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# OAR Box 1872 Prepped by Keeia Richards



## Document

Number: 

# 72 ) 11-1-12

1

Docket Number: 

# A-90-1 9

Printed 11/26/20088:51:53 AM

Sheet 72 of 204P. 2 

### SEiN T 6Y:RTP

. N

. C

. 2770 S 

### ; 5

- 3-S 1 111:00AM , .rfiADfAfoCORPCR f f ? I , t , . !

..... . I

. 

# A-90-1 9

MA Y 199 0 i ! 

### ° EC| 8 PnMouiEipcn- ' Januar y198 8 

### PHENO L

. . / FOCUS....Pheno l i s th e feedstoc k for phenoli c resins , bispheno l A , en dceprolectem . Othe r significan t derivative s includ e alkylphenols , adipi c acid , aniline , and plasticizers . Mos t consumptio no r pheno l depend s o

n requirement s b

y the constructio nan

d transportatio nindustries , particularl y housin g an

dauto motive . Th e larges t us e fo r phenoli c resin s i s for edhesive s fo r plywoo dan d compositio nboard s use di n construction . Phenoli c resin s ar e sle o use de s binder s for fiberglss , minera l rooi , an d othe r insulation . Bispheno l A

(BPA ) i s a ra

w materie l fo

r polycarbonates , epoxie s en d othe r resins . Rapidl y growin g polycar bonat e applicaliun e ar e inulJin y coMpound e an

d eheeliriy

use di n automotive , appliance , electronic , glazing , en dothe r uses . Ceprolscts m i s polymerize dt o nylo n6 , a polyamid e use dfo r fiber s (particularl y carpe t y_rn) , plastic , films , and engineerin g moldin g compounds . Onl y Allied-Signa l use B pheno l a s e ra nmeterie l fo r esprolactam . Othe r ceprclactam producer s star t wit hcyclohexane . Sinc e 1985 , U S deman dfo r pheno l ha a bee ngrowin g e t abou t a 7 2 pe r yea r rate , le db y 10- 1 S S pe r yea r growt hi n -iepheno l A , th e secon dlerges t us e fo r phenol . Despit e sluggis hhousin g start s fo r th e pes t severa l years , pheno l ue e i n woo dproduct s he s stil l show na t leas t modes t growt ho n th e orde r o f 2-3 2 pe r year , a s the housin g industr y ha a bee nsupporte db y health y growt hi n home improvemen t an d remodeling . OUTLOOK....Fo r th e longe r term , U S annua l consumptio no f pheno l wil l probabl y increas e e t enevereg e rat e o f 2-3S , afte r droppin g somewha t in th e 199 0 economi c elowdown . Althoug hpheno l requirement s for phenoli c resin a hav e moderated , ther e wil l b e stead y long ter

m growt hi n pheno l consumptio nfor bispheno l A (BPA) , th e nex t lerges t derivative . Polycarbonat e reslne , wit ha fee t growt hpattern , ar e no w th o insju r derivativ e o f bispheno l A . Eooxie e ha dbee nth e mai noutlet , fcny application s fo

r epox y re6in s i n protectiv e coating s an d adhesive s hav e matured . Th s reduce depox y rasi ngrowt hi n thes e matur e en duse s ha s not , however , bee noffse t b y th e Ki^hc z ^roitL K

caL«

. t„z

fcl«c t r ic*l/'ol« c I r eni c applicottorvo

. Cf* A gr*—fc h ihor.f.r

. 4*^*rvW « »«»P*1,

. •* * gr*«fcl< / expande dus e o f polycarbonate s an d som e specialt y

resins . I n additio nt o BPA , 2, 6 xylenol , use dt o mek e polyphenylen e oxid e engineerin g plastic , wil l hev s expende dmarkets . However , 2, 6 xyleno l i s s relativel y mino r derivative , currentl y accountin g fo

r no mor e than5!» o f tota l U S pheno l consumption . Unles s ther e i s e shar preboun di n th e valu e o f th e U S dollar , export s o f pheno l an d derivative s shoul dcontinu e etrcn g eve nwit ha majo r downtur nin th e US econom y i n 1990 , elthoug h199 0 export s ar e expecte dt o moderat e som e fro m previou s year s i n lin e wit hgenera l world-wid e economi c sluggishness . PRICING....Wit hrelativel y wea k demandan

