORTS).
The United States has historically been a net exporter of phenol. Imports have been relatively small,
except during 1996-1999 when Phenolchemie imported large volumes in preparation for the
commissioning of its plant in Theodore, Alabama during 2000. The following table presents U.S. imports
of phenol by country of origin in 2004:
U.S. Imports of Phenol by Country of Origin—2004

Country of Thousands of Unit Imports Value
Origin Metric Tons Percent (dollars per kilogram)
Germany 2.0 61 0.73

South Africa 1.2 36 0.56
Other 0.1 3 --
Total 3.3 100% 0.77
SOURCE: U.S. Imports, U.S. Department of Commerce, Bureau of the

Census.
The following table presents U.S. exports of phenol by country of destination in 2004:
U.S. Exports of Phenol by Country of Destination—2004

Unit Exports Value
Country of Thousands of (dollars per
Destination Metric Tons Percent kilogram)
Canada 162.0 31 1.04

South Korea 93.6 18 1.10
Thailand 47.7 9 1.05
Netherlands 46.8 9 0.91

China 28.8 6 1.18
Other 136.5 27 --
Total 515.4 100% 1.08
SOURCE: U.S. Exports, U.S. Department of Commerce, Bureau of the

Census.
CANADA
SALIENT STATISTICS
The following table presents Canadian salient statistics for phenol:
Canadian Supply/Demand for Phenol

Actual Consumption
Annual
Capacitya Apparent PF Alkyl-
(year-end) Production Imports Exports Consumption Resins phenols Other
1987 60 53 27 1 79 73 2 3
1992 0 10b 68 neg 78 73 2 3

1993 0 0 91 neg 91 86 2 3
1994 0 0 73 neg 73 70 2 1
1995 0 0 74 neg 74 71 2 1
1996 0 0 98 0 98 92 2 1
1997 0 0 100 0 100 97 2 1
1998 0 0 116 neg 116 110 2 1
1999 0 0 113 neg 113 110 2 1
2000 0 0 105 neg 105 102 2 1

2001 0 0 130 neg 130 127 2 1
2002 0 0 134 neg 134 131 2 1
2003 0 0 149 neg 149 146 2 1
2004 0 0 162 neg 162 159 2 1
2009 0 0 188 neg 188 185 2 1
a. In 1991, Kemtec Petrochemical Corporation closed its 28 thousand metric ton-per-year East Montreal facility. In
1992, Chatterton Petrochemical Corporation closed its 32 thousand metric ton-per-year phenol plant in British
Columbia.
b. Chatterton Petrochemical produced 10 thousand metric tons of phenol in 1992, using the toluene process, before
its plant closed in May 1992.
SOURCES: (A) World Petrochemicals Program, SRI Consulting (data for 1987 and 1992-1993).
(B) CEH estimates (all other data).

The fastest-growing market for PF resins in Canada is oriented strandboard (OSB). Consumption of
phenol in Canada is expected to grow at an average annual rate of 3% during 2004-2009. Most Canadian
imports of phenol originate in the United States. Imports have increased in the last two years with
Borden’s Edmonton, Alberta phenolic resins plant addition of 100 thousand metric tons.
MEXICO
PRODUCING COMPANIES
The following table presents Mexican producers of phenol:
Mexican Producers of Phenol

Annual Capacity
Company and (thousands of
Plant Location metric tons) Process and Remarks
Fenoquimia, S.A. de C.V.

Cosoleacaque, Veracruz (42) Cumene peroxidation. Imported cumene. All
merchant sales. The company filed for
bankruptcy in 2002.
SOURCE: World Petrochemicals Program, SRI Consulting.
SALIENT STATISTICS
The following table presents Mexican salient statistics for phenol:
Mexican Supply/Demand for Phenol

Annual Operating
Capacity Rate
1987 36 97 35 -- 13 21
1992 39 72 28 -- 15 13
1993 39 64 25 2 14 14
1994 39 87 34 3 19 15
1995 39 92 36 5 23 19
1996 39 90 35 6 19 20
1997 39 100 39 6 22 20
1998 40 95 38 5 21 21
1999 40 90 36 6 22 20
2000 40 98 39 8 25 20

2001 40 75 19 7 11 15
2002 42 0 0 15 neg 15
2003 42 0 0 15 neg 15
2004 42 0 0 20 neg 20
Most trade in phenol is between Mexico and the United States.
CONSUMPTION
The following table presents Mexican consumption of phenol:
Mexican Consumption of Phenol

Alkyl-
PF Resins Bisphenol Aa phenols Other Total
1987 10 4 2 5 21
1992 8 -- 2 3 13
1993 8 -- 2 4 14
1994 7 -- 2 6 15
1995 9 -- 3 7 19
1996 10 -- 3 7 20
1997 10 -- 3 7 20
1998 11 -- 3 7 21
1999 11 -- 3 6 20
2000 11 -- 3 6 20
2001 11 -- 3 6 20
2002 12 -- 3 neg 15
2003 12 -- 3 neg 15
2004 12 -- 4 4 20
2009 14 -- 5 5 24
Average Annual Growth Rate

(percent)
2004-
2009 3.1% -- 4.6% 4.6% 3.7%
_
a. Bisphenol A production was terminated in 1989.
The largest consumers of phenol for PF resins in Mexico are Feno Resinas and Q.B. Químicos.

