October 2009

Butadiene
Cellulose Acetate Flake
Linear Low-Density Polyethylene (LLDPE) Resins
Neopentyl Polyhydric Alcohols
PET Polymer
Polyurethane Foams
Propane
Propylene Oxide
Sodium Bicarbonate
Biodiesel via the Heterogeneous Catalysis Catilin Process
Integrated Production of Toluene Diisocyanate from Toluene
Imaging Chemicals and Materials: Inkjet Technology
Specialty Paper Chemicals
ChemicalWeek Regulatory Watch
CEH Reports and Product Reviews in Preparation
PEP Reports Scheduled for 2009
SCUP Reports Scheduled for 2009

CEH Marketing Research Report Abstract
BUTADIENE
By Sean Davis

Butadiene is a conjugated diene used as a monomer in the production of a wide range of polymers and copolymers, as well as in the production of several intermediate chemicals. The largest single use for butadiene is in the production of styrene butadiene rubber (SBR), which is principally used in the manufacture of tires. It is also used in common plastic materials such as telephones and carpet backing and rubber materials such as nitrile rubber hoses, footwear and neoprene wet suits.

Butadiene demand is strongly influenced by ethylene and energy markets as well as general economic cycles. Given current market conditions, projections included in the report are best estimates at the time of publication and can change depending upon economic conditions.

The start-up of olefin complexes in developing nations during the 1980s and 1990s exacerbated an oversupply of butadiene. Olefin plants in countries such as Brazil, Libya, Taiwan, the Republic of Korea and Singapore primarily consume heavy liquids for ethylene production. For lack of significant domestic butadiene consumption, producers in these areas historically made their coproduct C₄ stream available for export markets. This gradually changed, however, as derivative markets increased. Since the late 1990s, growing demand for rubber products and other polymers in Asia and decreasing supply of natural rubber sources have increased butadiene demand exponentially.

The following pie chart shows world consumption of butadiene:

Elastomer production represents 60–70% of world butadiene demand, with the majority consumed in tires. Demand for butadiene in tires depends on a variety of factors including vehicle production, tire design (tread wear, performance, operating conditions, etc.) and the price of competitive elastomers, including natural rubber. Additional consumption of both ABS resins and SB copolymer latexes, each accounting for approximately 12% of total consumption, is used in automobiles, appliances, paper products and carpeting.
 
In 2008, global butadiene demand dropped an estimated 5.1% from 2007 values as a result of the economic downturn. Demand is expected to decline further through 2009 before the economy and butadiene markets improve. The estimated average annual growth in demand will be 2.7% per year to 2013.

(For the complete marketing research report on BUTADIENE, visit this report’s home page or see p. 444.0000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
CELLULOSE ACETATE FLAKE
By Thomas H. Banks

By far, the greatest use of cellulose acetate flake is for tow used to manufacture cigarette filters. Lesser quantities are used to produce textile fibers and for compounding to produce film, sheet and molded objects.

The worldwide economic slowdown, which started in 2008, resulted in a marked reduction in uses other than filter tow. Looking at a year-end snapshot, filter tow would have accounted for 87–88% of the total consumption of cellulose acetate; the other applications had dropped to about 60–70% of their previous levels. This situation is projected to continue through 2009. Whether textile fiber end uses can come back at all is a valid question, considering the cost of competing fibers for the same end uses.

The following pie chart shows world consumption of cellulose acetate flake:

Cellulose acetate is a mature product and has experienced a decline in volumes in practically all major world areas except China, Central Europe and Russia during the last several years, where growth is being driven by tow consumption. Other polymers and textiles with enhanced properties and lower prices have eroded textile fiber applications formerly held by cellulose acetate. There has been consolidation among producers and no new producers have emerged, although joint ventures with existing producers have been established in China. China consumes large volumes of cellulose acetate tow in producing cigarette filters, which are only partially supplied by local production. Consumption of triacetyl cellulose (TAC), which is used in the manufacture of liquid crystal displays (LCDs), has been growing for the last ten years. This growth has been almost entirely in Japan, because the large majority of LCD manufacture is in Japan or the Republic of Korea.

The number of smokers is increasing at the highest rates in China, India, and Central and Eastern Europe. Cigarette consumption is also growing in Latin America, while falling in North America and Western Europe. New legislation calling for less tar and nicotine in the smoke leads to heavier filters, which, when combined with the increasing number of smokers, offsets the declining number of smokers in North America and Western Europe.

