- Email: [email protected]
US Chemical Profile: Epoxy Resins
FOCUS Markets for Self-healing Materials: 2015–2022 A new NanoMarkets report, "Markets for SelfHealing Materials: 2015-2022,'' provides an in depth analysis of opportunities in the selfhealing materials market. According to the report self-healing materials (reversible polymers, inorganic capsule and vascular systems, biomaterials, relevant shape memory materials and other self-healing coatings) will grow to around $2.7 bn by 2020. n-tech estimates that the largest market for selfhealing materials will be found in the automotive industry where revenues will reach $1.6 bn by 2020. In this market, suppliers of self-healing materials can build on the existing demand for anti-scratch coatings, as well as the fact that automobile industry is currently very interested in making both the interiors and exteriors of cars more intelligent as part of their competitive strategy. In addition, selfhealing materials can bring many practical advantages to the automotive sector including improved asset life and reductions in maintenance and overall cost of ownership. The market for self-healing materials used in the consumer products sector is expected to reach around $480 M in 2020. n-tech believes that consumer markets are will be an excellent point of market entry for self-healing materials because the requirements for self-healing consumer products are less demanding than for products the construction industry. In the mobile electronics business, the LG G Flex 2 phone is showing how novel self-healing materials can protect products, perhaps eventually rendering a separate smartphone case unnecessary. n-tech sees the biggest opportunity from the materials perspective coming from inorganic capsule and vascular materials systems. The market for these materials is negligible now, but will reach $1.3 bn by 2020. The advantages of these capsule/ vascular materials systems are that they are truly autonomic needing no outside thermal or light stimulus to self-repair. Firms discussed in the report include PPG, Critical Materials, BASF and others. Original Source: Nanomarkets,ANB, 15 May 2015, (Website: http://ntechresearch.com), © NanoMarkets 2015
US Chemical Profile: Epoxy Resins The uses and applications of epoxy resins in different sectors are discussed. Supply in the US remains long, with high domestic output and strong import activity. Global sellers target to support a share of the country's strong demand, but local producers keep operating levels high to retain market share. Demand, on the other hand, has been stable so far in 2015, although consumption has been reportedly lower than expected. The US coatings market's growth has been unusually slow in 1H 2015, while segments like marine coatings and industrial coatings has been slightly lackluster. Wind blade market remains as the largest potential growth sector. Stable supply and flat demand is
August 2015
ON
POWDER
expected to keep US Jun 2015 contract prices at a rollover. Domestic contract prices have been in the low $1.30/lb. to high $1.30/ lb. range. US contract prices could drop in Jul 2015 due to weakness in feedstock costs. Spot prices, meanwhile, started declining in Jun 2015 due to low values of feedstock in Asia. Tight European supply is also expected to urge more Asian material into the region, causing less-than-usual import levels in the US. In 3Q 2015, a new epoxy business, Blue Cube, which originated from Dow Chemical's sale of its epoxy resins and chlor-alkali businesses to Olin, is expected to commence operations. Meanwhile, the Jun 2015 shutdown of Haverhill's phenol and Bisphenol A (BPA) site in Haverhill, OH, is projected to cause deficit in BPA supply, although Dow Chemical, Bayer, Hexion and SABIC are seen to meet the shortfall in BPA. Demand from the marine, industrial and architectural coatings markets are forecast to be steady to moderate growth, while wind blade remains the most promising sector. The overall US epoxy resins market will have sufficient supply, but is likely to experience squeezed margins from strong import pressure and feedstock cost volatility. A line graph shows the US spot and contract epoxy resin prices (cents/lb.) in DEL transactions from Jun 2014 to Jun 2015. A table presents the epoxy resins capacity in the US, including Hexion's 135,000 tonnes/y capacity in Deer Park, TX, and Dow Chemical's 85,000 tonnes/y unit in Freeport, TX.
C OAT I N G S Latin America Paint Outlook Mixed, but Growing
It is estimated that the world's industrial coatings end markets increased by 3–4% in 2014. The industrial coatings market consists of several diverse segments, which provides challenges and growth opportunities. PPG has unveiled four new industrial coatings, including VERSABOND pretreatment system, which provides improved corrosion resistance and saves energy; ENVIROCRON HTE (high-transfer-efficiency) powder coatings; and PERFORMALOC advanced productivity coatings. Axalta has also introduced Alesta powder coatings architectural product line and colour collection, Imron EY High Productivity Basecoat and 8890S Clearcoat system and Axalta SE6000 Scratch and Mar Resistant Clearcoat. Sherwin-Williams has recently launched new products, including Ultra-Cure Waterborne UV Topcoats for wood finishing, Prefinish coatings for wood flooring and Powdura OneCure, a two-coat mono-cure system for heavy equipment and general finishing. Hempel has unveiled HEMPACORE intumescent coatings and AvantGuard technology, which provides exceptional anti-corrosive performance and mechanical strength.
