### P. 1



# OAR Box 

# 1878 Prepped by Charmelle Mathews



# Document

Number: 

# 69 ) 11-1-4 8 Docket Number: 

# A-90-1 9

Printed 11/28/2008 1:21:23 PM Sheet 69 of 145

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• :v .Ia<c8airTMa s te.ESrAcs 6 pMif*S ^ turto x .«gSJije:CgOs , «!»Kj'-l*-.iasfSfe steilzaScs , EsaJti s lEfc^.KsB&ifr' . .brer. 1 Aueciatjs a Cays ' as-asesjStKsrf ^ i •tena : i;.CFC/«tiy!tE e ratio pss-sS&pW' . * « { K«s l fiv e yssr s ena ? es d BRMSRJSS : no tItijfMe a rejaiatey frtrnMJcrii.'fcJs t mayliatelifitstry'tvoJijJtaryeKcnjt o phact.-o d tl s te s o

f tt» <*smkaii2'2> ; ^6«r.fiif©pe*g> . •••''•: • -}2? |

. A tumbe r cf«3san» r products , vcs3 - Intio t> as d ehcaica l maoe f

setoia g ess * pink s hsv e JelasJ force s t o assis tpoS. # mskt' n I s th e proces s o

f uretajtaBiS g esi rrc-xrri

y ixMlrtsic z lndoa

r nlr<E!s ~ ity . E islnea : Coucel l o n Indoor A ¥ dyb K 'vril i wrk-cKVol l eoEceroed,'pbsp.t s ccs e e ti e t» ? c

f Raas d setos e an i ep-ttv dete-efonnstic n I s th e tiKssmcs te £ tt doorsptaaBtocoatainlnants . . ; ._ x .. . Al l o f

methy l chloride' s en d use s ar e doin g wel l thi s year , includin g pesti cides , quaternar y amines , methy l cellu lose , buty l rubbe r and , o f course , sili cones , whic h som e analyst s predic twil l experienc e doubl e digi tgrowt h i n th e comin g years . Unlik e othe r chemical s experiencin g an d expectin g thi s kin

d o f demand , however , th e methy l chlorid e marketi s no ttigh tan d I s no t expecte d to hav e an

y suppl y problem s i

n th e comin g years . Statistic s fo r methy l chlorid e capacity , production an

d end-us e volume s ar e al l to som e exten tuncertai n becaus e production often goe s int

o captiv e us e fo r othe r chlori nated methanol product

s an d fo r silicon e in termediates . I

n addition , silicon e producer s recover hydroge

n chlorid e fro

m thei r proc- . esse s an d ca n re-methylat e tha

taci d whe

n th e economic s favo r thi s ove r purchasing methy l chlorid e an

d sellin g of

f th e acid . Thi s "mak

e o r buy " decisio n fo r GB Sili cones , Do w Cornin g Corporation , an

d Unio n Carbide Corporation , i s influence d b y th e marketpric e o

f methanol , whic

h latel y ha s been extremel y hig

h an d thus no tencourag ing th e recyclin g process . The recyclin g ca pacity , though , i s Increase d a s an y particula r silicone s plan

tI s eipanded . GE , Do w Coming , an

d Carbid e ar e al l ne

t buyer s o f methyl chlorid e bu

tthes e compa nie s an d thei r merchantsuppliers ar e to o competitiv e t o pi

n dow n thei r merchant-to captiv e supply ratios . Merchan tmarketer s Vulca n Chemicals , LC

P Chemical s an

d Plas tics , an d Do w Chemica

l likewis e d

o no tre vea l ho w muc h methyl chlorid e the

y sel l int o th e variou s end-markets . I n general , methyl chlorid e consumptio n fo r silicone s wa s estimate d a t40 5 millio n pound s i n 1987 . Methy

l cellulos e consump tion accounte d fo

r 3 7 millio n pound

s in tha t year , quaternar y amine s fo r 2 7 millio n pounds , pesticide s fo r 2

6 millio n pound

s an d buty l rubbe r fo r 7 millio n pounds . Nameplate capacity fo r methy l chlorid e i s approximatel y 80

0 millio n pounds , bu

tove r 20 0 millio n pound

s o f tha tcapacity goe s into othe r chlorinate d methano l products , ac cordin g to analysts . SOU