SOUTH AND CENTRAL AMERICA
PRODUCING COMPANIES
The following table presents South and Central American producers of phenol:
South and Central American Producers of Phenol

Annual Capacity
Brazil
Rhodia Brasil Ltda.

Paulínia, São Paulo 165 Cumene peroxidation. Purchased
cumene. Some captive consumption
for bisphenol A and adipic acid.
SOURCE: CEH estimates compiled in association with the World Petrochemicals

Program, SRI Consulting.
SALIENT STATISTICS
The following table presents salient statistics for phenol in South and Central America:
South and Central American Supply/Demand for Phenol—2004

Annual
Capacity Net
(year-end) Production Imports Consumption
Argentina 0 0 17 17
Brazil 165 140 10 150
Chile 0 0 11 11
Colombia 0 0 6 6
Venezuela 0 0 1 1
Othera 0 0 1 1
Total 165 140 46 186
a. Includes Ecuador, Nicaragua, Peru and Uruguay.


Brazil is the sole producer and largest consumer of phenol in South America. It accounts for nearly 75%
of South American consumption and has a large and established market for PF resins. The following table
presents historical Brazilian salient statistics for phenol:
Brazilian Supply/Demand for Phenol

Annual Operating
Capacity Rate Apparent
1989 102 107 109 24 15 118
1992 115 79 91 10 9 92
1994 120 94 113 15 11 117
1997 120 98 118 20 6 132
2000 140 89 124 36 9 151
2003 140 98 134 11 3 142
SOURCE: CEH estimates compiled in association with the World Petrochemicals Program,
SRI Consulting.
CONSUMPTION
The following table presents South and Central American consumption of phenol:
South and Central American Consumption of Phenol

Average Annual
2004 in 2004 2009 (percent)
PF Resins 108 58 129 3.6

Adipic Acid 39 21 39 0
Bisphenol A 20 11 28 7.0
Alkylphenols 6 3 7 3.1
Other 13 7 17 5.5
Total 186 100% 220 3.4%
SOURCE: CEH estimates compiled in association with the World

Petrochemicals Program, SRI Consulting.
The following table presents South and Central American consumption of phenol by country for 2004:

South and Central American Consumption of Phenol by Country—2004
PF Resins Adipic Acid Bisphenol A Alkylphenols Other Total
Argentina 11 0 0 0 6 17
Brazil 78 39 20 6 7 150
Chile 11 0 0 0 0 11
Colombia 6 0 0 0 0 6
Venezuela 1 0 0 0 0 1
Othera 1 0 0 0 0 1
Total 108 39 20 6 13 186
a. Includes Ecuador, Nicaragua, Peru and Uruguay.
SOURCE: CEH estimates compiled in association with the World Petrochemicals Program, SRI
Consulting.
The following table presents Brazilian consumption of phenol:
Brazilian Consumption of Phenol

PF Adipic
Resins Acid Bisphenol A Nonylphenol Other Total
1989 53 30 15 3 7 108
1992 37 27 9 4 10 87
1994 47 37 15 4 12 115
1997 60 39 17 5 12 133
2001 73 41 17 5 4 140
2004 72 42 22 6 8 150
2009 85 42 31 7 10 175
Average Annual Growth Rate

(percent)
2004-
2009 3.4% 0% 7.1% 3.1% 4.6% 3.1%


WESTERN EUROPE
PRODUCING COMPANIES
The following table presents Western European producers of phenol:
Western European Producers of Phenol

Annual Capacity
Belgium
INEOS Phenol GmbH & Co. KG

Antwerpen 450 Cumene peroxidation. Purchased cumene. All merchant
sales. Plans on expanding capacity to 640 thousand metric
tons per year for start-up in October 2006.
Finland
Borealis Polymers Oy
Porvoo 130 Cumene peroxidation. Captive cumene. All merchant
sales.
France
ATOFINA
Carling-Saint Avold 2 Coal tar extraction.
VFT France SA
Forbach 5 Coal tar extraction. Owned 100% by N.V. VFT Belgium
S.A., Belgium.
Novapex
Les Roches-Roussillon 115 Cumene peroxidation. Captive cumene. Some captive
consumption for aminophenols. Ownership is 80% by
Bain Capital, LLC, Unites States, 17% by Rhodia
S.A., France and 3% by management.
Germany
DOMO Caproleuna GmbH

Leuna 155 Cumene peroxidation. Captive cumene. Mostly captive
consumption for caprolactam.
INEOS Phenol GmbH & Co. KG

Gladbeck 630 Cumene peroxidation. Purchased cumene. All merchant
sales. Expanded by 10 thousand metric tons in September
2003.
RÜTGERS Chemicals AG
Castrop-Rauxel 16 Coal tar extraction.

