Polyacetal

31 May 1999 00:00 [Source: ICB]

Hampered by the Asian crisis, the polyacetal market has seen growth and prices reduced, while capacity expansions have led to oversupply

Supply/demand

The world market for polyacetal resins (also referred to as acetal or polyoxymethylene [POM]) stands at about 515 000 tonne/year, with Europe accounting for 30%, the Americas 23%, Japan, 18% and the rest of Asia 29%.

The market is generally regarded as growing by around 3-5%/year worldwide, with slightly higher rates in Asia of 4-5%/year. Before the southeast Asian crisis rates were being put as high as 8-15%/year in Thailand and Indonesia.

The market is currently oversupplied, with total capacity to produce put at around 700 000 tonne/year. In Europe the overcapacity is estimated at around 25 000 tonne/year. Demand growth in Europe was strong in 1997, up by 10% and more, but fell to 6-7% in 1998; this year is expected to see zero growth. The long term growth trend for Europe is put at 3.5-4.0%/year.

The polyacetal market is tightly held by a handful of players. Hoechst's Ticona claims around a 45% share of the global market, including its Polyplastics jv with Daicel Chemical Industries, with DuPont the No 2 producer. These leading two are followed by the BASF/Degussa jv Ultraform and then by smaller Asian players such as Asahi Chemical and Mitsubishi Engineering Plastics.

Uses

Polyacetal is a versatile engineering polymer that can be used in the virgin form largely for injection moulding applications, although extrusion and blowmoulding are possible.

The resin has good rigidity and mechanical strength and can be impact modified with polyurethane or rubber and fibre or mineral reinforced to give a wider range of properties. Low friction and high wear resistance properties can also be tailored and there is a growing market for conductive compounds.

Although not usually blended with other engineering thermopolymers, Showa Denko has developed a polyamide/polyacetal composite with high performance properties.

Main uses for the resin are in injection moulding to make precision engineering parts that require good wear properties, for example in gear drives, pumps, conveyors, etc. Polyacetal also finds uses in larger parts, such as kettle bodies and cigarette lighter bodies, where good resistance to hot water and hydrocarbons is required.

Main outlets include the automotive industry - for fuel systems components, for example - domestic electrical goods, toys, video and cassette tapes and players, and construction and plumbing goods.

Technology

Polyacetal resins are made by polymerisation of formaldehyde via trioxanes to give the homopolymer; copolymers are made with incorporation of other monomers. The process is heavily capital-intensive. The resin is highly crystalline in form.

The polymer chains have to be stabilised to prevent the resin breaking down during processing at elevated temperatures - a problem that beset moulders of the early polyacetal resins. The first polyacetal was introduced in 1960; more heat-stable versions appeared in the early 1990s, incorporating new stabiliser technology that reduces mould and screw deposits.

Pricing

Pricing in Europe has been under strong pressure as a result of overcapacity and growing imports from the Far East following the Asian economic troubles. One producer says levels of imports doubled in 1998 over 1997, mainly in commodity grades.

General purpose grades in western Europe are now in the region of DM4.10-4.90/kg, with imported material 5-10% lower. This represents a considerable fall from the levels of DM4.70-5.50/kg after the last price hike in 1997, when prices went up by 4% on average.

GLOBAL CAPACITIES FOR ACETAL RESINS, '000 TONNE/YEAR

DuPont

Parkersburg, WV, US

Dordrecht, Netherlands

Ticona

Bishop, Texas, US

Kelsterbach, Germany

Polyplastics¹

Malaysia

Fuji City, Japan

100

Kaohsiung, Taiwan

Ultraform²

Theodore, Alabama, US

333

Ludwigshafen, Germany

Zaklady Azotowe Tarnowie

Tarnow, Poland

Asahi Chemical

Mizushima, Japan

Singapore

204

Mitsubishi Engineering Plastics (MEP)⁵

Japan

Thai Polyacetal⁶

Rayong, Thailand

Korea Engineering Plastics⁷

Ulsan, S Korea

¹ Polyplastics is a 55:45 jv between Daicel Chemical Industries and Ticona - the Malaysia plant is scheduled for early 2000 startup

² jv between BASF and Degussa

³ expansion to 44 000 tonne/year planned for 2000

⁴ Asahi Kasei Tenac Singapore delayed this project in February 1998

⁵ jv between Mitsubishi Gas Chemical and Mitsubishi Chemical;

⁶ jv between MEP and TAO of Thailand

⁷ jv between Hyosung T&C, MEP and Mitsubishi Trading Co

###7671###

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly