Petrochemical (PVC) Project Report

Polyvinyl Chloride (PVC)

M.B.A. Sem-4 (FS) Page 1

A Project Report on

Commodity Market & Futures

Of

Petrochemical (PVC)

SUBMITTED BY

Exam No Name

02 Desai Gunjan

SUBMITTED TO:-

Prof. Mittal Dattani

GANPAT UNIVERSITY

Center for Management Studies

Ahmedabad



TABLE OF CONTENTS FOR PROJECT REPORT

Particular Page

No.

Title Page

1 Chapter-1 3

Introduction of Petrochemical

2 Chapter-2 8

Overview of Polyvinyl chloride (PVC)

3 Chapter-3 20

Polyvinyl Chloride Price Fluctuation

4 Chapter-4 22

Bibliography



Chapter-1

OVERVIEW:-

Petrochemicals are chemical products derived from petroleum.

Some chemical compounds made from petroleum are also obtained from other fossil fuels, such

as coal or natural gas, or renewable sources such as corn or sugar cane.

The two most common petrochemical classes are olefins (including ethylene and propylene)

and aromatics (includingbenzene, toluene and xylene isomers). Oil refineries produce olefins and

aromatics by fluid catalytic cracking of petroleum fractions. Chemical plants produce olefins

by steam cracking of natural gas liquids like ethane and propane. Aromatics are produced

by catalytic reforming of naphtha. Olefins and aromatics are the building-blocks for a wide range

of materials such as solvents, detergents, and adhesives. Olefins are the basis

for polymers and oligomers used in plastics, resins, fibers,elastomers, lubricants, and gels.

Global ethylene and propylene production are about 115 million tonnes and 70 million tonnes

per annum, respectively. Aromatics production is approximately 70 million tonnes. The largest

petrochemical industries are located in the USA andWestern Europe; however, major growth in

new production capacity is in the Middle East and Asia. There is substantial inter-regional

petrochemical trade.

Primary petrochemicals are divided into three groups depending on their chemical structure:

Olefins include ethylene, propylene, and butadiene. Ethylene and propylene are important

sources of industrial chemicals and plastics products. Butadiene is used in makingsynthetic

rubber.

Aromatics include benzene, toluene, and xylenes. Benzene is a raw material for dyes and

synthetic detergents, and benzene and toluene for isocyanates MDI and TDI used in

making polyurethanes. Manufacturers use xylenes to produce plastics and synthetic fibers.

Synthesis gas is a mixture of carbon monoxide and hydrogen used to

make ammonia and methanol.

Ammonia is used to make the fertilizer urea and methanol is used as a solvent

and chemical intermediate.



The prefix "petro-" is an arbitrary abbreviation of the word "petroleum"; since "petro-"

is Ancient Greek for "rock" and "oleum" means "oil". Therefore, the etymologically correct term

would be "oleochemicals". However, the term oleochemical is used to describe chemicals

derived from plant and animal fats.

Sources

Petrochemical feedstock sources



The adjacent diagram schematically depicts the major hydrocarbon sources used in producing

petrochemicals are:

Methane, ethane, propane and butanes: Obtained primarily from natural gas

processing plants.

Naphtha obtained from petroleum refineries.

Benzene, toluene and xylenes, as a whole referred to as BTX and primarily obtained

from petroleum refineries by extraction from the reformate produced in catalytic

reformers.

Gas oil obtained from petroleum refineries.

Methane and BTX are used directly as feedstocks for producing petrochemicals. However,

the ethane, propane, butanes, naphtha and gas oil serve as optional feedstocks for steam-

assisted thermal crackingplants referred to as steam crackers that produce these intermediate

petrochemical feedstocks:

Ethylene

Propylene

Butenes and butadiene

Benzene

In 2007, the amounts of ethylene and propylene produced in steam crackers were about

115 Mt(megatonnes) and 70 Mt, respectively. The output ethylene capacity of large

steam crackers ranged up to as much as 1.0 1.5 Mt per year.