dcompetitiv e prices , man y pheno l producer s reportedl y ha d losse s fo r severa l year s prio r t o 1987 . Wit hstron g demandincreases , risin g feedstoc k benzen e price s an d devel opin g suppl y

tightness , pheno l sellin g price s escalate drapidl y int o th s 42-4 8 cert s pe r poun drsnge . Mid 198 9 contrac t price s settle din th e Zt4-4 6 cent s pe r poundrang e befor e fallin g severa l cent s b y yea r en d i nreepens e t o moderatin g demand . Despit e wil dfluctuation s i n ra w materia l benzen e prices , pheno l pricin g ha s becom e mor e respcnelv e t o supply/deman dbalanc e coneideretione . Pricin g i n earl y 199 0 ha s therefor e bee nreflectiv e o f weakenin g demand , fallin g int o th e 33-3 7 cent s pe r poun drange . Wit hsupplie s seemingl y assure dove r th e nex t severa l years , pheno l pricin g ma y b e expecte dt o b e mor e responsiv e t o raw materia l pricing , an d a e suc hshoul dris e somewha t a s hydrocarbo nvalue s i n genera l ar e expecte dt o exhibi t e riein g trend . AVERAG E PRIC E RANGE - PHENO L - SYNTHETI C Cent s Pe r Poun

d- Bul k - Freigh t Equalize d

Trad e Lle t Avg

. Sale s 196 0

14.7 5 1 4 UPPL Y A.S C DEhVWD.

.

Capacit y Productio n Import s Export s Dom

. Demand 196 0

n/ a 77 2 4 8 72 4 196 5 J7TT 9 197 0 

### EO T 7 197 5 

### TT 2 6 ..Million s o f Pounds..

.

196 5 T53 T 117 3 1 1 116 2 197 0 T7T I 175 5 5 0 170 5 197 5

2.9 7 174 6 2 5 5 1 172 0 198 0 198 5

36 3 0 .Estimate d 

### T T

2 8 198 6

3 2 1 9 ....Domesti c U

S

198 0 198 5 T)TZ 256 7

- - 29 9 226 8 TTSi

284 1 5 9 14 1 275 9 195 7

4 2 2 9 198 8 

### T T 36 198 9 

### TT 36(E )

158 6 198 7 198 8 198 9 TTtit 311 5 1 1 18 8 293 8 342 6

3340(E ) 8 18 5 316 3 53T ?

356 2 3 2 19 2 340 2 337 J «

•

« 3640(E) * 1 5 20 2 365 3 • • « • PR0J E 199 0 

### "7 T 32 CTED • 199 2 

### TB T 3 5

* PROJELIL U • 199 0 199 2 75T5 38C 0 1 0 14 0 367 0 

## irr o

400 0 AVAILABILITY....Fo r th e pas t thre e year s U S pheno l productio nhe e bee na t o r greate r the napparen t eepaci tv . Nameolet e ceoecitia a ma y be sliohtl y

understated , bu t i n reality , wit hvery stron g demand . US pro ducer s hav e bee neel e t o r»J i thei r plent e et rate s i n ssoes e o f design-,—althoug ngenerall y a t the—sacri fic e u T ovtieUule

Umaintenanc e Uwwnllmo . Thi a heav y tunnin g 10L 0 i s enyecle Ul u tok o il o lul l i nui.OA^OI.LcJ outage s du e t o equipmen t failur e ove r the nex t yes r o r eo . Eve nwit hthe schedule deddition e t o capacit y throug h1991 , th e US supply/deman dbalanc e i a expecte dt o remai ntight . Majo r capacit y addition s for 199 2 an dbeyondca n hel pt o alleviat e an y suppl y problems . Expor t aale a opportunitie s ma y lesse nnea r ter

m e s ne w capacit y i s buil t overseas . Phenolchemi e in W . Europe , Rhedi e i n Brazi l an d Nippo nStee l i n Japa ner e addin g world-ecsl e plent s ove r th e nex t thre e yeers . Many

o f th s majo r pheno l pr>ducer e sr s eithe r integrate dbackwar dint o cumene , o r hav e a clos e workin g reletionehi pwit hcumen e producers . Cumen e producer s genersll y mak e benzen e captivel y end hav e a sourc e o r propylene . Pheno l producer s tha t er e no t integrate dbackwar dcontinu e t o wor k towar dimprovin g finaiHnn