(For the complete marketing research report on CELLULOSE ACETATE FLAKE, visit this report’s home page or see p. 580.0400 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
LINEAR LOW-DENSITY POLYETHYLENE (LLDPE) RESINS
By Andrea V. Borruso

Low-density polyethylene (LDPE) is produced in high-pressure autoclave or tubular reactors by free radical polymerization. In the late 1960s the first low-pressure gas-phase processes were introduced using fluidized beds or mechanically stirred reactors. In Canada, DuPont began producing LLDPE in 1959 using its solution process. The first of these processes was commercialized in 1968 to make high-density polyethylene (HDPE) and by 1975 the technology was extended to make LLDPE. Continued process innovation made it possible by 1984 to produce very-low-density and ultra-low-density polyethylene (VLDPE/ULDPE), usually considered to be line extensions of LLDPE, with densities from 0.915 gram per cubic centimeter down to 0.890 gram per cubic centimeter. In the early 1990s major improvements in catalyst and process technologies allowed development of a broad spectrum of second-generation (SG) LLDPE resins with densities between 0.900 and 0.912 gram per cubic centimeter (plastomers) and finally down to 0.860 gram per cubic centimeter (elastomers).

Since then, LLDPE has established itself as the third major member of the polyethylene business along with LDPE and HDPE. In 2008, world consumption of LLDPE corresponded to almost 30% of total polyethylene and about 53% of LDPE + LLDPE consumption. The LLDPE share of total LDPE + LLDPE consumption varies by geographic area based on production capabilities and end-use consumption patterns.

The following pie chart shows world consumption of LLDPE:

The major LLDPE producing regions are the Middle East, the United States, Western Europe, Asia and China. By 2013 the Middle East and Canada will be the largest net exporters of LLDPE. Major net importers will be Western Europe and China.

Global demand growth for LLDPE will strongly depend on economic growth, particularly after the downturn in 2008 and 2009 and the slow recovery projected thereafter. The replacement of LDPE continues; however, each region is at a different stage of LLDPE penetration. Penetration in Canada is among the highest in the world (74%), while in China more LLDPE is still entering traditional LDPE applications. LLDPE penetration in China is also supported by a preferential import tariff that is lower than the one for LDPE.

One offset to volume growth is the continuing trend toward downgauging, which is expected to have a negative impact of 1–2% per year on consumption growth. In addition, Ziegler LLDPE demand is being eroded because of displacement by mLLDPE.

Abundant low-cost feedstocks will continue to create opportunities for export-oriented plants and influence global LLDPE trading patterns.

(For the complete marketing research report on LINEAR LOW-DENSITY POLYETHYLENE [LLDPE] RESINS, visit this report’s home page or see p. 580.1320 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
NEOPENTYL POLYHYDRIC ALCOHOLS
By Sebastian N. Bizzari with Milen Blagoev and Akihiro Kishi

The neopentyl polyhydric alcohols discussed in this report include pentaerythritol, neopentyl glycol, trimethylolpropane (TMP), trimethylolethane (TME) and dimethylolpropionic acid.

Asia (including Japan), Europe and North America are the largest markets for neopentyl polyhydric alcohols, accounting for nearly 91% of world consumption in 2008. World consumption of neopentyl polyhydric alcohols grew at an average annual rate of 3.5% during 2005–2008, down from 6.0% during 2001–2005, the result of weaker demand resulting from a sluggish global economy, especially during 2007–2008. Strong Asian (excluding Japan) demand in all applications boosted overall demand during 2005–2008. World consumption is forecast to grow at an average annual rate of 2.5% during 2008–2013. Continuing significant demand growth in Asia, Central and Eastern Europe, Central and South America, Africa and the Middle East for surface coatings will balance out moderate growth in the Americas and Western Europe. Demand for neopentyl polyhydric alcohols is expected to start recovering in 2009–2010, largely as a result of improved consumption of surface coatings; however, the speed and timing of a recovery are uncertain.

