Unit price scaling trends for chemical products

Unit price scaling trends for chemical products

TitleUnit price scaling trends for chemical products
Publication TypeReport
Year of Publication2015
AuthorsWei Qi, Roger Sathre, William R Morrow, III, Arman Shehabi
Date Published08/2015
CityBerkeley
Abstract

To facilitate early-stage life-cycle techno-economic modeling of emerging technologies, here we identify scaling relations between unit price and sales quantity for a variety of chemical products of three categories - metal salts, organic compounds, and solvents. We collect price quotations for lab-scale and bulk purchases of chemicals from both U.S. and Chinese suppliers. We apply a log-log linear regression model to estimate the price discount effect. Using the median discount factor of each category, one can infer bulk prices of products for which only lab-scale prices are available. We conduct out-of-sample tests showing that most of the price proxies deviate from their actual reference prices by a factor less than ten. We also apply the bootstrap method to determine if a sample median discount factor should be accepted for price approximation. We find that appropriate discount factors for metal salts and for solvents are both -0.56, while that for organic compounds is -0.67 and is less representative due to greater extent of product heterogeneity within this category.

LBNL Report Number

LBNL-189844