April 2010

Fumaric Acid
DL-Malic Acid
Miscellaneous Sulfur Chemicals
Nylon Resins
Oxalic Acid
Polyester Fibers
Styrene-Butadiene Elastomers (SBR)
Ethylene Oxide Production by Nippon Shokubai Process
Chemical Week’s Regulatory Watch
Africa has been added to the Directory of Chemical Producers (DCP)
CEH Reports and Product Reviews in Preparation
PEP Reports Scheduled for 2010
SCUP Reports Scheduled for 2010

CEH Marketing Research Report Abstract
FUMARIC ACID
By Sebastian N. Bizzari and Milen Blagoev

Food and beverages accounted for 33% of world consumption of fumaric acid in 2009, followed by rosin paper sizes (20.0%), unsaturated polyester resins (18.6%) and alkyd resins (12.3%). In food and beverage applications, fumaric acid functions as an acidulant and provides the following properties:

• Controls growth of microorganisms (preservation)
• Adjusts pH
• Enhances flavors

Between 2006 and 2009, world capacity for fumaric acid grew at an average annual rate of 1.2%, outpacing world consumption, which declined at an average annual rate of 1.1% during the same period.

The following pie chart shows world consumption of fumaric acid:

World growth prospects for fumaric acid in food and beverages are significant. The main factors behind this growth are:

• Food safety (preservation).
• Desire for convenience (increased popularity of processed foods and ready-to-drink beverages).
• New beverage and food introductions, mainly fruit-flavored beverages and foods, including ethnic and exotic fruit flavors and flavor blends.
• Growing consumption of nutritional bars (including cereal, sports and energy bars), and sports and protein drinks (including fortified and enhanced water). This has opened new applications for fumaric acid. As this category continues to grow, particularly in North America, Europe and Asia, producers are introducing numerous flavor varieties of bars and drinks. However, fumaric acid has not experienced the same level of volume growth in nutritional foods and beverages as other acidulants, since it is used in smaller quantities than citric acid and DL-malic acid because of its stronger acidity.

Demand for fumaric acid in unsaturated polyester resins and alkyd resins is greatly influenced by general economic conditions; both resins depend heavily on construction/remodeling activity (residential and nonresidential) and automotive production. Strong Asian and Latin American demand for unsaturated polyester resins and alkyd resins is tempered by moderate growth for unsaturated polyester resins in most developed regions and negative growth in alkyd resins in the United States and Europe, primarily as a result of environmental regulations. Consumption of fumaric acid in rosin paper sizes is forecast to decline in the United States during 2009–2014 as a result of increased use of alkaline papermaking and the development of more efficient rosin sizes.

(For the complete marketing research report on FUMARIC ACID, visit this report’s home page or see p. 659.5000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
DL-MALIC ACID
By Sebastian N. Bizzari and Milen Blagoev

In 2009, beverages (both liquids and powders and mainly in fruit flavored beverages) accounted for approximately 53% of the world consumption of DL-malic acid; confections and food account for most of the remainder, at 39%.

In most applications, DL-malic acid provides the following properties:

• Enhances flavors
• Provides sourness/tartness
• Controls growth of microorganisms (preservation)
• Adjusts pH (as an acidulant)

The following pie chart shows world consumption of DL-malic acid:

World growth in demand for DL-malic acid relies heavily on production of beverages, confections and food. Although regional differences in food tastes and preferences exist, the major trends driving demand for DL-malic acid in food, confections and beverages appear to be similar in many regions:

• Food safety (preservation).
• Desire for convenience (increased popularity of processed foods and ready-to-drink beverages).
• New beverage and food introductions, mainly fruit-flavored beverages and foods, including ethnic and exotic fruit flavors and flavor blends.
• Concern over health and nutrition as well as health consciousness. Growing concern regarding obesity and the connection between dietary habits and major diseases such as diabetes and heart disease has caused consumers to reexamine their diets and lifestyles and seek healthier alternatives.
• Increased use of high-intensity sweeteners (HIS) in beverages and food. DL-Malic acid’s prolonged sourness flavor profile (compared with other acidulants, such as citric acid) helps reduce the aftertastes associated with some HIS, by improving the flavor profile of diet beverages and foods.
• Growing consumption of nutritional bars (including cereal, sports and energy bars), and sports, energy and protein drinks (including fortified and enhanced water). As this category continues to grow, particularly in North America, Europe and Asia, producers are introducing numerous flavor varieties of bars and drinks. In this application, DL-malic acid helps provide a pleasant taste, as well as masking any aftertastes caused by the addition of amino acids, vitamins, fibers, antioxidants, plant extracts, HIS or nutraceuticals.