. A * a n a-«mn1a , in lat a ]<JR7 , r.anaro l rlirtrir Pn

. . a phann l prnrfupar

. mnri Phamp1ir > Petroleu m Co. , s feedstoc k

cumen e produce rentere d int o a 5C-5 0 Joint-ventur e agreement , Mt

. Verno n Pheno l Partners , whic h coul d hel p t o etebiliz e feedstoc k coat s en d provid e a basi s fc rexpende d cepacity

. 12/6 7P. 3 SEN TBY:RTF

. N.C , 2770 5 ; 5 - 5-5 1 ;ii:Q1A M I RADIA N CORPORATION- * PRODUCER

S A W CAPACITIE S - PHENOL - MILLION S O F POIND S PRODUCE R Allied-Signa l Aristec h

. BT L Specialt y

Resin s Corp . Dow Chemica l US A Georgi a Gul f Kalama Chemica l Mt . Verno nPheno l Partner s Shel l Chemica l Texec o Chemica l Other * 21 5 64 3 27721*2 5

LOCATIO N 

### Frankford , P A Haverhill , O H Blu e Island , I L Frespor t (Oyste r Creek) , TX Plaquemine , LA Kalama , W

A Moun t Vernon , T N Dee r Perk , T

X E l Dorado , K S Variou s 199 0 CAPACIT Y 

### 75 0 63 0 9 0 550 36 0 75 640 60 0 9 5 4 0 TOTA L 383 0
Baae donannounce dcapacitie s an d trad e estimates , firs t quarte r 1990 . (* ) Estimate dcapacit y i n plac e wher B severa l companie s recove r natura l pheno l frc m petroleu

m operations . Dakot a Gasificatio n i s buildin g a recover y plan t et th s Grea t Plein s Synfuel e plan t nea r Beulsh , ND , wit ha nestimate d capacit y o f 4 0 millio npound s pe r yeer , t o b e onstrea

m b y yea r en d 1990 . Georgi a Gul f ha s abou t complete dth e move t o Pasadena , T Xo f th e company' s 16 0 millio npoin dBoun d Brook , N J plant . Restar t o f thi a plan t ia expecte db y Jun e 1990 . Th e Boun dBroo k plan t we e sol dt o the the nGeorgi a Pacifi c b y Unio nCarbid e i n1982 . Afte r runnin g briefl y in1963 , Georgi a Gul f resume dful l productio ne t Boun dBroc k i nearl y 1986 . I n196 7 Georgi a Gul f agai nsuspende dproductio ndu e t o poo r economics . Mt . Verno nPheno l Partne r i s the join t ventur e fcrme d b y Genera l Electri c (th e origine l plan t owner/operatcr ) wit hChempli nPetroleu m Co . JL M Industries , s CT-base d chemica l marketin g firm , als o ha s a smal l equit y shar e i nthi s project . BTL Specialt y Resin s i s considerin g a doublin g c f thei r capacity , t o be o

nstrea m b y th e en d o f 1992 . Aristec hand Shel l er e eac hstudyin g 50 0 t o 60 0 millio n poun dU S Gul f Coas t pheno l unit s whic hwoul dstar t u p no earlie r the n1993 . EN D USES....Phenol , els o know na s carboli c aci dan d mcno-hydroxybsnzene , i s supplie dcommerciall y a s pur e pneno i an

d a s 90/1 0 phenol/water . Pur e pheno l i s a colorles s t o light-pin k soli det ambien t temperatures ! thu e pheno l i a normall y sol dinbul k quantitie s i na heate dliqui dstate . Th e primar y chemica l in termediate s an

d derivative s o f pheno l induc e phenoli c resins , bispheno l A , ceprolectem , alkylphenols , adipi c ecid , 2, 6 xylenol , plasticizers , an d salicyli c acid , amon g others . Phenoli c resine , th e larges t derivative , ar e th e condensatio nproduc t o f pheno l o r substitute dpheno l wit ha naldehyde , particularl y formaldehyde . Th

e larges t us e o f phenoli c resin s i e fo r adheaive a (ply wood) , followe db

y binder s fo r insulatio n(fiberglaes , minera l wool , etc.) , impregnatin g and laminatin g agent s (for plasti c an d woo dlaminates) , en

