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OAR Box 1872 

Prepped by Keeia Richards 

Document Number: 

80) 11-1-129 

Docket Number: 

A-90-19 

Printed 11/26/2008 8:52:00 AM Sheet 80 of 204 
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OLI. I D I *r. I Ti IN. U. £ ' I U3 • o- o-3i • -j-aorw • r\MuiMU uur.ru 

0LaA~/0*J TLaa-f^fff ?iytf Jfj/rf 

JUN E 1990 ' ^ 

•Yrrloaiatapon- October 1995 TEREPHTHALI C ACI D 

198 

A-90-19 

IM-129 

FOCUS....Terephthalic acid (TPA) is a vereetile aromatic acid. A reactive compound, TPA undergoea reactions cheracteriatie of aromatic dicarboxylic acida, auch ee esterification, halogenation, hydroganation, 

and acid halide formation. Terephthalic acid, either aa the free acid or aa tha intermediate dimethyl 

terephthalate (DMT), ie used primarily in the production of polyethylene terephthelete (PET) polymere for 

fibers and plastics. However, polybutylene terephthalate (PBT) polymers ere also important reeins uaed in 

molding various plastic products end specialty bottlae. Rigid elloya of PBT heve applicationa in molding 

automotive body components. 

Both production snd domestic demand for TPA/DMT reached record highe in 1988, with production ectuelly 

exceeding eetimatad '•nameplate" capacity by over 500 million pounds. This output was in rssponss to sn 

extreordinary high level of demend for both the monomer (principally TPA) and polyester fibers in the Far 

Eastern markets. Also, TPA/DMT facilities are believed cepsbls of running at ratss 40-50* higher than 

"nameplsta" for limited periods of time* 1989 ssw the renewed influence of reduced fiber demand 

domestically in the fees of impoxte fvum the far Eeet, but demand for polyeatar raw material TPA/DMT 

contmuee unabated at a high level, buoyed by Btill atrong export markets. 

OUTLOOK....About 60-63* of TPA/DMT is consumed by the polyeeter fiber industry. The outlook for e 

continued depressed fiber industry will be reflected in ststic if not declining TPA requiremsnts. A high 

lsvsl of textile and clothing imports will continue to cut into demend for domestic polyeeter fiber. 

Although there wil l be greatly increased demand for PET in plastic bottle molding end plautic tap* and 

film, the decline in fiber growth will overshadow projected growth m theee other applicationa, thus 

bringing oversll TPA/DMT growth down to a nominal 2-jfc/year rate overall in the near future. 

US 1989 production of PET plastic reams wss estimsted et about 2 billion lbs., with about 60X of this 

tonnage uaed as eolid-etated resin for bottlea. Der*end for bottle grede ia expected to continue to increase by at least 8-10% annually for the next several years. Tape and film applications, moat of the remaining 40*, are more mature and ehould show modeat growth of 3--4*/year. 

PRICING....Paraxylene ia the major raw materiel for TPA/DMT. TPA is generally priced aeeordino to a 

formula LHS-BL) on oeraxvlene coete. Dut containino fuel oil'and u-hn.•«•.• r.T-*r»w mnR» rert-nraj •• «*fi. PMT 

pricing ie normally factored off of the TPA price. In the first qusrtsr of 1990, ths TPA formuls pries wss 

3Q.22 cents per pound «uth DMT et 27.50 cents, with parexylene quoted et 25.5 cents per pound. With • 

H»fHn « i n pB»a-.*ylent p«a>*inge * e 21* e©nt» i n th» 2n«*/ -a-uatrtor, th * TPA ptse * f.l l to 39.70 , nat h DMT « t 

26.32. Some modest escslstlon in prices can be expected over the next several years ae hydrocarbon prices 

in general eacalate in line with tha expected increases in crude oil vslues. [ 

AVERAGE PRICE RANQC - TEREPHTHALIC ACID 

Csnts Par Pound - Bulk - TPA (Purified) i 7. 

Tr-A<ri-» Lx« t 

1960 1965 1970 

****** HISTORICAL ************ 

1975 1980 1985 1986 

T2T TO.A . le.4 

3v1987 

2eT7 

1988 

***** • PROJECTED • 

1989 1990 1992 

Si.o - 'Jtrro 51.5 

SUPPLY An© 0EMAND....Millions of Pounds....Estimated....Domeatic US 

l?O Q 

Capacity 

Production 121 

Exporta 

Demand 121 

i«imi«*« » •« HISTORICAL •••••*#••*•*•••••#•••«•••«••*«••*• • PROJECTED • 

l-USO 1*F7Q 1T-7 3 170U 1703 170.6 17C_/ 17BP 17Sy _i?_yU 1»*Z 

"537 TUTJO" S9TJTJ n W eToTJ 715TL,, 7I5TJ" 72FLT 72515 • 75515 7TO& 

475 1664 3972 5218 5545 5320J" "'6460 7950(E) 7085(E) • 

400 1150 1300 1400 1485 1625 • 

475 1664 3972 4818 4395 4020 5060 6465 5460 • 5500 5900 

All eupply and demend values are TPA equivalents converted from USITC reports which are expreeeed 

as DMT eater. Exports ere the sum of reported DMT and estimated exporte for TPA. Tha US Bureau of the 

Ceneue report8 TPA exporta ae pert of the group of polycarboxylic acida. DMT exporta for 1989 ware 

about 273 million pounds. Imports ere insignificant, amounting to ieea than 2 million pounds. 