The following pie chart shows world consumption of neopentyl polyhydric alcohols:

Demand for neopentyl polyhydric alcohols in the United States is expected to grow at a moderate rate of 1.3%, partly as a result of overall weaker demand and slightly negative growth for pentaerythritol during 2008–2013. Growth in U.S. demand, excluding pentaerythritol, is forecast at 2.2% annually during 2008–2013. European consumption is forecast to experience moderate growth at an average annual rate of 2.3% during 2008–2013, mainly as a result of healthy Western European consumption growth for neopentyl glycol and rapid growth in Central and Eastern Europe for all neopentyl polyhydric alcohols. Consumption of neopentyl polyhydric alcohols in Japan is expected to contract at an average annual rate of 0.5% during 2008–2013 as a result of continuing weak construction and manufacturing activity. Other Asian consumption (excluding Japan) is expected to grow at 3.2% annually during the same period; China is the main growth factor in this region. Chinese and Indian consumption of all neopentyl polyhydric alcohols is expected to grow rapidly.

(For the complete marketing research report on NEOPENTYL POLYHYDRIC ALCOHOLS, visit this report’s home page or see p. 609.3000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
PET POLYMER
By Elvira O. Camara Greiner

Polyethylene terephthalate (PET) polymer, also referred to as melt-phase PET resin, reactor-grade polyester or polyester chip, is the base polymer used in the production of polyester fibers, polyester film, solid-state (bottle-grade) resins and PET engineering resins. PET is produced by polycondensation of ethylene glycol with either dimethyl terephthalate (DMT) or terephthalic acid (TPA).

The regions expected to have the most significant change in their PET polymer consumption share worldwide from 2008 to 2013 are North America, Western Europe, the Middle East and Africa. Not only has consumption of PET polymer for solid-state resins slowed in the developed regions, there are limited future capacity investments in these regions compared with the Middle East, Asia (mostly China) and Africa. These latter regions will produce more polyester fibers and PET solid-state resins not only for consumption, but also for export.

The following pie chart shows world consumption of PET polymer:

There are hundreds of PET polymer producers. The major producers (including participation in joint ventures) are China Petrochemical Corporation (Sinopec), Reliance Industries, Formosa Plastics Group, Gruppo Mossi & Ghisolfi, Far Eastern Textile and Alfa Group, to name just a few.

Over the last few years, PET use for water bottles has grown at exceptional rates, driving PET solid-state resin demand (and its production)—particularly in the developed regions. Although not nearly as hard hit as chemicals that go into the construction and automobile industries, PET resins were not immune to the economic downturn in 2008. Consumers purchased less bottled water and sodas, “lightweighting” (reduction of PET weight per bottle) of PET containers continued, and PET recycling grew, all contributing to a deceleration in PET demand.

Overall, world PET polymer consumption will slow further in 2009 as a result of the global recession. However, it is expected to pick up, growing at an average annual rate of approximately 4.3% during 2009–2013.

The largest regional growth is forecast for the Middle East (9.3%), China (4.9%), Central and Eastern Europe (4.3%), India (4.1%), and Africa and Oceania (13.8%).

(For the complete marketing research report on PET POLYMER, visit this report’s home page or see p. 580.1150 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
POLYURETHANE FOAMS
By Henry Chinn with Uwe Löchner and Akihiro Kishi

Polyurethane (PU) foams constitute the largest category of cellular polymeric materials. They are produced, for the most part, either in flexible or in rigid form. Within these major groups, the density and other properties vary depending on the end use. PU foams offer an attractive balance of performance characteristics (aging properties, mechanical strength, elastic properties, chemical resistance, insulating properties) and cost.

Flexible PU foams are used primarily for cushioning and rigid PU foams for insulation. For some applications, foams that have some stiffness and some elasticity are produced; in the trade, they are called semiflexible or semirigid foams. Flexible polyurethane foam is used primarily as a cushioning material in furniture, transportation and bedding applications. Rigid polyurethane foam is utilized mainly as an insulation material in construction and refrigeration/freezer applications. Flexible polyurethane foams account for 54% of global consumption, but the split with rigid polyurethane foams varies by region. Rigid foams constitute more than 50% of total polyurethane foam consumption in China and Mexico, which are important manufacturing sites for refrigerators and freezers.

The following pie chart shows world consumption of polyurethane foams:

Several thousand producers worldwide manufacture polyurethane foams, frequently at several plant locations. Most foam producers concentrate their efforts on either flexible or rigid foam because the markets and technologies are quite different. In recent years, the industry has witnessed a concentration process, primarily in the United States and Western Europe. Current production capacity for both flexible and rigid polyurethane foams is adequate to meet demand.