d fo r moldin g compound s an d foundry

resins . Bispheno l A

(BPA) , th e secondlerges t bu t fastes t growin g derivative , i s produce db y reactin g pheno l wit hecetene . BP A

i s meinl y

use dt o mak e epox

y en d polycarbcnat e reeine . Smalle r amount s o f BP A ar e use d t o produc e phenoxv , polysulfone , an d polyeste r resins . Allied-Signal , Inc . i s th e onl y esprolacta m

pro duce r usin g pheno l t o mak e caprolectam . Allie duse s ceprolectem t o mak e nylcn- 6 fibers , moldin g reei no r fil m form a o f th e plastic . O f th e significan t alkylphenols , nonylpheno l i s use da s s surfsc e activ e agent , emulsifier , antioxidant , an d a s s lube oi l additive . Adipi c acid , use dt o mak e plasticizers , resins , an d ayntheti c lubricants , i s produce db y hydroganatin g pheno l t o Cyclohexsno l whic hi a the noxidize dwit h nitri c aci dt o adipi c acid . US S Chemica l a (Aristech ) stsrte dt o mak e anilin e fro m captively-produce d p*ir,o l i n1982 . O f miscellaneou s epplicetions , 2, 6 xyleno l i s use dt o mak e polyphenylen e oxid e (PP0) . Genera l Elec tric , wit hNory l (trademark) , i e th e 6ol e U S produce r o f 1, 6 xyleno l fo r PP 0 engineerin g plaetiee . Fo r th e mino r pheno l derivative , pentechlorcphenol , environmenta l concern s continu e t o restric t consumption ) elthoug hi t i s stil l th e preferre dtreatmen t chemica l fo r preservatio no f utilit y poles . EN D US E PATTER

N - 198 9 ESTIMAT E
DERIVATIV E Phenoli c Reein s Biephenc l A Caprclacter o Xylenol a PERCEN T 

### — J 3 3 0 16 5 DERIVATIV E

Alkylphenol e Anilin e Miscellaneou s PERCEN T 4 

### 3 4

MANUFACTURING....Mos t pheno l i s produce db y th e cumen e hydroperoxid e process . Kalan a Chemical , wit hlea s tha n3J J o f U S pheno l capacity , i s th e onl y U S produce r tha t doe s no t utiliz e cumen e a e the raw material . Kalam a employ s a toluen e oxidatio nprccess . I nth e cumen e hydroperoxid e process , benzen e en d propylen e er e reacte dt o for

m cumen e (iscpropylbenzene) . Cuiren e i e the nuxidiia J niU i ai r en c th e resultin g cumen e hydroperoxid e i s concentrate dan d the ndeccmcoee d c

r cleave dwit h8Ci d t o yiel dpheno l and acetone . Afte r reecticn , tn e catalys t ia removed , th e cleavag e mixtur e i e fractionate dan d th e product s ar e purified . I nth e teluere-oenzoi c process , toluen e i s 0x1012. 3 t o Sen.fil e ield . The aci di s the noxidize dt o phenol . Kalama als o isolate s benzoic . Th e toluene-benzoi c aci dproces s doe s no t generat e aceton e cc product . A

t on e time , th e hydrolysi s o f chlorcbenzen e we s the leadin g commercial pheno l process . In1975 , Do w shu t dew

nth e las t U S plan t utilizin g thi s route . I n1978 , Reichhol ddiscontinue dpheno l productio nb y a benzenesulfoni c aci dfusio nprocess . Som e pheno l i s recovere dfron t petrcleu nan d coa l tare . ENVIRONMENTA L ASPECTS....Pheno l i e corrosiv e t o bod y tissues . Poisonin g may occu r b y ski nabsorption , inhalafian . o r inoeation , Live r deneoe>*n e discoloratio no f aki nma v reault t Th e recommended1989/199 0 ACGI H threshol dlimi t valu e {ekm T i e irppm . The swee t odo r o f pheno l usuall y cs nb e detecte di neoncen trstio no f 0. 3 ppm , thu s providin g a goodwsrning . Test s ere bein g conducte dt o determin e whethe r squeou e phenoli c wast e solution s ca nb e detoxifie dthroughbiodegradation . T o th e bes t o f ou r knowledge , the informatio ncor.teine dherei ni s accurate . However , w e do no t assume an

y liabilit y

whateoeve r fcr the completenes s o r accurac y o f thi B report .