The USITC production ststiatica are now reported aa "terephthalic acid, dimethyl ester", and include reported production of both TPA and DMT combined for all producera, without double counting. 

To reach a common reporting base, the acid figures are nxiltiplied by the factor of 1.16 to convert 

them to the equivalent DMT, aa reported. Conversely, the TPA equivalent ie about 86 percent of the 

total . Some trade sources believe that the USITC dete ^considerably overetated when compered 

to deta reported for fiber and plastic components. *H«'«2 

AVAILABILITY....US supplies of DHT/TPA are sufficient to kaep pace with domestic demand for tha foreeeesble future. Only modest expansions are underway or planned for US producers, but in other parte of the 

world substantial additions to capacity srs being made. Aa these new unite come on, export markets for US 

producera wil l decline and more cspacity will be available to satisfy domestic demend. Foreign capacity 

additions, almost exclusively TPA, are being built in response to continuing high growth in demand, 

estimsted by some industry experts et about 65/year to ths year 2000. 

Besides its US additions, Amoco, the worldwide leader in TPA capacity with 30* of the world's total, 

is actively expanding in many areas- A new 250,000 metric ton/year Amoco facility wil l come on at Ceel, 

Belgium in 1991. In the Far EaBt, ttis Amoco JV in Kores is doubling cspscity to 800,000 metric tons/yssr 

and thsir Tsiwsn affiliate , CAPC0 is adding 250,000 metric tons/yssr. 

ICI, reportedly the world's sscond-lsrgsst TPA producer, is building a new 350,000 metric ton per year 

facility in Taiwan, for startup by vssr and 1991, and ie building a 250,000 m.t./ysar plant in Thailend. 

World-acale units srs undsr construction by othsrs in China and Indonesis, to bs on streem in 1991/92. 

1/88 
SENT BY-RTP, N. C. 27709 3- 8-91 ; 3-57PM ; RADIAN CORPORATION- 215 643 2772.JN3 

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PRODUCERS AM) CAPACITIES - TEKPHTHMIC ACID - MILLIWS CF POUNDS 

PRODUCER 

Amoco Chemicals 

Amoco Chemicals 

Cape Industries (Hereofins) 

DuPont 

DuPont 

Eastman 

Eastman 

LOCATION 

Decatur, AL 

Charleston (Cooper River), SC 

Wilmington, NC 

Cape Fear, NC 

Old-Hickory, TN 

Columbia, SC 

Kingsport, TN 

PRODUCT 

TTA only 

TPA only 

DMT from TPA 

DMT from TPA 

DMT rrom TPA 

CUT from TPA 

DMT from TPA 

1990 CAPACITY AS TPA 

Sldd 

1100 

1300' 

1200 

500 

900 

450 

TOTAL 7550 

Based on announced capacities and trade estimate*} - 1st Q 1990. The Cape Industries plant 

at Wilmington, NC can produce about 250 million pounds of highly purified TPA by hydrolyaia 

of DMT. Hercofine was s joint venture of Hercules and American Petrofina but in early 1985, < 

Herculea sold its 7 AS Hereofina^equity^o American Jp.eehBiV^" ^Bctot-C-danese,. DuPont and 

CapeInduetr.iee jr e "the dnly_ "tfi^jsliere^iJWlJt^^tte JMrchwt-J»ajkat.-l^tHiariu^tbJi'.a». from 

the DMT merchenj^jar'k>l;3rilearlyj,?86ju Amoco is expanding both plants in 1990 by a tot"aT~of 

200~mnrion "pounds. Cape Industries is alao planning an incremental expansion of their unit. 