Polyurethane foam producers are challenged with manufacturing “greener” products—that is, PU foams with improved sustainability and environmental characteristics (for example, polyurethane foams produced with bio-based polyols, rigid foams made with blowing agents with low global warming potential [GWP], and foams not using PBDE [polybrominated diphenylether] fire retardants).  Many flexible PU foam producers and automobile seating manufacturers provide products made with bio-based polyols (the renewable content is widely varied).

The global recession of 2008–2009 has significantly reduced demand for polyurethane foams in most countries and regions. Demand in 2009 will be down by 3–35% depending on the product and country or region. Some companies, especially old and/or small production facilities, are expected to shut down permanently and others with multiple manufacturing sites could close some capacity.

For most regions of the world, demand for flexible polyurethane foams is expected to grow at an average annual rate of about 2–4% from 2008 to 2013. Demand for rigid foams will grow at a faster rate. However, assuming that most countries will face drastic drops in 2009 demand (0–5% in the strongest economies to 5–20% in the United States and Western Europe), average annual growth rates of 5–15% are forecast for 2009–2013.
 

(For the complete marketing research report on POLYURETHANE FOAMS, visit this report’s home page or see p. 580.1600 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
PROPANE
By Emanuel Ormonde with Masahiro Yoneyama

Propane, supplied by refinery and natural gas companies from the public and private sectors, is used mainly for fuel and as a petrochemical feedstock. Fuel uses include residential/commercial fuel for cooking and heating, plant/refinery fuel, agricultural fuel and motor engine fuel. Feedstock use is mostly in the production of ethylene, where it competes with other natural gas liquids, naphtha and gas oil.

For many regions of the world, separate data on propane supply/demand are not available. Published information often includes the entire liquefied petroleum gas (LPG) stream, from which propane can be extracted. LPG is made up of primarily propane and butanes.

During 2008–2009, ethylene operating rates declined drastically in many regions, even with the idling and closure of units, as a result of the global economic recession (weakening demand in almost all sectors). In response to this, LPG (propane, butane) production and demand were also reduced. The state of the future olefins industry will, to some extent, determine future output and use of LPGs.

Propane prices reached their highest levels ever during mid-2008 because of high LPG prices resulting from high crude oil and natural gas prices. A considerable drop in propane prices occurred in late 2008/early 2009 as a result of the fall in crude oil prices, supplanted by the global economic recession and financial collapse (the crude oil price decreased as the speculative premium burst and demand weakened dramatically). Propane prices actually reverted and stabilized to 2004/2005 levels. Future propane pricing will fluctuate according to the rise or fall of crude oil prices along with natural gas competition.

The following pie chart shows world consumption of LPG:

LPG demand is expected to show higher growth rates in Asia (excluding Japan), Latin America, the Middle East, and Central and Eastern Europe. Asia has overtaken North America as the world’s leading consumer of LPG, accounting for 31% of the total LPG consumed in 2008. In addition, North America, the Middle East and Africa remain as the largest suppliers of LPG from natural gas processing, because of these regions’ vast natural gas reserves. In contrast, Japan and China have no proven essential natural gas reserves, and thus focus mainly on refinery operations (China) and imports (Japan).

The Middle East remained the largest exporter of LPG and Asia remained the largest importer in 2008. More than half of the world’s LPG demand in 2013 will be in the residential/commercial market and a quarter in the petrochemical (ethylene) sector, with ever-increasing usage of autogas in certain parts of the world.

(For the complete marketing research report on PROPANE, visit this report’s home page or see p. 370.0000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
PROPYLENE OXIDE
By Michael T. Devanney and Takashi Kumamoto

Propylene oxide (PO) is a colorless, low-boiling liquid. It is an epoxide and therefore is a reactive chemical intermediate. As one of the smaller-volume differentiated petrochemicals, propylene oxide is used principally in the manufacture of polyether polyols for urethanes, propylene glycols, glycol ethers and polyalkylene glycols for a variety of chemical intermediates and functional fluids.

