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US speciality plastic additives market to reach US$5.9 billion by 2006
December 2002
Additives for Polymers
Contact: Movacolor BV, PO Box 3016, 8600 DA Sneek, The Netherlands; tel: +31-515-570020; fax: +31-515-570021; e-mail: [email protected]; URL: www.movacolor.com
MARKETS US speciality plastic additives market to reach US$5.9 billion by 2006 Demand for speciality plastic additives in the USA is set to advance 3.7% annually to 2.5 million tonnes (5.5 billion lb) in the year 2006, according to a new study Specialty Plastic Additives published recently by The Freedonia Group. In terms of value, consumption will increase 4.9% per annum to US$5.9 billion by 2006, and is forecast to reach $7.6 billion (6.58 billion lb) by 2011. The report finds that increasing plastics production (albeit from a relatively weak 2001 baseline), marginally higher loadings and continued penetration of high-performance market niches will all contribute to the forecast gains; average pricing is anticipated to rise only 1.2% per year until 2006. The 226-page study analyses markets for property extenders, property modifiers and processing aids, presenting historical data and forecasts to 2006 and 2011 by additive type, by end-use market and by resin. Gains will be most pronounced for property extenders, including flame retardants, light and heat stabilizers, antimicrobials, antioxidants, antistatic agents and anti-fogging agents – all of which are essential for the production of plastics to be used in hostile environments. As the performance requirements placed on plastics continue to increase, these additives will become increasingly important in the protection and extension of plastic properties, Freedonia says. The growing use of
plastics in electronics will spur increases in demand for antistatics and flame retardants, while gains in plastic building products will benefit antimicrobials and light stabilizers. US demand for property extenders totalled 491 million kg in 2001, and is predicted to rise by 4.5% annually to 613 million kg, valued at almost $2 billion, by 2006. Polymer modifiers, the largest class in terms of shipments and revenues, include several large volume products, such as plasticizers, that are characterized by severe price competition as a result of numerous producers vying for market share. The study forecasts annual growth in the USA of only 3.3%, from 1535 million kg in 2001 to 1809 million kg in 2006. Overall gains for polymer modifiers will continue to be constrained by the decrease in use of conventional blowing agents in the production of plastic foams, though Freedonia finds that volume and value gains for some product families, such as coupling agents, polymerization aids and impact modifiers, will significantly outperform overall growth for the sector. Consumption of processing aids such as lubricants and mould release agents will increase faster than US growth in plastics production, at 4.0% versus 3.5% yearly to 2006, the study reports. This is due to the growing use of internal products in place of products applied to the mould, which pose potential environmental risks and can mar the appearance of plastic parts. Annual demand for this class of additive is anticipated to reach 84 million kg in 2006. Polyvinyl chloride (PVC) production consumes the greatest share of plastic additives, accounting for 60% of overall US demand in 2001, according to the report. PVC requires higher loadings of additives than other resins, especially plasticizers, impact modifiers, antimicrobials
Table 1. US demand for speciality plastic additives (in millions of $) Additive class
1996
2001
2006
2011
Property modifiers Property extenders Processing aids Total
2544 1181 108 3833
3060 1457 129 4646
3765 1980 170 5915
4745 2650 230 7625
Source: The Freedonia Group
©2002 Elsevier Science
9
Additives for Polymers
December 2002
and heat stabilizers. Polyolefins, polyurethane and polystyrene also consume considerable quantities of additives.
market is the third largest end-use sector for glass-reinforced plastics at 20%, with boatbuilding representing a major part of that figure.
The US plastic additives industry is currently fragmented, Freedonia says, with more than 100 companies participating. In 2001 the country’s ten largest plastic additives manufacturers – Exxon Mobil, Cytec, Crompton, Clariant, Akzo Nobel, Great Lakes Chemical, Rohm and Haas, Ciba Specialty Chemicals, Ferro and GE Specialty Chemicals – accounted for just over 40% of demand in value terms between them. Freedonia concludes that acquisition activity will therefore continue to be brisk, as the larger competitors seek to gain sufficient strength and breadth to become dominant suppliers.
For thermoplastic composites, the GMT/LFT (glass mat thermoplastics/long fibre technology) market experienced dynamic growth of 9% in a market down overall by 2.1% in 2001. According to Bültjer this demonstrates the future prospects of this class of material. LFT grew faster than GMT in 2001, with particularly good sales for parts weighing less than 1 kg.
