Chemical Profile - Fluorocarbons

30 September 2002 00:00  [Source: ICB Americas]

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FLUOROCARBONS   September 30, 2002

PRODUCER	CAPACITY*
Air Products and Chemicals, Tamaqua, Pa.	10
Atofina Chemicals, Calvert City, Ky.	150
Atofina Chemicals, Wichita, Kan.	77
DuPont, Corpus Christi, Tex.	140
DuPont, Deepwater, N.J.	40
DuPont, Louisville, Ky.	250
Great Lakes Chemical, El Dorado, Ark.	6
Halocarbon Products, North Augusta, S.C.	2
Honeywell, Baton Rouge, La.	150
Honeywell, El Segundo, Calif.	80
Honeywell, Geismar, La.	60
Ineos Fluor, Saint Gabriel, La.	68
MDA Manufacturing, Decatur, Ala.	40
Solvay, Thorofare, N.J.	40
Total	1,113

*Millions of pounds per year of fluorocarbon capacity. The fluorocarbon industry is still undergoing major shifts in structure, begun as a result of the 1987 Montreal Protocol, which is the guideline for world phaseout of ozone-depleting chemicals. The term "fluorocarbon" is generic and applies to substituted, saturated, aliphatic, C1 to C4 hydrocarbons that contain fluorine and hydrogen; the older products additionally contain chlorine. The group comprises: 1. CFCs - Fully halogenated chlorofluorocarbons containing only carbon, fluorine and chlorine. These are known ozone-depleters, and new production of these products for emissive uses has been phased out in all developed countries. 2. HCFCs - Hydrogen-containing chlorofluorocarbons are less stable and less ozone-destructive than CFCs. These products are considered transitional and are scheduled for eventual phaseout, being replaced with environmentally benign HFCs. 3. HFCs - Fluorocarbons with no chlorine and zero ozone-depletion potential. These contain only carbon, fluorine and hydrogen. These newer replacement fluorocarbons typically have significantly lower global warming potential than CFCs. Most fluorocarbon alternatives to CFCs are based on HFCs. 4. Fully fluorinated hydrocarbon chemicals, which contain only carbon and fluorine and have zero ozone depletion potential. In August 2002, Honeywell began producing HFC-245fa at a new facility in Geismar, La. The new fluorocarbon product is targeted at replacing HCFC-141b as a blowing agent in rigid polyurethane and polyisocyanurate foams. Honeywell acquired AlliedSignal Inc. and the Geismar plant in 1999. Atofina Chemicals announced in May 2002 that engineering work for a major HFC-32 investment at Calvert City, Ky., was underway. Atofina also completed engineering work for an HFC-134a plant expansion in Calvert City. Atofina's Wichita, Kan., site manufactures only one fluorochemical, R-22, and the company has decided to discontinue production at Wichita at the end of 2002. In May 2002, Solvay SA completed its  1.3 billion ($1.27 billion) acquisition of Ausimont from Edison and Longside International. In August 2002, Solvay America Inc. and Dyneon LLC entered into a binding letter of intent for the sale of the North American-based Solvay Fluoropolymers Inc. to Dyneon. In January 2001 ICI completed the sale of its Klea fluorochemicals business to Ineos. The Klea business was subsequently renamed Ineos Fluor. In 2000, LaRoche Industries idled 66 million pounds of fluorocarbon capacity at Gramercy, La., used for production of HCFC-22 and HCFC-141b. Profile last published 10/11/99; this revision 9/30/02.

DEMAND
2000: 867 million pounds; 2001: 869 million pounds; 2005: 904 million pounds. Demand equals production plus imports, which were 19 million pounds in 2000 and 19 million pounds in 2001, less exports, which were 110 million pounds in 2000 and 88 million pounds in 2001.

GROWTH
Historical (1996-2001): 4.9 percent per year; Future: 1.0 percent per year through 2005.

PRICE
Historical (1996-2001): High, $2.50 per pound, HFC-l34a, list, bulk, del.; low, $1.50, same basis. Current: $2.50, same basis.

USES

Fluorocarbons uses.

Refrigeration and air-conditioning, 45 percent; polymer precursors, 30 percent; foam-blowing, 18 percent; aerosol propellants, 4 percent; solvent cleaning, 2 percent; miscellaneous, 1 percent.

STRENGTH
Refrigerants are the largest fluorocarbon market, consuming more than 390 million pounds last year. Growth is moderate at 2.5 percent annually, being mitigated by conservation measures. Before phaseouts began, the major refrigerants were CFCs -11 and -12, HCFC-22 and R-502. While these have been largely replaced by HCFC-22, HCFC-123, HFC-134a and a number of blends, the HCFCs are themselves being phased out as well, and HFC products are taking their place. In refrigeration, HFC-134a and the blend R-404a (HFCs -125, -143a and 134a) are the dominant replacements. One fluorocarbon market that has been unaffected by concerns about ozone depletion or global warming is their use as precursors in the production of fluoropolymers and fluoroelastomers. Because they are consumed in the manufacturing process, they pose no threat. Four different fluoro-carbons (HCFC-22, HCFC-142b, HFC-152a and CFC-113) are used as feedstocks for PTFE (polytetrafluoroethylene), PFA (tetrafluoroethylene perfluoroalkoxy vinyl ether copolymer resins), ETFE (ethylene tetrafluoroethylene copolymer resins) and PVDF (polyvinylidene fluoride). Fluorocarbon demand growth is projected to be 6 percent annually through 2005.

WEAKNESS
Shrinking demand in foam-blowing is fluorocarbon's major weakness in the North American market. A hydrochlorofluorocarbon approved for foam-blowing in 1992, HCFC-141b, has experienced limited growth over the past five years, 0.7 percent annually. But its production and importation will be prohibited in January 2003, and non-fluorocarbon alternatives are taking over much of the market. Consequently, a 10 percent annual decline of fluorocarbons in this application is anticipated for the forecast period.

OUTLOOK
As a result of the 1987 Montreal Protocol agreement and individual country regulations controlling new production, consumption and trade of CFCs and HCFCs, the global fluorocarbons market continues to undergo a major transformation toward greater use of more environmentally benign HFCs and non-fluorocarbon alternatives. Modest growth (2.5 percent) is expected in the major sector, refrigeration; strong growth (6 percent) for the second largest sector, polymer precursors; and constriction (minus 10 percent) in the third largest sector, foam-blowing. Aggregate annual demand is forecast at 1 percent through 2005.

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