Bisphenol A
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Transcript of Bisphenol A
www.icis.com
CHEMICAL PROFILE
GET AN ENTIRE YEAR’S WORTH OF CHEMICAL PROFILESThe profiles published in ICIS Chemical Business during 2010 are available on USB stick. To order, email: [email protected]
June 27-July 3, 2011 | ICIS Chemical Business | 43
US, FELIZA MIRASOL PROFILE LAST PUBLISHED JANUARY 14, 2008
USESBisphenol A (BPA) is mainly used in the pro-duction of polycarbonate (PC). Its second-biggest use is in epoxy resins. Other applica-tions include flame retardants (mainly tetrabromobisphenol-A), unsaturated polyes-ter resins and polyacrylate, polyetherimide and polysulphone resins.
SUPPLY/DEMANDGlobal BPA market growth is expected to be stable at 5%/year. The Asian markets are pre-dicted to grow at 11%/year, with China grow-ing by over 13%/year. In contrast, the US market is expected to be flat in the 2010–2012 period, with an expected growth rate of 1–2% in 2012–2015, according to estimates by Ger-man trader Mitsui & Co. Deutschland.
BPA growth over the last few years has been driven primarily by increasing demand for PC resins used in the manufacture of optical media, but growth in this sector has slowed signifi-cantly. Growth is also expected to decline as the use of optical media declines and gives way to the downloading of music and films directly from the internet, as well as competing with other increasingly popular technologies.
In comparison, automotive glazing offers po-tentially strong growth opportunities for BPA/
PC producers. PC resins are used in place of traditional materials such as metal and glass in automotive components. Glazing and sheet products can also be used in architectural, se-curity and transportation applications.
On March 28, Bayer MaterialScience lifted the force majeure on its North American PC and BPA production. The Germany-headquar-tered producer had declared force majeure on February 2, when production issues caused by freezing weather arose at its 260,000 tonne/year facility in Baytown, Texas.
PRICESUS BPA prices are expected to fall on im-proved supply because phenol-to-BPA pro-ducers have been running at high rates after being low on feedstocks during the first quar-ter. Asia prices have already tumbled.
The lifting of Bayer’s force majeure is ex-pected to weaken momentum for several price increase announcements in the US PC market, where the company sought a price increase of 25 cents/lb ($551/tonne, €391/tonne) effective March 31, or as contracts allow. In addition, US-based Styron sought a PC price increase of 22 cents/lb, effective April 1, or as contracts allow, while US-head-quartered SABIC Innovative Plastics sought a price increase of 22 cents/lb, effective April 4, or as contracts allow.
On the downstream epoxy resin side, there were several price increase nominations set for June 1 that pushed US epoxy resin prices to or above the $1.90/lb ($4,189/tonne, €2,890/tonne) delivered (DEL) North America level, as assessed by ICIS.
US epoxy resins buyers and importers used weaker feedstock prices initially to resist June price increases of 10 cents/lb. But US epoxy resin producers were said to be confident that buyer resistance would weaken as invento-ries get used up.
TECHNOLOGYBPA is produced by the condensation of phe-nol and acetone in the presence of an acid
catalyst (hydrogen chloride) and usually a promoter such as methyl mercaptan. Cation exchange resins can replace the acid catalyst in newer plants.
After the reaction and recovery of acid and phenol, the BPA is washed with water, neu-tralized with calcium hydroxide and distilled under vacuum. Newer processes employ distillation and extractive crystallization under pressure to purify the BPA.
OUTLOOKLong-term growth for the epoxy resin markets is expected to be 5%/year globally. However, concerns over health issues with BPA have at-tracted the attention of environmentalists.
In response, US industry trade group The American Chemistry Council (ACC) has claimed that fears about BPA are overblown, citing research that the levels ingested by most people are far too low to have adverse effects.
Despite this, however, some North Ameri-can retailers have removed baby bottles and water bottles containing PC from the shelves, while Canada has announced plans to ban PC baby bottles. Yet the impact on BPA/PC de-mand is expected to be small, as packaging applications in total only account for around 3% of overall PC demand.
Bisphenol A
SOURCE: ICIS
BISPHENOL A IN ASIA-PACIFIC
500
900
1,300
1,700
2,100
2,500
Jun2011
Jan2009
$/tonne
*Asia prices used here as benchmark for US BPA
Spot CFR NE Asia
US BISPHENOL A CAPACITY ’000 TONNES/YEARCompany Location Capacity
Bayer Baytown, Texas 190
Dow Freeport, Texas 190
Momentive PerformanceMaterials
Deer Park, Texas 140
SABIC Innovative Plastics
Burkville, Alabama 75
Mount Vernon, Indiana 265
Sunoco Haverhill, Ohio 110
Total 970SOURCE: ICIS
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