Steam crackers are not to be confused with steam reforming plants used to

produce hydrogen and ammonia.



Manufacturing Location:-

Like commodity chemicals, petrochemicals are made on a very large scale. Petrochemical

manufacturing units differ from commodity chemical plants in that they often produce a number

of related products. Compare this with specialty chemical and fine chemical manufacture where

products are made in discrete batch processes.

Petrochemicals are predominantly made in a few manufacturing locations around the world, for

example in Louisiana in the USA, in Teesside in the Northeast of England in theUnited

Kingdom, in Rotterdam in the Netherlands and in Jamnagar & Dahej in Gujarat India. Not all of

the petrochemical or commodity chemical materials produced by the chemical industry are made

in one single location but groups of related materials are often made in adjacent manufacturing

plants to induce industrial symbiosis as well as material and utility efficiency and other

economies of scale. This is known in chemical engineering terminology as integrated

manufacturing. Speciality and fine chemical companies are sometimes found in similar

manufacturing locations as petrochemicals but, in most cases, they do not need the same level of

large scale infrastructure (e.g., pipelines, storage, ports and power, etc.) and therefore can be

found in multi-sector business parks.

The large scale petrochemical manufacturing locations have clusters of manufacturing units that

share utilities and large scale infrastructure such as power stations, storage tanks, port facilities,

and road and rail terminals. In the United Kingdom for example, there are 4 main locations for

such manufacturing: near the River Mersey in Northwest England, on the Humber on the East

coast of Yorkshire, in Grangemouth near the Firth of Forth in Scotland and in Teesside as part of

the Northeast of England Process Industry Cluster (NEPIC). To demonstrate the clustering and

integration, some 50% of the United Kingdom's petrochemical and commodity chemicals are

produced by the NEPIC industry cluster companies in Teesside.



Petrochemicals products

Petrochemicals Fibers Petroleum Chemicals

Basic Feedstock Benzene

Butadiene

Ethylene

p-Xylene

Propylene

Intermediates

2-Ethylhexanol (2-EH)

Acetic acid

Acrylonitrile (AN)

Ammonia

Bis(2-ethylhexyl)

phthalate (dioctyl

phthalate)

n-Butene

Cyclohexane

Dimethyl

terephthalate (DMT)

Dodecylbenzene

Ethanol

Ethanolamine

Ethoxylate

1,2-

Dichloroethane (ethylene

dichloride or EDC)

Ethylene glycol (EG)

Ethylene oxide (EO)

Formaldehyde Moulding

Compound (FMC)

n-Hexene

Linear alkyl

benzene (LAB)

Methanol

Methyl tert-butyl

ether (MTBE)

Phenol

Propylene oxide

Purified terephthalic

acid (PTA)

Styrene monomer (SM)

Thermosetting Resin

(Urea/Melamine)

Vinyl acetate

monomer (VAM)

Vinyl chloride

monomer (VCM)

Acrylic fiber

Acrylonitrile butadiene

styrene(ABS)

Acrylonitrile styrene (AS)

Polybutadiene (PBR)

Polyvinyl chloride (PVC)

Polyethylene (PE)

Polyethylene

terephthalate (PET)

Polyol

Polypropylene (PP)

Polystyrene (PS)

Styrene butadiene (SBR)

Acrylic-formaldehude (AF)

Lubricants

Additives

Catalysts

Marine fuel oil

Petroleum refining

Adhesives and sealants

Agrochemicals

Construction chemicals

Corrosion control chemicals

Cosmetics raw materials

Electronic chemicals and materials

Flavourings, fragrances, food additives

Pharmaceutical drugs

Specialty and industrial chemicals

Specialty and industrial gases

Inks, dyes and printing supplies

Packaging, bottles, and containers

Paint, coatings, and resins

Polymer additives

Specialty and life sciences chemicals

Surfactants and cleaning agents



Chapter-2

Introduction:-

Polyvinyl chloride:-

Polyvinyl chloride, more correctly but unusually poly(vinyl chloride), commonly

abbreviated PVC, is the third-most widely produced synthetic plastic polymer,

after polyethylene and polypropylene.