Ke s sa y th e Montrea

l Protoco l fo r limitin g production o f chloroflu orocarbon s may mak e mor e o f thes e pound

s availabl e in th e future . Vulca n Chemical s announce

d earlie r thi s yea r tha ti twil l buil

d a grassroots methyl Continue d o n Pag e 1 4 Saud i Basi c Industrie s Corporatio n expresse d it s "disappointment " las t wee k a tth e recen tEuropea n Commu nit y decisio n t o limi tduty-fre e import s o f Saud i petrochemicals , sayin g th e mov e woul d onl y serv e t o increas e . price s unnecessaril y fo r Europea n con sumers . The E C decisio n wil l cu tI n hal f th e 198 S valu e o f Saud i Arabia' s petrochemical s whic h ca n b e importe

d dut y free , an

d wil l eliminat e al l dut

y fre e import

s i n 1990. The country' s tariff

s hav e average d 1

2 l o 1 3 per centfo r th e seve n petrochemical s I tsend s to Europe : methanol , styrene , melamine . ethylen e glycol , low-density , linea r low-den sit y an d hig h densit y polyethylenes . Sabi c vice-chairman an

d managin g direc to r Ibrahi m Salama h sai d th e decisio n "makes othe r world markets mor e attrac tiv e a ta tim e whe

n thes e product

s ar e in grea tdeman

d i n Europe , an

d i tonl y make s economi c sens e fo

r a manufacture r to sel l i

n th e mos tattractiv e market. " H e als o note

d tha thal f o f th e E C Counci l o f Minister s —Britain , France . Wes

tGermany , Italy . Denmar

k an d th e Netherland s —ab stained , implyin g strong sentimen tfo r othe r course s o f action . The EC an d th e six-membe r Gul

f Cooperatio n Counci

l hav e been negotiatin g fo r th e las tyea r t o improv e trad e relations . Mr . Salama h contend s tha

tth e E C decisio n "i s boun d t o have a negativ e an

d impeding influ enc e o n th e cours e o

f thes e talks. " 

# Edibl e Oil s J Battl e Sharpen s RS* £ O n Capito l Hil l

KiLLIKB , O N UHE . k&ifco n Chante d Company' s no w Cypra u pL.-r

t s t &sct.aburg , S.C . achieve s promt s contro l throug h a tftftfbuto d pocos s computer . Thi s field opsmto t Income s th e "hend s an d toot" o

f th o contra ! monitorin g statio n operator . 

# Memke n C R To It s Bran d Me

w Cypres s Plan t Wit h it s ne w Cypres s specialt y chemi ca l plan ta tBlacksburg , S.C . u p an d run nin g sinc e July , Millike n Chemica l Divi sio n o f Millike n & Co . ha s alread y broke n groun d fo r a n additio n t o th e facility . Th e expansio n center s o

n th e company' s fast-growin g "Millad " polyolefi n clarifyin g agents . The additio n a tCypress , togethe r wit h existin g capacit

y a tMilliken' s Dewey plan ta tInman , S.C. wil l tripl e capacity fo r th e produc

tline . Completion i s schedule d fo r lat e 1989 . Onc e th e Cypres s uniti s fully operational , plan s cal l fo r proces s improvement s th e compan y has mad e in th e ne

w plan tto b e incorporated in th e Dewe y facility , whic h wil l continu e to operat e Miltn n Churchill , marketmanage r o f plas ti c additive s fo r Milliken' s specialty chem cia l business , say s tha

twhil e polypropylen e has bee n growin g a ta

n impressiv e averag e annua l rat e o f 1 0 t o 1 2 percen tdurin g th e pas tcoupl e o

f years , th e US marketfo r clari fie d P P has bee

n growin g a

tth e rate o

f 2 5 to 3 0 percent . Technolog y advance s in polypropylen e hav e allowe d th e resi n to penetrate markets traditionall y hel d b y high-densit y polyethylene , polystyren e an d othe r plastics , bu

tP P ha s no

tbeen cohsidere d unti

l fairl y recentl y in applications ; wher e appearance , clarity an

d overal l aesthetic s ar e a majo r concern , h e says . Th e proprietar

y "Milltid " clarifiers , whic h firs tmoved int

o th e hoitseware s marketin th e earl y 1980's . hav e sinc e expanded int o othe r outlets , p : ..noril y I