Italy
Polimeri Europa SpA

Mantova 300 Cumene peroxidation. Transferred captive cumene. Some
captive consumption for alkylphenols and cyclohexanone.
Porto Torres 180 Cumene peroxidation. Captive cumene. Some phenol is
transferred to other EniChem sites for captive
consumption.
Netherlands
DSM Special Products BV

Botlek-Rotterdam 110 Toluene oxidation. Purchased toluene. Mostly captive
consumption for caprolactam.
Spain
Ertisa, S.A.
Palos de la Frontera 360 Cumene peroxidation. Captive cumene. All merchant
sales.
United Kingdom
Coalite Products Ltd.

Coalite Chemicals Division
Chesterfield 10 Coal tar extraction. All captive consumption.
Total 2,463
SOURCE: CEH estimates compiled in association with the World Petrochemicals Program, SRI Consulting.
SALIENT STATISTICS
The following table presents Western European salient statistics for phenol:
Western European Supply/Demand for Phenol—2004

Annual
Capacity
(year-end) Production Imports Exports Consumption
Austria -- -- 21 3 18
Belgium 450 420 166 392 194
Finland 130 130 24 92 62
France 122 120 50 55 115
Germany 801 750 265 268 747
Italy 480 410 24 150 284
Netherlands 110 102 367 54 415
Norway -- -- 3 -- 3
Portugal -- -- 2 -- 2
Spain 360 360 52 236 176
Sweden -- -- 10 2 8
Switzerland -- -- 37 -- 37
United Kingdom 10 8 92 1 99
Otherb -- -- 7 -- 7

Total 2,463 2,300 1,120 1,253 2,167
a. Rhodia shut down 70 thousand metric tons of phenol capacity at year-end 2000.
b. Includes Denmark, Ireland and Greece.
Consulting.
The following table presents historical Western European supply/demand for phenol:
Western European Supply/Demand for Phenol

Annual
Capacity Operating Rate Net Apparent
(year-end) (percent) Production Exports Consumption
1987 1,244 96 1,191 –4 1,195
1992 1,445 88 1,274 –32 1,306
1994 1,666 87 1,457 60 1,397
1997 1,873 94 1,755 46 1,709
1999 2,443 86 2,101 154 1,947
2003 2,423 93 2,256 149 2,107
CONSUMPTION
The following table presents Western European consumption of phenol:
Western European Consumption of Phenol

Average Annual
2004 in 2004 2009 (percent)
Bisphenol A 928 43 1,216 5.6

PF Resins 532 24 589 2.1
Caprolactam 279 13 279 0
Adipic Acid 66 3 76 2.9
Other 262 12 305 3.1
Total 2,167 100% 2,571 3.5%


The following table presents historical Western European consumption of phenol:
Historical Western European Consumption of Phenol

Bisphenol A PF Resins Caprolactam Alkylphenols Adipic Acid Other Total
1987 257 320 239 76 24 275 1,191
1992 379 365 327 93 22 226 1,411
1994 355 412 336 102 23 245 1,473
1997 470 494 337 92 25 291 1,709
1999 674 515 341 98 28 292 1,947
2003 855 519 323 98 64 255 2,114
Western European consumption of phenol grew 2.2% annually between 1999 and 2004, largely because
of phenol requirements for bisphenol A, which grew at an average annual rate of 6.6% during the same
period. Bisphenol A will continue to be the driving force for phenol demand. Consumption of phenol for
PF resins is forecast to grow at GDP levels.
PRICE
The following table presents German prices for phenol:
German Market and Trade Prices for Phenol

Euros per Kilogram Dollars per Kilogram
Exchange Rate
Average Market Pricea Tradeb Average Market Pricea Tradeb (Euros per
Prices Prices dollar)
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
2002 0.40 0.65 0.69 0.67 0.55-0.56 0.38 0.61 0.65 0.63 0.52-0.53 1.058
2003 0.63 0.73 0.57 0.63 0.57-0.59 0.71 0.83 0.65 0.71 0.65-0.67 0.883
2004 0.71 0.62 1.35 1.20 0.74-0.80 0.88 0.77 1.68 1.49 0.92-0.99 0.804
2005 0.95 -- -- -- -- 1.25 -- -- -- -- 0.762
a. Prices are for mid-quarter.

b. Data are trade prices (the range of import/export prices).
SOURCES: (A) CEH estimates (data for Average Market Price).
(B) Global Trade Information Systems (data for Trade Prices).