In 2015, the paints and coatings demand in Latin America is estimated at $10 bn. The International Monetary Fund (IMF) estimates that the regional expansion in 2015 is 0.9%, which projection for 2016 is 2.0%. In 2015, it is expected that growth in Peru, Mexico, Honduras, Chile, the Caribbean and Costa Rica is expected to reach or exceed 0.2%. Mexico is expected to have growth rates of 3.1% and 3.3% in 2015 and 2016, respectively. Out of around $6 trillion from the entire region, the GDP of Mexico has a value of $1.26 trillion. As part of the company's expansion plan, PPG has purchased Comex for $2.3 bn and is spending over $27 M in its coatings plant in San Juan del Rio, Queretaro, Mexico, to serve its customers in the automotive OEM, packaging, industrial and protective and marine sectors. The Dominican Republic is the forerunner in terms of growth in the Caribbean, with 5.1% in 2015 and an accompanying GDP value of approximately $6 bn. With 6.1%, Panama is the leader in growth in Central America. A partnership between Andes Chemical and Croda International was formed in Aug 2014 to provide water-based paint and coatings chemicals to paint producers in Central America and the Caribbean. In 2014, Croda announced its plans to establish a laboratory in Campinas, Brazil. Nicaragua, Guyana and Guatemala accounted for just approximately $70 M of total GDP value. Growth in Uruguay, Argentina, Suriname and Paraguay is expected to drop between 0.2-1.0%. The GDP of Argentina is forecast to fall by 0.3% in 2015, and projected to increase by 0.1% in 2016. BASF's Suvinil brand represented 60% of the architectural market in Brazil. A 65,000 sq. ft. facility of PPG at the company's coatings site in Sumare, Sao Paulo, Brazil, was completed in Mar 2015. The company has spent $40 M to establish the coatings resins plant, which will be utilized to produce the electrocoat products of PPG. The capital budget of Pemex was decreased by $4 bn by end-Jan 2015. An insulation coating production was opened by Shaw Pipeline at its Socotherm operation in Argentina in 2014. Two contracts from Tenaris to provide three-layer polyethylene anti-corrosion pipeline coatings for the first two phases of the Argentina Northeast Gas Pipeline (GNEA) of ENARSA were secured by Shaw Pipeline in Apr 2015. The contracts are valued at $55 M. In 2014, Sherwin-Williams launched its SeaVoyage and SeaGuard lines of marine coatings in Mexico, Chile and Brazil. AkzoNobel's Brazilian sales had weakened. In Oct 2014, the five stores of Home Depot in Chile were purchased by its joint venture partner, Falabella, and its four stores in Argentina were acquired by Hipermercados Jumbo. In 2015, Chilean home supply chain Sodimac aims to invest $300 M and $40 M to establish Argentine and Uruguay stores, respectively. The company also plans to build five stores in Colombia.
Original Source: Coatings World, Jun 2015, 20 (6), 25, 28–29, 31 (Website: http://www. coatingsworld.com) © Rodman Media 2015
Original Source: Coatings World, Jun 2015, 20 (6), 32–34 (Website: http://www.coatingsworld. com), © Rodman Media 2015
Original Source: ICIS Chemical Business, 22–28 Jun 2015, 287 (23), 30 (Website: http://www.icis. com), © Reed Business Information Limited 2015
The Industrial Coatings Market
7
US Chemical Profile: Epoxy Resins The uses and applications of epoxy resins in different sectors are discussed. Supply in the US remains long, with high domestic output and strong import activity. Global sellers target to support a share of the country's strong demand, but local producers keep operating levels high to retain market share. Demand, on the other hand, has been stable so far in 2015, although consumption has been reportedly lower than expected. The US coatings market's growth has been unusually slow in 1H 2015, while segments like marine coatings and industrial coatings has been slightly lackluster. Wind blade market remains as the largest potential growth sector. Stable supply and flat demand is
August 2015
ON
POWDER
expected to keep US Jun 2015 contract prices at a rollover. Domestic contract prices have been in the low $1.30/lb. to high $1.30/ lb. range. US contract prices could drop in Jul 2015 due to weakness in feedstock costs. Spot prices, meanwhile, started declining in Jun 2015 due to low values of feedstock in Asia. Tight European supply is also expected to urge more Asian material into the region, causing less-than-usual import levels in the US. In 3Q 2015, a new epoxy business, Blue Cube, which originated from Dow Chemical's sale of its epoxy resins and chlor-alkali businesses to Olin, is expected to commence operations. Meanwhile, the Jun 2015 shutdown of Haverhill's phenol and Bisphenol A (BPA) site in Haverhill, OH, is projected to cause deficit in BPA supply, although Dow Chemical, Bayer, Hexion and SABIC are seen to meet the shortfall in BPA. Demand from the marine, industrial and architectural coatings markets are forecast to be steady to moderate growth, while wind blade remains the most promising sector. The overall US epoxy resins market will have sufficient supply, but is likely to experience squeezed margins from strong import pressure and feedstock cost volatility. A line graph shows the US spot and contract epoxy resin prices (cents/lb.) in DEL transactions from Jun 2014 to Jun 2015. A table presents the epoxy resins capacity in the US, including Hexion's 135,000 tonnes/y capacity in Deer Park, TX, and Dow Chemical's 85,000 tonnes/y unit in Freeport, TX.
