The main market for bisphenol-A (BPA) is in the production of polycarbonate (PC) with the second largest outlet being epoxy resins. Other uses include flame retardants (mainly tetrabromobisphenol-A), unsaturated polyester resins and polyacrylate, polyetherimide and polysulphone resins.
The market for BPA had been growing strongly at an average rate of 10%/year over the last few years, driven primarily by the increasing demand for PC resins. Optical media, including audio compact discs (CDs), CD-ROMs, recordable CDs and digital versatile disks (DVDs), had been driving the growth in BPA demand via PC. However, the growth in this application is slowing significantly due to the downloading of music and films from the internet and other competing technologies becoming more popular.
Polycarbonate resins are used in the place of traditional materials such as metal and glass in automotive components while glazing and sheet products can be used in architectural, security and transportation applications. Automotive glazing offers potentially strong growth opportunities for BPA/PC producers. While polycarbonate is being used in rear body parts, roof modules and fixed side windows, there has been strong resistance from the automobile manufacturers in the more general replacement of glass.
One of the problems is the poor scratch resistance of polycarbonate although PC manufacturers now claim that multi-layer products have been developed to overcome this problem. The higher cost compared to glass could be another limiting factor although polycarbonate does offer weight savings, broader design options and easier handling that could bring efficiencies on the automotive production line. Over the next few years, applications are expected to widen into back lights and rear windows in truck cabins, moveable side windows and vehicle top applications.
The second largest end use of BPA is epoxy resins. There are several types of epoxy resins but those based on BPA and epichlorohydrin account for the majority. High performance coatings are one of the primary applications followed by electrical/electronic laminates, adhesives, flooring and paving applications, mainly in the automotive, construction and aerospace industries.
BPA has been attracting the attention of environmentalists over health issues. It is claimed that research on laboratory animals shows that it can be harmful by adversely effecting brain development and behaviour in foetuses, infants and children. It has also been shown that BPA can be released from polycarbonate plastic bottles containing hot liquids, calling for a ban on BPA in plastic baby bottles and other food containers.
The American Chemistry Council (ACC), an industry trade group, 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. Nonetheless, some North American retailers have removed PC baby bottles and water bottles from shelves while Canada has announced plans to ban PC baby bottles. However, the impact on BPA/PC demand is expected to be small as total packaging applications only account for 3% of overall PC demand.
BPA market growth slows
Global BPA consumption has increased at an average rate of almost 10%/year from 2003 to 2006, driven by polycarbonate demand and improved epoxy resin markets. However, growth has slowed considerably. In Europe, growth is expected to be flat while the strongest growth will be in Asia, mainly China. Polycarbonate will continue to be the main driver with global growth forecast at 5-6%/year.
While BPA was in oversupply in 2005 and 2006, the market became relatively tight from mid-2007 due to a shortage of its raw material, phenol, and increased demand from PC and epoxy resins. However, much new phenol capacity has started coming on-stream from 2008 while new BPA capacity has also been added in Asia, pushing the market back into oversupply.
The US market is expected to grow at 4.2%/year up to 2010 with PC and epoxy resins growing at 4.5%/year and 3.5%/year respectively. According to ICB, US demand will increase from 1.06m tonnes in 2006 to reach 1.25m tonnes in 2010. In 2006, imports were 4,810 tonnes while exports were 34,500 tonnes.
Another driver behind BPA demand is the strong growth in Asia. In 2000-2006, Asian BPA markets grew at an average of 13%/year with polycarbonate pushing it at 19%/year. Future growth will be much lower as the global economic downturn hits markets.
The strongest growth has been in China. Up to 2005, growth was mainly due to epoxy resins market. However, with the start-up of polycarbonate capacity in China by Teijin and Bayer and several projects planned, BPA demand in China will be driven in the future by polycarbonate.
(Updated: December 2008. Sources: ICB Chemical Profiles, 13 October 2008 and 14 January 2008)
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Bisphenol A is produced by the condensation of phenol 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.
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