The following table presents historical German prices for phenol:
Historical German Prices for Phenol (1982-2001)a

DM per Kilogram
List/Spot Priceb Contract Price
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
1982 1.81 1.70 1.80 -- 1.83 1.60 1.75 1.70

1983 -- -- -- -- 1.68 1.20 1.58-1.65 1.70-1.80
1984 -- -- -- -- 1.78 1.72 1.75 1.65
1985 -- -- -- -- 1.65 1.65 1.80 1.91

1986 -- -- -- -- 1.29 1.45 0.92 1.00
1987 -- -- 1.65 1.45 1.02 1.02 1.45 1.48
1988 1.55 1.70 2.00 2.25 1.60 1.60 1.75 1.85
1989 2.18 1.98 1.85 1.65 1.85 2.00 1.80 1.70
1990 1.40 1.32 1.25 1.40 1.50 1.40 1.40 1.40

1991 1.20 0.95 0.86 1.00 1.60 1.00 0.94 1.00
1992 0.97 0.90 1.02 0.75 1.00 1.02 1.05 1.00
1993 0.80 0.76 0.76 0.83 0.90 0.98 0.97 0.86
1994 0.85 0.91 1.05 1.23 0.88 0.91 1.03 1.15
1995 1.09 1.37 1.20 1.05 1.40 1.40 1.28 1.12

1996 0.95 1.10 1.20 1.20 0.95 -- -- --
1997 1.20 1.30 1.35 1.50 -- -- -- --
1998 1.60 1.50 1.30 1.05 1.60 1.40 1.30 0.95
1999 0.81-0.85 0.81-0.88 0.85-0.90 0.98-1.11 0.92-0.97 0.92-1.00 0.99-1.03 1.04-1.21
2000 1.13-1.20 1.60-1.65 1.68-1.78 1.85-1.90 1.25-1.30 1.60-1.67 1.83-1.86 1.85-1.90

2001 1.60-1.65 1.47-1.50 1.25-1.35 0.98 1.84-1.86 1.70-1.72 1.46-1.49 1.10
U.S. Cents per Kilogram

List/Spot Priceb Contract Price
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
1982 80 71 73 -- 81 67 71 67
1983 -- -- -- -- 70 50 62-65 64-68
1984 -- -- -- -- 64 66 63 54
1985 -- -- -- -- 53 53 59 71
1986 -- -- -- -- 52 64 42 49
1987 -- -- 92 79 53 56 81 81
1988 98 102 110 120 101 96 96 99
1989 124 104 95 87 105 105 92 90
1990 81 78 76 90 87 82 85 90
1991 79 56 48 60 105 59 52 60
1992 63 55 67 53 65 62 69 70
1993 49 47 45 52 56 61 58 53
1994 49 54 66 79 51 54 64 74
1995 69 99 87 73 89 101 92 78
1996 65 72 80 78 66 -- -- --
1997 72 76 75 86 -- -- -- --
1998 88 77 72 63 88 77 72 57

1999 48-50 44-47 46-49 50-57 55-58 50-54 54-56 53-62
2000 57-60 76-79 75-79 82-85 63-65 76-80 81-83 82-85

2001 75-78 67-69 57-61 45 84-85 78-79 67-68 50
a. Includes former German Democratic Republic after 1990. Data reflect a range of high and low prices
taken over the entire year.
b. Data are list prices during 1982-1987 and spot prices beginning in 1988.
SOURCE: (A) World Petrochemicals Price Update, World Petrochemicals Program, SRI Consulting
(data for 1982-1995).
(B) CEH estimates (data for 1996-2001).
CENTRAL AND EASTERN EUROPE
PRODUCING COMPANIES
The following table presents central and Eastern European producers of phenol:
Central and Eastern European Producers of Phenol

Annual Capacity
Bulgaria
Lukoil Neftochim
Burgas 40 Cumene peroxidation. Captive cumene. Some captive
consumption for PF resins.
Czech Republic
DEZA a.s.
Valasské Mezirici 10 Coal tar extraction.
Poland
Polski Koncern Naftowy

ORLEN S.A.
Plock 53 Cumene peroxidation. Captive cumene. All merchant sales.
Romania
Carom
Onesti 42 Cumene peroxidation. Captive cumene. All merchant sales.
Petrochim
Brazi (75) Cumene peroxidation. Captive cumene. All merchant sales.
Idle since 1998.