n consume r produc

t packaging , medical device s an d foo d packag ing . I n th e mos trecen tdevelopment , Mr . Churchil l tol d reporter s durin

g a briefing o

n Milliken' s chemica l operation s a tit s Spar tanburg , S.C . headquarters tha tth e compan

y i s very hig

h o n th e potentia

l i tsee s fo r "Millad " use d in a synergisti c combinatio n wit h th e "ClearTint " polymeri c colorants fo r polyolefln s which th e firm introduce d a t NPE'8 8 i n Chicago in June . Th e combinatio n give s polypropylen e "anothe r order o

f magnitud e o

f aestheti c im provement" , Mr

. Churchil l maintains , addin

g tha tsom e replacemen to

f mor e expensiv e plastics , such a s "K " (butadiene-styrene ) resi n an d polyester , "i s already startin g to happen. " Application s currently being devel ope d includ e cosmeti c containers , spic e Jar s Continue d o n Pag e 1 6 Th e escalatin g marketin g battl e be twee n supplier s o f

edibl e oil s wil l mov e t o Capito l Hil l nex tyea r wher e legisla tor s wil l b e aske d t o conside r th e healt h effect s o f

competin g product s tha tar e ke y ingredient s i n a wid e variet y o f pro cesse d foods , suc h a s bake d good s an d breakfas tcereals . Wit h th e backing o

f th e U S soybean oi l industry , Rep . Da

n Glickman (D-Kan. ) say s he plan s to sponso r legislatio n tha twould requir e th e words " a saturate d fat " to appea r besid e an y referenc e to tropical oil s o n food labels . A simila r bil l introduced b y th e Kansa s lawmake r died in committe e in th e las t sessio n o f Congress . Tropica l oils , suc h a s palm , palmkerna

l an d coconut , hav e been linke d to hear tat tacks , stroke s an

d hardenin

g o f th e arterie s becaus e the y typicall y contai n larg e amount s o f saturate d fat . Coconu

tcil , fo r example , contain s 9

2 percen tsaturate d fa

t compare d t o 9 percen tin safflowe r oil . a vegetabl e oi l competitor . However , tropical oi l supplier s suc h a s Malaysi a sa y th e rea

l issu e i s trad e rathe r tha n health . "Pal m oi l i s just3 percen to f th e total edibl e oil s consume d i n th e US . an

d ye t peopl e ar e makin g statement s tha tpalm oi l i s poisonin g America. " say s Denni s Ignatius . counselo r fo r politica l affair s a tth e Em bass y o f Malaysia . H e adds , "I f the y ar e s o concerned wit

h tryin g to reduc e cholesterol , i tmake s n

o sens e t o focu s o

n 3 percentan

d ignor e you r T V dinners , lard , por

k an d bacon. " The soybean lobby , whos e oi l contain s I S percentsaturate d fa

tan d cost s 2 0 percen t mor e tha n pal m oil , doe s no

tden y i ti s seek in g t o gai n a competitiv e edg e b y portraying tropical oil s a s unhealthy . "W e ar e competin g fo

r a share o

f th e mar ket, bu tw e hop e to com - : e fo

r tha tmarket based o n fact s an

d no : jccus3tions. " say s Mar k Nestlen , chief

congressiona

l lobbyist Continue d o n Pag e 1 5 Decembe r 1

9 198 8 CHCMICA

L M^RKETIIS

G REPORTE

R

ft" < = tit 

## "^\ A^-. T - •••*>' ""Jfl-V - yaw Blr-M*. " tfi. y "uyifl ; •t-vj.'-'p y *•

f M K

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# 9

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## - »

# I t easie r - ^ propertie s tha

t provid e yo u f odorles s hydro i e picture , i

t include s Ivents . is Char t i s your s Shel l Chemica l a l Company , , On e Shell.Plaza , 2-2463 .


