Commodity chemicals (bulk chemicals) are a group of chemicals produced on a large scale as intermediates for the production of other chemicals, which in turn are used to produce a range of end-user products, including building materials, adhesives, plastics, clothing and tires. Daily chemical products are the largest market segment in the chemical industry. Commercial chemicals are usually traded in broad categories such as organic, inorganic, plastic resins, synthetic rubber, fibers, films, explosives and petrochemicals. These broad categories include acetic acid, acetone, acrylate, adipic acid, acrylonitrile, benzene, bisphenol, butadiene, butanediol, butyl acetate, hexane, melamine, polyvinyl chloride, propylene, methanol, methyl, ethylene glycol and glycerol. These chemical products are very low in terms of product differentiation, so the price becomes the dominant economic factor in the purchase decision of end users.
The daily chemical industry is highly decentralized, serving a large number of local or regional participants. The Asia Pacific region is the largest market for bulk chemicals, accounting for almost half of the total market. Second, North America and Europe. The growth prospects of the Asia Pacific region remain high, thanks to the continuous economic growth and the sustained development trend and support of manufacturing industries in developing countries such as India, China and Indonesia. Large supplies of crude oil and natural gas from Gulf countries such as Saudi Arabia, Iran, Iraq and Syria have helped the bulk chemical industry in the Asia Pacific region.
Commercial chemicals services range from personal care products to the aerospace industry. It is directly or indirectly applied to almost all manufacturing industries. The economic growth and the continuous growth of gross domestic product (GDP) in developed and developing countries all over the world promote the overall market of commodity chemicals. However, the strict control of the health and environmental side effects of chemical products by governments around the world and the fluctuation of crude oil and natural gas prices have brought great challenges to the industry.
The main enterprises in the daily chemical market include BASF, Bayer, Dow Chemical, Mitsubishi Chemical, PPG industry, Linde Group, AkzoNobel, Lyondell Basle, Asahi Kasei, Sumitomo chemical, Evonik, Ineos holdings and CHEMCHINA.
