The Increasing Demand for Carbolic Acid and its Market Overview

This blog comprises of carbolic acid definition, market drivers, regional outlook, key players, and pricing trends.

Carbolic Acid: Definition

Carbolic acid (phenol) is a chemical compound having the molecular formula C6H5OH. It is a white crystalline substance with a distinct and unpleasant odour.

It is an aromatic component that is widely employed in a variety of industries such as medicines, personal care goods, and agriculture.

Carbolic acid was discovered in coal tar, although it can also be made from benzene or toluene. It has a pKa value of 9.95 and is marginally soluble in water but highly soluble in organic solvents.

Because of its antiseptic characteristics, carbolic acid has been utilised in the medical profession to disinfect wounds and surgical tools.

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It is also utilised in the manufacturing of other compounds like polymers, resins, and dyes. Furthermore, carbolic acid is utilised as a precursor in the manufacture of a variety of other essential compounds, including bisphenol A and caprolactam.

Carbolic acid is a toxin that can cause skin irritation, lung issues, and central nervous system damage. As a result, it should be handled with caution and stored in a well-ventilated environment.

Market Drivers

• Carbolic acid is utilised in the healthcare business as an antiseptic and disinfectant. The increased need for healthcare services, combined with a greater emphasis on hygiene and infection control, is projected to propel the carbolic acid market forward.
• Carbolic acid is a raw ingredient used in the manufacture of a variety of compounds, including polymers, resins, and dyes. The rising demand for these chemicals in industries such as automotive, construction, and packaging is likely to propel the carbolic acid market forward.
• Caprolactam is a critical raw element in the manufacture of nylon 6, which is used in a variety of industries such as textiles, automobiles, and consumer goods. Carbolic acid is a critical raw ingredient in the production of caprolactam, and rising nylon 6 demand is likely to drive growth in the carbolic acid market.
• The development of new and sophisticated technologies for carbolic acid synthesis, such as enzymatic methods and bioreactor systems, has the potential to fuel market expansion.

Carbolic Acid Price Trend

North America

In recent times, US carbolic acid prices have fallen as a result of insufficient cost support and low demand from downstream sectors.

In November, crude oil prices decreased, putting little upward pressure on prices. Upstream paints and coatings demand has been weak to constant, leading to low volume consumption.

In November 2022, the US PMI fell below 50, indicating a fall in carbolic acid production cost, manufacturing, and industrial activities. The already sluggish demand dynamics for many commodities were aggravated.

APAC

The declining trend in phenol prices in China has recently persisted.

The low pricing in the domestic market was caused by low import prices, lower freight costs, and stable to weak demand from downstream paints and coatings and other related sectors.

In terms of global demand, the situation has remained stable. Despite low buyer confidence, market players reported large inventories.

Europe

Recently, the European carbolic acid market has been slow to develop due to lower demand in the West and concerns about a European recession, as evidenced by market members' reports of few inquiries from downstream consumers. Consumer sentiment fell as a result.

While Asia-Pacific imports have increased the amount of material available on the German market, feedstock benzene costs in Europe have decreased as crude oil prices have plummeted, decreasing cost pressure.

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Import availability has improved as a result of a major reduction in freight charges on European routes.

Key Players

• INEOS Group
• Mitsui Chemicals, Inc.
• Shell International B.V.
• Solvay SA
• Honeywell International Inc.

Regional Outlook

• Due to rising demand from the pharmaceutical and chemical industries, the North American carbolic acid prices is likely to expand gradually. The United States is a major producer and user of carbolic acid, with the automotive and construction industries projected to drive the market.
• Because of the presence of established end-use sectors and a favourable regulatory framework, the European carbolic acid market is likely to grow at a moderate rate. Germany and the United Kingdom are key manufacturers and users of carbolic acid, with the automotive and construction industries projected to drive the market.
• The Asia-Pacific carbolic acid market is predicted to expand rapidly due to the existence of emerging economies, increasing industrialization, and a growing population. China is a major producer and user of carbolic acid, and the rise of the healthcare, chemical, and automotive industries is also projected to fuel the market.

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