Mr. Shambhu Nath Jha, Research Head – Chemicals at Fact.MR discusses latest trends shaping Europe’s cyclopentane marketplace
Over the past few years, global cyclopentane consumption has witnessed a meteoric rise in the wake of strict HCFC phase-outs and growing demand for environmentally-friendly foam blowing agents. Expansion of hydrocarbon processing industry to meet growing demand for petrochemicals is further enabling manufacturers to obtain a good price point and accessibility of cyclopentane – an alicyclic hydrocarbon.
While the global chemical sales are rising steadily, share of EU-based players in the chemicals market is stabilizing as the region has stringent regulatory compliance (REACH, CLP, Seveso III and ETS Phase 3), higher feed stock costs and lower new consumers. However, a strong integrated domestic market and innovation efforts in R&D to promote sustainability are likely to generate new avenues for cyclopentane market in Europe.
Q: Will the recovery in oil and gas prices impact prospects of cyclopentane market?
A: Fossil fuels account for nearly three quarters of the total energy consumption in Europe. Although not expected to return back to its golden age of oil and gas production, European countries are identifying opportunities to improve their rising import dependency of fossil fuels. These efforts can be seen in recent developments such as Russia’s announcement of the plan to increase the reach of its oil products to global markets.
Cyclopentane manufacturers in the EU are strengthening their distribution network for oil and gas to cope with the fluctuating domestic gas demands and decrease their import dependency. Availability of raw materials can enable the production of cyclopentane at a convenient product margin, making it affordable for the end-use industries in Europe.
Q: Where is demand for cyclopentane concentrated in this region?
A: Germany continues to be the largest market for cyclopentane in Europe. The country has greater dependency on fossil fuel imports than other EU countries. Consumption of petrochemical compounds such as cyclopentane is mainly driven by a significant refrigerator market and growing pool of households that prefer energy-saving insulating construction materials.
Q: What is the application scope for cyclopentane in Europe?
A: Europe is one of the prominent markets for insulating construction materials. As the region is moving towards holistic sustainable solutions, high level of awareness among EU consumers has led to increasing installation of climate-friendly and energy-efficient insulating construction materials in residential as well as commercial constructions.
Further, modern consumer electronic appliances manufactured and distributed in Europe are energy-efficient and environment-friendly. Several regional refrigerator brands promote use of low-GWP foam blowing agent, presenting a considerable demand for cyclopentane.
For more information about this you can visit at https://www.factmr.com/report/371/cyclopentane-market
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