The effects of the current severe global economic downturn have been taken into consideration for the world propylene oxide analysis in this report. Economic conditions deteriorated severely in the last quarter of 2008 and continued unimproved into the middle of 2009, such that world year-over-year comparisons are mostly negative for all propylene oxide end uses. While the economy seems to have stopped contracting, forecasts for the last two quarters of 2009 reflect a bottoming-out process for volume sales and revenue. Over 2008, worldwide consumption of propylene oxide in its derivative uses fell only 3% from 2007. This will not be the case in 2009 as production and consumption are forecast to drift lower by 5% as the full brunt of the severe recession is felt. Propylene oxide is affected by recessions because its principal durable urethane markets, such as construction, transportation and furniture, are usually particularly depressed. As such, the decline forecast for 2009 will reflect both a severe reduction in pull-through demand as well as inventory in the supply chain.

Western Europe will remain the largest regional consumer of propylene oxide during the next five years. While the United States will be the largest consumer of propylene glycol, at a 25% world share, it will continue to hold the second overall PO consumption share in 2013. China will increase its consumption by 40% over the next five years.

The following pie chart shows world consumption of propylene oxide:

In spite of rising energy prices through most of 2008, with crude oil touching nearly $150 per barrel, world propylene oxide revenue decreased only around 3% as prices held steady. Additional pressure on margins, with oversupply during 2009 combined with lower oil prices ($50–60 per barrel) and raw material prices, mean that propylene oxide prices will fall along with sales volumes. As a result, world sales revenue should be 40% lower in 2009 compared with 2008.

The severity of the current petrochemical recession is demonstrated by 2009 world GDP, which is expected to register just slightly negative growth based on a purchasing-parity basis—the lowest figure recorded since world data have been aggregated. However, analysis points to a rebound of demand over early to mid-2010 through 2011, fed by increasing world GDP including restocking of the inventory supply chain in developed countries.

The forecast world propylene oxide consumption decline over 2008–2009 would be lower if not bolstered by Asian demand and its fastest growing component, China. Chinese demand should average 3% per year growth over 2008–2009. Nevertheless, propylene oxide sales are expected to be particularly dismal in the mature economies of North America, Western Europe and Japan, where demand will shrink 5–15% per year over 2008–2009.

(For the complete marketing research report on PROPYLENE OXIDE, visit this report’s home page or see
p. 690.8000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
SODIUM BICARBONATE
By Stefan Schlag with Chiyo Funada

Sodium bicarbonate (bicarb) is a member of the chlor-alkali family. Most of its global production is derived from natural and synthetic soda ash; the United States is the only country utilizing both nahcolite and soda ash (trona) as raw materials.

The major use of bicarb is in animal feed, accounting for roughly one-third of all bicarb consumption globally. Chinese sodium bicarbonate consumption for animal feed has increased significantly, responding to the rapid growth of the feed industry because of the rapid development of the livestock sector in China. China is currently the second-largest feed producer in the world. Demand for specific grades of bicarb differs among the United States, Europe and Japan. In the United States, two-thirds of domestic bicarb use is for differentiated (higher-value) grades; in Europe, less than half of total domestic use is for differentiated grades, and in Japan, just over one-third.

The following pie chart shows world consumption of sodium bicarbonate by end use:

The outlook for growth in sodium bicarbonate consumption varies by region. Average growth during 2008–2013 is expected to be 2.7% per year globally.

(For the complete marketing research report on SODIUM BICARBONATE, visit this report’s home page or see
p. 770.3000 A of the Chemical Economics Handbook.)

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PEP Review Abstract
BIODIESEL VIA THE HETEROGENEOUS CATALYSIS CATILIN PROCESS
By Ron Bray

Biodiesel is the methyl ester of fatty acids (FAME) derived from renewable resources such as virgin vegetable oil, animal fats and used cooking oil. This biofuel can be blended with or used as a replacement for petroleum-based diesel in compression ignition engines with minimal modifications.

Governments have encouraged the use of biodiesel through a series of mandates and tax incentives. In the period between 2002 through 2007 the annual growth rate in world production capacity for biodiesel exceeded 50%. In 2008 there were 699 biodiesel manufacturing facilities with a total world biodiesel capacity estimated at 33.2 million metric tons.

The majority of the biodiesel production facilities utilize a homogeneous alkaline catalyst, either sodium hydroxide or sodium methoxide. Axens has commercialized a process for the production of biodiesel via heterogeneous catalysis at elevated temperatures and pressures.