C OAT I N G S Latin America Paint Outlook Mixed, but Growing
It is estimated that the world's industrial coatings end markets increased by 3–4% in 2014. The industrial coatings market consists of several diverse segments, which provides challenges and growth opportunities. PPG has unveiled four new industrial coatings, including VERSABOND pretreatment system, which provides improved corrosion resistance and saves energy; ENVIROCRON HTE (high-transfer-efficiency) powder coatings; and PERFORMALOC advanced productivity coatings. Axalta has also introduced Alesta powder coatings architectural product line and colour collection, Imron EY High Productivity Basecoat and 8890S Clearcoat system and Axalta SE6000 Scratch and Mar Resistant Clearcoat. Sherwin-Williams has recently launched new products, including Ultra-Cure Waterborne UV Topcoats for wood finishing, Prefinish coatings for wood flooring and Powdura OneCure, a two-coat mono-cure system for heavy equipment and general finishing. Hempel has unveiled HEMPACORE intumescent coatings and AvantGuard technology, which provides exceptional anti-corrosive performance and mechanical strength.
In 2015, the paints and coatings demand in Latin America is estimated at $10 bn. The International Monetary Fund (IMF) estimates that the regional expansion in 2015 is 0.9%, which projection for 2016 is 2.0%. In 2015, it is expected that growth in Peru, Mexico, Honduras, Chile, the Caribbean and Costa Rica is expected to reach or exceed 0.2%. Mexico is expected to have growth rates of 3.1% and 3.3% in 2015 and 2016, respectively. Out of around $6 trillion from the entire region, the GDP of Mexico has a value of $1.26 trillion. As part of the company's expansion plan, PPG has purchased Comex for $2.3 bn and is spending over $27 M in its coatings plant in San Juan del Rio, Queretaro, Mexico, to serve its customers in the automotive OEM, packaging, industrial and protective and marine sectors. The Dominican Republic is the forerunner in terms of growth in the Caribbean, with 5.1% in 2015 and an accompanying GDP value of approximately $6 bn. With 6.1%, Panama is the leader in growth in Central America. A partnership between Andes Chemical and Croda International was formed in Aug 2014 to provide water-based paint and coatings chemicals to paint producers in Central America and the Caribbean. In 2014, Croda announced its plans to establish a laboratory in Campinas, Brazil. Nicaragua, Guyana and Guatemala accounted for just approximately $70 M of total GDP value. Growth in Uruguay, Argentina, Suriname and Paraguay is expected to drop between 0.2-1.0%. The GDP of Argentina is forecast to fall by 0.3% in 2015, and projected to increase by 0.1% in 2016. BASF's Suvinil brand represented 60% of the architectural market in Brazil. A 65,000 sq. ft. facility of PPG at the company's coatings site in Sumare, Sao Paulo, Brazil, was completed in Mar 2015. The company has spent $40 M to establish the coatings resins plant, which will be utilized to produce the electrocoat products of PPG. The capital budget of Pemex was decreased by $4 bn by end-Jan 2015. An insulation coating production was opened by Shaw Pipeline at its Socotherm operation in Argentina in 2014. Two contracts from Tenaris to provide three-layer polyethylene anti-corrosion pipeline coatings for the first two phases of the Argentina Northeast Gas Pipeline (GNEA) of ENARSA were secured by Shaw Pipeline in Apr 2015. The contracts are valued at $55 M. In 2014, Sherwin-Williams launched its SeaVoyage and SeaGuard lines of marine coatings in Mexico, Chile and Brazil. AkzoNobel's Brazilian sales had weakened. In Oct 2014, the five stores of Home Depot in Chile were purchased by its joint venture partner, Falabella, and its four stores in Argentina were acquired by Hipermercados Jumbo. In 2015, Chilean home supply chain Sodimac aims to invest $300 M and $40 M to establish Argentine and Uruguay stores, respectively. The company also plans to build five stores in Colombia.
Original Source: Coatings World, Jun 2015, 20 (6), 25, 28–29, 31 (Website: http://www. coatingsworld.com) © Rodman Media 2015
Original Source: Coatings World, Jun 2015, 20 (6), 32–34 (Website: http://www.coatingsworld. com), © Rodman Media 2015
Original Source: ICIS Chemical Business, 22–28 Jun 2015, 287 (23), 30 (Website: http://www.icis. com), © Reed Business Information Limited 2015
The Industrial Coatings Market
7