Chemical profile: bisphenol A

Uses, prices and outlook

13 October 2008 00:00  [Source: ICB]

Uses

The main use for bisphenol A (BPA) is in polycarbonate (PC), followed by epoxy resins. Other uses are flame retardants, unsaturated polyester resins, and polyacrylate, polyetherimide and polysulfone resins.

Supply/demand

Supply is plentiful in Europe. Demand has slowed this year and is below expectations. The key PC sector is poor: a slew of new capacity in Asia and shrinking demand, particularly from optical media, has tipped world markets into oversupply. Epoxy resin has been stable in Europe this year, although demand is now slowing, with producers trimming output.

A strong euro/weak dollar has curtailed exports in 2008. There is currently less pressure from Asian imports because of the stronger dollar, but there are reports of large volumes of cheaper Russian material available.

US firms Hexion and Huntsman have been fighting in court over their pending $10.6bn (€7.6bn) merger, Hexion claiming it would create an insolvent company. Czech company Spolchemie expects to buy Hexion's epoxy resins business if the merger proceeds.

Prices

Freely negotiated contracts dropped €20/tonne in September to €1,455-1,540/tonne. October contracts are set to fall following the €74/tonne drop in the benzene contract price, with discussions centered around the size of any reduction. Producers say margins were fair at the start of 2008, but then dropped significantly. They have been under severe pressure from surging oil and feedstock prices although numbers have been softening since hitting record levels this summer.

Technology

BPA is produced by the condensation of phenol and acetone in the presence of an acid catalyst, or cation exchange resins in newer plants.

After recovery of acid and phenol, BPA is washed with water, neutralized with calcium hydroxide and distilled under vacuum. Newer processes use distillation and extractive crystallization under pressure to purify it.

HEALTH AND SAFETY

Studies have shown that high levels of BPA are linked to cardiovascular disease, type 2 diabetes and liver enzyme abnormalities. The US and EU have said BPA is safe at the levels found in food and drink containers but some North American retailers have pulled PC baby and water bottles from shelves. Canada has announced plans to ban PC baby bottles.

Outlook

Global growth for BPA ranges from 0-5%/year. Growth in Europe is expected to be flat to plus or minus 1%. The strongest growth of 5%/year will be in Asia, mainly China. PC will remain the main driver, with global growth forecast at 6-7%/year. PC demand in the miniaturization of electronic products has taken the lead from the optical market which has matured rapidly. World epoxy resins demand is expected to grow at around 7%/year.

EUROPEAN BISPHENOL A CONTRACT PRICES, FD NWE

         

GLOBAL BISPHENOL A CAPACITY, '000 TONNES/YEAR

Company	Location	Capacity
Atul	Atul, India	1.5
Bayer MaterialScience	Antwerp, Belgium	245
	Baytown, Texas, US	230
	Caojing, China*	110
	Krefeld, Germany	300
	Mab Ta Phut, Thailand	230
Chang Chun Petrochemical	Kaohsiung, Taiwan	135
	Miao-Li, Taiwan	20
Dow Chemical	Freeport, Texas, US	190
	Stade, Germany	100
Hexion Specialty Chemicals	Deer Park, Texas, US	265
	Pernis, Netherlands	180
Idemitsu Kosan	Ichihara, Japan	75
Kazanorgsintez	Kazan, Russia	70
Khuzestan Petrochemical	Bandar Imam, Iran	30
Kingboard Holdings	Huizhou, China	25
Kumho P&B Chemicals	Yosu, South Korea	310
LG Chem	Yosu, South Korea	260
Mitsubishi Chemical	Kashima, Japan	100
	Kurosaki, Japan	120
Mitsui Chemicals	Ichihara, Japan	95
	Jurong Island, Singapore	210
	Nagoya, Japan	65
	Takaishi, Japan	65
Nan Ya Plastics	Mailiao, Taiwan	420
Nippon Steel Chemical	Kita-Kyushu, Japan	100
Novokuibyshevsk Petrochemical	Novokuibyshevsk, Russia	20
PCC Synteza	Kedzierzyn-Kozle, Poland	12
Rhodia Brasil	Paulinia, Brazil	25
SABIC Innovative Plastics	Burkville, Alabama, US	75
	Mount Vernon, Indiana, US	265
	Bergen op Zoom, Netherlands	180
	Cartagena, Spain	340
Shreyas Intermediates	Lote Parshuram, India	10
Sunoco Chemicals	Haverhill, Ohio, US	110
Taiwan Prosperity Chemical	Lin Yuan, Taiwan	60
Ufaorgsintez JSC	Ufa, Russia	60

NOTE: *Expansion to 220,000 tonnes/year in early 2009

SOURCE: ICIS

Profile last published October 11, 2004

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