In this review we analyze the technical and economic aspects for the production of 441 million lb/yr (200,000 t/yr) of “biodiesel” using heterogeneous catalysis technology licensed by Catilin LLC. This process operates at pressures and temperatures similar to the conventional homogeneous catalysis process (ambient pressure and 60–65°C).

For the complete October 2009 Review 2009-5 on BIODIESEL VIA THE HETEROGENEOUS CATALYSIS CATILIN PROCESS, visit this report’s home page.)

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PEP Report Abstract
INTEGRATED PRODUCTION OF TOLUENE DIISOCYANATE FROM TOLUENE
By Marcos Nogueira César

Bayer has recently developed a new phosgenation technology to produce toluene diisocyanate (TDI). The process is based on a gas-phase reaction that requires much less solvent and shorter residence time than the conventional liquid-phase process. This results in larger maximum capacities in a single TDI production train and lower investment costs for a plant of given size. Bayer has installed a pilot plant in its Dormagen, Germany, facility using this technology, and will commercialize it in the new 300,000 t/yr plant being built in Caojing, China.

In this review, we present a conceptual design and preliminary economics for an integrated plant producing 300,000 t/yr of TDI from toluene via DNT and TDA, using the gas-phase technology for the phosgenation step.

We also compare the economics of phosgenation using the gas-phase and the conventional liquid-phase processes. Our analysis indicates that the gas-phase technology offers a significant economic advantage over the conventional phosgenation process. In addition, the possibility of building an integrated TDI plant of 300,000 t/yr in a single production train leads to substantial economies of scale. Further benefits of the new technology include improvements in process safety by the reduction in phosgene inventories and the ability to start up and shut down the plant fairly quickly.

(For the complete October 2009 Review 2009-3 on INTEGRATED PRODUCTION OF TOLUENE DIISOCYANATE FROM TOLUENE visit this report’s home page.)

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SCUP Report Abstract
IMAGING CHEMICALS AND MATERIALS: INKJET TECHNOLOGY
By Uwe Fink with Fred Hajduk, Wei Yang and Hiroaki Mori

In recent years inkjet technology has made significant advances in the reduction of drop size and accuracy of drop placement. The smallest drop sizes currently used in photo-specialty narrow-format printers using water-based inks are in the range of 1–1.5 picoliter. The ability to deposit exceedingly smaller amounts of a wide range of materials in precise locations will create new manufacturing and industrial markets for inkjet and turn it into a dominant manufacturing technology to print tiny patterns and microstructures. The applications with the most promising market growth opportunities are rapid prototyping, radio frequency identification devices (RFID), P-OLED displays and color filters for use in LCDs.

Inkjet technology is used as a core process inside fax machines, desktop and workgroup printers, on-demand book printing devices, short-run color presses and large-format printers for engineering and graphics arts applications, as well as in many industrial applications. Besides printing on paper, inkjet technology can be used for printing on plastic (credit cards), fabric for bespoke curtains or dress materials, wall coverings, ceramics, metals and glass.

Inkjet printing technology is responsible for more patent filings and is the subject of more research dollars than any other print technology. Many users at home and in the office have already bought their third- or fourth-generation inkjet printer. While prices for some models have come down to as low as $50 to promote the sales of ink cartridges, no significant price reductions for printheads and inks have occurred in recent years. In order to protect their aftermarket supplies sales from independent manufacturers, printer companies such as Hewlett-Packard, Canon, Epson and Lexmark have established technological barriers through the sophisticated design of printheads and ink formulations, strong branding and strict enforcement of their intellectual property rights. Consumer purchasing patterns are also changing. While most supplies were once bought from specialized dealers at normal office hours, now inkjet printheads and inks or films can be purchased 24 hours a day, seven days a week, at many more locations or through the Internet.

Inkjet technology has replaced several other printing technologies such as electrostatic printing, the diazo process and pen plotters for generating engineering drawings, golf ball and daisy wheel typewriters in the office and at home, and thermal transfer printing for creating labels and pictures.

 The following pie chart shows world consumption of inkjet inks by printing technology:

In 2008, North America and Western Europe were the destinations of the largest inkjet printer shipments, with a share of 25% each, followed by Asia Pacific with 15%, and China, Eastern Europe and Japan with 10%, 5% and 6%, respectively. While shipment volumes to markets in North America, Western Europe and Japan are expected to stagnate or slowly decline, China, Asia Pacific and the other regions will experience limited growth in inkjet printer shipments over the next five years. The installed base for narrow-format inkjet printers is estimated at 400 million units and this number is expected to grow by about 1% during 2008–2013.

