Chemical Profile: Fluorocarbons

05 December 2005 00:01  [Source: ICB Americas]

Producer	Capacity*
AGC Chemicals Americas, Bayonne, N.J.	1
Air Products and Chemicals, Tamaqua, Pa.	10
Arkema, Calvert City, Ky.	155
DuPont, Corpus Christi, Tex.	140
DuPont, Deepwater, N.J.	35
DuPont, Louisville, Ky.	220
Great Lakes Chemical, El Dorado, Ark.	6
Halocarbon Products, North Augusta, S.C.	2
Honeywell, Baton Rouge, La.	150
Honeywell, Geismar, La.	150
INEOS Fluor Americas, Saint Gabriel, La.	68
MDA Manufacturing, Decatur, Ala.	40
Solvay Solexis, Thorofare, N.J.	40
Total	1,017

*Millions of pounds per year of fluorocarbon capacity. The fluorocarbon industry has undergone major shifts in structure as a result of the Montreal Protocol of 1987, which is the guideline for world phase-out of ozone-depleting chemicals. The term “fluorocarbon” is generic and applies to substituted, saturated, aliphatic, C1-4 hydrocarbons that contain fluorine and hydrogen. The older products also had 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 were considered transitory and are being phased-out, 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 ozone-depleting potential than CFCs.

4. Fully fluorinated hydrocarbon chemicals—They contain only carbon and fluorine and do not deplete the ozone layer.

In early 2004, Asahi Glass Fluoropolymers USA and AGA Chemicals Americas merged into AGC Chemicals Americas.

Honeywell closed its El Segundo, Calif. fluorocarbon plant in 2003, following the US ban on HCFC-141b for foam-blowing applications. This plant also produced HCFC-142b and had 80 million pounds of capacity.

In 2002, Atofina closed its HCFC-22 plant at Wichita, Kan., which had an annual capacity rating of 77 million pounds. Arkema Inc. was formed in October 2004, by Total’s move to reorganize its Atofina Chemicals operations. Solvay Solexis was created by Solvay Group after it acquired Ausimont from its parent Montedison in 2002.

MDA Manufacturing is a joint venture between 3M and Daikin America.

Profile last published 10/07/02; this revision 11/28/05.

Demand

2003: 784 million pounds; 2004: 796 million pounds; 2008: 845 million pounds, projected. Demand equals production plus imports (2003: 19 million pounds; 2004: 19 million pounds) less exports (2003: 110 million pounds; 2004: 88 million pounds).

Growth

Historical (1999–2004): -1.7 (negative) percent per year. Future: 1.5 percent per year through 2005.

Price

Historical (1999–2004): High, $2.13 per pound, FAS value, freight adj.; low, $1.81, same basis. Current: $2.25, same basis. Source: USITC

Uses

Refrigeration and air conditioning, 50 percent; polymer precursors, 32 percent; foam-blowing, 10 percent; aerosol propellants, 5 percent; solvent cleaning, 1 percent; miscellaneous, 2 percent. Source: CMR

Market Perspective

Refrigerants are the largest fluorocarbon market at 50 percent of the total demand, consuming more than 396 million pounds last year. Growth is moderate at 1 percent annually, as conversion from CFCs and HCFCs has been completed. Before phase-outs began, the major refrigerants were CFCs -11 and -12, HCFC-22 and R-502. These have been largely replaced by HFC products. In refrigeration, HFC-134a and the blend R-404a (HFCs -125, -143a and 134a) are the dominant materials.

Shrinking demand in foam-blowing of rigid polyurethane, flexible polyurethane and polystyrene is fluorocarbon’s major weakness. Consumption has declined 60 percent in the past five years to about 80 million pounds per year. Until its ban in January 2003, HCFC-141b was the dominant blowing agent. Alternative foam-blowing agents that replaced HCFC-141b include carbon dioxide and cyclopentane. The leading fluorocarbon replacement products for the remaining foam-blowing market are HFC-134a and HFC-245fa.

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 fluorocarbons (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 3.5 percent annually through 2008.

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 nonfluorocarbon alternatives. Modest growth (1 percent) is expected in the major sector, refrigeration; strong growth (3.5 percent) for the second-largest sector, polymer precursors; and constriction (minus 3 percent) in the third-largest sector, foam-blowing. Aggregate annual demand is forecast at 1.5 percent through 2008. -Mark Kirschner

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