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US demand set to grow for speciality plastics additives…
September 2005
Dr Philippe Schottland has been appointed manager of the Advanced Technology Group. The group will focus on three key areas: special effect pigments, next-generation security and conductive systems. Sun Chemical Performance Pigments’ existing products for plastics applications include the Quindo® high-performance organic pigments and SunMICA® pearlescent pigments. Contact: Sun Chemical Corp, Performance Pigments, 5020 Spring Grove Avenue, Cincinnati, OH 45232, USA; tel: +1-513-6815950; fax: +1-513-632-1537; URL: www.sunchemical.com or www.sunpigments.com
DuPont Performance Elastomers launched following dissolution of JV The planned dissolution of DuPont Dow Elastomers, the nine-year joint venture between DuPont and Dow Chemical Co, took place on 1 July 2005, with the company becoming a wholly owned subsidiary of DuPont. The unit has been renamed DuPont Performance Elastomers. DuPont Dow’s Engage, Nordel and Tyrin businesses have been reintegrated into Dow’s Specialty Plastics and Elastomers business unit. The remainder of DuPont Dow’s portfolio, including Viton, Viton FreeFlow, Kalrez, Neoprene and Hypalon will be part of the new DuPont subsidiary. DuPont Dow’s president and CEO, Jack Lewis, continues in that role for DuPont Performance Elastomers. Dow exercised its option to end the JV last December [ADPO, February]. Contact: DuPont Performance Elastomers LLC, 300 Bellevue Parkway, Suite300, Wilmington, DE 19809, USA; tel: +1-302-792-4000; fax: +1302-792-445; URL: www.dupontelastomers.com
MARKETS US demand set to grow for speciality plastics additives… Demand for plastics additives in the USA is forecast to grow by 2.6% per year, from 2.13 million tonnes (4.7 billion lbs) in 2004 to 2.36 million tonnes in 2009, according to a new
Additives for Polymers
study Specialty Plastics Additives from The Freedonia Group. In value terms, US consumption will increase 4.6% annually to US$6.8 billion. According to the report, the gains will be driven primarily by increasing demand for plastics, and a positive outlook in key markets such as nonresidential construction, packaging and electronics. The rebound of PVC, by far the largest consumer of plastic additives, after five years’ slow growth from 1999–2004 is seen as particularly important. After declining over the same time period, demand for plasticizers and flame retardants, the two largest categories of additives, is expected to experience a “considerable rebound”. Plasticizers will remain the largest group of speciality additives by volume and value, accounting for half of total volume in 2004. Growth in plasticizers is tied closely to the markets for flexible PVC. Freedonia believes that phthalates will remain the dominant plasticizer type despite health concerns about these products. However, the report notes that there have been changes in the phthalate product mix as a result of this concern, with produces moving away from controversial products such as diethylhexyl phthalate (DEHP) to phthalates with better safety profiles. Freedonia expects flame retardants, the next largest additive type, to experience solid growth in the period to 2009, as a result of a resurgent electrical and electronics market. Despite the environmental pressure against brominated flame retardants in Europe, the report forecasts growth for these compounds in the US plastics market. The continuing phase-out of fluorocarbon blowing agents, which are being replaced in many applications by alternative technologies, will have a negative impact on overall demand for property modifying additives, the study finds. However, some other types of property modifier, such as impact modifiers and colorants, will post significant advances as a result of improved non-residential building activity and expanded markets. Some of the fastestgrowing additives are property extenders, including light stabilizers and antistatic agents.