Specialty Plastic Additives (Study No. 1576) is priced at $3700 and was published in October. Contact: The Freedonia Group, Inc, 767 Beta Drive, Cleveland, OH 44143-2326, USA; tel: +1440-684-9600; fax: +1-440-646-0484; e-mail: [email protected]: URL: www.freedoniagroup.com
European production of reinforced plastics still shrinking European production of plastic composites fell 2% in 2001, and is expected to decline a further 1.5% this year, according to Arbeitsgemeinschaft Verstärkte Kunststoffe (AVK), Germany’s composites trade association. Production of reinforced plastics fell to 988 000 tonnes last year, despite forecasts as late as September 2001 of 2–4% growth. Uwe Bültjer, AVK’s managing director, says that bulk and sheet moulding compound products performed ahead of their core markets in 2001 – cars and lorries, respectively – although some expected launches did not happen. BMC/SMC had zero growth in 2001 at 284 000 tonnes, which compared with the 7% decline in lorry production. However, AVK forecasts a 7.7% decline for BMC/SMC in 2002. The construction sector was badly hit by the recession in 2001 with business in composite tanks and pipes down 18.9% to 95 000 tonnes in 2001. However, the boat-building industry had one of its best years; the sport and leisure
10
Production of thermosetting moulding compounds fell 5.5% to reach 134 000 tonnes in 2001, due to imports from China and Brazil, better material utilization and increasing substitution by thermoplastics. The use of polycarbonate and ABS in electricity meter housings has led to huge decline in the use of standard phenolic compound – though special phenolic grades show clear growth. Low-cost imports have particularly affected phenolic compounds. An evaluation of the production figures for the first half of 2002 reveals that a slight decline of approximately 1.5% to 973 000 tonnes is to be expected this year. SMC production is said to be particularly affected. However, based on production of new SMC and GMT/LFT parts in the automotive industry, an end of the building industry recession and further growth in boatbuilding and windmill power generation, Bültjer expects 2003 figures to improve. Contact: Arbeitsgemeinschaft Verstärkte Kunststoffe - Technische Vereinigung eV, Am Hauptbahnhof 10, D-60329 Frankfurt-Main, Germany; tel: +49-69-250920; fax: +49-69250919; e-mail: [email protected]; URL: www.avk-tv.de
TECHNICAL BRIEFS Blending elastomeric nanoparticles with PP provides good balance of properties One approach to improving the toughness of polypropylene (PP) is to blend with rubber particles. However, this impairs the modulus. More recently the use of rigid nanoparticles
©2002 Elsevier Science
Additives for Polymers
Contact: Movacolor BV, PO Box 3016, 8600 DA Sneek, The Netherlands; tel: +31-515-570020; fax: +31-515-570021; e-mail: [email protected]; URL: www.movacolor.com
MARKETS US speciality plastic additives market to reach US$5.9 billion by 2006 Demand for speciality plastic additives in the USA is set to advance 3.7% annually to 2.5 million tonnes (5.5 billion lb) in the year 2006, according to a new study Specialty Plastic Additives published recently by The Freedonia Group. In terms of value, consumption will increase 4.9% per annum to US$5.9 billion by 2006, and is forecast to reach $7.6 billion (6.58 billion lb) by 2011. The report finds that increasing plastics production (albeit from a relatively weak 2001 baseline), marginally higher loadings and continued penetration of high-performance market niches will all contribute to the forecast gains; average pricing is anticipated to rise only 1.2% per year until 2006. The 226-page study analyses markets for property extenders, property modifiers and processing aids, presenting historical data and forecasts to 2006 and 2011 by additive type, by end-use market and by resin. Gains will be most pronounced for property extenders, including flame retardants, light and heat stabilizers, antimicrobials, antioxidants, antistatic agents and anti-fogging agents – all of which are essential for the production of plastics to be used in hostile environments. As the performance requirements placed on plastics continue to increase, these additives will become increasingly important in the protection and extension of plastic properties, Freedonia says. The growing use of
plastics in electronics will spur increases in demand for antistatics and flame retardants, while gains in plastic building products will benefit antimicrobials and light stabilizers. US demand for property extenders totalled 491 million kg in 2001, and is predicted to rise by 4.5% annually to 613 million kg, valued at almost $2 billion, by 2006. Polymer modifiers, the largest class in terms of shipments and revenues, include several large volume products, such as plasticizers, that are characterized by severe price competition as a result of numerous producers vying for market share. The study forecasts annual growth in the USA of only 3.3%, from 1535 million kg in 2001 to 1809 million kg in 2006. Overall gains for polymer modifiers will continue to be constrained by the decrease in use of conventional blowing agents in the production of plastic foams, though Freedonia finds that volume and value gains for some product families, such as coupling agents, polymerization aids and impact modifiers, will significantly outperform overall growth for the sector. Consumption of processing aids such as lubricants and mould release agents will increase faster than US growth in plastics production, at 4.0% versus 3.5% yearly to 2006, the study reports. This is due to the growing use of internal products in place of products applied to the mould, which pose potential environmental risks and can mar the appearance of plastic parts. Annual demand for this class of additive is anticipated to reach 84 million kg in 2006. Polyvinyl chloride (PVC) production consumes the greatest share of plastic additives, accounting for 60% of overall US demand in 2001, according to the report. PVC requires higher loadings of additives than other resins, especially plasticizers, impact modifiers, antimicrobials
Table 1. US demand for speciality plastic additives (in millions of $) Additive class
1996
2001
2006
2011
Property modifiers Property extenders Processing aids Total
2544 1181 108 3833
3060 1457 129 4646
3765 1980 170 5915
4745 2650 230 7625
Source: The Freedonia Group
©2002 Elsevier Science
9
Additives for Polymers
December 2002
and heat stabilizers. Polyolefins, polyurethane and polystyrene also consume considerable quantities of additives.