EM) USES....Terephthalic acid (TPA), uasd_priinaril.y_to produce polyethylene teMghthalate_(PET) resins for 

fibers snd "plastlca, as available commercially as^ithbr"lln"a'~rree acid of as" the eater aiitietKiiir" 

liYephlhelete "][DMT)77IU^ used_ae polyesterrssinraiia'msterlTl, but the two ir e not 

fnter'chengeeble.7ifL3l,"

J

.same plsnt* IfDMT'i'e used, tl*e methanol eliminated "iii"the"polymerization rrueV~toe 

recovered. The.lfirBtlpolyeater "fiber .plants .nere_bBaed_on._DMT_becaues itjusjieeie r _to -ouri_y_tnan TPAa 

However, there have__been processes developed and plsnts built to yield purified terephthalic ~acjg_ of 

al71t8ble_1quB3it'y__for conversion" to'PET'dirscUy. in~th"e"'U5 sTTs¥st"1ialf "of al l PET reeine are made 

directly-from TPATTlntheTertesrover" 75X of "all Prris~derived directly^ronrrPfu •— ' 

Polyester fibers are used primarily in apparel end" home furhiahinge", with some used for tire cord and 

industrial products. Polyester has become the leading man-made fiber because of versatility and uae in 

permanent or durable press fabrics. Cotton-polyester blends, in verying percentages, have gained Hidespread acceptance with polyeeter reducing the need for ironing. Fabric blende of polyester with wool and 

cotton provide fabrics with a texture more like ell-natural fibers than 1D0K or high polyeeter blende. 

Film end sheet made from PET have major applications in amateur Bnd professional photographic film, Xrey and microfilm) magnetic recording film slit into tape form for computers and for audio snd video 

cassettes; and flexible disks for computer information etorage. Polyester film ia the standard materiel 

for engineering drawinge. PET film applications are reasonably mature and are growing at about a 3-AS/yeer 

rste. Terephthelete engineering resins, including polybutylene terephthalate (PBT) and PET, are 

experiencing excellent growth in the 6-10*. range depending on application, albeit from a email base. 

"Solid-stated" PET resin ia used to make bottles, mierowavable treys and packaging. Sold-etated reein 

ie produced by eutocleving the ordinary "melt-phase" PET, thereby increasing it a intrinsic viscosity. 

Uae in bottle reeine is the fastest growth ares for TPA/DMT, with growth in the range of 6-10ft/yeer. 

END USE PATTERN - 1989 ESTIMATE 

DERIVATIVE PERCENT 

Polyester Fibers iT" " 

PET Bottles and Plastics 19 

PET Tape and Films 12 

Misc.(includes engineering reeine) 6 

MANUFACTURING... .All DMT end TPA ie bssed or^ parsxylene feedetock.obtained..by.separating—mixed ...xyleneea 

DMT/TPA ia essentially the onljr commercial_oullet2Xor-feedstock per6^1ene._PeraxylsnB_Is._oxidized.Jo fitoluic acid and'the'ri, under more severe" conditions, to terephthalic^BcJel whicfTls either" purified to fioer 

gride^product bX^river^edZBiree^l^bJJKrarThe "feasibility "of"TPA purTficstlon depends, on factors such aa 

feedstock purity, catalyst aystero and process conditions. The currsnt standard of p-xylene purity in the 

US and Europe ie 99.5s minimum. In producing TPA, 0.71 lb. of p-xylene yielda one pound of TPA. In DMT 

production, 0.61 lb. of p-xylene ie required per pound of DMT. 

Jil^hjjrostjwide^_jjeed.^rj3ce8B_fpr..DMT^ p-xylene , irLiheJtigittjLntoae 

conditions tpTo-toIuicacid.whicfcLisJthen ._aIeuIXed^oj-methyi_tolyate. This_ia then" oxidiied under 

pressure to monomethyl terephthalate which is esterifled to DMT. In a newly developed .proceaa._to_.maka 

tlberTgrade'TPA',' crudVDMT is hydrolyied with water followecTby separation of "the" resultant terephthVlic 

acid which ie eryetellixed. Another preceee involves the oxidation of paraxylens at low tsmperaturea and 

pressures in acetic acid solvent uaino a cobalt acetate catalyst and acetaldehyde activator to yield crude 

TPA which is esterified to DMT. Purification of DMT le by crystallization from methanol. DMT i s eeperated 

from methanol in centrlfugee end finally distilled to fiber grade. DMT in molten form can be used directly 

or traneported in tankers to the fiber plsnt. 

Most of the world's terephthalic aeid is produced by the Amocoprocese. Fiber grade TPA ia produced by 

thjjjiquldjihesa oiid8ti"0n^"p-'xyleras:et~r00°C and *00 "psirThs p-xyTene~Xe diluted with ecetic acid and 

small amounts of' manganese ecetete, or cobalt acetate, and a bromide ere added ee catalyet. The reactor 

effluents are removed aa a hot alurry into e eryatsllizsr where they sre coolsd by flashing ecetic acid, 

unreacted xylene end taster. After separation and drying, TPA of better than 99K purity le obtained. To 

produce fiber grade TPA the product iB>washed with hot water to remove trecea of catalyet and acetic acid. 

ENVIROMCNTAL ASPECTS. ...Terephthalic acid is a fine powdery material which can be harmful if the dust ia 

inhaled. Contact with dust can irritBte skin and irucoua membranee. TPA can produce a duet explosion. 

To ths beet of our knowledge, the information contained herein ie accurate. However, we 

do not assume any liability whatsoever for the completeness or accuracy of thie report.