(For the complete marketing research report on DL-MALIC ACID, visit this report’s home page or see p. 672.8000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
MISCELLANEOUS SULFUR CHEMICALS
By James Glauser with Kazuteru Yokose

This report presents information on six miscellaneous sulfur chemicals—sulfur dioxide, sodium hydrosulfide, sodium hydrosulfite, sodium sulfide, sodium sulfite and sodium thiosulfate. Sodium sulfites include sodium sulfite liquid and dry, and sodium bisulfite solution and its dry counterpart sodium metabisulfite. These chemicals are mainly used as reducing and bleaching agents in the pulp and paper and textile industries, as well as in the photographic and food industries, and as precipitating and reducing agents in the treatment of water. A seventh chemistry, sodium formaldehyde sulfoxylate, is selectively discussed.

The following pie charts show world consumption of miscellaneous sulfur chemicals by type and region.

Changes in the pulp and paper industry have been ongoing for some time, but the global economic crisis has forced companies to accelerate adjustments. During 2008 and 2009, the pulp and paper industry announced cuts to production capacity, machinery shutdowns, mill closures and layoffs. Existing production capacity in North America and Europe was greatly reduced, while other regions, such as Central and South America (Brazil) and Southeast Asia (China) grew. In emerging economies, paper consumption is forecast to grow at 5% annually for at least the next five years.

Production of food is growing globally and the consumption of sulfur chemicals for the preservation of food is growing at a similar rate. Growth is strongest in regions of increasing food production as a result of population growth, with major growth regions being Central and South America, Africa and Southeast Asia, but also China, where increasing wealth is increasing the demand for processed food.

Globally, production of textiles and the associated dyeing has been shifting to Asia, in particular China and India. Production in the United States and Western Europe has been declining. Correspondingly, consumption of sodium hydrosulfite in dyeing using indigo and other vat dyes has moved to China and India, and has decreased in the United States and Western Europe. Use of sodium hydrosulfide and sodium sulfide in the production of sulfur dyes has moved to China and India, as has the use of sulfur dyes in the dyeing of cellulosic fibers. Use of sodium hydrosulfide and sodium sulfide is being negatively impacted globally by more eco-friendly formulations, in particular glucose.

In the field of kaolin leaching, mainly in paper-grade kaolin where sodium hydrosulfite is used, regional distribution of production capacities is changing dramatically. Accordingly, consumption of sodium hydrosulfite in this segment is regionally shifting. Consumption is increasing in Brazil. Imerys shifted its supply emphasis of coating grades from the United Kingdom to Brazil by the end of 2007. Globally, production and consumption of paper-grade kaolin is expected to increase with increasing paper production and an increasing trend toward higher brightness papers. Accordingly, consumption of sodium hydrosulfite in the segment is expected to increase globally, with strongest growth expected to happen in Brazil.

Consumption of sulfur chemicals in photographic applications has decreased globally with the switch to digital photography. This trend is expected to continue during the forecast period.

(For the complete marketing research report on MISCELLANEOUS SULFUR CHEMICALS, visit this report’s home page or see p. 780.4000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
NYLON RESINS
By Hiroaki Mori and Sean Davis

Total world consumption of nylon resins is forecast to increase at an average annual rate of about 4%. Reasonably good growth is projected to resume in 2010 in major markets such as automotive parts, industrial/machinery, electrical/electronics and film. In 2008 and 2009, the economic recession impacted markets globally, especially in the United States, Europe and Japan. In Japan, demand for engineering plastics such as nylon resins and polyacetal resin decreased by more than 40% during 2008–2009; however, Asian countries such as China had already recovered in 2009 and consumption is increasing rapidly.