PVC comes in two basic forms: rigid (sometimes abbreviated as RPVC) and flexible. The rigid

form of PVC is used in construction for pipe and in profile applications such as doors and

windows. It is also used for bottles, other non-food packaging, and cards (such as bank or

membership cards). It can be made softer and more flexible by the addition of plasticizers, the

most widely used being phthalates. In this form, it is also used in plumbing, electrical cable

insulation, imitation leather, signage, inflatable products, and many applications where it

replaces rubber.

Pure poly (vinyl chloride) is a white, brittle solid. It is insoluble in alcohol but slightly soluble

in tetrahydrofuran.

Discovery:-

PVC was accidentally synthesized in 1872 by German chemist Eugen Baumann. The polymer

appeared as a white solid inside a flask of vinyl chloride that had been left exposed to sunlight.

In the early 20th century the Russian chemist Ivan Ostromislensky and Fritz Klatte of the

German chemical company Griesheim-Elektron both attempted to use PVC in commercial

products, but difficulties in processing the rigid, sometimes brittle polymer thwarted their

efforts. Waldo Semon and the B.F. Goodrich Company developed a method in 1926

to plasticize PVC by blending it with various additives. The result was a more flexible and more

easily processed material that soon achieved widespread commercial use.



Production:-

Polyvinyl chloride is produced by polymerization of the vinyl chloride monomer (VCM), as

shown.

About 80% of production involves suspension polymerization. Emulsion

polymerization accounts for about 12% and bulk polymerization accounts for 8%. Suspension

polymerization affords particles with average diameters of 100180 m, whereas emulsion

polymerization gives much smaller particles of average size around 0.2 m. VCM and water are

introduced into the reactor and a polymerization initiator, along with other additives. The

reaction vessel is pressure tight to contain the VCM. The contents of the reaction vessel are

continually mixed to maintain the suspension and ensure a uniform particle size of the PVC

resin. The reaction is exothermic, and thus requires cooling. As the volume is reduced during the

reaction (PVC is denser than VCM), water is continually added to the mixture to maintain the

suspension.



The polymerization of VCM is started by compounds called initiators that are mixed into the

droplets. These compounds break down to start the radical chain reaction. Typical initiators

include dioctanoyl peroxide and dicetyl peroxydicarbonate, both of which have fragile O-O

bonds. Some initiators start the reaction rapidly but decay quickly and other initiators have the

opposite effect. A combination of two different initiators is often used to give a uniform rate of

polymerization. After the polymer has grown by about 10x, the short polymer precipitates inside

the droplet of VCM, and polymerization continues with the precipitated, solvent-swollen

particles. The weight average molecular weights of commercial polymers range from 100,000 to

200,000 and the number average molecular weights range from 45,000 to 64,000.

Once the reaction has run its course, the resulting PVC slurry is degassed and stripped to remove

excess VCM, which is recycled. The polymer is then passed through a centrifuge to remove

water. The slurry is further dried in a hot air bed, and the resulting powder sieved before storage

or pelletization. Normally, the resulting PVC has a VCM content of less than 1 part per million.

Other production processes, such as micro-suspension polymerization and emulsion

polymerization, produce PVC with smaller particle sizes (10 m vs. 120150 m for suspension

PVC) with slightly different properties and with somewhat different sets of applications.

Microstructure

The polymers are linear and are strong. The monomers are mainly arranged head-to-tail,

meaning that there are chlorides on alternating carbon centers. PVC has mainly anatactic

stereochemistry, which means that the relative stereochemistry of the chloride centres are

random. Some degree of syndiotacticity of the chain gives a few percent crystallinity that is

influential on the properties of the material. About 57% of the mass of PVC is chlorine. The

presence of chloride groups gives the polymer very different properties from the structurally

related material polyethylene.