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Additives for Polymers
These higher-value additives accounted for about one-quarter of plastic additives volume in 2004 and will benefit from increased use of plastics in more-demanding environments, Freedonia says. PVC is the top consumer of plastic additives, accounting for 62% of total additive demand by volume in 2004. The plastic will continue to dominate a number of additive products including plasticizers, impact modifiers, heat stabilizers and antimicrobials. Rigid PVC products are growing more quickly than flexible products, which Freedonia says will result in advances for additives such as lubricants and impact modifiers. Polypropylene, however, will be the fastest-growing consumer of additives, as continuing market penetration into areas such as packaging and automotive applications will require more modification of the resin with antistatic agents and antioxidants. The rapid expansion of the market for wood-plastic composites (WPCs) will benefit additives for polyethylene, the primary resin in WPCs, and will also fuel healthy growth for lubricants and colorants. Specialty Plastic Additives (Study #1961) is available for $4100. Contact: The Freedonia Group, Inc, 767 Beta Drive, Cleveland, OH 44143, USA; tel: +1-440684-9600; fax: +1-440-646-0484; URL: www.freedoniagroup.com
…and for pigments A second recent study from Freedonia, Pigments: Organic, Inorganic and Specialty (Study #1958), considers US demand for pigments. Plastics accounted for 17% of the market in value terms in 2004. Other major markets include paints and coatings, ceramics and glass, and printing inks. Overall demand for all pigment types in all US end-use markets is forecast to grow from US$2.9 billion in 2004 to $3.6 billion in 2009 at an annual growth rate of 4.3%. Speciality pigments, such as metallic and pearlescent types, are projected to achieve the most rapid gains because of increased requirements for unique and novel eye-catching optical effects in plastics and other products. Growth in organic pigments will continue to benefit from
10
September 2005
trends toward more expensive, highperformance pigments and the displacement of heavy metal-based inorganic pigments. According to the report, these colorants have a better environmental profile than inorganic pigments and are also benefiting from the desire to produce more vivid colours. Inorganic pigment demand will post below-average gains to 2009, primarily due to the continued phase out of chromium- and other heavy metal-based types in various industries. Nevertheless, favourable growth opportunities exist for certain types, such as complex inorganic pigments, which offer superior lightfastness and chemical resistance, Freedonia says. The new industry study, priced at $4200, provides historical US demand data for 1994, 1999 and 2004, as well as forecasts to 2009 and 2014 by major pigment type and market. It also considers market environment indicators, evaluates company market share and profiles 30 producers active in the USA including Clariant, Ciba Specialty Chemicals, Lanxess and Sun Chemical. Contact: The Freedonia Group, Inc, 767 Beta Drive, Cleveland, OH 44143, USA; tel: +1-440684-9600; fax: +1-440-646-0484; URL: www.freedoniagroup.com
ENVIRONMENTAL, HEALTH AND SAFETY ISSUES EU, US debate continues on phthalate exposure in children In July, the European Parliament voted to permanently ban the use of six phthalate plasticizers to soften children’s toys. Despite a favourable EU risk assessment, phthalates DEHP, DBP and BBP have been banned in all toys and childcare articles while DINP, DIDP and DNOP have been banned in such articles that can be put in the mouth. A temporary ban has been in place in Europe since 1999. The new rules will be mandatory a year after the legislation is published, i.e. by autumn 2006. The European Commission will issue guidance on how the ban is to be implemented. It is also
Dr Philippe Schottland has been appointed manager of the Advanced Technology Group. The group will focus on three key areas: special effect pigments, next-generation security and conductive systems. Sun Chemical Performance Pigments’ existing products for plastics applications include the Quindo® high-performance organic pigments and SunMICA® pearlescent pigments. Contact: Sun Chemical Corp, Performance Pigments, 5020 Spring Grove Avenue, Cincinnati, OH 45232, USA; tel: +1-513-6815950; fax: +1-513-632-1537; URL: www.sunchemical.com or www.sunpigments.com
DuPont Performance Elastomers launched following dissolution of JV The planned dissolution of DuPont Dow Elastomers, the nine-year joint venture between DuPont and Dow Chemical Co, took place on 1 July 2005, with the company becoming a wholly owned subsidiary of DuPont. The unit has been renamed DuPont Performance Elastomers. DuPont Dow’s Engage, Nordel and Tyrin businesses have been reintegrated into Dow’s Specialty Plastics and Elastomers business unit. The remainder of DuPont Dow’s portfolio, including Viton, Viton FreeFlow, Kalrez, Neoprene and Hypalon will be part of the new DuPont subsidiary. DuPont Dow’s president and CEO, Jack Lewis, continues in that role for DuPont Performance Elastomers. Dow exercised its option to end the JV last December [ADPO, February]. Contact: DuPont Performance Elastomers LLC, 300 Bellevue Parkway, Suite300, Wilmington, DE 19809, USA; tel: +1-302-792-4000; fax: +1302-792-445; URL: www.dupontelastomers.com
MARKETS US demand set to grow for speciality plastics additives… Demand for plastics additives in the USA is forecast to grow by 2.6% per year, from 2.13 million tonnes (4.7 billion lbs) in 2004 to 2.36 million tonnes in 2009, according to a new
Additives for Polymers
study Specialty Plastics Additives from The Freedonia Group. In value terms, US consumption will increase 4.6% annually to US$6.8 billion. According to the report, the gains will be driven primarily by increasing demand for plastics, and a positive outlook in key markets such as nonresidential construction, packaging and electronics. The rebound of PVC, by far the largest consumer of plastic additives, after five years’ slow growth from 1999–2004 is seen as particularly important. After declining over the same time period, demand for plasticizers and flame retardants, the two largest categories of additives, is expected to experience a “considerable rebound”. Plasticizers will remain the largest group of speciality additives by volume and value, accounting for half of total volume in 2004. Growth in plasticizers is tied closely to the markets for flexible PVC. Freedonia believes that phthalates will remain the dominant plasticizer type despite health concerns about these products. However, the report notes that there have been changes in the phthalate product mix as a result of this concern, with produces moving away from controversial products such as diethylhexyl phthalate (DEHP) to phthalates with better safety profiles. Freedonia expects flame retardants, the next largest additive type, to experience solid growth in the period to 2009, as a result of a resurgent electrical and electronics market. Despite the environmental pressure against brominated flame retardants in Europe, the report forecasts growth for these compounds in the US plastics market. The continuing phase-out of fluorocarbon blowing agents, which are being replaced in many applications by alternative technologies, will have a negative impact on overall demand for property modifying additives, the study finds. However, some other types of property modifier, such as impact modifiers and colorants, will post significant advances as a result of improved non-residential building activity and expanded markets. Some of the fastestgrowing additives are property extenders, including light stabilizers and antistatic agents.