The following pie chart shows world consumption of nylon resins:

A substantial and increasing amount of nylon resin is consumed in compounded form. Compounding with reinforcements, fillers, impact modifiers, flame retardants and other additives allows the nylon supplier to extend and/or tailor the properties of the resin to fit the price/performance requirements of a wider range of applications.

Increased use of reprocessed nylon fiber to make nylon resin compounds has extended the range of nylon resin applications into lower price/performance applications. Nylon 6 is less likely to crystallize and can be recycled many more times than nylon 66. A significant amount of resins sold in the merchant market may be a blend of virgin and reprocessed resin.

Automotive under-the-hood applications continue to represent a significant opportunity for increased use of nylon 66 resins. Nylon 6 finds significant use in film and wire and cable insulation (North American market). A recently developed application for automobile parts is intake manifolds. This part was previously made with aluminum ingots, and is being replaced by plastics such as nylon 6 or nylon 66 in order to reduce weight and obtain flexibility of design. Methods such as the lost core method, the vibration method and the die rotating method are used to make this part.

During 2000–2006, worldwide growth in nylon resin consumption was significantly lower than during 1994–1999. Overall demand continued to suffer from rising feedstock pricing beginning in 2005 and this was further compounded by the world economic crisis beginning in 2008. Nylon resin demand dropped an estimated 13% from 2006 to 2009 as automotive, construction and electronic industries were impacted. As of early 2010, industry reports only a small improvement and anticipates a slow recovery over the forecast period.

Growth in Europe and the United States during 2009–2014 is forecast to be 3.8% and 1.6%, respectively, while growth in Japan will be higher. In Japan, consumption in 2008 and 2009 was much smaller than in the previous year. China will see a high average annual growth rate of 7.5% because of the significant amount of current activity and also because many outside producers are establishing production facilities in China. In some regions, nylon resin is approaching maturity in the growth cycle.

(For the complete marketing research report on NYLON RESINS, visit this report’s home page or see p. 580.0800 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
OXALIC ACID
By Sebastian N. Bizzari and Milen Blagoev

Between 2006 and 2009, world capacity for oxalic acid grew at an average annual rate of 14.4%, outpacing world consumption, which declined at an average annual rate of 0.1% during the same period. World capacity for oxalic acid increased by approximately 190 thousand metric tons during 2007–2009; all capacity growth was in China. This has exacerbated the persistent excess in oxalic acid capacity. Low margins and capacity additions are expected to force some oxalic acid producers, mainly outside China, to curtail production or shut down plants; further consolidations, including the exit of smaller and inefficient producers in China, are expected as new capacity is commissioned. There are persistent low operating rates (40% in 2009) as a result of excess world capacity. Most of the underutilized capacity is in China.

China is by far the largest world producer, consumer and exporter of oxalic acid. Further Chinese capacity expansions are forecast between 2010 and 2012. Consumption declines in most regions during 2006–2009 were offset by consumption gains in Asia. Increased demand for oxalic acid for rare earth oxides, pharmaceuticals and textile/metal treatment will continue to strengthen Asia’s dominance (primarily China) of the oxalic acid market.

The following pie chart shows world consumption of oxalic acid:

Growth in demand for oxalic acid relies heavily on production of rare earth oxides and pharmaceuticals. Rare earths are used mainly in catalysts (automotive emission and FCC catalysts), metallurgical (steel and alloys), glass and ceramics applications. The United States is the largest consumer of rare earths, followed by China, Japan and Europe.

Asia accounts for nearly 85% of the world consumption of oxalic acid. China is the largest world consumer of oxalic acid because of a large rare earth oxides market; it accounts for approximately 75% of world production of rare earth mineral concentrates.

China has the ability to supply most current and future world demand for oxalic acid. A rapidly growing market, especially for pharmaceuticals and rare earth oxides, has made China the top choice for additional investment/capacity.