market is the third largest end-use sector for glass-reinforced plastics at 20%, with boatbuilding representing a major part of that figure.
The US plastic additives industry is currently fragmented, Freedonia says, with more than 100 companies participating. In 2001 the country’s ten largest plastic additives manufacturers – Exxon Mobil, Cytec, Crompton, Clariant, Akzo Nobel, Great Lakes Chemical, Rohm and Haas, Ciba Specialty Chemicals, Ferro and GE Specialty Chemicals – accounted for just over 40% of demand in value terms between them. Freedonia concludes that acquisition activity will therefore continue to be brisk, as the larger competitors seek to gain sufficient strength and breadth to become dominant suppliers.
For thermoplastic composites, the GMT/LFT (glass mat thermoplastics/long fibre technology) market experienced dynamic growth of 9% in a market down overall by 2.1% in 2001. According to Bültjer this demonstrates the future prospects of this class of material. LFT grew faster than GMT in 2001, with particularly good sales for parts weighing less than 1 kg.
Specialty Plastic Additives (Study No. 1576) is priced at $3700 and was published in October. Contact: The Freedonia Group, Inc, 767 Beta Drive, Cleveland, OH 44143-2326, USA; tel: +1440-684-9600; fax: +1-440-646-0484; e-mail: [email protected]: URL: www.freedoniagroup.com
European production of reinforced plastics still shrinking European production of plastic composites fell 2% in 2001, and is expected to decline a further 1.5% this year, according to Arbeitsgemeinschaft Verstärkte Kunststoffe (AVK), Germany’s composites trade association. Production of reinforced plastics fell to 988 000 tonnes last year, despite forecasts as late as September 2001 of 2–4% growth. Uwe Bültjer, AVK’s managing director, says that bulk and sheet moulding compound products performed ahead of their core markets in 2001 – cars and lorries, respectively – although some expected launches did not happen. BMC/SMC had zero growth in 2001 at 284 000 tonnes, which compared with the 7% decline in lorry production. However, AVK forecasts a 7.7% decline for BMC/SMC in 2002. The construction sector was badly hit by the recession in 2001 with business in composite tanks and pipes down 18.9% to 95 000 tonnes in 2001. However, the boat-building industry had one of its best years; the sport and leisure
10
Production of thermosetting moulding compounds fell 5.5% to reach 134 000 tonnes in 2001, due to imports from China and Brazil, better material utilization and increasing substitution by thermoplastics. The use of polycarbonate and ABS in electricity meter housings has led to huge decline in the use of standard phenolic compound – though special phenolic grades show clear growth. Low-cost imports have particularly affected phenolic compounds. An evaluation of the production figures for the first half of 2002 reveals that a slight decline of approximately 1.5% to 973 000 tonnes is to be expected this year. SMC production is said to be particularly affected. However, based on production of new SMC and GMT/LFT parts in the automotive industry, an end of the building industry recession and further growth in boatbuilding and windmill power generation, Bültjer expects 2003 figures to improve. Contact: Arbeitsgemeinschaft Verstärkte Kunststoffe - Technische Vereinigung eV, Am Hauptbahnhof 10, D-60329 Frankfurt-Main, Germany; tel: +49-69-250920; fax: +49-69250919; e-mail: [email protected]; URL: www.avk-tv.de
TECHNICAL BRIEFS Blending elastomeric nanoparticles with PP provides good balance of properties One approach to improving the toughness of polypropylene (PP) is to blend with rubber particles. However, this impairs the modulus. More recently the use of rigid nanoparticles
©2002 Elsevier Science