Physical Properties:-

PVC is a thermoplastic polymer. Its properties are usually categorized based on rigid and flexible

PVCs.

Property Rigid PVC Flexible PVC

Density [g/cm3]

[13] 1.31.45 1.11.35

Thermal conductivity [W/(mK)][14]

0.140.28 0.140.17

Yield strength [psi][13]

45008700 14503600

Young's modulus [psi] 490,000[15]

Flexural strength (yield) [psi] 10,500[15]

Compression strength [psi] 9500[15]

Coefficient of thermal expansion (linear) [mm/(mm C)] 5105[15]

Vicat B [C][14]

65100 Not recommended

Resistivity [ m][16][17] 1016 10121015

Surface resistivity [][16][17] 10131014 10111012



Mechanical properties

PVC has high hardness and mechanical properties. The mechanical properties enhance with the

molecular weight increasing but decrease with the temperature increasing. The mechanical

properties of rigid PVC (uPVC) are very good; the elastic modulus can reach 1500-3,000 MPa.

The soft PVC (flexible PVC) elastic is 1.5-15 MPa. However, elongation at break is up to 200-

450%. PVC friction is ordinary; the static friction factor is 0.4-0.5, and the dynamic friction

factor is 0.23.

Thermal and fire properties

The heat stability of raw PVC is very poor, so the addition of a heat stabilizer during the process

is necessary in order to ensure the product's properties. PVC starts to decompose when the

temperature reaches 140 C, with melting temperature starting around 160 C. The linear

expansion coefficient of rigid PVC is small and has good flame retardancy, the Limiting oxygen

index (LOI) being up to 45 or more. The LOI is the minimum concentration of oxygen,

expressed as a percentage that will support combustion of a polymer and noting that air has 20%

content of oxygen.

Electrical properties

PVC is a polymer with good insulation properties, but because of its higher polar nature the

electrical insulating property is inferior to non polar polymers such as polyethylene

and polypropylene.

Since the dielectric constant, dielectric loss tangent value, and volume resistivity are high, the

corona resistance is not very good, and it is generally suitable for medium or low voltage and

low frequency insulation materials.



Application:-

PVC's relatively low cost, biological and chemical resistance and workability have resulted in it

being used for a wide variety of applications. It is used for sewerage pipes and other pipe

applications where cost or vulnerability to corrosion limit the use of metal. With the addition of

impact modifiers and stabilizers, it has become a popular material for window and door frames.

By adding plasticizers, it can become flexible enough to be used in cabling applications as

a wire insulator. It has been used in many other applications. In 2013, about 39.3 million tonnes

of PVC were consumed worldwide. PVC demand is forecast to increase at an average annual rate

of 3.2% until 2021.

Pipes:-

Roughly half of the world's polyvinyl chloride resin manufactured annually is used for producing

pipes for municipal and industrial applications.In the water distribution market it accounts for

66% of the market in the US, and in sanitary sewer pipe applications, it accounts for 75%.Its

light weight, low cost, and low maintenance make it attractive. However, it must be carefully

installed and bedded to ensure longitudinal cracking and overbelling does not occur.

Additionally, PVC pipes can be fused together using various solvent cements, or heat-fused

(butt-fusion process, similar to joining HDPE pipe), creating permanent joints that are virtually

impervious to leakage.



In February, 2007 the California Building Standards Code was updated to approve the use

of chlorinated polyvinyl chloride (CPVC) pipe for use in residential water supply piping systems.

CPVC has been a nationally accepted material in the US since 1982; California, however, has

permitted only limited use since 2001. The Department of Housing and Community

Development prepared and certified anenvironmental impact statement resulting in a

recommendation that the Commission adopt and approve the use of CPVC. The Commission's

vote was unanimous and CPVC has been placed in the 2007 California Plumbing Code.