(For the complete marketing research report on OXALIC ACID, visit this report’s home page or see p. 682.1000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
POLYESTER FIBERS
By Barbara Sesto, Masahiro Yoneyama and He Xiaoxiong

Polyester fiber is the most used synthetic fiber worldwide, with a market share of about 72%. In fact, not only is its production cost reasonably low, but it is also successfully used in many industrial and textile applications, as well as in the automotive industry. For many years, the world market for polyester fiber has enjoyed sustained annual growth rates of 7–9%. However, since mid-2008, consumption has significantly slowed, mainly as a consequence of the global economic recession.

In 2008, world consumption of polyester fiber was about 1.8% less than in 2007. However, in 2009, world consumption recovered and was back to the 2007 level again, mainly as a result of Chinese consumption growth. In Europe, North America and Japan in 2008 and 2009, the market decreased by more than 15% annually; however, during the same period, consumption in China increased at a rate of over 4% per year. In the rest of the world, consumption decreases have mostly occurred, although of variable extent from region to region.

The following pie chart shows world consumption of polyester fibers:

China consumes about 64% of the polyester fiber produced worldwide, principally for textile applications. The country consumes fibers in a chain of textile weaving, dyeing and apparel-making industries, then exports large amounts of finished goods, including apparel, curtains and bedding, around the world. Moreover, since the abolition of textile quotas in 2004, Chinese exports of apparel and other textile products have been increasing very rapidly. Threatened by this large volume of low-cost fabrics entering their countries, many producers in the more economically developed countries have been forced to restructure their businesses.

China accounts for over 66% of the global output of polyester fibers, up from only 27% in 2000. This extraordinary increase has led to surplus in the worldwide supply for the past few years. During 2008 and 2009, Chinese output increased by about 4% annually, leading to a surplus of product that is probably going to fill inventories.

In addition to China, other emerging polyester fiber producers in Asia include India, Malaysia and Vietnam, whereas the Republic of Korea and Taiwan have significantly reduced their output since 2000, mainly because of the strong Chinese competition.

Fifteen major companies supplied the world’s polyester fiber market in 2009, many of which have full or part ownership in plants throughout the world. These top fifteen companies account for 27% of the world’s capacity. Reliance Industries and Sinopec are the two largest, accounting for about 3.5% of total world capacity each.

(For the complete marketing research report on POLYESTER FIBERS, visit this report’s home page or see p. 541.9000 A of the Chemical Economics Handbook.)

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CEH Marketing Research Report Abstract
STYRENE-BUTADIENE ELASTOMERS (SBR)
By Emanuel Ormonde with Masahiro Yoneyama

Styrene-butadiene elastomers (SBR) are the largest-volume synthetic rubber, accounting for about 32% of world consumption of synthetic rubber in 2009, according to the International Institute of Synthetic Rubber Producers. SBR is produced through the copolymerization of butadiene with styrene at a ratio of about 3:1. In addition, there are two major types of SBR—emulsion and solution. Emulsion grade continues to lose ground to solution grade, which is better able to meet the increasingly stringent specifications of high-performance tires. There is a need worldwide for more solution SBR capacity as demand is outpacing demand for emulsion-grade.

The tire industry is the dominant consumer of SBR, accounting for 70% of output. Apart from this, SBR is also used in conveyor belts, industrial hoses, various molded and extruded rubber goods, footwear and other consumer goods. Some grades of SBR—those that are waterproof and free from impurities—are also utilized in the cable industry. Protective rubbers resistant to y-radiation are also SBR-based.

The following pie chart shows world consumption of SBR:

As with most of the chemical industry, the market for SBR was hit by the global economic crisis/recession during 2008/2009. In consequence, demand for essentially all end uses suffered from the impact of the crisis. Currently, recovery is fastest in China and a few other Asian countries.

The world’s largest SBR consuming regions were China, the United States, Western Europe, and Central and Eastern Europe, accounting for two-thirds of total world consumption. China became the world leader in SBR consumption in 2009, overtaking North America. China’s vast capacity additions, linked with increased demand in the domestic automobile industry and high demand for tires, raised its consumption of SBR to the highest in the world. This will remain true in the forecast period from 2009 to 2014. The world average annual growth rate for SBR consumption during 2009–2014 is expected to be about 5% as a result of high demand in regions such as China, India, Central and South America, Central and Eastern Europe (including Russia), and other Asian countries.

