Chemical and Metal Shortage Alert – August 2020

The purpose of this blog is to identify chemical and metal shortages reported on the Internet.  The sources of the information reported here are primarily news releases issued on the Internet.  The issue period of the news releases is August 2020. 

Section I below lists those chemicals and metals that were on the previous month’s Chemical and Metal Shortage Alert list and continue to have news releases indicating they are in short supply. Click here to read the June 2020 Chemical and Metal Shortage Alert list. 

Section II lists the new chemicals and metals (not on the June alert).  Also provided is some explanation for the shortage and geographical information.  This blog attempts to list only actual shortage situations – those shortages that are being experienced during the period covered by the news releases.  Chemicals and metals identified in news releases as only being in danger of being in short supply status are not listed. 

Section I.  Coronavirus protective and testing equipment:  United States; supply not keeping up with demand 

Section II.   Shortages Reported in August not found on the Previous Month’s List 

• Aluminum cans: United States; supply not keeping up with demand
• Construction materials: Canada; supply not keeping up with demand
• Copper: India; production not keeping up with demand
• Iron ore: India; supply not keeping up with demand
• Lumber: United States; production not keeping up with demand 

Reasons for Section II shortages can be broadly categorized as

1. Mining not keeping up with demand: none
2. Production not keeping up with demand: copper; lumber
3. Government regulations: none
4. Sources no longer available: none
5. Insufficient imports:  none
6. Supply not keeping up with demand: aluminum cans; construction materials; iron ore

Propene (Propylene) – Uses, Prices, and Production

This blog is the twenty-ninth in a series of blogs I plan to write providing use, price, and production data on high-use inorganic and organic chemicals.  Click here to see the first blog in this series and a list of chemicals to be featured.  This blog provides data on propene.  The primary purpose of these blogs is to present estimates of recent price, production, and sales revenues for the chemicals.  The last blog in this series will compare price, production, and sales revenues data for all the chemicals.  

Uses.  Uses of propene include: 

• As a feed stock for producing the polymer polypropylene (60 to 70% of total);
• As a feed stock for producing several chemicals; and
• As a fuel. 

Prices.  Propane prices in 2019 were in the $775 per metric ton (mt) range. 

Production.  From the internet, estimated 2019 global production of propene is in the 110 to 130 million mt range.  

Using 110 and 130 million mt produced and an average propene price of $775 (see Prices above) gives 2019 global sales revenues generated by propene in the $85 to $101 billion range (110 million mt times $775 per mt and 130 million mt times $775 per mt).

 

Ethene (Ethylene) – Uses, Prices, and Production

This blog is the twenty-eighth in a series of blogs I plan to write providing use, price, and production data on high-use inorganic and organic chemicals.  Click here to see the first blog in this series and a list of chemicals to be featured.  This blog provides data on ethene.  The primary purpose of these blogs is to present estimates of recent price, production, and sales revenues for the chemicals.  The last blog in this series will compare price, production, and sales revenues data for all the chemicals.  

Uses.  Uses of ethene include: 

• As a feed-stock for producing polyethylene and other polymers;
• As a feed-stock for producing chemicals;
• In promoting crop growth;
• In glass production;
• As an anesthetic;
• As a fuel in metal cutting and welding;
• As refrigerant; and
• In extraction of rubber 

Prices.  Ethene prices in 2019 depend on whether ethene was produced from crude oil’s naphtha or from natural gas’s ethane.   2019 average ethene prices produced from naphtha was found to be in the $950 per metric ton (mt) range.   2019 average ethene prices produced from ethane was found to be in the $350 per mt range. 

Production.  From the internet, estimated 2019 global production of ethene is in the 150 to 170 million mt range.  

Internet sources suggest that in 2019 approximately one-half of ethene was produced from naphtha and approximated one-half from ethane.   Therefore an average price of $650 (($950 + $350)/2)) is used in the next paragraph to compute 2019 ethene revenues. 

Using 150 and 170 million mt produced and an average ethene price of $650  gives 2019 global sales revenues generated by ethene in the $97 to $111 billion range (150 million mt times $650 per mt and 170 million mt times $650 per mt).

 

Ethanol (Ethyl Alcohol) – Uses, Prices, and Production

This blog is the twenty-seventh in a series of blogs I plan to write providing use, price, and production data on high-use inorganic and organic chemicals.  Click here to see the first blog in this series and a list of chemicals to be featured.  This blog provides data on ethanol.  The primary purpose of these blogs is to present estimates of recent price, production, and sales revenues for the chemicals.  The last blog in this series will compare price, production, and sales data for all the chemicals.  

