GIA's Latest Report Forecasts Long-term Growth in the Global Tetrahydrofuran Market
- May 21, 2012
SAN JOSE, California -- Tetrahydrofuran (THF) is a highly flammable, clear, colorless liquid, used in production of polyurethane stretch fibers, coatings, adhesives, printing inks, magnetic tape and as a reaction solvent. THF ranks among the most crucial ethers and is fully hydrogenated analogue of furan, an aromatic compound. The highly volatile and general purpose organic solvent, offers outstanding solvent strength for several organic substances. Growth opportunities in the worldwide market for Tetrahydrofuran (THF) market essentially stem from the escalating demand for polytetramethylene ether glycol (PTMEG), a major raw material used in manufacture of spandex fibers. In addition, growing demand for green technologies worldwide is expected to trigger the industry shift towards THF produced through bio-based manufacturing process. However, high manufacturing cost of THF is the main hindrance in production of the chemical through bio-based process. The market for bio-based THF is expected to grow with the fall in cost of production. The chemical sector is witnessing replenished demand in various end-use markets. Since the second quarter of 2010, recovery in the sector has followed a sharp V-shape trend, especially in China and East Asia. In developing nations of Latin America, emerging Europe, Africa and the Middle East, and Asia-Pacific, primarily in countries such as India, Brazil and China, rapid growth is expected over the coming years.
A prominent trend in the market is deployment of green technologies for THF production. With global demand for green chemicals on the rise, players in the tetrahydrofuran market are increasingly shifting towards greener technologies that also offer sustainable competitive cost benefits. 2-Methyltetrahydrofuran (2MeTHF) produced from furfural process which uses corn cobs and sugar cane as feedstock, is currently being popularized as an environment-friendly substitute for petroleum-based tetrahydrofuran. The market for 2MeTHF is increasing rapidly which is driving down the price of the compound in contrast to oil-derived THF which registered about 45% increase in prices over the past decade.
Asia-Pacific, China in particular, is the largest consumer of THF globally. Chinese demand for THF is increasing rapidly and is expected to grow in next five years, both in terms of demand and production level. The Asia-Pacific market carries significant advantage as the largest and fastest regional market for Tetrahydrofuran, as stated by the new market research report on Tetrahydrofuran. In China, THF is generally used as a domestic commercial synthetic solvent and pharmaceutical raw material. Development of THF market in China is mainly attributed to the growing demand for spandex fibers that stimulated production of PTMEG. Annual demand for BDO is expected to grow at a rate of about 7% in China in the near term.
Global tetrahydrofuran market is a consolidated market dominated by three leading players including BASF, Dairen Chemical Corporation and Invista. Select major players profiled in the report include BASF SE, Dairen Chemical, International Specialty Products, Invista, Mitsubishi Chemical Corporation, Penn A Kem LLC, Saudi International Petrochemical Company, and Sinochem International Corporation among others.
The research report titled "Tetrahydrofuran: A Global Strategic Business Report" announced by Global Industry Analysts Inc., provides a strategic review of the key market trends, recent product launches, strategic corporate initiatives, and profiles of key market participants. The report provides annual consumption estimates and projections for Tetrahydrofuran market for the years 2009 through 2017, by the following geographic markets - US, Japan, Europe, Asia-Pacific, and Rest of World. Key end-use segments analyzed include PTMEG and Solvents. The study also provides historic data for an insight into market evolution over the period 2003 through 2008.
About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.
Source: Global Industry Analysts
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