China is expected to drive much of the SBR demand and is the fastest-growing market (based on volume), at roughly 6% per year during the forecast period. From 2007 to the end of 2009, China added nearly 400 thousand metric tons of SBR capacity. From 2010 to 2014, China plans to add another 400 thousand metric tons of SBR capacity. Other countries planning SBR capacity additions during 2010–2014 include Russia and India. Saudi Arabia has a few developments that may introduce SBR capacity beyond 2014.

For the complete marketing research report on STYRENE-BUTADIENE ELASTOMERS [SBR], visit
this report’s home page or see p. 525.3600 A of the Chemical Economics Handbook.)

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PEP Review Abstract
ETHYLENE OXIDE PRODUCTION BY NIPPON SHOKUBAI PROCESS
By Syed N. Naqvi

This Review presents a techno-economic representation of an ethylene oxide (EO) production process based on technical data extracted from the patents of Nippon Shokubai (Japan). For that reason we have titled this Review Ethylene Oxide Production by Nippon Shokubai Process. It may be advised, however, that despite the best possible engineering judgment used in the conceptualization and designing of the process, a commercial Nippon EO plant may not (or may) have an exact construct as presented in the Review. We nevertheless strongly believe that the presented process design and economic evaluation thereof is a reasonably good picture of the actual process, and the two should be well within the marginal boundary of errors.

The process essentially consists of oxidizing high-purity ethylene gas with oxygen in the presence of an inert gas (methane); other gases like nitrogen, argon, carbon dioxide and ethane are generally also present in the process system. Oxidation conditions are: 446–518°F (230–270°C) at 15–25 atm. The alpha-alumina supported silver-cesium catalyst is of a proprietary design. Ethylene per-pass conversion is kept in a range of 6–12%. Maximum selectivity to EO is about 83%. EO separation from the reactor effluent gases is executed by absorbing it in water, followed by stripping from the aqueous solution. Final purification is done in a battery of distillation columns. Carbon dioxide is the major by-product which is eliminated from the process system via a Benfield^® or CATACARB^® unit. Overall EO yield is around 80% (per our designed process).

Our cost analysis is based upon a 320 thousand metric t/yr plant. We estimate that a plant of that capacity will require a capital investment of about $326.2 million at a U.S. Gulf Coast location. Product value (as defined in the text) is about $0.57/lb and the production cost is $0.45/lb. Cost details and relevant assumptions are given in the description part of the Review.

(For the complete March 2010 Review 2010-12 on ETHYLENE OXIDE PRODUCTION BY NIPPON SHOKUBAI PROCESS, visit this report’s home page.)

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Africa has been added to the
Directory of Chemical Producers (DCP)

SRIC’s Directory of Chemical Producers (DCP) has added Africa to its expanding regional coverage. The DCP now includes more than 225 chemical manufacturing companies in 24 African countries. These countries are included in the DCP—Middle East & Africa (formerly known as DCP—Middle East).

The data are available now on the DCP Internet service and will be published in the 2010 book edition of DCP—Middle East & Africa due in June.

With the addition of Africa, the DCP database for all regions covers 90 countries, more than 13,700 companies, 19,800 plant locations and 21,800 chemicals. Data can be viewed by operating company, chemical product, or plant location. The DCP includes:

Company Information

•  Chemical manufacturing locations (city and state)
•  Chemicals made at each site
•  Ownership information
•  Corporate address, phone/fax numbers, and website addresses

Chemical Products

• Plant locations listed for each manufacturer
• Plant-by-plant capacity data for selected chemicals and polymers
• Product names extensively cross-referenced
• CAS numbers (Internet service)

For more information about the DCP, please contact us at dcp@sriconsulting.com or phone us at 1-650-384-4328 (U.S.), +41 44 283 6350 (Switzerland), or +813 5202 7332 (Japan). Additional information is also available at http://chemical.ihs.com/DCP/.

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