Uses.  Uses of ethanol include: 

• As a gasoline additive;
• As a fuel;
• As a feedstock for making other chemicals;
• As a solvent;
• As a disinfectant and antiseptic;
• In liquids consumed by humans for physiological affects; and
• For extracting flavors and aromas used in food and beverage products. 

Prices.  The 2019 global ethanol price is believed to be in the range of $700 to $1,200 per metric ton (mt). 

Production.  Ethanol is produced by the fermentation of sugars by yeasts (predominant production method) and by hydration of petroleum-derived ethylene using a catalyst. 

From the internet, estimated 2019 global production of ethanol is in the 100 to 105 million mt range.  Using 100 and 105 million mt produced and the prices of $700 and $1,200 per mt (see Prices above) gives 2019 global revenues generated by ethanol in the $70 to $126 billion range (100 million mt times $700 per mt and 105 million mt times $1,200 per mt).

Methanol (Methyl Alcohol) – Uses, Prices, and Production

 

This blog is the twenty-sixth in a series of blogs I plan to write providing use, price, and production data on high-use inorganic and organic chemicals.  Click here to see the first blog in this series and a list of chemicals to be featured.  This blog provides data on methanol.  The primary purpose of these blogs is to present estimates of recent price, production, and sales revenues for the chemicals.  The last blog in this series will compare price, production, and sales data for all the chemicals.  

Uses.  Uses of methanol include: 

• As a feed stock to produce formaldehyde and many other chemicals used in making several products;
• As a gasoline additive;
• As a fuel;
• In water treatment; and
• As a solvent. 

Prices.  The 2019 average global methanol price is believed to be in the range of $300 to $350 per metric ton (mt). 

Production.  Methanol is produced by reacting hydrogen with carbon monoxide and carbon dioxide. 

From the internet, estimated 2019 global production of methanol is in the 90 to 95 million mt range.  Using 90 and 95 million mt produced and the prices of $300 and $350 per mt (see Prices above) gives 2019 global revenues generated by methanol in the $27 to $33.5 billion range (90 million mt times $300 per mt and 95 million mt times $350 per mt).

 

Acetone (Propanone) – Uses, Prices, and Production

This blog is the twenty-fifth in a series of blogs I plan to write providing use, price, and production data on high-use inorganic and organic chemicals.  Click here to see the first blog in this series and a list of chemicals to be featured.  This blog provides data on acetone.  The primary purpose of these blogs is to present estimates of recent price, production, and sales revenues for the chemicals.  The last blog in this series will compare price, production, and sales data for all the chemicals.  

Uses.  Uses of acetone include: 

• As a solvent;
• As a raw material in the production of methyl methacrylate, bisphenol A, and other compounds used in making polymers; and
• As an additive. 

Prices.  The 2019 average global acetone price is believed to be in the range of $550 to $650 per metric ton (mt). 

Production.  Acetone is produced as a product in the production of phenol. 

From the internet, estimated 2019 global production of acetone is in the 7 to 8 million mt.  Using 7 and 8 million mt produced and the prices of $550 and $650 per mt (see Prices above) gives 2019 global revenues generated by acetone in the $3.9 to $5.2 billion range (7 million mt times $550 per mt and 8 million mt times $650 per mt).

 

Formaldehyde (methanol) – Uses, Prices, and Production

This blog is the twenty-fourth in a series of blogs I plan to write providing use, price, and production data on high-use inorganic and organic chemicals.  Click here to see the first blog in this series and a list of chemicals to be featured.  This blog provides data on formaldehyde.  The primary purpose of these blogs is to present estimates of recent price, production, and sales revenues for the chemicals.  The last blog in this series will compare price, production, and sales data for all the chemicals.  

Uses.  Uses of formaldehyde include: 

• Ø  As a starting material in making many chemical products, especially resins;
• Ø  As disinfectant;
• Ø  As a storage media for biological materials; and
• Ø  As a preservative. 

Prices.  The 2019 average global formaldehyde price is believed to be in the range of $150 to $200 per metric ton (mt). 

Production.  Formaldehyde is produced by oxidizing methanol, using a catalyst. 

From the internet, estimated 2019 global production of formaldehyde is 12 million mt.  Using 12 million mt produced and the prices of $150 and $200 per mt (see Prices above) gives 2019 global revenues generated by formaldehyde in the $1.8 to $2.4 billion range (12 million mt times $150 per mt and $200 per mt).