Propylene is an important petrochemical feedstock used in the production of various industrial and consumer goods. As demand for these goods continues to rise globally, the need for propylene is also increasing significantly. This article takes an in-depth look at propylene - its production, uses, market trends and more.

Production of Propylene
Propylene is primarily produced as a co-product during the steam cracking process for ethylene production. Steam cracking involves producing steam and heat to break down hydrocarbon feedstocks like naphtha, natural gas liquids or liquefied petroleum gas into smaller molecules. During this process, ethylene and propylene are produced as the main products along with other byproducts.

Approximately 50% of propylene is produced this way as a co-product of ethylene. The remainder is produced through two other processes - fluid catalytic cracking (FCC) of gasoline blending stocks and hydrocracking of refinery streams. FCC involves breaking down larger hydrocarbon molecules using heat and a catalyst to produce lighter fuel components as well as process gases including propylene. Hydrocracking uses hydrogen gas and catalyst to crack heavier gas oil and residue streams into lighter products including propylene.

Global Production Trends
The global propylene production volume has been steadily increasing over the past few decades to meet growing demand from the polypropylene industry and other derivative markets. According to industry estimates, worldwide propylene production capacity stood at over 90 million metric tons per year in 2020 and was expected to further expand to more than 100 million metric tons per year by 2025.

The United States is currently the largest producer of propylene globally with an annual capacity of over 25 million metric tons as of 2020. China follows in second place with a propylene capacity of around 21 million metric tons and is projected to overtake the US in the coming years given its rapidly expanding petrochemical industry. The Middle East, Europe and Asia Pacific are other major producing regions for this versatile petrochemical.

Uses of Propylene

Polypropylene Production
By far the single largest end use of propylene is for the production of polypropylene - a thermoplastic polymer produced by polymerization of propylene gas. Over 60% of the world's propylene supply is used for manufacturing polypropylene which finds wide applications from packaging and labeling to automobile components to reusable containers and more.

The polypropylene industry has witnessed tremendous growth over the years in line with increased worldwide demand from various end-use industries ranging from consumer goods to construction to automotive. This has correspondingly boosted consumption of propylene as its primary feedstock.

Propylene Oxide Production
The second major derivative of propylene is propylene oxide which is used to manufacture polyols for polyurethane foams and other products. Around 15-20% of global propylene production capacity is devoted to producing propylene oxide, primarily for polyurethane industry applications such as insulation, furniture, automobile interiors, adhesives and sealants.

Other Key Derivatives
Other important Propylene derivatives that consume a substantial chunk of its supply include cumene (used in phenol and acetone production), acrylonitrile (used in synthetic fibers and plastics), and propylene glycol (used in automobile antifreeze and aircraft de-icing fluids, food, pharmaceuticals, unsaturated polyester resins). Propylene is also directly used as a chemical intermediate and as fuel.

Market Trends and Outlook
Buoyed by end user industries like packaging, construction, automobiles, transportation and infrastructure development, the global demand for propylene and its end products like polypropylene and propylene oxide has witnessed sustained growth over years. As per market research reports, the propylene market size is projected to increase from $150 billion in 2020 to over $220 billion by 2027, expanding at around 5% CAGR during this period.

Asia Pacific is expected to remain the largest as well as the fastest growing regional market for propylene over the coming years attributed to China's rising industrial activity and proliferation of petrochemical facilities in countries like India. Meanwhile, North America and Europe will also see steady demand growth riding on recovery in major end use sectors. On the supply side, sizeable capacity additions will be needed globally to meet this projected demand increase for propylene and its derivatives.

Conclusion
In summary, propylene has emerged as a critical petrochemical building block for the manufacturing of important industrial and consumer goods ranging from plastics and fibers to household chemicals and automotive materials. With rising worldwide consumption of these end products, propylene is poised to remain a key focus area in the global petrochemical industry for years ahead. Its demand growth is expected to sustain albeit at a moderate pace reflective of broader industrial and economic cycles.

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