Russia
Kazanorgsintez
Kazan 65 Cumene peroxidation. Captive cumene. All merchant sales.
Novokuibyshevsky
Novokuibyshevsky 17 Cumene peroxidation. Captive cumene. All merchant sales.
Orgsteklo
Dzershinsk 45 Cumene peroxidation. Captive cumene. All merchant sales.
Samarsk Zavod
Samara 75 Cumene peroxidation. Captive cumene. All merchant sales.
Saratovorgsintez
Saratov 45 Cumene peroxidation. Captive cumene. All merchant sales.
Ufaorgsyntez
Ufa 72 Cumene peroxidation. Captive cumene. Some captive
consumption for bisphenol A.
Slovakia
Slovnaft a.s.
Bratislava 35 Cumene peroxidation. Captive cumene. All merchant sales.
Total 499
SALIENT STATISTICS
The following table presents salient statistics for phenol in central and Eastern Europe:
Central and Eastern European Supply/Demand for Phenol—2004

Annual
Capacity Net
(year-end) Production Imports Consumption
Czech Republic 10 6 1 7
Hungary 0 0 0 0
Poland 53 45 22 67
Romania 42 25 2 27
Russiaa 319 203 –51 152
Slovakia 35 33 –31 2
Otherb 40 20 11 31
Total 499 332 –46 286
a. Includes other states of the former USSR. Includes some phenol production from coal
operations.
b. Includes Bulgaria, Croatia, Slovenia and the former Yugoslavia.

CONSUMPTION
The following table presents central and Eastern European consumption of phenol:
Central and Eastern European Consumption of Phenol

Average Annual
2004 in 2004 2009 (percent)
PF Resins 110 39 131 3.5

Caprolactam 52 18 52 0
Other 43 15 47 2.0
Total 286 100% 323 2.5%

JAPAN
PRODUCING COMPANIES
The following table presents Japanese producers of phenol:
Japanese Producers of Phenol

Annual Capacity
Air Water Chemicals Inc.

Kashima, Ibaraki Prefecture 2 Coal tar extraction.
Chiba Phenol Co., Ltd.

Ichihara, Chiba Prefecture 200 Cumene peroxidation. Captive cumene from part owner
Mitsui Chemicals. Jointly owned by Mitsui Chemicals
(55%) and Idemitsu Petrochemical Co., Ltd. (45%).
Some captive consumption for bisphenol A by Idemitsu.
JFE Chemical Corporation

Kasaoka, Okayama Prefecture 2 Coal tar extraction.
Mitsubishi Chemical Corporation

Kashima, Ibaraki Prefecture 250 Cumene peroxidation. Captive cumene. Some captive
consumption for bisphenol A.

Mitsui Chemicals, Inc.
Ichihara, Chiba Prefecture 190 Cumene peroxidation. Captive cumene. Some captive
consumption for aniline.
Takaishi, Osaka Prefecture 200 Cumene peroxidation. Captive cumene. Some captive
consumption for bisphenol A, nonylphenol and PF
resins.
Nippon Phenol Company, Ltd.

Kitakyushu, Fukuoka Prefecture 120 Toluene oxidation. Owned 87.5% by Nippon Steel
Chemical Co., Ltd. and 12.5% by Mitsubishi Chemical
Corporation. All merchant sales.
Nippon Steel Chemical Co., Ltd.

Kitakyushu, Fukuoka Prefecture 10 Coal tar extraction.
Total 974
SALIENT STATISTICS
The following table presents Japanese salient statistics for phenol:
Japanese Supply/Demand for Phenol

Annual Operating
Capacity Rate
1987 382 82 313 20 55 296
1992 904 60 538 8 75 450
1994 904 76 690 6 122 589
1997 904 92 833 2 170 673
2001 904 90 884 10 126 768
2004 974 99 966 1 87 880
Consulting.
CONSUMPTION
The following table presents Japanese consumption of phenol:

Japanese Consumption of Phenol
Average Annual
2004 in 2004 2009 (percent)
Bisphenol A 493 56 544 2.0

PF Resins 180 20 200 2.1
Aniline 130 15 130 0
Xylenols 30 4 33 1.9
Other 47 5 50 1.2
Total 880 100% 957 1.7%

The following table presents historical Japanese consumption of phenol:
Historical Japanese Consumption of Phenol

PF Resins Bisphenol A Aniline Xylenols Other Total
1987 114 93 41 22 26 296
1992 106 168 86 31 59 450
1994 100 221 91 29 148 589
1997 71 301 108 35 158 673
2003 178 483 130 30 53 874
SOURCE: CEH estimates compiled in association with the World Petrochemicals Program,
SRI Consulting.
Japanese consumption of phenol grew 4.6% annually between 2001 and 2004, largely because of phenol
requirements for bisphenol A, which grew at an average annual rate of nearly 5% during the same period.
Consumption of phenol for PF resins grew at an average annual rate 5.6% from 2001 to 2004. The PF
resin market in Japan will likely see decreased growth as more wood products are being manufactured in
Southeast Asia.