9
Additives for Polymers
These higher-value additives accounted for about one-quarter of plastic additives volume in 2004 and will benefit from increased use of plastics in more-demanding environments, Freedonia says. PVC is the top consumer of plastic additives, accounting for 62% of total additive demand by volume in 2004. The plastic will continue to dominate a number of additive products including plasticizers, impact modifiers, heat stabilizers and antimicrobials. Rigid PVC products are growing more quickly than flexible products, which Freedonia says will result in advances for additives such as lubricants and impact modifiers. Polypropylene, however, will be the fastest-growing consumer of additives, as continuing market penetration into areas such as packaging and automotive applications will require more modification of the resin with antistatic agents and antioxidants. The rapid expansion of the market for wood-plastic composites (WPCs) will benefit additives for polyethylene, the primary resin in WPCs, and will also fuel healthy growth for lubricants and colorants. Specialty Plastic Additives (Study #1961) is available for $4100. Contact: The Freedonia Group, Inc, 767 Beta Drive, Cleveland, OH 44143, USA; tel: +1-440684-9600; fax: +1-440-646-0484; URL: www.freedoniagroup.com
…and for pigments A second recent study from Freedonia, Pigments: Organic, Inorganic and Specialty (Study #1958), considers US demand for pigments. Plastics accounted for 17% of the market in value terms in 2004. Other major markets include paints and coatings, ceramics and glass, and printing inks. Overall demand for all pigment types in all US end-use markets is forecast to grow from US$2.9 billion in 2004 to $3.6 billion in 2009 at an annual growth rate of 4.3%. Speciality pigments, such as metallic and pearlescent types, are projected to achieve the most rapid gains because of increased requirements for unique and novel eye-catching optical effects in plastics and other products. Growth in organic pigments will continue to benefit from
10
September 2005
trends toward more expensive, highperformance pigments and the displacement of heavy metal-based inorganic pigments. According to the report, these colorants have a better environmental profile than inorganic pigments and are also benefiting from the desire to produce more vivid colours. Inorganic pigment demand will post below-average gains to 2009, primarily due to the continued phase out of chromium- and other heavy metal-based types in various industries. Nevertheless, favourable growth opportunities exist for certain types, such as complex inorganic pigments, which offer superior lightfastness and chemical resistance, Freedonia says. The new industry study, priced at $4200, provides historical US demand data for 1994, 1999 and 2004, as well as forecasts to 2009 and 2014 by major pigment type and market. It also considers market environment indicators, evaluates company market share and profiles 30 producers active in the USA including Clariant, Ciba Specialty Chemicals, Lanxess and Sun Chemical. Contact: The Freedonia Group, Inc, 767 Beta Drive, Cleveland, OH 44143, USA; tel: +1-440684-9600; fax: +1-440-646-0484; URL: www.freedoniagroup.com
ENVIRONMENTAL, HEALTH AND SAFETY ISSUES EU, US debate continues on phthalate exposure in children In July, the European Parliament voted to permanently ban the use of six phthalate plasticizers to soften children’s toys. Despite a favourable EU risk assessment, phthalates DEHP, DBP and BBP have been banned in all toys and childcare articles while DINP, DIDP and DNOP have been banned in such articles that can be put in the mouth. A temporary ban has been in place in Europe since 1999. The new rules will be mandatory a year after the legislation is published, i.e. by autumn 2006. The European Commission will issue guidance on how the ban is to be implemented. It is also