In the United States and Canada, PVC pipes account for the largest majority of pipe materials

used in buried municipal applications for drinking water distribution

and wastewatermains. Buried PVC pipes in both water and sanitary sewer applications that are 4

inches (100 mm) in diameter and larger are typically joined by means of a gasket-sealed joint.

The most common type of gasket utilized in North America is a metal reinforced elastomer,

commonly referred to as a Rieber sealing system.

Electric cables:-

PVC is commonly used as the insulation on electrical cables; PVC used for this purpose needs to

be plasticized.

In a fire, PVC-coated wires can form hydrogen chloride fumes; the chlorine serves to

scavenge free radicals and is the source of the material's fire retardance. While HCl fumes can

also pose a health hazard in their own right, HCl dissolves in moisture and breaks down onto

surfaces, particularly in areas where the air is cool enough to breathe, and is not available for

inhalation. Frequently in applications where smoke is a major hazard (notably in tunnels and

communal areas) PVC-free cable insulation is preferred, such as low smoke zero

halogen (LSZH) insulation.



Unplasticized poly (vinyl chloride) (uPVC) for construction:-

uPVC, also known as rigid PVC, is extensively used in the

building industry as a low-maintenance material, particularly in Ireland, the United Kingdom, in

the United States and Canada. In the USA and Canada it is known as vinyl, or vinyl siding. The

material comes in a range of colors and finishes, including a photo-effect wood finish, and is

used as a substitute for painted wood, mostly for window frames and sills when installing double

glazing in new buildings, or to replace older single-glazed windows. Other uses include fascia,

and sidingor weatherboarding. This material has almost entirely replaced the use of cast

iron for plumbing and drainage, being used for waste pipes, drainpipes, gutters and downspouts.

uPVC does not contain phthalates, since those are only added to flexible PVC, nor does it

containBPA. uPVC is known as having strong resistance against chemicals, sunlight, and

oxidation from water.

Signs:-

Poly (vinyl chloride) is formed in flat sheets in a variety of thicknesses and colors. As flat

sheets, PVC is often expanded to create voids in the interior of the material, providing additional

thickness without additional weight and minimal extra cost (see Closed-cell PVC foam board).

Sheets are cut using saw and rotary cutting equipment. Plasticized PVC is also used to produce

thin, colored, or clear, adhesive-backed films referred to simply as vinyl. These films are

typically cut on a computer-controlled plotter or printed in a wide-format printer. These sheets

and films are used to produce a wide variety of commercial signage products and markings on

vehicles, e.g. car body stripes.



Clothing and furniture:-

PVC has become widely used in clothing, to either create a leather-like material or at times

simply for the effect of PVC. PVC clothing is common in Goth, Punk, clothing

fetish and alternative fashions. PVC is less expensive than rubber, leather, and latex which it is

therefore used to simulate.

PVC fabric is water-resistant so is used in coats, skiing equipment, shoes, jackets, aprons, and

bags.

Healthcare:-

The two main application areas for single use medically approved PVC compounds are flexible

containers and tubing: containers used for blood and blood components, for urine collection or

for ostomy products and tubing used for blood taking and blood giving sets, catheters, heart-lung

bypass sets, hemodialysis sets etc. In Europe the consumption of PVC for medical devices is

approximately 85.000 tons every year. Almost one third of plastic based medical devices are

made from PVC. The reasons for using flexible PVC in these applications for over 50 years are

numerous and based on cost effectiveness linked to transparency, light weight, softness, tear

strength, kink resistance, suitability for sterilization and biocompatibility.



Plasticizers:-

DEHP (Di-2ethylhexylphthalate) has been medically approved for many years for use in such

medical devices; the PVC-DEHP combination proving to be very suitable for making blood bags

because DEHP stabilizes red blood cells, minimizing haemolysis (red blood cell rupture).