PRICE
The following table presents Japanese unit sales values and trade prices for phenol:
Japanese Unit Sales Values and Trade Prices for Phenol

Yen per Kilogram Cents per Kilogram
Unit Sales Tradea Unit Sales Tradea Exchange Rate
Value Prices Value Prices (yen per dollar)
1999 262 61-76 230 54-67 114
2000 255 70-75 237 65-70 108
2001 258 72-78 212 59-64 122
2002 256 76-79 204 61-63 125
2003 265 79-81 229 68-70 116
2004 259 102-106 239 94-98 108
a. Data are trade prices (the range of import/export prices).

SOURCE: Yearbook of Chemical Industries Statistics, Ministry of
International Trade and Industry.
The following table presents historical Japanese quarterly list prices for phenol:
Historical Japanese List Prices for Phenol—1982-2000

Yen per Kilogram Cents per Kilogram
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
1982 255 250-270 250-270 250-270 116 104-113 100-108 96-104

1983 250-270 250-270 250-270 250-270 109-117 104-113 104-113 104-113
1984 265-285 265-285 265-285 265-285 113-121 118-127 112-120 108-116
1985 265-285 265-285 265-285 265-285 106-114 104-112 106-114 120-130

1986 265-285 260-280 -- -- 131-140 145-156 -- --
1987 -- -- -- -- -- -- -- --
1988 -- -- -- -- -- -- -- --
1989 -- -- -- -- -- -- -- --
1990 -- -- 265-275 265-275 -- -- 174-181 183-190

1991 293-303 293-303 278-288 278-288 227-235 215-223 200-207 203-210
1992 265-275 240-250 230-245 210-230 207-215 182-189 180-191 172-189
1993 220-240 220-240 220-240 220-250 177-194 188-205 202-220 210-238
1994 220-250 220-250 220-250 235-265 204-232 210-238 210-238 237-268
1995 235-265 235-265 235-265 235-265 240-270 237-268 280-316 258-291

1996 235-265 235-265 235-277 245-277 222-250 218-246 218-254 217-246
1997 245-277 259-295 259-295 259-295 202-229 217-247 220-250 207-235
1998 246-263 242-273 249-271 242-261 188-201 185-209 190-207 185-200
1999 237-265 253-269 257-289 255-264 209-234 223-238 224-256 225-234
2000 235-270 221-263 252-278 236-260 218-250 205-244 234-258 219-241
SOURCE: World Petrochemicals Price Update, World Petrochemicals Program, SRI Consulting.

OTHER ASIA
PRODUCING COMPANIES
The following table presents other Asian producers of phenol:
Other Asian Producers of Phenol

Annual Capacity
China
Harbin Huayu Co. Ltd.

Harbin, Heilongjiang 31 Cumene peroxidation. Captive cumene. All
merchant sales. Expansion to 76 thousand metric
tons is planned for 2005.
Petrochina Jilin Chemical Industrial

Jilin, Jilin 156 Cumene peroxidation. Captive cumene. All
merchant sales. Expansion to 230 thousand metric
tons is planned for 2005.
Sinopec Beijing Yanhua Petrochemical Co.
Ltd.
Beijing 150 Cumene peroxidation. Captive cumene. Some
captive consumption for caprolactam.
Sinopec Shanghai Gaoqiao Petrochemical

Corp.
Shanghai 200 Cumene peroxidation. Captive cumene. All
merchant sales.
India
Hindustan Organic Chemicals Ltd.

Cochin, Kerala 52 Cumene peroxidation. Captive cumene. All
merchant sales.
Schenectady Herdillia Ltd.

Navi Mumbai, Maharashtra 34 Cumene peroxidation. Captive cumene. Some
captive consumption for alkylphenols. Majority
owned by Schenectady International, Inc.
Korea, Republic of
Kumho P & B Chemicals, Inc.

Yeochon, Chollanam-do 130 Cumene peroxidation. Captive cumene. Some
(150) captive consumption for bisphenol A. Started a 150
thousand metric tons-per-year unit in March 2005.
LG Petrochemical
Yeochon, Chollanam-do (150) Cumene peroxidation. Captive cumene. Started
limited production in April 2005. Some captive
consumption for BPA.

Singapore
Mitsui Phenol Singapore Pte. Ltd.

Jurong 250 Cumene peroxidation. Captive cumene. Mostly
captive consumption for bisphenol A by Mitsui
Bisphenol Singapore Pte. Ltd.
Taiwan
Chang Chun Petrochemical Co. Ltd.

Kaohsiung, Kaohsiung Hsien (200) Cumene peroxidation. Captive cumene. Came on
stream in March 2005.
Formosa Chemicals & Fibre Corp.