A major development changing the structure of the imaging and printing industry was the tremendous success of digital photography and the decline of analog photography and the silver halide film business. The traditional photo film market has been falling by more than 20–30% per year recently, more than double the industry’s initial estimates of about 10% per year. Unable to grow their digital businesses as fast as their conventional silver-halide businesses declined, Eastman Kodak, Agfa-Gevaert, Fujifilm, Konica Minolta and Ilford suffered huge losses and have struggled to find solutions for recovery and survival. As these photofilm companies needed to migrate capital quickly out of the declining conventional photo industry and into digital imaging technologies, each did this with a different acquisition strategy. Most new activities of these companies have been related to inkjet technology.

This report reviews various segments of inkjet technology in narrow- and wide-format printing and several industrial applications, as well as emerging applications where inkjet technology is used as a production method for its ability to microdispense fluids. Contributing to the success of inkjet have been the numerous advances in the development of matching media and inks, aided by the synthesis of tailor-made specialty chemicals used in the formulation of paper coatings and inks. The report also reviews consumption and growth perspectives for these consumables as well as for specialty chemicals incorporated therein.

For the complete October 2009 report on IMAGING CHEMICALS AND MATERIALS: INKJET TECHNOLOGY, visit this report’s home page or see vol. 9 of Specialty Chemicals—Strategies for Success.)

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SCUP Report Abstract
SPECIALTY PAPER CHEMICALS
By Ray K. Will with Uwe Fink, Xiaomeng Ma and Yoshio Inoguchi

Between 2008 and 2013, world consumption of specialty paper chemicals is expected to decline at an average annual rate of 0.2% (on a volume basis). Specialty paper chemical consumption is expected to decrease at an average annual rate of 0.5% in the NAFTA region, decrease at a rate of 2.0% in Europe and grow at 0.2% in Japan during 2008–2013. However, growth in China will occur at a rate of 6.0% per year as new paper production capacity is added, and higher grades of paper are produced.

In 2008, world consumption of specialty paper chemicals was valued at approximately $16 billion; consumption of commodity chemicals for pulp and paper production was worth an additional $17 billion. Chemical and mechanical pulps account for approximately 50% of the total volume of raw material consumption while recycled paper accounts for a share of about 32%. Commodity-type chemicals such as chlorine and oxygen, hydrogen peroxide, sodium salts and sulfuric acid (used mainly in pulp production), and fillers and pigments (mostly China clay and calcium carbonate) represent about 15% of total raw material consumption. The remaining 3% consists of alum and aluminum compounds; specialty paper chemicals, including starches; and synthetic paper chemicals. To reduce costs and achieve environmental and regulatory compliance objectives, the use of virgin fibers (especially chemical pulps) and alum is expected to decrease, while recycled paper fibers, fillers and pigments, and specialty paper chemicals will extend their share in the raw material mix of the paper and board industry.

The following pie chart shows world consumption of paper chemicals:

Specialty paper chemicals can be classified into three groups according to their function and point of use in the paper production process:

• Pulp and fiber treatment chemicals
• Processing aids
• Functional chemicals

Specialty paper chemicals help reduce the consumption of water and energy and increase the use of wastepaper as well as save raw materials by decreasing the paper weight without sacrificing functional or optical properties of the paper sheet. They also enabled the tremendous speed increase of paper machines. Often, they are formulations of several chemicals, but there are many single-chemical products. Water treatment chemicals used in the paper industry are not included in the specialty paper chemicals category.

The following pie chart shows world consumption of specialty paper chemicals:

China’s consumption of specialty paper chemicals reflects its disproportionately high production of lower-value grades of paper and paperboard, which have less need for specialty paper chemicals.

Quality requirements for new and existing products, productivity, costs and environmental issues in the papermaking process are the main driving forces for R&D activities, capital investment, growth in consumption, and selection of specialty paper chemicals. Trends for selected specialty paper chemical groups are as follows:

• The increasing substitution of virgin wood pulp with recycled fibers (in regions other than the United States) will increase the use of deinking chemicals and specialty chemicals such as defoamers, chelates and thickeners.
• Fillers and coating pigments are increasingly used as less expensive replacements for pulp.