# ipan y 

# ALBFMT8 C 

# onmrncs

Methy l Chlorid e Continue d fro m Pag e 7

•enzene derivatives , icidet , monpmer

s 

# ACTION S

I ~r.A .~..l

..I.X- - 

## chlorid e plan t a t it s sit e i n Geismar , La. , t o b e on strea mb y 1991
. Th e capacit y fo r th e plan t wil l b e simila r

t o th e 11 5 mil

lio n poun d capacit y of

th e Vist aChemi

ca l Compan y plan t

whos e outpu t

Vulcan bega n marketin g thi s year . A silicon e supplie r say s hi s compan

y talk s Corporation ha s announce d a6 percent

pric e \p methyLchlond

e producer s twic e ayea

r increas e o

n gluteraldehyde , effectiv e Janu

ahnijt , in'ng^grm n n^ o - 1 fay a\r\ gTJmnr i ar y i t 

## 1989
. Th e compan y cite s highe

r cost s in methyl chlorid

e prod'"'*''" " ' " ahnu

t six [a ^complying wit

h federa l and stat e regula

fectiv e Januar

y 1,1989
. Th

e TV A refer s t o pricing o n a10 0 percen t basis
. GAMMA-BUTYROLACTON E - GA F Chemical s Corporatio

n ha s institute d a10c
. pe r poun d TV A o n gamma-butyrolactone , ef

fective Decembe

r 15
. ! GLUTERALDEHYD

E —Unio n Carbid e
nip p months, " h

e say s "flnrl

, thp y kno w ou r [requirement s fo

r the nex j f •» » y*Tfi " :


## " • Thi s supplie

r als o says , "Eve

n thoug h pric

in g ha s bee n ver y stabl e thi s year , methyl chlorid e producer s thin

k they'r e gettin g enoug h o f aretur n to invest i n thes e expan - . sion s whe n the y becom e necessary. " Methy l chlorid e i s currentl y lis t

priced a t abou t 2 5 t o 2 6 cent s pe r poun d bu t som e source s sa y eve n thi s lis t figur e i s debatably high
. Marke

t price s ar e sai d to b e i

n th e neighborhoo

d o f 2 1 cent s pe

r pound
. Off-lis

t price s wer e raise d by 1 t o 2 cent s per

poun d fo r the thir d quarter
. EXPORT S T O JAPA N RIS E Price s i n Japan , however

, ar e liste d a t

6 0 t o 6 6 cent s pe r poun d an d contracte d a t

ap proximatel y 5 4 cent s pe r pound , accordin g t o sources . Export s to Japa

n ros e thi s yea

r fro m 66,00 0 pounds to clos e t o 1.

5 million pounds , accountin g fo r th e 3 3 percen

t jum p i n total annualize d exports
. Internationa l Trad e Commissio n figure s sho

w methy l chlorid

e production u

p b y 6 0 percent , bu

t several source s sa y tha t figure s must

be incorrec t Mos t methy l chloride producer s expect
. methanol cost s t

o dro p somewha

t nex t year , an d fo r tha t to softe n price s fo

r thei r ow n product
. "Ther

e wa s atime, " on

e produce r says , "whe n methyl chlorid

e price s wer

e par tiall y drive

n b y end-us e deman

d othe r tha n chlorinate d solvents
. Tha

t wa s whe n semi

conductor s firs t

too k off
. I don' t se e tha t hap

penin g again. " Anothe r supplier note s tha t

th e faile d merge r betwee n G E an d Carbide' s silicon

e businesse s woul

d no t have ha d direc t impac t o n ra w material supply , bu

t tha t i n th e long , term , "th e aggressiv e openin g o f market s tha t coul d hav e bee

n achieved woul

d hav e expande d methyl chlorid

e use. " ACETON E —Do w Chemica

l Compan y wil l increas e th e selling pric e o f aceton e b y lc
. pe r pound, effective January 1,1989 , fo r contrac t barg e customers
. Sellin

g price s wil l no t excee d th e followin

g lis t prices : Zon

e I , 27c
. pe r pound ; Zon

e 2,29c
. pe r pound ; Zon

e 3
. 30c
. pe r pound
. " ACRYLI C ACI D - BAS F Corporation will increas e price s o