Mailiao City, Yunlin Hsien 400 Cumene peroxidation. Captive cumene. All
merchant sales, mainly to affiliate Nan Ya for
bisphenol A.
Taiwan Prosperity Chemical Corporation

Linyuan City, Kaohsiung Hsien 140 Cumene peroxidation. Captive cumene. Some
captive consumption for bisphenol A.
Total 1,543
Several new plants or expansions are planned for 2005-2007. Some of the companies planning additional
phenol capacity include Shanghai Gaoqiao (expanding to 250 thousand metric tons), Petrochina Jilin
Chemical (expanding to 230 thousand metric tons), Harbin (expanding to 76 thousand metric tons),
Jiangsu Nantong (building a 124 thousand metric tons-per-year plant) and Kingboard Chemical (planning
a 125 thousand metric tons-per-year plant).
Salient Statistics
The following table presents other Asian salient statistics for phenol by country in 2004:
Other Asian Supply/Demand for Phenol—2004

Annual
Capacity
China 537 370 281 3 648

India 86 80 70 5 145
Indonesia -- -- 25 -- 25
Korea, Republic of 130 121 97 7 211
Malaysia -- -- 44 10 34
Pakistan -- -- 3 -- 3
Philippines -- -- 4 -- 4
Singapore 250 240 15 15 240

Taiwan 540 420 22 72 370
Thailand -- -- 171 -- 171
Other -- -- 2 -- 2
Total 1,543 1,231 734 112 1,853
Consulting.
CONSUMPTION
The following table presents other Asian consumption of phenol:
Other Asian Consumption of Phenol

Average Annual
2004 in 2004 2009 (percent)
Bisphenol A 745 40 1,315 12.0

PF Resins 555 30 710 5.0
Adipic Acid 33 2 40 3.9
Other 471 25 535 2.6
Total 1,853 100% 2,663 7.5%

OTHER REGIONS
PRODUCING COMPANIES
The following table presents major producers of phenol in other regions:

Major Producers of Phenol in Other Regions
Annual Capacity
AFRICA
South Africa
Merisol RSA (Pty) Ltd.

Sasolburg 44 Coal tar extraction. Some captive consumption
for alkylphenols.

OCEANIA
Australia
Huntsman Chemical Australia Ltd.

West Footscray, Victoria 22 Cumene peroxidation. Captive cumene. Some
captive consumption for PF resins.
Total 66
SALIENT STATISTICS
The following table presents salient statistics for phenol in other regions in 2004:
Supply/Demand for Phenol in Other Regions—2004

Annual
Capacity
Africa
Algeria -- -- 0 -- 0
Egypt -- -- 4 -- 4
South Africa 44 40 -- 30 10
Middle East
Iran -- -- 15 -- 15
Israel -- -- 5 -- 5
Saudi Arabia -- -- 3 -- 3
Turkey -- -- 11 -- 11
Oceania
Australia 22 16 3 2 17
New Zealand -- -- 0 -- 0
Total 66 56 41 32 65
Consulting.
CONSUMPTION
The following table presents consumption of phenol in other regions:

Consumption of Phenol in Other Regions
Average Annual
2004 in 2004 2009 (percent)
PF Resins 39 60 45 2.9
Other 17 26 20 3.3
Total 65 100% 90 6.7%

BIBLIOGRAPHY
Chemical Economics Handbook—The following CEH marketing research reports, product reviews and
data summary contain additional information that is pertinent to the subject of this report:
Acetone
Adipic Acid
Aniline
Bisphenol A
Caprolactam
Cresols, Xylenols and Cresylic Acid
Cyclohexane
Cyclohexanol and Cyclohexanone—United States
Epoxy Resins
Phenolic Resins
Polycarbonate Resins
Propylene

Process Economics Program—The following Process Economics Program reports contain more detailed
information on the manufacturing processes, process design and process economics of phenol and some
of its major derivatives. Address inquiries concerning this information to the Process Economics
Program, SRI Consulting, Menlo Park, California 94025.
Adipic Acid, Report Nos. 3 and 3A, March 1965 and October 1971.
Bisphenol A and Alkylated Phenols, Report No. 192, December 1988.
Caprolactam, Report Nos. 7/1-7/2, 7A and 7B, September 1965, March 1968 and January 1976.
Phenol, Report Nos. 22, 22A, 22B and 22C, April 1967, September 1972, December 1977 and March
1991.
Other References—The following list of additional references is suggested for supplemental reading:
“Big Snip in the Offing,” Asian Chemical News, June 20, 2004.
“Phenol,” Kirk-Othmer Encyclopedia of Chemical Technology, 4th ed., vol. 18, John Wiley & Sons, New
York, 1996, p. 592.
“Phenol,” Ulmann’s Encyclopedia of Industrial Chemistry, 5th ed., vol. A19, VCH Verlagsgesellschaft
mbH, Germany, 1991, p. 299.
“Phenol and Acetone Market Plagued by Continuing Overcapacity,” Chemical Market Reporter, March 4,
2002.
“Phenol Demand is Stable While Acetone Firms,” Chemical Market Reporter, October 27, 2003.
“Sunoco Eyes More Acquistions,” Chemical Week, March 23, 2005, p.28.