Among the major issues impacting the global specialty paper chemicals industry are the following:

• Declining paper consumption in publishing
• Reduction in packaging, particularly in Europe, but also in NAFTA, as a result of "green" regulations
• Closed-loop water systems
• New demands on chemicals arising from the conversion of groundwood paper mills to alkaline or neutral papermaking processes
• The globalization of leading specialty paper chemical companies, paper companies and equipment manufacturers
• Automated, faster papermaking and printing speeds
• Consolidation and globalization among pulp and paper manufacturers
• Reduced R&D by paper companies and increasing reliance on suppliers

The major objectives for paper producers are attaining or improving profitability, meeting customer needs, and embracing technological change, particularly to meet regulations but also to meet the first two objectives. The changing needs of paper producers and a highly competitive marketplace create a very selective environment for improved, new and different specialty paper chemicals.

(For the complete October 2009 report on SPECIALTY PAPER CHEMICALS, this report’s home page or see vol. 11 of Specialty Chemicals—Strategies for Success.)
 

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Announcing ChemicalWeek Regulatory Watch—a new semimonthly alert and news service! In it you’ll find global regulatory and legislative intelligence, interviews and insights you can’t find anywhere else. We will be investigating and reporting where industry, lawmakers and regulators are focusing their efforts, talking with industry executives, experts, attorneys, scientists, lawmakers, and industry critics, providing links to firsthand research material, and rounding up the most recent rulings and verdicts of interest to the industry. For a full description of content, go to www.chemweek.com/regulatorytrial.

Click here to get a free 2-month trial subscription.

The inaugural issue on September 15, 2009 covered the following key areas:

• Climate, TSCA Top Legislative Agendas as Lawmakers Reconvene

• Chemicals Management: Preparing for TSCA Reform

• French Senators Propose Restrictions for BPA in Food Containers

• Report: Politics, Not Consumer Attitudes, Shaped European Ag Biotech Policies

• California Assembly Rejects BPA Ban

• REACH Fails to Deliver Harmonization of EU Regulations

• U.S. Lawmakers to Scrutinize EPA Monitoring of Atrazine

• Current Initiatives Will Not Suffice to Comply with EPA’s GHG Reporting Rule

 …And more..

See for yourself ChemicalWeek Regulatory Watch’s comprehensive coverage of the regulatory developments arising out of the chemical industry business and activities. When you sign up for your free trial subscription, every other Tuesday you’ll receive the ChemicalWeek’s Regulatory Watch email that takes you right to the online, in-depth, up-to-date developments in this unparalleled resource.

Order Your 2-month trial subscription TODAY!

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CHEMICAL INDUSTRIES NEWSLETTER

The Chemical Industries Newsletter is published monthly by SRI Consulting. The contents of the Newsletter are drawn from current research and publications of SRIC's multiclient programs. Readers are welcome to call or write for more information about the subjects and programs mentioned (see addresses and telephone/fax numbers below).

Chemical Economics Handbook		Directory of Chemical Producers
The China Report		Canada	Mexico
Process Economics Program		China	Middle East
Specialty Chemicals Update Program		East Asia	South/Central America
World Petrochemicals		Europe	United States
		India

Companies may participate in these continuing programs for the chemical industry through annual subscriptions or by purchasing individual reports. Each program is supported by inquiry and consulting privileges; electronic access is also available for all of these products.

About SRI Consulting

SRI Consulting provides the world's most comprehensive ongoing databases on the chemical industries. We offer an array of research-based programs designed to provide clients with specific market intelligence and analysis. These programs, combined with strategic information services, help clients define new market opportunities, identify and communicate future challenges, formulate and implement business strategies, and develop innovative products, processes and services. SRIC provides creative yet practical strategies, supported by renowned industry and technology expertise and delivered by multidisciplinary teams working closely with clients to ensure implementation. SRI Consulting is a division of Access Intelligence, LLC.

About Access Intelligence, LLC

Access Intelligence, LLC is a full-service global information and marketing solutions provider of competitive business-to-business information. The company publishes daily news services, premium-value newsletters, subscription-based websites, magazines, directories, and databases.

© 2009 by SRI Consulting.
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