n acryli c acid an

d acrylates , effective Januar

y 1,1989
. Ne

w price s wil

l b e a s follows : technica

l acryli c acid , 63c
. per

- pound ; glacia

l acryli c acid , regular , 64c

. per pound ; glacia

l acryli c acid , "HM, " 67c
. per pound ; butyl acrylat e 65c
. per pound ; ethy l acrylate , 63c
. pe

r pound ; methyl acrylate , 72c
. pe r pound ; 2-ethylhexy

l acrylate , 73c
. pe r pound ; isobuty

l acrylate , 87c
. per

pound
. Price s ar e quote

d fo r bul k Quantities
. Unio

n 

# PRICE S TRENDLINE S WEE KENDIN G DEC

. 16,198 8 

# CHANt>ES/U P CHANGES/DOW N ALIP H ATIC S INDE X j Th e Aliphati c Organic

s inde x reflect s th e price s o t 2 0 representative material s i n thi s secto ran d th e quantity o f eac h produce d i n 1986

. j Decembe r16,168 8 J . 251.2 9 Decembe r9,198 8 i . 251.2 9 Novembe r18,198 8 ;. 248.5 8 Decembe r £8,198 7 206.3 6 Chomfca f Mee t SUr

f o n Ptge 34 

## tions , an d increase d ra

w material s cost s a s reason s fo r the increas e j GLYCERIN

E —Production o

f crude glyc

erin e (includin

g synthetic ) fo

r Octobe r to
talle d 23. 7 million pounds , u p 3. 7 millio n pounds fro mSeptember , bu

t dow n 6. 1 million pounds fro mOctobe r 1987 , accordin g t o De

partment o f Commerce figures
. ! > A t th e en d o f October , producers'stock s of
. crud e an d refine d glycerin e totalle d 35. 6 mil

lio n pounds , dow

n 6. 1 million pounds fro

m on e mont h earlier
. i Import s o f crud e an d refined glycerin e throug h th e firs t thre e quarter s o

f 198 8 to
talle d 36. 1 million pounds , compare d wit h 38.4 million pounds fo

r tha t perio d o f 1987
. Export s o f crud e an d refine d glycerin e throug h th e firs t thre e quarter s o

f 198 8 to
talle d 28. 5 million pounds , compare d wit h 11. 8 million pounds fo

r that perio d o f 1987
. ISOPROPANOLAMTNE

S - Do w Chemi

ca l Compan y ha s announce

d i t wil l increas e lis t an d off-list price s fo r isopropanolamine s b y 3c
. pe r pound, effective January 1,1989
. Ne w lis t price s ar e a s follows : mono , 7 1 Via ; di- , 7 8 Via ; tri- , 8

0 Vic ; mix , 7

9 ft a ; an d paint remova l grade , 7 9 'Ac
. Price s ar e pe r

pound , f.o.b
. Midland , Mich
. N-METHYL-2-PYRROLIDON E - GA F Chemical s Corporation ha s institute d a n He
. pe r poun d TV A o n n-methyl-2-pyrrolidone , effective Decembe

r 15
. OCTYLAMIN

E - BAS F Corporation wil

l increas e th e pric e o

f it s n-octylamin

e b y 10c
. 

# ALIPHA T pound
. Purchas e b e o n 10 0 perc e monthl y contra t ments
. SULFONAT

E announce d pr ; cumen e sulfona i niu mxylen e sul : 1989
. Sodiu

mc i crease d b y lc
. p poun d fo r acti v wil l b e increas e b y 5c
. pe r poun d TRIETHY

L Chemica l Com ; pric e o f it s tri e pound , effectiv price s ar e not

to follows : technic
. purity , 7 5 '/»c.p t 

# Edibl e ( Continue d fro m 

## fo r America n & I n orde r t o I roun d o f th e fc ment ha s hire d hel p sel l palmo ent
. Mr
. Ignat

i Glickma n bil l i industr y t o dis c woul d threate n th e evolvin

g T h Meanwhile , t

i tut e o f Malaysi project s aroun

d th e US , t o loo

k bloo d cbolester t Th e grou p S E bloo d flo w t l teries...inhibits : tumor inciden t PORWalsosa ; actuall y reduc e huma n an d anin t o 3 8 percen t Health adv o



# Eliminat e graine d p c ment . Tn e heav y me t 

# Soli d


# M& T Ou to Ou r scie r