DRAFT Phenol

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DRAFT Phenol

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CEH Marketing Research Report

*1* phenol CEH DRAFT—2 May 17, 2005-EG

SUPPLY AND DEMAND BY REGION ................................................................................................... 16

*2* phenol CEH DRAFT—2 May 17, 2005-EG

*3* phenol CEH DRAFT—2 May 17, 2005-EG

The following table presents world supply/demand for phenol in 2004:

World Supply/Demand for Phenol—2004

Total 8,681 7,675 90%e 2,081 1,999 7,745

a. Operating rate is based on an effective capacity of 2,834 thousand metric tons.

b. Datum is reported as net imports.

c. Includes intra-Western European trade.

e. Operating rate is based on an effective capacity of 8,522 thousand metric tons.

SOURCE: CEH estimates.

feedstock costs and robust demand.

*4* phenol CEH DRAFT—2 May 17, 2005-EG

of phenol by region and end use in 2004:

World Consumption of Phenol by Region and End Use—2004

Total 3,106 2,345 636 286 1,373 7,745

d. Includes Africa, Middle East and Oceania.

SOURCE: CEH estimates.

*5* phenol CEH DRAFT—2 May 17, 2005-EG

Bisphenol A 3,106 40 4,258 45 6.5

Total 7,745 100% 9,452 100% 4.1%

SOURCE: CEH estimates.

World Consumption of Phenol by Region

Total 7,745 100% 9,452 100% 4.1%

SOURCE: CEH estimates.

*6* phenol CEH DRAFT—2 May 17, 2005-EG

export opportunities for U.S. producers.

z Continued high demand for bisphenol A, mainly for polycarbonate resins

z Possible stricter environmental regulations concerning formaldehyde emissions from PF resins

The following table presents the largest producers of phenol by capacity:

Major Global Producers of Phenol—2005

INEOS Phenol 1,620 19

*7* phenol CEH DRAFT—2 May 17, 2005-EG

Total 5,557 64%

SOURCE: CEH estimates.

a chemical intermediate in the manufacture of bisphenol A, phenol-formaldehyde resins, caprolactam,

alkylphenols, aniline and 2,6-xylenol.

PF Resins Phenol-formaldehyde resins

MF Resins Melamine-formaldehyde resins

ABS Acrylonitrile-butadiene-styrene resins

*8* phenol CEH DRAFT—2 May 17, 2005-EG

MDI Methylenebis(4-phenyl isocyanate)

OSB Oriented strandboard

global capacity based on cumene peroxidation.

*9* phenol CEH DRAFT—2 May 17, 2005-EG

benzene propylene cumene

mol wt: 78.1 42.1 120.2

mol wt: 152.2 94.1 58.1

methylstyrene; yields decline by 3.5% when alpha-methylstyrene is recovered. Coproduct acetone is

obtained in the ratio of 0.60-0.62 unit acetone to 1.0 unit phenol.

*10* phenol CEH DRAFT—2 May 17, 2005-EG

toluene benzoic acid

mol wt: 92.1 122.1

benzoic acid phenol

mol wt: 122.1 94.1

units of toluene consumed per unit of phenol produced.

minor amounts are derived from coal tar refining operations.

*11* phenol CEH DRAFT—2 May 17, 2005-EG

mol wt: 158.2 180.2

mol wt: 180.2 116.1

mol wt: 116.1 94.1

1 phenol CEH DRAFT—2 May 17, 2005-EG

2 phenol CEH DRAFT—2 May 17, 2005-EG

3 phenol CEH DRAFT—2 May 17, 2005-EG

4 phenol CEH DRAFT—2 May 17, 2005-EG

5 phenol CEH DRAFT—2 May 17, 2005-EG

6 phenol CEH DRAFT—2 May 17, 2005-EG

7 phenol CEH DRAFT—2 May 17, 2005-EG

8 phenol CEH DRAFT—2 May 17, 2005-EG

9 phenol CEH DRAFT—2 May 17, 2005-EG

10 phenol CEH DRAFT—2 May 17, 2005-EG

11 phenol CEH DRAFT—2 May 17, 2005-EG

12 phenol CEH DRAFT—2 May 17, 2005-EG

13 phenol CEH DRAFT—2 May 17, 2005-EG

14 phenol CEH DRAFT—2 May 17, 2005-EG

15 phenol CEH DRAFT—2 May 17, 2005-EG

16 phenol CEH DRAFT—2 May 17, 2005-EG

17 phenol CEH DRAFT—2 May 17, 2005-EG

18 phenol CEH DRAFT—2 May 17, 2005-EG

19 phenol CEH DRAFT—2 May 17, 2005-EG

20 phenol CEH DRAFT—2 May 17, 2005-EG

21 phenol CEH DRAFT—2 May 17, 2005-EG

22 phenol CEH DRAFT—2 May 17, 2005-EG

23 phenol CEH DRAFT—2 May 17, 2005-EG