However, DEHP is coming under increasing pressure in Europe. The assessment of potential

risks related to phthalates, and in particular the use of DEHP in PVC medical devices, was

subject to scientific and policy review by the European Union authorities, and on 21 March

2010, a specific labeling requirement was introduced across the EU for all devices containing

phthalates that are classified as CMR (carcinogenic, mutagenic or toxic to reproduction).The

label aims to enable healthcare professionals to use this equipment safely, and, where needed,

take appropriate precautionary measures for patients at risk of over-exposure.

DEHP alternatives, which are gradually replacing it, are Adipates, Butyryltrihexylcitrate

(BTHC), Cyclohexane-1,2-dicarboxylic acid, diisononylester (DINCH), Di(2-

ethylhexyl)terephthalate, polymerics and trimellitic acid, 2-ethylhexylester (TOTM).

Flooring:-

Flexible PVC flooring is inexpensive and used in a variety of buildings covering the home,

hospitals, offices, schools, etc. Complex and 3D designs are possible due to the prints that can be

created which are then protected by a clear wear layer. A middle vinyl foam layer also gives a

comfortable and safe feel. The smooth, tough surface of the upper wear layer prevents the

buildup of dirt, which prevents microbes from breeding in areas that need to be kept sterile, such

as hospitals and clinics.



Other applications:-

PVC has been used for a host of consumer products of relatively smaller volume compared to the

industrial and commercial applications described above. Another of its earliest mass-market

consumer applications was to make vinyl records. More recent examples include wallcovering,

greenhouses, home playgrounds, foam and other toys, custom truck toppers (tarpaulins), ceiling

tiles and other kinds of interior cladding.

Due to PVC piping being cheaper than metals used in musical instrument making, it is a

common alternative when making instruments, often for leisure or for rarer instruments such as

the contrabass flute.

Restrictions:-

In November, 2005 one of the largest hospital networks in the U.S., Catholic Healthcare West,

signed a contract with B. Braun Melsungen for vinyl-free intravenous bags and tubing.

In January, 2012 a major U.S. West Coast healthcare provider, Kaiser Permanente, announced

that it will no longer buy intravenous (IV) medical equipment made with polyvinyl chloride

(PVC) and DEHP (di-2-ethyl hexyl phthalate) type plasticizers.



Sustainability:-

PVC is made from petroleum. The production process also uses sodium chloride. Recycled PVC

is broken down into small chips, impurities removed, and the product refined to make pure white

PVC. It can be recycled roughly seven times and has a lifespan of around 140 years.

In the UK, approximately 400 tonnes of PVC are recycled every month. Property owners can

recycle it through nationwide collection depots. The Olympic Delivery Authority(ODA), for

example, after initially rejecting PVC as material for different temporary venues of the London

Olympics 2012, has reviewed its decision and developed a policy for its use. This policy

highlighted that the functional properties of PVC make it the most appropriate material in certain

circumstances while taking into consideration the environmental and social impacts across the

whole life cycle, e.g. the rate for recycling or reuse and the percentage of recycled content.

Temporary parts, like roofing covers of the Olympic Stadium, the Water Polo Arena, and

the Royal Artillery Barracks, would be deconstructed and a part recycled in the Vinyloop

process.



PVC Price Fluctuation:-

Prev. Close 5,100

Day's Range 5,000 - 5,200

Revenue 13,520.97B

Open 5,100

52 wk Range 3700 - 7800

EPS 295.26

Volume 731,209

Market Cap 2,120.00B

Dividend (Yield) 0 (0%)

Average Volume (3m) 3,469,026

P/E Ratio 17.95

Beta 1.77

1-Year Return -13.56%

Shares Outstanding 400,000,000

Next Earnings Date N/A



Bibliography:-

www.Wikipedia.com

www.investing.com

www.moneycontrol.com

www.indexmundi.com

Documents

Petrochemical (PVC) Project Report